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Post by trevorgas on Dec 17, 2019 9:26:54 GMT
Selling assets to release cash is what the text book tells you to do and it also tells you to act before losing control of a situation. As you say, the club is dependent on the owners guaranteeing to fund the club which is why Hani Al-Qadi has to give that commitment before Grant Thornton sign off the accounts. The accounts were filed very late last year and it is highly likely that was because of Hani’s reluctance to give the required commitment. What is going to happen when the accounts are due in March 2020 ? Does Wael understand what happens when a company runs out of cash ? Think back to the interview with Geoff Twentyman when he was asked “are the family still fully committed to the club ?” and his answer was “ they were the last time I spoke to them”. We laughed when HRH came up with that sort of “I have no recollection” response but we won’t be laughing if Wael is misjudging the seriousness of the situation and Rovers do run out of cash. Far better to take positive action before things spiral out of control. The point is though Swiss they sell the asset, pay back the debt and then what? They have an asset less balance sheet and operating losses of £500,000 to £1m at least. It's not viable. My view is that professional football cannot maintain itself with the current level of cost. Something has to give and it's the wage structure. Players are hopelessly overpaid for a socially useless job (to coin a phrase from the financial sector). The report of this month showed that on average Championship club's wage bills are 11% higher than their turnover. That's not doable. So we either raise the ticket price by 50% or cut the wage bill to the point of breakeven. That is the stark choice. Totally agree the lack of a sustainable business model for lower league football is more apparent now than 20 years ago,I cannot see how League 1/2 clubs will survive purely on the goodwill of Owners who see them as a vanity project,I will be amazed if more clubs do not fail over the next 5/10 years I would also add having lead a big 4 Banks Receivership team in the early 90s recession that when a forensic investigation takes place all Businesses have two elements in common A lack of recognition of when the critical time to take action occured,losing the opportunity to save the business. Always an element of Fraud by the Owners/Direchoes to either save the business or recoup their investment.
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Post by garystash on Dec 17, 2019 10:12:53 GMT
The point is though Swiss they sell the asset, pay back the debt and then what? They have an asset less balance sheet and operating losses of £500,000 to £1m at least. It's not viable. My view is that professional football cannot maintain itself with the current level of cost. Something has to give and it's the wage structure. Players are hopelessly overpaid for a socially useless job (to coin a phrase from the financial sector). The report of this month showed that on average Championship club's wage bills are 11% higher than their turnover. That's not doable. So we either raise the ticket price by 50% or cut the wage bill to the point of breakeven. That is the stark choice. Totally agree the lack of a sustainable business model for lower league football is more apparent now than 20 years ago,I cannot see how League 1/2 clubs will survive purely on the goodwill of Owners who see them as a vanity project ,I will be amazed if more clubs do not fail over the next 5/10 years I would also add having lead a big 4 Banks Receivership team in the early 90s recession that when a forensic investigation takes place all Businesses have two elements in common A lack of recognition of when the critical time to take action occured,losing the opportunity to save the business. Always an element of Fraud by the Owners/Direchoes to either save the business or recoup their investment. And thereby opening the door to premiership 'B' teams filling up the lower leagues? It's a problem that nobody at the top is interested in solving.
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Post by Hugo the Elder on Dec 17, 2019 10:21:10 GMT
Totally agree the lack of a sustainable business model for lower league football is more apparent now than 20 years ago,I cannot see how League 1/2 clubs will survive purely on the goodwill of Owners who see them as a vanity project ,I will be amazed if more clubs do not fail over the next 5/10 years I would also add having lead a big 4 Banks Receivership team in the early 90s recession that when a forensic investigation takes place all Businesses have two elements in common A lack of recognition of when the critical time to take action occured,losing the opportunity to save the business. Always an element of Fraud by the Owners/Direchoes to either save the business or recoup their investment. And thereby opening the door to premiership 'B' teams filling up the lower leagues? It's a problem that nobody at the top is interested in solving. They have already solved it by allowing Prem B teams in lower league competitions. And we have let them.
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