Bury fan in peace.

[Legohead]

Good debate on 5Live Your Call programme this morning about football finances in the EFL... with the football finance expert from Deloitte saying the link between big budgets and successes isn’t very strong in the EFL.

Yes it's interesting. I had to switch off though as a Plymouth fan rang in.

 

[Red Devon]

Yes it's interesting. I had to switch off though as a Plymouth fan rang in.

What struck me was how the majority of callers from clubs all over the country do not want oil tycoon owners but local people running a sustainable model being built from there own academy’s....I wonder where they got that idea from

 

[Oldsmobile-88]

Good debate on 5Live Your Call programme this morning about football finances in the EFL... with the football finance expert from Deloitte saying the link between big budgets and successes isn’t very strong in the EFL.

I heard the talk about football finances on R5L at 0600 this morning..Some of the debt & money being pumped into the Championship is mind blowing.
The Whelan family before they sold were putting in £1m a month.Preston lose £112k a week.
The parachute payments distort the Championship & has a knock on effect all the way down.

 

[Legohead]

Why do clubs get parachute payments anyway? If a team isn't good enough to stay in the Prem then that's because of poor management / recruitment etc. Why should they get rewarded for 2 years for failure and get an advantage over other clubs?

 

[geoffwp]

Why do clubs get parachute payments anyway? If a team isn't good enough to stay in the Prem then that's because of poor management / recruitment etc. Why should they get rewarded for 2 years for failure and get an advantage over other clubs?

I'm assuming because they will have player contracts based on the norm for premiership clubs, fuelled by the grossly inflated amounts of money that pours into those clubs. I've no idea what the difference is between the average prem wage and championship but I'm assuming it's a very large difference. I'd imagine most clubs relegated from the prem would be bankrupt in two years if they had to continue paying prem wages without that money. It all seems to lead back to the trough that the prem clubs all shove their snouts in.

 

[Legohead]

I get that they have large contracts to honour and if they get relegated that makes it more difficult but that's their fault and poor management. They shouldn't be able to rely on the parachute payments. Maybe clubs would think twice about overspending in the Prem if the parachute payments stopped?

 

[Red Devon]

I heard the talk about football finances on R5L at 0600 this morning..Some of the debt & money being pumped into the Championship is mind blowing.
The Whelan family before they sold were putting in £1m a month.Preston lose £112k a week.
The parachute payments distort the Championship & has a knock on effect all the way down.

Truly mind blowing the Deloitte expert saying you will have to be a billionaire just to sustain Championship football over the next five years...looks like the EFL are going to have their work cut out.

 

[geoffwp]

I guess more likely is a lot more clubs would go to the wall if parachute payments stopped, given the current situation. That may be a good or bad thing depending on your point of view.

 

[Oldsmobile-88]

I guess more likely is a lot more clubs would go to the wall if parachute payments stopped, given the current situation. That may be a good or bad thing depending on your point of view.

That’s a conundrum which will be hard to solve.

I have said it before,if Pompey had gone bust as they should have given their level of debt at that time(circa £130m iirc) A club of their stature would have made a lot more people sit up & take notice,then perhaps the EFL would not be in it’s current predicament regarding governance & sustainability.
The same could be said about Leeds.
Bury as sad as it is with their history.It was all forgotten about after a few days.

The PL also give out consolidation payments to all EFL clubs(someone posted it was around £450k to clubs in our division)very nice too,but not a great financial business model for the future of clubs if it stops.

 

[Billy The Fish]

I guess more likely is a lot more clubs would go to the wall if parachute payments stopped, given the current situation. That may be a good or bad thing depending on your point of view.

So clubs would go into free fall without parachute payments. I get it now.