Bolton £163 million in debt (!)

[shaolinpunk]

http://www.theboltonnews.co.uk/spor...Bolton_Wanderers__debt_reaches_record_levels/

Blimey, what on earth are they doing with their money to have gone a further £50m in debt over the past year? Huge debts, struggling in the league... I smell a whiff of administration, especially if they go down

 

[Vegas Seagull]

Disgraceful numbers, clearly overspent trying to stay up without relegation clauses... And Gartside seems to shrug his shoulders at it

 

[Seagull on the wing]

Think quite a few clubs will be hit with Fair Play rules soon....thank god for Paul Barber eh!

 

[Stumpy Tim]

This highlights the issues the Bosman ruling has brought to football. Wages have shot up, but also clubs are having to tie players to longer contracts so they can't leave for free. Relegation to the championship then massively reduces revenue and the debt gets bigger.

I hope Bloom and Barber are careful of this if we get promoted. I would rather suffer relegation than gamble on staying up.

 

[KZNSeagull]

There's one club with a transfer embargo next December then.

 

[Dick Knights Mumm]

This highlights the issues the Bosman ruling has brought to football.

You can't blame Bosman for the lack of relegation clauses. These should be standard in all contracts.

 

[Dick Knights Mumm]

Football is an industry hard to like though. I heard Pompey are still paying Kitson £10k per week. Per WEEK!

 

[shaolinpunk]

There's one club with a transfer embargo next December then.

If they really want to make an impact with the FFP punishments then it should be the summer window, where teams like to do most of their business

 

[Stumpy Tim]

You can't blame Bosman for the lack of relegation clauses. These should be standard in all contracts.

Easier said than done I would suggest

 

[drew]

This highlights the issues the Bosman ruling has brought to football. Wages have shot up, but also clubs are having to tie players to longer contracts so they can't leave for free. Relegation to the championship then massively reduces revenue and the debt gets bigger.

I hope Bloom and Barber are careful of this if we get promoted. I would rather suffer relegation than gamble on staying up.

Longer contracts! As far as I can see, most contracts are 2, 3 or 4 years. No different to years prior to Bosman.

As for Gartside, Bolton's predicament qualifies his previous suggestions that they should abolish relegation from the premier league!

 

[KZNSeagull]

If they really want to make an impact with the FFP punishments then it should be the summer window, where teams like to do most of their business

Well it will take effect from next December until such time as they can prove that they are no longer making a loss outside of the rules. So in this case, they have to turn a 55m loss into a 6m loss and then 5m the following season. So, it may be in effect for some time!

 

[Superphil]

There's one club with a transfer embargo next December then.

Joining Blackburn then?

 

[portslade seagull]

Think quite a few clubs will be hit with Fair Play rules soon....thank god for Paul Barber eh!

I'd like to share your optimism but think it will be a damp squib. As have said before the 1st court challenge and it will either collapse or be watered down

 

[KZNSeagull]

Joining Blackburn then?

Looks like it, yes. A tidy 36.5m loss for them last season.

 

[Beach Hut]

As for Gartside, Bolton's predicament qualifies his previous suggestions that they should abolish relegation from the premier league!

Thanks you remembering that which is entirely my thoughts as to Gartsides sinister request.

 

[narly101]

I'd like to share your optimism but think it will be a damp squib. As have said before the 1st court challenge and it will either collapse or be watered down

All the clubs agreed to the FFP though - I sincerely hope this will be the beginning of the Football league shake up.

 

[Westdene Seagull]

All the clubs agreed to the FFP though - I sincerely hope this will be the beginning of the Football league shake up.

I suggest you read DKs book to see how far the League will go to avoid ending up in court ....... in the case of FFP, the little clubs will get hit hard and the "favourites" will get a slap on the wrist.

 

[Gwylan]

Well it will take effect from next December until such time as they can prove that they are no longer making a loss outside of the rules. So in this case, they have to turn a 55m loss into a 6m loss and then 5m the following season. So, it may be in effect for some time!

I don't see how they can begin to do that. The interest on a £163m debt will be more than £6m so, in effect, they'd have to turn a £50m loss into an operating profit, even if they lopped £10m off their wage bill, they'd still be making a heavy loss.

What I don't understand is how the banks let them build up a massive loss and continue it - most small businesses suffering heavy losses for year after year would have the plug pulled - how do clubs like Bolton get away with it?

 

[Superphil]

What I don't understand is how the banks let them build up a massive loss and continue it - most small businesses suffering heavy losses for year after year would have the plug pulled - how do clubs like Bolton get away with it?

Maybe the Barcelona (€578m) and Real Madrid (€590m) model just on a slightly lesser scale.

 

[Driver8]

I don't see how they can begin to do that. The interest on a £163m debt will be more than £6m so, in effect, they'd have to turn a £50m loss into an operating profit, even if they lopped £10m off their wage bill, they'd still be making a heavy loss.

What I don't understand is how the banks let them build up a massive loss and continue it - most small businesses suffering heavy losses for year after year would have the plug pulled - how do clubs like Bolton get away with it?

It may not be the banks doing the lending.

I think any football club would struggle to get bank financing at the moment.