Generic clubs in financial crisis Thread

[Sutekh]

Sheffield Wednesday going down a road that all sounds very familiar to us.....................

https://www.bbc.co.uk/sport/football/ar ... 4q31yl0lvo

Sheffield Wednesday have failed to pay their players' wages for March due to cashflow problems suffered by owner Dejphon Chansiri.

The club said it was a "temporary issue" due to debts owed to the 56-year-old Thai businessman, whose family control the Thai Union Group, the world's largest producer of canned tuna.

Wednesday are 12th in the Championship - five points outside the play-off places - and face Hull City at home on Saturday.

"Sheffield Wednesday can confirm a temporary issue with the payment of player salaries for the month of March," said a club statement.

"This has occurred as a result of significant sums of money owed to the chairman's businesses which has in turn impacted on the club's immediate cashflow.

"The chairman is working hard to resolve this situation at the earliest possible opportunity and in the meantime thanks everyone for their patience and understanding."

Chansiri headed up a Thai consortium which bought Wednesday from Milan Mandaric in January 2015, but his time in charge of the club has seen a number of financial challenges.

In July 2019, Wednesday sold their Hillsborough stadium to Chansiri for about £60m in ensure they did not breach spending rules.

Then in October 2023, Chansiri asked fans to raise £2m to help the club pay an outstanding debt to HM Revenue and Customs (HMRC) and cover wages.

Last November, the Owls were placed under a registration embargo by the EFL over amounts owed to HMRC.

Chansiri's stewardship of the club has been criticised by fans, who have protested at matches this season, while his relationship with manager Danny Rohl has become strained.

He is a proper loon - at least our owner saves us extra embarrassment by not opening his mouth.

Paid at the 11th hour.

Chansiri impressed by Reading’s season though

and Wednesday fans are worrying as a result

[Winston Biscuit]

DAZN pulling out of its 5 year contract as broadcaster of Ligue 1, even though it's in the first year. Reportedly leaving various French clubs in the sh*t.

French senator Laurent Lafon told the Financial Times that Ligue de Football Professionnel, which operates the top two tiers of football, was on a “cliff edge” with smaller clubs at risk of going bust because of falling broadcast revenues. Some league executives fear DAZN will not pay up the remaining €140mn it owes for this season.

“It’s going to be a very, very difficult road ahead of the league,” Lafon said. “There are going to be few alternatives for a broadcast deal after DAZN

Heard French football journalist Phillipe Auclair say this week 'there is a judgement day on the way for French football, and its not going to be pretty'

[Sutekh]

DAZN pulling out of its 5 year contract as broadcaster of Ligue 1, even though it's in the first year. Reportedly leaving various French clubs in the sh*t.

French senator Laurent Lafon told the Financial Times that Ligue de Football Professionnel, which operates the top two tiers of football, was on a “cliff edge” with smaller clubs at risk of going bust because of falling broadcast revenues. Some league executives fear DAZN will not pay up the remaining €140mn it owes for this season.

“It’s going to be a very, very difficult road ahead of the league,” Lafon said. “There are going to be few alternatives for a broadcast deal after DAZN

Heard French football journalist Phillipe Auclair say this week 'there is a judgement day on the way for French football, and its not going to be pretty'

Ligue 1 supposedly the 5th biggest in terms of club revenue but take away PSG and where does that put it?

[Sutekh]

Oxford presumably with problems now. Currently embargoed for breaching

Regulation 16.11 Interim Accounts & Regulation 16.16 Future Financial Information

[Mr Angry]

Oxford presumably with problems now. Currently embargoed for breaching

Regulation 16.11 Interim Accounts & Regulation 16.16 Future Financial Information

On the local TV their Chairman is a regular banging on about their proposed new 16,000 seater stadium, and the impact it will have in making Oxford a long term Championship side with the ambition to play regularly in the Premier League........

[Winston Biscuit]

Was listening to a thing on Barcelona earlier and some journo said they were on track to break UEFA's PSR (again) at the end of this season.

[Winston Biscuit]

Leicester referred to a PL commission for suspected breaking of PSR

PSR allowed them an £83m loss over the rolling 3 year period, but they have reported a £201.6m loss

[WestYorksRoyal]

Leicester referred to a PL commission for suspected breaking of PSR

PSR allowed them an £83m loss over the rolling 3 year period, but they have reported a £201.6m loss

Reading about this, they could be in serious trouble. Can expect the EFL to give them the embargo treatment and even limit contract offers etc., but the big question is whether they can be deducted points in the Championship when it's the PL prosecuting.

If they can, it will be 12 points standard deduction but instead of mitigations lowering it, it will be aggravations making it worse given all the legal wranglings they've been doing. So they could be looking at 15 - 18, at which point L1 becomes a real possibility.

[Sutekh]

Leicester referred to a PL commission for suspected breaking of PSR

PSR allowed them an £83m loss over the rolling 3 year period, but they have reported a £201.6m loss

Reading about this, they could be in serious trouble. Can expect the EFL to give them the embargo treatment and even limit contract offers etc., but the big question is whether they can be deducted points in the Championship when it's the PL prosecuting.

If they can, it will be 12 points standard deduction but instead of mitigations lowering it, it will be aggravations making it worse given all the legal wranglings they've been doing. So they could be looking at 15 - 18, at which point L1 becomes a real possibility.

I presume Leicester have reported a £201.6m loss in just 1 year as 3 years * £83m = £249m?

And when does the PL season for them run to now?

[Winston Biscuit]

Leicester referred to a PL commission for suspected breaking of PSR

PSR allowed them an £83m loss over the rolling 3 year period, but they have reported a £201.6m loss

Reading about this, they could be in serious trouble. Can expect the EFL to give them the embargo treatment and even limit contract offers etc., but the big question is whether they can be deducted points in the Championship when it's the PL prosecuting.

If they can, it will be 12 points standard deduction but instead of mitigations lowering it, it will be aggravations making it worse given all the legal wranglings they've been doing. So they could be looking at 15 - 18, at which point L1 becomes a real possibility.

I presume Leicester have reported a £201.6m loss in just 1 year as 3 years * £83m = £249m?

And when does the PL season for them run to now?

£83m was the total for the 3 years and £201.6m was what they reported for that period

[Sutekh]

Reading about this, they could be in serious trouble. Can expect the EFL to give them the embargo treatment and even limit contract offers etc., but the big question is whether they can be deducted points in the Championship when it's the PL prosecuting.

If they can, it will be 12 points standard deduction but instead of mitigations lowering it, it will be aggravations making it worse given all the legal wranglings they've been doing. So they could be looking at 15 - 18, at which point L1 becomes a real possibility.

I presume Leicester have reported a £201.6m loss in just 1 year as 3 years * £83m = £249m?

And when does the PL season for them run to now?

£83m was the total for the 3 years and £201.6m was what they reported for that period

Thanks for clarifying, mis-read the op

That is some failure

Hopefully retribution might be about to hit them hard after their disgusting shenanigans from 20 years ago and last year’s legal “manoeuvring”.

[Mr Angry]

I presume Leicester have reported a £201.6m loss in just 1 year as 3 years * £83m = £249m?

And when does the PL season for them run to now?

£83m was the total for the 3 years and £201.6m was what they reported for that period

Thanks for clarifying, mis-read the op

That is some failure

Hopefully retribution might be about to hit them hard after their disgusting shenanigans from 20 years ago and last year’s legal “manoeuvring”.

The only way Leicester could have any less goodwill with the EFL is if Dai Yonnge becomes their owner!

[Winston Biscuit]

confused.

The BBC article says

"football finance expert Kieran Maguire told BBC Sport he believes it is unlikely a punishment would be imposed on Leicester while they are in the second tier because the Premier League and EFL are separate entities"

and KM is usually pretty good at knowing his stuff.

But the article also says:

The new charge follows a lengthy arbitration process over who holds jurisdiction over Leicester, with the club bouncing between the Championship and Premier League in recent seasons.

A tribunal has now ruled the Premier League has the power to charge Leicester, who have been relegated from the top flight and will play in the Championship next season

so is this suggesting that the PL are the only ones that can dish out a punishment and not the EFL? and so any punishment would be a PL points deduction awaiting them the next time they go up?

also, why the f**k can't the PL & EFL just work together on matters like this?! it benefits them both that rules are stuck to and clubs moving between the 2 operations are running as they should

[Who Moved The Goalposts?]

confused.

The BBC article says

"football finance expert Kieran Maguire told BBC Sport he believes it is unlikely a punishment would be imposed on Leicester while they are in the second tier because the Premier League and EFL are separate entities"

and KM is usually pretty good at knowing his stuff.

But the article also says:

The new charge follows a lengthy arbitration process over who holds jurisdiction over Leicester, with the club bouncing between the Championship and Premier League in recent seasons.

A tribunal has now ruled the Premier League has the power to charge Leicester, who have been relegated from the top flight and will play in the Championship next season

so is this suggesting that the PL are the only ones that can dish out a punishment and not the EFL? and so any punishment would be a PL points deduction awaiting them the next time they go up?

also, why the f**k can't the PL & EFL just work together on matters like this?! it benefits them both that rules are stuck to and clubs moving between the 2 operations are running as they should

The legal loophole Leicester used to avoid penalties last year needs to be closed otherwise yo-yo clubs are effectively immune from the same laws their opponents have to stick to. I'm sure that the EFL can use their own P&S rules to impose deductions once a team is back under their jurisdiction, but whatever is really the case, I hope the outcome is that they get their just deserts.

[Stranded]

confused.

The BBC article says

"football finance expert Kieran Maguire told BBC Sport he believes it is unlikely a punishment would be imposed on Leicester while they are in the second tier because the Premier League and EFL are separate entities"

and KM is usually pretty good at knowing his stuff.

But the article also says:

The new charge follows a lengthy arbitration process over who holds jurisdiction over Leicester, with the club bouncing between the Championship and Premier League in recent seasons.

A tribunal has now ruled the Premier League has the power to charge Leicester, who have been relegated from the top flight and will play in the Championship next season

so is this suggesting that the PL are the only ones that can dish out a punishment and not the EFL? and so any punishment would be a PL points deduction awaiting them the next time they go up?

also, why the f**k can't the PL & EFL just work together on matters like this?! it benefits them both that rules are stuck to and clubs moving between the 2 operations are running as they should

So the PL rulebook now states that a relegated club is bound by the their P&S rules if they are relegated and can be charged accordingly. If found guilty, I believe that the PL can request the EFL to apply the penalty. The EFL would not be bound to do so.

Similar to when a player is banned for a elongated period of time by the FA - the FA then has to apply to FIFA to have than ban applied globally - FIFA could refuse allowing the player to move to say France and carry on playing - although in reality it is just a tick box exercise. The same could apply here but I would imagine Leicester will sue, as is their want.

Either way, if guilty, they will either get deducted points this season or upon any future promotion (which will essentially guarantee relegation).

[Winston Biscuit]

the Leicester situation is covered on todays Price Of Football

IIUIC the PL can't impose any points sanction on a team in the EFL (but they could impose a financial punishment though). They could also impose a points penalty now for the season coming to an end as each league place is worth £3.5M in prize money so hitting them now could at least take up to £7M away from them, while giving Southampton & Ipswich £3.5M more, and on the bases of fairness to the other 2 clubs for following the rules I could understand why that would happen.

The EFL are actually yet to say anything about Leicester and it will be what they say (and do) that will impact what happens to them next season.

Suggestion was that the EFL will possibly ask to see the clubs finances and if they feel the rules will be breached then they will impose a punishment in advance, and then later in the season when Leicester officially publish their accounts, the EFL have to take a decision based on them to either remove the punishment if the finances have improved enough, keep it where it is or even make the punishment more severe if the finances are in a worse state than expected. they could also just not ask to see the finances in advance and wait until they are published and make a decision then.

Leicester selling players between now and 30th June could become significant

[Sutekh]

the Leicester situation is covered on todays Price Of Football

IIUIC the PL can't impose any points sanction on a team in the EFL (but they could impose a financial punishment though). They could also impose a points penalty now for the season coming to an end as each league place is worth £3.5M in prize money so hitting them now could at least take up to £7M away from them, while giving Southampton & Ipswich £3.5M more, and on the bases of fairness to the other 2 clubs for following the rules I could understand why that would happen.

The EFL are actually yet to say anything about Leicester and it will be what they say (and do) that will impact what happens to them next season.

Suggestion was that the EFL will possibly ask to see the clubs finances and if they feel the rules will be breached then they will impose a punishment in advance, and then later in the season when Leicester officially publish their accounts, the EFL have to take a decision based on them to either remove the punishment if the finances have improved enough, keep it where it is or even make the punishment more severe if the finances are in a worse state than expected. they could also just not ask to see the finances in advance and wait until they are published and make a decision then.

Leicester selling players between now and 30th June could become significant

Would imagine the FL would be as co-operative with the PL as possible so as to help persuade them to hand more cash over when those arguments come round again.

Even more comedic, there’s talk that Leicester will replace Nistelrooy with Russell Martin….