EFL clubs owe £355 million | PASOTI
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EFL clubs owe £355 million

Sorry I don’t know how to do a link, but there’s an interesting article on the BBC sports web page about how to avoid another Bury style liquidation. I was staggered to read the total debt figure, which must include average loss figures (so i’ve read elsewhere) of £11 million per Championship club. The best proposal in my opinion is that all clubs should submit management accounts and a pre-season financial forecast to the EFL as currently happen so in the Bundesleague. Just one capable accountant would quickly establish each club’s viability and pick up early warning signs.

OK, it wouldn’t prevent a bloke like Bury’s owner Day buying a club for a quid with inadequate resources, but it seems to me it would start a process of the EFL imposing financial regulatory controls to prevent others going through the suffering Bury fans are enduring. What do you think?
 

Pogleswoody

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mervyn":1idt7day said:
Sorry I don’t know how to do a link, but there’s an interesting article on the BBC sports web page about how to avoid another Bury style liquidation. I was staggered to read the total debt figure, which must include average loss figures (so i’ve read elsewhere) of £11 million per Championship club. The best proposal in my opinion is that all clubs should submit management accounts and a pre-season financial forecast to the EFL as currently happen so in the Bundesleague. Just one capable accountant would quickly establish each club’s viability and pick up early warning signs.

OK, it wouldn’t prevent a bloke like Bury’s owner Day buying a club for a quid with inadequate resources, but it seems to me it would start a process of the EFL imposing financial regulatory controls to prevent others going through the suffering Bury fans are enduring. What do you think?


Yes and to deal with people like Dale you need new owners to post a Bond or similar, a significant amount of money, kept in a safe place and activated if needed to 'save' the club. Could even be returnable once the owner can prove that the debts are sorted and the club is stable.

I've got a £1 in my pocket, I've never been disqualified from running a company or being a director, never been declared bankrupt, never reneged on a bill or a contract, never been convicted of a financial crime, so, why do I not qualify to own Bury?
Cos I haven't got a wet £5 note to wipe me 'arris, that is why!! ;) Not rocket science is it!! :facepalm:
 
Just another thought to add to my OP. If you remove total current Championship club losses from the £355 million total, then the average league one and two club debt is over £1 million. In practice that must mean some clubs have no serious debt, but others have significantly more. If this were any other industry you would say that further liquidations are inevitable.
 
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I know in the National League you have to submit a budget in the summer and if you ever look like going over it they'll put you under a transfer embargo, with other potential punishments too. You are able to resubmit a budget during the season, but only once. They keep a very close eye on the finances of clubs and scrutinise how clubs are going to get the money. If any clubs do fall into administration, they face being demoted at the AGM in the summer. I don't know if the budget situation is the same in the EFL, but if it is it's not something I've heard about. If it isn't, they should be a bit embarrassed that the National League is ahead of them.
 

Pootle's Pom Pom

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mervyn":3jyl7y5i said:
Just another thought to add to my OP. If you remove total current Championship club losses from the £355 million total, then the average league one and two club debt is over £1 million. In practice that must mean some clubs have no serious debt, but others have significantly more. If this were any other industry you would say that further liquidations are inevitable.

It depends how they define 'debt'. Technically we are in debt to Simon Hallett for £5 million so account for a large proportion of the league 2 debt.

I think the difference is that between manageable debt (i.e. Argyle) and debt that can not be repaid (i.e. Bury, Bolton, us 8 years ago).