Football clubs set for reality check on pay

http://www.ft.com/cms/s/0/a31752aa-a710-11df-90e5-00144feabdc0.html

As the new Premiership season kicks off in England on Saturday, more lower-league clubs find themselves battling winding-up petitions. This week Sheffield Wednesday, Cardiff City and Southend United made appearances in the High Court for that reason. Her Majesty’s Revenue & Customs is no longer happy to overlook unpaid taxes.

New quarterly checks on team finances are around the corner, however.

As witnessed at Liverpool, whose heavily indebted US owners have disappointed fans, people are ever more cautious of potential buyers who may lack the financial backing and wherewithal they initially boast.

“Debt is not inherently bad,” says Ms Clark. “Debt associated with building a stadium is usually sensible. Debt to purchase a player is perhaps a less sensible business practice.”

But she is unlikely to be heeded. Much of the joy related to clubs’ triumphs over the Revenue have to do with one fact: player trading bans can then be lifted, and clubs can get spending again.

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About ameyabadwe
Diehard Chelsea FC fan! Indian living in Thailand!

One Response to Football clubs set for reality check on pay

  1. harrythehandyman says:

    about time , to pay the players less and they will stay in business , nice blog

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