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Started By
Message
How common is bankruptcy in the big leagues?
Posted on 4/13/15 at 11:52 am
Posted on 4/13/15 at 11:52 am
Watching Parma stun Juventus and the announcers made mention of the financial troubles that have stricken Parma. This baffled me
I know many clubs operate in the red, but is anyone else this bad off?
we got about tree fiddy
quote:
Their players have not been paid all season, have had to do their own laundry, drive the team bus and go without hot water at the club.
I know many clubs operate in the red, but is anyone else this bad off?
we got about tree fiddy
3
Posted on 4/13/15 at 12:39 pm to Riseupfromtherubble
quote:
I know many clubs operate in the red, but is anyone else this bad off?
Lots operate in the red thats why FFP was put in place.
Funny bc it looks like every EPL club has turned a profit other than City and QPR for 2013/14.
Posted on 4/13/15 at 12:39 pm to Riseupfromtherubble
In short, yes it's been pretty common.
After free agency was introduced around 1995, the next 10 years saw unprecedented wild spending and debt accumulation that really took it's toll.
Parma, until the 90s had always been a mid-sized club with modest success when dairy giant Parmalat bought them and splashed cash toward making them one of the better teams in all Europe for a spell.
Parmalat then almost went under due to non-football related issues and dumped the club. Parma has been reeling under that accrued debt for the past decade.
The main theme of rich owner amassing debt then pulling out due to other business issues is a pretty common theme and the logic behind the new Financial Fair Play regulations (which is highly criticized but is designed to limit club debt).
After free agency was introduced around 1995, the next 10 years saw unprecedented wild spending and debt accumulation that really took it's toll.
Parma, until the 90s had always been a mid-sized club with modest success when dairy giant Parmalat bought them and splashed cash toward making them one of the better teams in all Europe for a spell.
Parmalat then almost went under due to non-football related issues and dumped the club. Parma has been reeling under that accrued debt for the past decade.
The main theme of rich owner amassing debt then pulling out due to other business issues is a pretty common theme and the logic behind the new Financial Fair Play regulations (which is highly criticized but is designed to limit club debt).
Posted on 4/13/15 at 12:58 pm to Riseupfromtherubble
10 pages
Posted on 4/13/15 at 1:00 pm to WarSlamEagle
I'm retiring from these threads. Y'all have fun.
Posted on 4/13/15 at 1:14 pm to wm72
quote:
The main theme of rich owner amassing debt then pulling out due to other business issues is a pretty common theme and the logic behind the new Financial Fair Play regulations (which is highly criticized but is designed to limit club debt).
I think most of us agree that FFP should not punish initial investment but when it gets to a certain point and a club is living beyond its means and making no effort to play youth academy or players from its country enough is enough.
Posted on 4/13/15 at 5:07 pm to StraightCashHomey21
quote:
I think most of us agree that FFP should not punish initial investment but when it gets to a certain point and a club is living beyond its means and making no effort to play youth academy or players from its country enough is enough.
Thats a subjective standard though. Who gets to decide what's "acceptable"?
Why can't an owner, if they have the money, spend it the way they wish?
Posted on 4/13/15 at 6:38 pm to Draconian Sanctions
Here comes the short bus dropping off DS.
Posted on 4/13/15 at 6:42 pm to EastNastySwag
So personal attacks are fine, questioning FFP isn't. Got it 
Posted on 4/13/15 at 9:32 pm to Draconian Sanctions
quote:
Why can't an owner, if they have the money, spend it the way they wish?
Because of situations exactly like Parma.
Posted on 4/13/15 at 10:52 pm to crazy4lsu
I said if the owner HAS the money
Posted on 4/13/15 at 11:04 pm to EastNastySwag
Posted on 4/13/15 at 11:07 pm to BleedPurpleGold
pathetic response
Posted on 4/14/15 at 1:16 am to BleedPurpleGold
Its like arguing with a wife or gf just going in fricking circles every time.
Posted on 4/14/15 at 2:56 am to StraightCashHomey21
Can't y'all just contain this in one thread?
I mean, the OP probably didn't know what he/she was doing. But why not just keep the FFP street fight in the other one.
I mean, the OP probably didn't know what he/she was doing. But why not just keep the FFP street fight in the other one.
Posted on 4/14/15 at 4:02 am to Draconian Sanctions
quote:
I said if the owner HAS the money
Now imagine if said owner decides to stop carrying about the club or sell it.
Club has contracts it can no longer afford and or offload books get opened up and they are fricked bc they as a business to not bring in enough income.
Bad for the the club and bad for the league.
Posted on 4/14/15 at 8:01 am to StraightCashHomey21
quote:
Now imagine if said owner decides to stop carrying about the club or sell it.
Club has contracts it can no longer afford and or offload books get opened up and they are fricked bc they as a business to not bring in enough income.
Bad for the the club and bad for the league.
Really not that hard to make a rule saying if you put more debt on the club than it can afford then you have to guarantee x amount of it via escrow or some other such less heavy handed means.
The main point of the criticism of FFP is that it goes way beyond it's stated aims.
Posted on 4/14/15 at 8:02 am to StraightCashHomey21
quote:
Its like arguing with a wife or gf just going in fricking circles every time.
Actually I should be the one saying that considering the personal attacks and deflections off the point.
Posted on 4/14/15 at 8:19 am to Draconian Sanctions
quote:
Really not that hard to make a rule saying if you put more debt on the club than it can afford then you have to guarantee x amount of it via escrow or some other such less heavy handed means.
The main point of the criticism of FFP is that it goes way beyond it's stated aims.
Even then you need the club to service its debt while making a profit. City even if they make a profit this year won't be enough to service their massive spending. Instead the owner just covers the loss but eventually that will end and the club is fricked.
Posted on 4/14/15 at 8:30 am to StraightCashHomey21
quote:
Instead the owner just covers the loss but eventually that will end and the club is fricked.
As I understand it there was, in the past, a lack of transparency with the books at some clubs. Mike Ashley even said he had no idea how much debt Newcastle had on it until he had already bought the team.
All you have to do to solve this is to make financial transparency rules and potentially hold owners liable in (the European version of) civil court to protect the clubs. Stifling investment is, again, way too heavy handed.
Nobody wants to see clubs go under but there are many less restrictive means to do that, which only fuels the perception that (rightly or wrongly) FFP is just as much about protecting the big clubs from competition as it is anything else. And don't give me this everybody voted for it stuff without linking me specifically who voted for it, against it, and who weren't allowed to vote on it at all.
This post was edited on 4/14/15 at 8:32 am
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