Forget Blackburn's woes, what about Bolton

[robbie c]

From the Independent today, Bolton's debt is stated at £93m compared to Blackburn's £21m.
Despite parachute payments, is such debt sustainable in the Championship? What are the odds on two administrations next year if Bolton don't beat Stoke?

James Lawton: Premier League is to blame for owners acting like headless chickens - News Comment - Football - The Independent

 

[n1 gull]

Next years Championship will have a few f*cked teams, if Birmingham don't go up they're stuffed. Add Bolton and Blackburn.
Wolves will be ok and strong. Not sure of the finances of the teams coming up.
If West Ham get promoted, I think it will be a weak league next season

 

[Dave the OAP]

Next years Championship will have a few f*cked teams, if Birmingham don't go up they're stuffed. Add Bolton and Blackburn.
Wolves will be ok and strong. Not sure of the finances of the teams coming up.
If West Ham get promoted, I think it will be a weak league next season

wolves have just spent a mint on the new extention to their stand behind the goal.

 

[Gwylan]

Don't know why people think Blackburn are stuffed.

According to that Indy article, their debt is £21m (might be even less than that as according to David Conn in today's Guardian, the Venky's have paid £25m since taking over to clear debts), they'll probably sell a couple more players to reduce costs and they have batch of parachute payments coming in. So, no debt; no new ground to pay for; crowds of about 20,000 and a team where most will have premiership experience - better off than nearly every team in the Championship. Bolton are in serious trouble though.

That's a terrible article by the Indy. It says that situations like Blackburn's wouldn't happen in the US but doesn't say why. As far as I know, there's nothing that would prevent the Venky's taking over a US club if it wanted to.

 

[Curious Orange]

Bolton have £93 million debt? No wonder that tw@ Phil Gartside keeps on proposing scrapping relegation from the Premier League!

 

[Postman Pat]

Don't know why people think Blackburn are stuffed.

According to that Indy article, their debt is £21m (might be even less than that as according to David Conn in today's Guardian, the Venky's have paid £25m since taking over to clear debts), they'll probably sell a couple more players to reduce costs and they have batch of parachute payments coming in. So, no debt; no new ground to pay for; crowds of about 20,000 and a team where most will have premiership experience - better off than nearly every team in the Championship. Bolton are in serious trouble though.

According to the Blackburn thread they have sold less than 3000 season tickets so far, and are trying to flog off corporate boxes, I think your 20k estimate may be a little high!

The owners there know nothing about running a football club, they wont invest any money, so could be profitable but be very weak on the pitch. I don't think everything is rosy at Blackburn.

 

[Gwylan]

According to the Blackburn thread they have sold less than 3000 season tickets so far, and are trying to flog off corporate boxes, I think your 20k estimate may be a little high!

The owners there know nothing about running a football club, they wont invest any money, so could be profitable but be very weak on the pitch. I don't think everything is rosy at Blackburn.

Yes, I'm sure there will be a fall in attendance - it's currently 22k I believe so I was allowing for a small fall but I bet there'll still be a hard core of support. I'm sure there will be other falls in income (exec boxes, sponsorship etc) but the point I was making is that the club is financially stable and could withstand some loss. There are plenty of clubs in the Championship in more danger of going bust than Blackburn.

 

[AMEXican Wave]

These relegated teams get 16million in parachute payments in year 1 ( followed by 32 million over the next 3 years ).

The 16million equates to 32,000 people paying 500 quid each for a season ticket.

That is a massive advantage, and really they only have themselves to blame if they gamble on long contracts for players, without relegation clauses.

 

[Gwylan]

That is a massive advantage, and really they only have themselves to blame if they gamble on long contracts for players, without relegation clauses.

Again, according to Conn, Blackburn does have relegation clauses. Still think that financially they'll be all right (but would rather be a Brighton fan than a Blackburn one).

 

[Cantona's Flying Dropkick]

Bolton have £93 million debt? No wonder that tw@ Phil Gartside keeps on proposing scrapping relegation from the Premier League!

Hope they get relegated, then.

 

[Basil Fawlty]

Yes, I'm sure there will be a fall in attendance - it's currently 22k I believe so I was allowing for a small fall but I bet there'll still be a hard core of support. I'm sure there will be other falls in income (exec boxes, sponsorship etc) but the point I was making is that the club is financially stable and could withstand some loss. There are plenty of clubs in the Championship in more danger of going bust than Blackburn.

I think you SHOULD read the whole Blackburn Fans thread, because they're in seriously trouble!

 

[APACHE]

Some of the info coming from Blackburn fans is saying that the owners have not really paid off the debt with their own money, it's come from the sale of players. Also I'd be a bit worried if I heard that the club's bank account had now been moved to a bank in India and the owners showed no sign of visiting at any time the club they own.

 

[Gwylan]

Some of the info coming from Blackburn fans is saying that the owners have not really paid off the debt with their own money, it's come from the sale of players.

You see that's what seriously wrong with the attitude of Blackburn fans. It's a club living within in its means and the fans are moaning about it. It's why the penalties for administration should be much tougher. Blackburn are doing what clubs should be doing: selling players to raise money - not going more and more into debt.

I'm not supporting the way the club is run - they've made terrible mistakes - but at least it appears to be debt-free and in no danger of financial collapse.

 

[Peever]

Don't know why people think Blackburn are stuffed.

According to that Indy article, their debt is £21m (might be even less than that as according to David Conn in today's Guardian, the Venky's have paid £25m since taking over to clear debts), they'll probably sell a couple more players to reduce costs and they have batch of parachute payments coming in. So, no debt; no new ground to pay for; crowds of about 20,000 and a team where most will have premiership experience - better off than nearly every team in the Championship. Bolton are in serious trouble though.

That's a terrible article by the Indy. It says that situations like Blackburn's wouldn't happen in the US but doesn't say why. As far as I know, there's nothing that would prevent the Venky's taking over a US club if it wanted to.

Salary caps and revenue sharing my friend. Wages are kept in check (excluding baseball) and it allows most teams to stay competative. Baseball is slowly going downhill as well as its the same 6-8 teams every year on average at the top. NFL, NHL, MLS are set up (in theory) that any team could come out and win it each season with the right players brought in. So for someone to come in and load the club with debt is not really possible unless they build a brand new stadium....

 

[Gwylan]

Salary caps and revenue sharing my friend. Wages are kept in check (excluding baseball) and it allows most teams to stay competative. Baseball is slowly going downhill as well as its the same 6-8 teams every year on average at the top. NFL, NHL, MLS are set up (in theory) that any team could come out and win it each season with the right players brought in. So for someone to come in and load the club with debt is not really possible unless they build a brand new stadium....

But Blackburn isn't loaded with debt - that's the point I keep making. Still don't see what would stop Venky's doing the same in the US

 

[clapham_gull]

Salary caps and revenue sharing my friend....

Not a new concept at all over here at all.

It's just that we decided to get rid of it.

I have no idea of their current position but Fulham were up there according to reports. Quote as number 3 in the Premier League last year or before.

I'd imagine that is a private loan to the owner though. These things are quite obviously not at straightforward as the figures quoted.

The time to worry (I'd imagine) is when literally there are millions more going out than coming in.

 

[Triggaaar]

Bolton have £93 million debt? No wonder that tw@ Phil Gartside keeps on proposing scrapping relegation from the Premier League!

Do you think he'll be proposing it after Saturday?