There was a link posted on here a few months back to an article explaining that it wasn't clear that their owner actually had that much money to cover the debt.
I'd be surprised if many clubs are any different really. Chlesea last week posted a profit but mainly because Roman had written off the "debt" owed to his company
It shouldn't be allowed - I've no problem with an owner putting the money in, but it's the fact it's lent that means one change of heart and the club dies.
Not too surprised, read that allegedly both Fulham & Bolton had debts of ~ 120 million a couple of years ago. M'boro don't have external debt and the debt the do have is allegedly in the region of 25 million.
Can't realistically see how Bolton, if the figure mentioned is correct, can ever pay this sum back. On a best case scenario of promotion, they would have to spend most of their income on players to retain their place in the EPL. Therefore the sustained profits (over a number of seasons) required to pay the money back is unlikely.
The dangers of debt are clear for all to see.
Director's loans are necessary sometimes to keep some clubs afloat. Loans from external sources are also necessary at times, for say, ground improvements. But the rules regarding loans should be tightened up, so that say the FL / FA need to approve loans first, and only do so when there is a clear & real need for them to do so.
There was a link posted on here a few months back to an article explaining that it wasn't clear that their owner actually had that much money to cover the debt.
Yeah, the anomaly is that the owner has a net worth of £60m yet has managed to lend his club £125m. That suggests that he has underwritten it somehow. It also means (assuming the figures are true) that it could cost him everything ans Bolton will still end up in Administration.
On reflection maybe relegation from the Premier League in 2007 was a blessing. I hate to think where we'd now be if we'd allowed Pardew lose with the family silver in the summer of 2008 in the Premier League. Imagine what shit he'd have signed then?
Was pondering that exact thought earlier KHA. I think we could of topped that figure by now, and I would imagine we would of been equally if not more attractive to the international football circus of agents and players, being located in the capital. Not sure I am ever looking forward to us being in the Premiership ever again TBH.
reading an article about Palarse in the sub standard the other night and one of their owners said a year in the PL was worth 100m plus parachute payments. Is this true and if so what have Bolton done with 600m?
Yeah, the anomaly is that the owner has a net worth of £60m yet has managed to lend his club £125m. That suggests that he has underwritten it somehow. It also means (assuming the figures are true) that it could cost him everything ans Bolton will still end up in Administration.
On reflection maybe relegation from the Premier League in 2007 was a blessing. I hate to think where we'd now be if we'd allowed Pardew lose with the family silver in the summer of 2008 in the Premier League. Imagine what shit he'd have signed then?
From memory (I cant find the link now to verify) it is Eddie Davies's company that is owed the money, the company is listed offshore and thus like our own holding company the identity (or even existance) of other stockholders is not known.
reading an article about Palarse in the sub standard the other night and one of their owners said a year in the PL was worth 100m plus parachute payments. Is this true and if so what have Bolton done with 600m?
Spunked it on wages mainly, transfer fees & agents fees like everyone else.
Comments
Not too surprised, read that allegedly both Fulham & Bolton had debts of ~ 120 million a couple of years ago. M'boro don't have external debt and the debt the do have is allegedly in the region of 25 million.
Can't realistically see how Bolton, if the figure mentioned is correct, can ever pay this sum back. On a best case scenario of promotion, they would have to spend most of their income on players to retain their place in the EPL. Therefore the sustained profits (over a number of seasons) required to pay the money back is unlikely.
The dangers of debt are clear for all to see.
Director's loans are necessary sometimes to keep some clubs afloat. Loans from external sources are also necessary at times, for say, ground improvements. But the rules regarding loans should be tightened up, so that say the FL / FA need to approve loans first, and only do so when there is a clear & real need for them to do so.
On reflection maybe relegation from the Premier League in 2007 was a blessing. I hate to think where we'd now be if we'd allowed Pardew lose with the family silver in the summer of 2008 in the Premier League. Imagine what shit he'd have signed then?