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What Do Championship Clubs Owe To Their Owners?


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7 minutes ago, Smiley Culture said:

Why do they owe their chairmen money?

They've used their money to invest in the club and perhaps they borrowed against the club? 

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We’re a club of League 1-2 finances really, very lucky Matthew Benham took over the club and has pushed us to where we are. Consistent Championship football, a new stadium on its way and most importantly isn’t gambling the clubs future away through wage bills and transfer fees we could never afford.

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15 minutes ago, Eco said:

Owing over $100 pounds to your owner is absurd. How to clubs get themselves in this kind of position?!?

It's generally safer than owing a bank or other private sector funders that expect it back. The owner needs the club to increase in value to get the money back when selling up. Withdrawing money from the club to pay it down risks damaging the team to the point that you end up losing out.

 

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3 minutes ago, Harvsky said:

It's generally safer than owing a bank or other private sector funders that expect it back. The owner needs the club to increase in value to get the money back when selling up. Withdrawing money from the club to pay it down risks damaging the team to the point that you end up losing out.

 

While that is true, isn't it a lot more risky in a way. If the owner ends up filing bankruptcy, couldn't he in turn hold the club as the ultimate hostage, bleeding them dry and ruining the club for maybe..ever? 

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2 minutes ago, Eco said:

While that is true, isn't it a lot more risky in a way. If the owner ends up filing bankruptcy, couldn't he in turn hold the club as the ultimate hostage, bleeding them dry and ruining the club for maybe..ever? 

Personal bankruptcy? Once you file for that you lose control over any business you have. I suppose in theory it is possible that the creditors take over and asset strip. However I imagine they'd most likely look to sell the club as a whole. The sum of the parts are more often than not worth more than a fire sale depending on other debts. I'd have thought the FA would have some sort of rules on this as well.

Sunderland's previous owner Ellis Short lost £200m of his own money putting the club into debt to him. The club's collapse meant he had to sell it for nothing to avoid going into administration over other debts. Most of the risk is on the owner. 

 

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31 minutes ago, Harvsky said:

Personal bankruptcy? Once you file for that you lose control over any business you have. I suppose in theory it is possible that the creditors take over and asset strip. However I imagine they'd most likely look to sell the club as a whole. The sum of the parts are more often than not worth more than a fire sale depending on other debts. I'd have thought the FA would have some sort of rules on this as well.

Sunderland's previous owner Ellis Short lost £200m of his own money putting the club into debt to him. The club's collapse meant he had to sell it for nothing to avoid going into administration over other debts. Most of the risk is on the owner. 

 

Cheers - I'm not a finance guy so most of this is unknown to me. 

Still seems crazy to have so much debt against the owner/chairman, but I guess that's the risk you take when you are trying to get the club into the EPL. 

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1 hour ago, Harvsky said:

It's generally safer than owing a bank or other private sector funders that expect it back. The owner needs the club to increase in value to get the money back when selling up. Withdrawing money from the club to pay it down risks damaging the team to the point that you end up losing out.

 

Fancy putting that in an email to the slimeball chairman wrecking BWFC? 

Semi-truth on our £22m - where as most clubs in the league are owned by wealthy people, all of our debts are to far riskier sources such as glorified loan sharks and the HMRC. As has been found out today, Anderson lied when he said he dipped into his own pocket to resolve the recent wage crisis (the PFA bailed the club out with a loan) - the sweaty charlatan hasn't put a bean into the club but pays himself £525k 'consultancy fees'. 

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I'm pretty sure ours is actually less than 6.5m. Accounts were released in October and i'm sure it was 2-3m split between Smith, Jones and Foulger. All of whom I assume wouldn't want it back if the shit hits the fans and we got relegated to league 1 or something.

We also have no external debt. The list would be more useful if it also showed external debt.

As Stef rightly says, the important thing is who is the money owed to and do they give a shit about the club.

Steve Gibson is a genuine M'boro fan and worth hundreds of millions, similar the Stoke guys at Bet365/Coates family. 

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1 hour ago, Marc said:

I'm pretty sure ours is actually less than 6.5m. Accounts were released in October and i'm sure it was 2-3m split between Smith, Jones and Foulger. All of whom I assume wouldn't want it back if the shit hits the fans and we got relegated to league 1 or something.

We also have no external debt. The list would be more useful if it also showed external debt.

As Stef rightly says, the important thing is who is the money owed to and do they give a shit about the club.

Steve Gibson is a genuine M'boro fan and worth hundreds of millions, similar the Stoke guys at Bet365/Coates family. 

Yep. More concerning is the huge sum Blackburn owe to the chicken farmers... I can't see them writing that off any time soon.

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1 minute ago, StefBWFC said:

Yep. More concerning is the huge sum Blackburn owe to the chicken farmers... I can't see them writing that off any time soon.

Yup likewise Ipswich and the arms dealer and Hull and the bloke that wanted to call them the tigers.

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