As Iâm sure all of you are full aware, the global financial crisis is affecting everyone from large international businesses to small households. But of recent times, weâve seen a few football clubs flirt with the dreaded âAâ word â and some even being sucked into the downward spiral it brings. The latest club to go into administration were Rangers a few weeks ago. This is the same Rangers Football Club that have battled with Glaswegian rivals Celtic for the mantlepiece of Scottish Football, whilst being a large European pull all round. Yet they seemingly ran out of cash. Iâm no economist, but how difficult can it be to spend within youâre means? Teams like Leeds United followed this route about ten years ago, and have suffered since. Pompey bit the bullet a few seasons back, by spending recklessly and paying wages to the average Joe (mainly down to Redknapp â he did the same at Southampton. Watch out Yiddoâs!). Surely to buy a football club you need to have some form of financial acumen, and it goes without saying there must be some intellect to have fathomed that sort of money in the first place! Yet, Rangers were on the brink of liquidation. That means no more Rangers. Ever. Mike Ashley - Finally doing some good.Iâm bringing this up, because Newcastle United recently released their financial accounts for the previous year, and managed a healthy profit of £32.6 million post player-trading. Its unique in that a club can register a profit in any sense, but a significant one is even more commendable. Now I donât particularly take to Mike Ashley but he has my club on a firm financial footing. But surely if some of the teams continue to do as they please, the inevitable will occur? Take Liverpool for example â Large payments for supposed big name players. Yet, unless Iâm missing something, this has yielded very little success (No, not the Carling Cup). Of course, I may be sitting here eating my words in 12 months, with Liverpool finishing in a healthy position coupled with European glory â but unless that does indeed happen, then the accounts sheet will always remain red. And that doesnât bode well for the longevity of the club. I know that the âFair Playâ rules are to be implemented soon, which are supposed to even out the odds and ensure all clubs spend within their means. But what does this mean? If it is what it says on the tin, then the clubs who record an end of year financial loss, wouldnât be able to add to the squad without selling, essentially spending their profits. That includes the likes of Man City, Man United and Chelsea. But what is stopping them from going out and spending £20 million on some random European centre forward, because no one will stop them, or they have enough deadwood in reserve that still will collect a bit of dosh. Further still, they will find loopholes in the fair-play rules, such as Man City using their sponsor Etihad Airways to inflate their input into the club. But a little research finds out that the owner of the middle-eastern airline company is the half-brother of the Man City owner. So in effect, Man Cityâs spending will always be in a league of its own. But the likes of West Bromwich Albion etc who record a profit on their own merit, would only be able to spend the little profit they may have gained plus any incomings from player departures. No Sheikh. No sugar-daddy. Just pure turnover. Level playing ground? Quite frankly, no. What are your views on the financial running of football clubs? Visit my blog - http://the-beautiful-game.org/ Comment and follow's welcome!
Man Utd are not affected by it in the slightest, we make a high profit every year even after all payments for our loans has been taken out. In fact it only Arsenal and United that are currently running at any sort of decent profit levels