POMPEY - what a mess!

[Publius Ovidius]

Pay local business within 30 days when they bill you ?
Thats a fairly standard business practice.

Not necessarily, I know companies who pay on 90 days.

it is very common practice to hold out creditors until the very last minute...Even Gordon Brown brought it up in Parliament whereby local authorities HAD to pay on 30 days at the latest....doesn't happen. You try getting bills paid by the Local Authorities.

most Finance Directors use the maxim...rather in my account, when it comes to cash.

Football clubs are no more different to any other business apart from the fact that a) they are in the local eye and b) they deal in bigger obscene numbers

 

[Pavilionaire]

Busty Bertha, Horton Industrial Estate Massage Parlour: £85

 

[Silent Bob]

They should have been kicked out of the cup months ago.

 

[Publius Ovidius]

They should have been kicked out of the cup months ago.

why?


man United are £700million in Debt.........Pompey are reporting £120 million

 

[skipper734]

Similarly then, they also owe King Edward VI School an eye-watering £41,714. Bet that punched a hole in their budget.
So you have underfunded schools trying to bridge the gap by hiring out their facilities, and then you get Pompey coming along and totally ripping them off.

Good effort.

Err. No not underfunded. Jnr. Attends, ( when he's in the country) £12000 a year.
Bloody hell in a roundabout way I am sponsoring Pompey. I knew they used the playing fields because they get a bit hacked off when he wanders around in the stripes, so do his classmates.
I also wondered why they have to come to Southampton to train, probably it's closer to where their players live as they wouldn't want to live in Portsmouth.

 

[Easy 10]

Not necessarily, I know companies who pay on 90 days.

it is very common practice to hold out creditors until the very last minute...Even Gordon Brown brought it up in Parliament whereby local authorities HAD to pay on 30 days at the latest....doesn't happen. You try getting bills paid by the Local Authorities.

most Finance Directors use the maxim...rather in my account, when it comes to cash.

Football clubs are no more different to any other business apart from the fact that a) they are in the local eye and b) they deal in bigger obscene numbers

This is true, but its hardly ethical and doesn't make it "right" just because lots of other businesses do it. I just find it fairly revolting that a football club can spend millions upon millions assembling a squad of players they patently can't afford, who are being paid more in a week than some people earn in five years, and in the process still see fit to stiff HUNDREDS of local businesses out of the money they are owed.

why?


man United are £700million in Debt.........Pompey are reporting £120 million

Man Utd have the wherewithal to service their debt.

 

[Easy 10]

Err. No not underfunded. Jnr. Attends, ( when he's in the country) £12000 a year.

OK, wasn't aware that was a private school so perhaps not underfunded in that case then.

But there are several other schools on Pompeys debtors list, as well as various (publically funded) local authorities who could probably have done without having their particular debt written off.

 

[Pavilionaire]

INSOLVENT = The inability to pay creditors as and when they fall due.

Ergo Man Utd solvent, Portsmouth insolvent.

 

[Publius Ovidius]

INSOLVENT = The inability to pay creditors as and when they fall due.

Ergo Man Utd solvent, Portsmouth insolvent.

....based on the ability of the directors to keep the business financed!!!!

at the moment, the Glaziers ( and Abramovitch) cover the debts, Pompey had an owner who was, he then left and they had a succession of owners who said they could and ended up they couldn't

that is the difference.

Football club finance is a dark art!

 

[Silent Bob]

why?

Because they're wankers.

 

[34064 Fighter Command]

How the hell can any finance director allow a tax debt of £ 16.5 M to go unaddressed.

Monumental mismanagement by every Club Director and Gaydamak must have been aware that this had to be paid, so why do nothing about it? I think we were served a winding up notice on a bill of only around £ 350 K before Belloti, Archer and Stanley took over, but at least we managed to beg, steal or borrow the money to pay it.

 

[Easy 10]

....based on the ability of the directors to keep the business financed!!!!

at the moment, the Glaziers ( and Abramovitch) cover the debts, Pompey had an owner who was, he then left and they had a succession of owners who said they could and ended up they couldn't

that is the difference.

Football club finance is a dark art!

So you're saying that Pompey wern't reckless, they were just a bit unlucky with how it all turned out ?

 

[Pavilionaire]

....based on the ability of the directors to keep the business financed!!!!

at the moment, the Glaziers ( and Abramovitch) cover the debts, Pompey had an owner who was, he then left and they had a succession of owners who said they could and ended up they couldn't

that is the difference.

Football club finance is a dark art!

Owners transfer money to the club, the club then has the money to spend but owes it back to the chairman. If the chairman doesn't need it back quickly then the club IS managing to pay its way.

It's all about the time period of repayment and the ability to service the debt. If every chairman / investor who was owed money demanded it all back inside 12 months loads of clubs would go out of business.

 

[Gwylan]

It's all about the time period of repayment and the ability to service the debt. If every chairman / investor who was owed money demanded it all back inside 12 months loads of clubs would go out of business.

Would any club NOT go out of business in that scenario?

 

[34064 Fighter Command]

The Ministry of Defence are owed £ 626.92 .

What on earth do you need them to supply to play in the Premier League, or do they use Matelots as matchday stewards ?

 

[Pavilionaire]

Would any club NOT go out of business in that scenario?

Probably most of them. Depends on how much the assets would fetch. In this country a lot more clubs own their stadia and training facilities than, say, sports franchises in the USA who rent / lease from what is effectively the local authority.

 

[countrygull]

It all boils down to weak management allowing a simply bonkers wage bill to increase massively year on year: so that this half year it's £39m! Peter Storrie: how the hell did he survive through all those years?

 

[Tyrone Biggums]

How the hell can any finance director allow a tax debt of £ 16.5 M to go unaddressed.

This is where a warning flag system could be installed within all clubs running procedures to ensure it doesn't spiral out of control.

As soon as a club hits a certain amount of money owed in tax, an independent body who reports to the relevant football bodies is permitted to come in and look over the clubs books.

If its apparent to them that the club is being mismanaged then the club could be barred from making any more signings until a certain amount of the clubs debts had been met.

 

[Easy 10]

This is where a warning flag system could be installed within all clubs running procedures to ensure it doesn't spiral out of control.

As soon as a club hits a certain amount of money owed in tax, an independent body who reports to the relevant football bodies is permitted to come in and look over the clubs books.

If its apparent to them that the club is being mismanaged then the club could be barred from making any more signings until a certain amount of the clubs debts had been met.

For christs sake. This absolutely STINKS of rank good sense.
Therefore, it'll never happen.

 

[Tyrone Biggums]

For christs sake. This absolutely STINKS of rank good sense.
Therefore, it'll never happen.

Yeah you're probably right.

Wish I could get back the 2 minutes of my life i spent typing it up.