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Showing posts with label football finance. Show all posts
Showing posts with label football finance. Show all posts

Friday, March 14, 2008

Franchising In Scotland

In Scotland, the harsh realities of the wrong people getting involved in football clubs has been even more pronounced that it has been in England in recent years. Meadowbank Thistle were unceremoniously moved to Livingston, and several clubs have been left homeless or playing in two-sided grounds because of aborted development projects, but the most convoluted story of all has a particular relevance today, as it involves the financial collapse of two clubs, which led to Gretna FC being voted into the Scottish League in circumstances that are best described as "murky". Their seemingly imminent collapse provides an apt coda to a story that should bring shame upon the administrators of Scottish football.

Clydebank Juniors FC had been stalwarts of the Scottish junior football scene since the end of the nineteenth century, and found their way into the senior game there when they were controversially merged with East Stirlingshire to form ES Clydebank by owners that wanted to cash in on what they perceived as bigger crowds on the outskirts of Glasgow. The club lasted for just one season, 1964/65, before being separated through after a lengthy and messy court case. Clydebank FC were admitted to the Scottish League in their own right in 1967, following the collapse of Third Lanark. They had a fairly unremarkable stay in the Scottish League, but their troubles started in 1996, when their owners decided that what the club really needed was a new stadium. Their stadium, Kilbowie Park, was demolished and the club moved eight miles up the road to groundshare at Dumbarton. With crowds halved thanks to playing away from home every week and rent to pay, they moved on again, this time to share with Greenock Morton, twenty miles from Clydebank, and by the summer of 2002 were in a pretty terrible financial state. No-one, however, could have prepared them for what was to follow.

Airdrieonians FC were one of Scottish football's better known names. They were a reasonably regular face in the top division of Scottish football, and made the Scottish Cup final in 1992 and 1995 (losing in turn to Rangers and Celtic), as well as representing Scotland in the European Cup Winners Cup in 1993, where they were beaten over two matches by Sparta Prague. Their problems started in 1994, when they vacated their Broomfield Stadium to groundshare with another club, Clyde, with the intention of building a new stadium. To say that it was financially ruinous would be something of an understatement. Delays in planning permission meant that they were unable to move into their new home, the Shyberry Excelsior Stadium, until 1998, by which time crowds had plummeted and the club was in a desperate financial state. Their fate was sealed with the unexpected death of their sole director, Joe Rowan, in 1999. Rowan had kept the club running more or less single-handedly over the previous decade, and without him they were suddenly rudderless. Former Spurs striker Steve Archibald attempted to take control of the club in 2000. Having been given "preferred bidder" status by the club's administrators, KPMG, he brought in a number of Spanish players at considerable cost, but they failed in the pitch and Archibald was removed after failing to maintain promised payments to them. The club folded in May 2002, leaving a free space in the Scottish Football League, and it was at this point that the fortunes of Airdrieonians and Clydebank met.

With Gretna having been hastily voted into the league in the place of Airdrieonians (there have been persistent rumours of money having changed hands regarding Bill Barr, the owner of Ayr United, who was owed a sizeable amount of money for the construction of Airdrie's new stadium and stood to benefit if Airdrie failed to pull through in any form), the newly-formed Airdrie United went looking for a back door route into Scottish football. They found the answer at Clydebank, where a homeless club was playing twenty miles from home in front of tiny crowds. Their founder, a businessman called John Hall, bought Clydebank FC, changed its name to Airdrie United and moved the club to Airdrie. Clydebank's supporters had put in a rival bid for the spare place in the Scottish league, but were rejected in favour of Gretna. Clydebank continue to play to this day, in the Scottish junior leagues (one of the two equivalents of non-league football in Scotland, the other being the Highland League) in front of crowds that would put many clubs in the Scottish Second & Third Divisions to shame. Airdrie United currently sit in place in the Scottish League Second Division.

Meanwhile, the other main beneficiaries of this farce, Gretna, were bank-rolled by Brook Mileson into the SPL, until his ill health (and, reportedly, the reluctance of his son - who holds his power of attorney - to throw more money into the club) undid the self-proclaimed "fairytale" of the village team that got the Premier League. With only ten players currently available for their trip to Aberdeen tomorrow, it seems unlikely at the time of writing that Gretna will even survive until the end of the season, although they will probably be able to re-group at a more realistic level in the future. The likelihood of football supporters no longer putting all their faith in the whims of the very wealthy, however, seems to be considerably less likely.

Saturday, March 08, 2008

Too Much, Too Young?

Some of you will have already seen the piece that I wrote for "Pitch Invasion" on the boom & bust football culture in Essex over the last fifteen years or so. The dangers of being dependent on a single benefactor are being thrown into even sharper perspective north of the border, where Gretna FC's existence is now under threat as the result of a serious illness contracted by their long-time owner and benefactor. With few assets and money draining out of the club in an alarming fashion, the big concern is that they will not be able to survive a spell in administration. It is, I have to say, yet another cautionary tale for supporters hoping that a multi-millionaire will walk into their club and make everything alright.

Gretna spent their first few decades scrabbling around in the lower reaches of the English non-league game, before transferring into the Scottish League in 2002. With Mileson providing considerable financial backing, they soon showed that anyone with a bit of financial muscle could overpower the semi-professionals of the Scottish lower divisions, and they became the first club in the history of Scottish football to be promoted from the Third Division to the SPL in successive seasons. As they won the Scottish Second Division title in 2006, they also made it to the Scottish Cup final. They lost on penalties at Hampden Park against Hearts after a 1-1 draw but, with Hearts having already booked a Champions League place after finishing second to Celtic in the SPL, Gretna had already booked themselves a place in the UEFA Cup, although this ended in defeat against Derry City.

Their problems started last summer, with promotion to the SPL. Their stadium, Raydale Park, had not been significantly developed in tandem with the team and fell well short of the standard reqiured for regular visits from the likes of Celtic and Rangers. The club were faced with an almost impossible dilemma. Should they redevelop their ground in Gretna? What point was there in building a 6,000 seater stadium in a village with a population of less than 3,000 people? They elected to play their home matches for the 2007/08 season 75 miles away at Motherwell's Fir Park whilst planning permission was being approved to redevelop Raydale. Their first season has been a more or less unmitigated disaster. Unsurprisingly, crowds at Fir Park have been poor (the 501 hardy souls that turned up for their recent match against Dundee United is a record low for the SPL), and the club's inspirational manager, Rowan Alexander was sacked in November. More troubling, however, was the health of Mileson, who was admitted to hospital last month and found to be suffering from a brain infection which has left him unable to run the club.

Matters came to a head in the new year, when it became apparent that the players and staff hadn't been paid for some weeks. Gretna's contract at Fir Park is costing them £600,000, and to put this into perspective, they have had Raydale Park valued at just £800,000. Fourteen players left during the transfer window, and the club have been rooted at the bottom of the SPL for the entire duration of the season, with just four wins to their name. Mileson's son, Brook Junior, is running the club in his father's absence, but he is not authorised to sign cheques on his father's or the club's behalf, and there have been widespread rumours that he is not quite as committed to the Gretna cause as his father was. Alexander's replacement, Dave Irons, has left to go to First Division club Morton, and the club are now considering going into administration, although the danger with doing that is that the trustee appointed to manage the club's finances might just decide that it is simply not feasible to even continue until the end of the season.

Most worrying of all for Gretna is what seems to be a somewhat defeatist attitude within the club itself. Consider this interview with the club's chief executive, Graeme Muir. Comments such as some of those made are probably at best unhelpful in securing the club's long-term future. Ultimately, though, it may all prove to be academic. With the level of debts and the sort of wage bill that Gretna are labouring under at present, it seems unlikely that the club can survive in its current form. The fact of the matter is that the club have allowed themselves to become over-reliant on Brook Mileson and his money (in spite of the setting up of youth academies and free travel initiatives, both of which hinted towards a club aiming for self-sufficiency), and the harsh reality is that the club allowed itself to become run on a hopelessly unsustainable business model that was entirely dependent upon the goodwill of one man.

There is little doubt that Brook Mileson is a man of honourable intentions, and we obviously wish him a safe and speedy recovery. It has to be said, however, that a tempering of ambitions may be in order at Gretna Football Club. It's all very well to talk about "fairy tales", but a club expanding too quickly with no sensible business plan is always likely to end in the death of the club concerned in the long term, which doesn't sit particularly comfortably with the belief that all fairy tales should have happy endings. With Raydale Park having been allowed to run to rack and ruin since the club switched to Motherwell, it's difficult to see how this will end well for them - one would hope that a sustainably run club, owned by its supporters will be the eventual outcome, but it will probably take the death of this Gretna Football Club for that to happen.

Wednesday, March 05, 2008

Sol Campbell's Bulging Packet

I do go, on the whole, fairly easy on footballers. Whilst managers, chairmen, owners and even fans themselves drive me to distraction on occasion, the players themselves, no matter how bad their behaviour may be, pass me by on the whole. I'm also somewhat loathe to criticise them for being overpaid. This is something that is the fault of the chairmen that pay them and, to a lesser extent, the supporters themselves, who ultimately finance the whole circus. If the players, the vast majority of whom are working class kids with dubious levels of education, can make enough money retire in the space of a "career" that might not even last ten years, then all power to their elbows.

However, there comes a point at which things go a little beyond the pale. At the hyper-exalted climes of the very top of European football, the players do earn amounts of money that are obscene. The irony of seeing poor old Jermaine Defoe complaining about his eighteen months of "hell" at Tottenham Hotspur in the knowledge that he was almost certainly earning £40,000 per week while this was happening was not lost on me as I flicked through this morning's paper. Such thoughts can never be far from your mind when you look at tables like this, which claims* to have the low-down on the top fifty earning footballers in Europe. Some of the figures are hardly surprising - I didn't exactly faint when I saw that Kaka and Ronaldinho were at the very top of the list, and the preponderance of Premier League and Serie A entrants is hardly surprising, given the profligacy of club owners when it comes to the Next Big Thing - but some of the entrants are notable.

Take, for example, Darren Bent, for example. How very fortunate is he to be on almost £100,000 per week for warming the bench at White Hart Lane every week? On the other hand, I had no idea that the 73 year-old was even still playing for Bayern Munich, let alone raking in nearly £80,000 per week for the privilege. Some teams are notable for their absence from the list. Arsenal, amazingly, don't feature anywhere on the list at all. Juventus, in third place in Serie A, only appear on it twice. If you've been wondering why no teams from the Bundesliga manage to compete in the later stage of the European Cup any more, it could be something to do with the fact that only one of its clubs, Bayern Munich, sees fit to pay any of its players more than £65,000 per week. Most startling of all, however, is number fifteen on the list. Sol Campbell is still on over £100,000 a week, and it's Portsmouth that are paying it. Indeed, I have managed to come up with a little game this evening involving this fact. All you have to do is come up with a sentence about this face which is absolutely true, but of which no part makes any sense. Here's a couple to get you on your way:

- Portsmouth Football Club's Sol Campbell is the fifteenth best paid footballer in the world in the world, earning £105,188 per week.

- Portsmouth Football Club's Sol Campbell earns £25,437 per week than Samuel Eto'o of Barcelona does.

But I'm sure that you can do better than me.

*Note the word "claims" - I have no idea how true these figures are (and they almost certainly don't take into account the myriad of win bonuses, under the counter payments and sponsorship payments that bump up their wages, amongst other things), but for the purposes of pointing and laughing, they'll do.

Saturday, March 01, 2008

What The Premier League Thinks Of You - A Response

It has taken me the best part of twenty-four hours to fully ingest the message that I put up on here last night. At first, I thought that it must be fake. However, Tom at Pitch Invasion's source for it is impeccable, and there is no reason to think that it is anything other than genuine. We have, in England, lived with the creeping understanding that we are viewed as little more than walking open wallets by football clubs, and that is something that Premier League club fans seemed to have reconciled themselves to, but this insight into the mind-set of the man that is in charge of the Premier League seems to demonstrate that even this isn't enough for the Premier League clubs any more. Our money isn't enough for them. They have swallowed the hubris about themselves to such an extent that they seriously believe that they can take over the world.

When reading this document, it is very important that one detaches oneself from the comments made by the writer about Mr Scudamore's tone and suchlike. Whilst these are mannerisms that clearly drive the writer to distraction, they should be of little concern to us. We don't even need to worry about the editorialising of the report by its writer when there is so much other meat on the bone. The quotations contained within it contain, in isolation, an almost breathtaking contempt for and disinterest in the interests of English football supporters. You don't even have to think about how downright rude it was of him to simply ignore the very first question that he was asked in favour of a ten minute long explanation for why no-one was told that this announcement was to be made before it was, when you can simply pick and choose from more or less every quote in it that has been directly attributed to Scudamore for examples of the madness surrounding the modern game. Let's take a look at some of the juicier morsels:

"We have had to accept from the start that it won't be perfect, there can be no symmetry" - So, in effect, the Premier League simply doesn't give a damn about the fact that, after 120 years, they will be sacrificing the very principle of league football that meant that the league format was expanded across the world and is still used across the world. They don't care about this.

"We do have an international following and by serving it in this way we can control the wealth redistribution down the league" - So, to clarify, is Scudamore trying to claim there is some sort of Socialist redistribution of wealth going on here? Are Manchester United, Arsenal, Chelsea and Liverpool agreeing to this scheme to "help out" Derby County, Wigan Athletic and Fulham? It is an indicator of just how little Scudamore thinks of us if he thinks that we'll fall for a line like that. If clubs aren't making money hand over fist at the moment, considering the massive TV deals (both domestically and internationally), global marketing and exorbitant ticket prices, then perhaps they should look at a financial model that spends such massive amounts of money on wages and transfer fees before looking abroad to bring in even more money.

"It's not me that will decide and certainly not Mr Blatter - if 14 people stick their hands up that's it" - I've said on here before that I believe that I believe that the biggest clubs are headed towards open war with FIFA, and this might just prove to be opening shot. It is an extraordinarily hostile statement to make at a time when the Premier League should be trying a charm offensive on all levels abroad. I, to be absolutely honest, cannot believe that Scudamore said this. If he has, they might as well call the whole thing off, because the FA won't give any consideration to any proposal that jeopardises the World Cup bid, because to say that FIFA don't have a say in the ultimate decision is just idiotic.

"Part of the calculation the clubs have to make is to ask 'is it going to cost us'? For how many people is it going to be the tipping point. For 16 years we have been losing various segments of our supporter base. We have lost some, but we have gained a lot more. Part of our assessment of this project will be those we'll lose and those we'll gain. We'll weigh that up in the 'is this worth it?' column." - This is the section that Premier League supporters should read the most closely. Stripping it down to the basics, it is saying this: the Premier League will weigh up how much you care and how much you are worth to them. If you aren't worth enough, they will jettison your support in favour of those with more money, even if it means going abroad to do so. They've spent the last fifteen years pricing people out of football, and now it's reaching its logical conclusion. The last pretensions of giving a damn about the communities that they came from and supported them when times were leaner end here.

"We've only got 330,000 attending fans - we have to weigh that in the balance against other stakeholders" - Well, this is just bullshit. The average attendances of all Premier League clubs adds up to well over 700,000. I don't know where he has taken this figure from, but my guess is that it is the average Premier League attendance on any given full weekend of fixtures. It doesn't take into account the fact that it's not the same 330,000 people every week by any stretch of the imagination. And who are these "other stakeholders" of whom he speaks? Sponsors? Television companies? I think that we can be pretty certain that "other stakeholders" is marketing guff for "people that will pay us a truckload of money".

"Read my lips - if the local football federations do not think this is a good idea for football development in their country, we will not do it. We believe that where we are successful, football around us is successful" - Well, no. The "markets" that the Premier League are looking to exploit are markets in which the domestic leagues desperately need investment. Investment that would be considerably easier to find if hundreds of millions of pounds isn't spirited away to the Premier League.

The battle lines, therefore, are being drawn up, and the Premier League is simply not going to give up on this scheme because of opposition from supporters or FIFA. One can only speculate as to why they appear to be so confident of getting the support of national federations, but we can now, presuming that this report is not a fake, at least be certain of where their priorities are in the Brave New World. This, as I have said before, will be the tip of the iceberg. If you support a Premier League club, the question that you should surely be asking yourself is this: if this isn't the tipping point, what will be? And if it is the tipping point, are you so much in love with your club that you are prepared for your relationship with your club to become an abusive one?

Friday, February 29, 2008

What The Premier League Thinks Of You

I've copied this over from "Pitch Invasion", and will be putting up a reply to it on here later on. An open letter to Richard Scudamore, if you like. It is, I think, a critical read if you are an English football supporter. I have made a few amendments to the formatting, but every word of what is printed below is as per the original transcript.

Consultation meeting between Mr. Richard Scudamore, Premier League Chief Executive, and representatives of the Football Supporters' Federation (the FSF).

Wednesday February 27th - 10.30-12.00

FSF representatives were the chairman Malcolm Clarke, together with one grass-roots member each from the previous week's FSF regional "NO TO GAME 39" campaign meetings (clubs whose fan bodies were directly represented were Aston Villa, Chelsea, Liverpool, Portsmouth and Sunderland).

Three of Mr. Scudamore's staff, including Cathy Long, were also present but said very little during the meeting.

FSF chairman Malcolm Clarke began by asking Mr. Scudamore what was the current status of the proposal to play a 39th round of PL matches overseas. Before he answered the question that had actually been asked, Mr. Scudamore embarked on a 10 minute explanation of why the proposal had to be made out-of-the-blue at the meeting of PL chairmen on February 7th, how the proposal was leaked some hours before the PL had called a press conference, and how frustrating this inauspicious start was to him personally.

He then continued his monologue by spending a further 10 minutes dismissing some of the objections which had been already been put forward by the FSF in their written submission, and by many other voices. Only then did Mr. Scudamore finally answer the original question, telling us that the proposal was very much ongoing, and that, "we sit before you in the middle of a consultation process which has had an interesting start� There was unanimous agreement between the 20 clubs in principle - there was not a dissenter. The clubs have agreed there is enough merit in the idea to move it forward�". A few moments later he strengthened this to "so much merit in the idea that it's got to be considered�".

"Format is the issue clubs want to get their heads round most (and this will be discussed and probably won't be settled until June/July), and if they're unhappy with the format, it won't happen. It's currently only a proposal, and will only become reality", he said, subject to:

- Consultation
- Calendar fit
- Sanction of host associations
- Club rules

"We have had to accept from the start that it won't be perfect, there can be no symmetry", he added. Mr Scudamore then went on to imply that we should be grateful that the Premier League had not proposed to take one of the existing 38 fixtures out of the calendar and play it overseas. Never for a moment did he consider that the fact that it won't be perfect and that there can be no symmetry' means that this Game 39 should not happen.

"I refute the suggestion that this is all about money. It's about a whole load of things before it's about money. We do have an international following and by serving it in this way we can control the wealth redistribution down the league. We have a responsibility to our fans on a global basis, and we'll do it before the big 4 go off and do it themselves. It's not me that will decide and certainly not Mr Blatter - if 14 people stick their hands up that's it".

Emphasising the strength of feeling on the issue and the level of protest, unprecedented in recent years, Malcolm Clarke called this a "Rubicon moment", and all the FSF representatives backed this up, stating that this proposal could mark the beginning of the end of their personal support of a Premier League football club.

In response, Mr. Scudamore stated that "we will have to weigh up those we lose against those we gain". He implied that he felt a lot of the recent furore had been merely "initial resistance and reaction", and that much of it would not be long-term - contradicting his earlier statement that "you can't weigh up one kind of supporter against another and judge whose support is better".

"Part of the calculation the clubs have to make is to ask 'is it going to cost us'? For how many people is it going to be the tipping point. For 16 years we have been losing various segments of our supporter base We have lost some,but we have gained a lot more. Part of our assessment of this project will be those we'll lose and those we'll gain We'll weigh that up in the 'is this worth it?' column. We know where the balance of the noise is (in the media and grass-roots furore over this proposal) -our difficulty is working out the weight of that. We know the feelings of those who are making the noise. We've only got 330,000 attending fans - we have to weigh that in the balance against other stakeholders".

However, Mr. Scudamore did state that, "If they (the dissenters) fight above their weight it might put people off ". So, in spite of his patronising tone, this does seem to offer apparent encouragement to the protest campaign.

One interesting phrase he used, when allusions were made to calls from certain quarters for his resignation (not something the FSF itself has suggested at all) was that "I am fairly committed to this proposal", suggesting that he does not see it as something he wishes to stand and fall by, going on to say that, "I wouldn't be supporting it if it was more than one extra game, and that if that proposal is made, say ten years down the line, I won't be here anyway".

Going back to what he had said earlier in the meeting he told us that the playing field is far from level already, with huge imbalances between the financial power of Premier League clubs, so "it's already about distortion - my job is to overcome huge imbalances". This is not about the Premier League brand, he said (contradicting his clear statements of three weeks earlier), "it's about 20 brands, giving Reading, Bolton and the like the chance to ride on the big 4-6 and promote their brands".

He re-iterated that the decision to host the matches was not up to FIFA or regional associations, but to the individual national Football Federations. "Read my lips", he had said earlier in the meeting, `if the local football federation do not think this is a good idea for football development in their country, we will not do it. We believe that where we are successful, football around us is successful. Since 1992 we (the Football league, the FA & the PL) have all grown together".

At the beginning of the meeting he had said that fundamental to the rationale of the whole proposal was "keeping the PL collective together against substantial threats from the bigger clubs (that they didn't want to have to play in the League Cup, FAC replays, etcetera, that they wanted to parcel off their own TV rights individually, etcetera)". Throughout the meeting Mr. Scudamore's arguments were fundamentally reliant on such spurious linkages and underlying threats that without him and new proposals like this, English football would all fall apart.

Needless to say, we made our total opposition clear and stated our determined intention to keep campaigning against this in whatever ways it would take to defeat it.

Tuesday, February 26, 2008

Football Shorts 4

Well, it's another Tuesday night, and another chance for me to catch up on all the things that have been distracting my tiny brain over the last few days or so (Caution: The following posts are small items that I don't have the time or inclination to write complete pieces about, but that I do feel warrant a mention - they're not all meant to be taken completely seriously).

My New Scarf: I've got a new scarf! It's blue and yellow striped, and it's so comfortable on my neck that I almost kept it on all day at work all day, and would have done were it not for the fact that I would almost certainly died from heatstroke had I not. Should you be interested, I can be seen modelling it here (I'm on the right, by the way). Of course, the ownership of a new football scarf can only mean one thing, and that it the immediate onset of an unseasonal heatwave that renders the damn thing useless until the autumn. If the weather turns and there's a mini-heatwave at the start of March, you'll know who to blame (although those of you that remember my topless raindance will already be aware that I'm not very good at controlling the weather).

Say It Quietly: ..But the Premier League is actually pretty exciting at the moment, isn't it? There are just seven points between Everton in fourth place and West Ham United in tenth, and any one of the teams in the top half of the table could yet harbour hopes of a top four finish. It's a similar situation at the bottom, with only seven points between Middlesbrough in twelfth place and third-from-bottom Reading. All of this means that, with eleven or twelve matches left of the Premier League season, nineteen of the twenty sides in the Premier League are either involved in a scrap to avoid the drop or playing from the title, or a place in the Champions League. The only team not involved in either, of course, are Spurs, who have already won one trophy and are still in with a chance of winning another. Savour it - it won't be this unpredictable again.

Wales Abandons Its Second Cup: Bad News for fans of the Welsh Premier League - the BBC have pulled the plug on £360,000 worth of sponsorship of the FAW Premier Cup. It's complicated stuff. Cardiff City, Swansea City and Wrexham aren't allowed to play in the Welsh Cup, but BBC Wales stepped in to sponsor the FAW Premier Cup, complete with live coverage in BBC Wales and on the BBC Website. It hasn't been a roaring success, and I was a witness to this last week, when I flicked onto the match between Cardiff City and Newport County, which was actually Cardiff City Reserves vs Newport County from an almost eerily empty Ninian Park. Newport have done pretty well out of taking it seriously, with the money going into a team which is having a better season in the Blue Square South for some years. Quite what Cardiff, Swansea and Wrexham got out of it I don't quite know, but Cardiff have recently had it confirmed that they won't be able to go into the UEFA Cup should they qualify for it through the FA Cup this season (and don't laugh - Millwall managed it a couple of years ago, and it only requires Manchester United, Chelsea and Cardiff to win their quarter-finals for this to become a distinct possibility), though they are hoping to arrange a meeting with Michel Platini with a view to getting an exemption.

A Small Victory: You all know that we haven't heard the last of this, but at least the Premier League have had the relative good sense to abandon their talks with UEFA over The 39th Game. None of this means, of course, that the whole things is being shelved and that Old Man Scudamore is to be replaced by Tony Benn. Expect a watered down version coming soon to a press conference near you.

Sunday, February 24, 2008

He's At it Again

It looks like Leeds United's Ken Bates started legal action against his team's fifteen point deduction for not following Football League rules on administration just in time because, on the pitch, his team is falling to pieces. They haven't won a single match in their last seven games, and have collapsed from being being contenders for automatic promotion from League One to being in ninth place in the table and five points off so much as a play-off place. Yesterday, they were reliant on a late Tresor Kandol goal to salvage a 1-1 draw at home to struggling Crewe Alexandra.

Bates' campaign reeks of his own trademark brand of self preservation, and it runs the risk of dragging the name of Leeds United even further into the mud. The circumstances surrounding Leeds entering into administration and their subsequent sale back to Bates last summer was highly suspect, and the League's decision to dock them fifteen points would seem to indicate that they felt the same. Bates, you may remember, had initially offered the insulting amount of one penny in the pound to his club's creditors, and the final offer agreed by the administrators still only offered their creditors a small percentage of what they were owed back. As soon as Leeds were released from what they seemed to think of as being some sort of unfairly applied straitjacket, they started spending again, and pretty heavily by League One standards.

The story took a turn for the strange last week, when the Football League's Brian Mawhinney announced that Barnsley had decided to publicly to back Leeds in their fight. This was news to the Barnsley chairman Gordon Shepherd, who had been away from his post for a few weeks with health problems. "I have nothing against Leeds United but this is their fight, not ours", said Shepherd, which leads one to wonder where where this particular piece of information came from. Whatever the situation with Barnsley, other clubs in the Football League have been most conspicuous in not supporting Leeds in their legal action.

What sticks in the craw is that Bates is back-tracking on an arrangement that his club signed in the summer when, desperate to get their "golden share" back in time for the start of the new season (and without this, they wouldn't have been able to start the season and would almost certainly have closed), they signed an agreement promising that they wouldn't enter into any legal action against the Football League over this matter. Bates, with his trademark habit of being utterly self-centred in his pursuit of anything whatsoever, is arguing that this should now be voided and rendered unenforceable. They're trying to spin it that they are somehow the victims of a miscarriage of justice here, to the extent of starting a petition about it, which, with wearying predictability, 8,000 Leeds supporters (all of whom are presumably so desperate for promotion that they are happy to concede any moral misgivings about this) have signed.

Should they lose the legal case (and, without wishing to put a hex on it, I can't see them losing it), the Football League should seriously consider playing hard-ball with Leeds. They should consider removing the "golden share" from them, and if that means dire consequences, then so be it. Everybody knows the circumstances of what happened at Leeds United last summer, and a fifteen point deduction was, considering what Bates got away with, an exceptionally light punishment in many ways. Football clubs may need to learn the hard way that there should be no easy ways out of financial mismanagement.

Thursday, February 21, 2008

Another Fabulous FA Fudge

You wouldn't have expected an outright condemnation straight away, would you? I mean, it would surely be asking too much for the FA to take one look at Scudamore's Insane Plan For Global Domination and say, "You know, the only reason they're doing this is to get even richer than they already are. They'll give it the usual about the global market being important and how their legions of foreign supporters deserve a chance to see their heroes in action, but we all know that it's about making even more money than they already do. Which is nice for them. However, they're selling the fans of the game in their own country down the river, and chucking away the principle of league football - which, might we add, is one of the few truly great things that Victorian England gave the world - and they're going to cause irreversible damage to our World Cup finals bid, so we're going to nip it in the bud and tell them where to stick it. Especially David Gold".

That would have been asking too much. However, I think that, as supporters who are ultimately powerless to prevent changes of this nature, we are entitled to little bit more than we got from the FA this afternoon. I know - I'm a hopeless idealist. The guardians of English football? Standing in the way of progress and the New World Order? Let's have a look at what they said, and I would also ask you to remember that, in his initial statement to the press last week, Lord Triesman, the all-new chairman of the FA said, "“I am determined that our international and domestic relations must be sustained at the highest level, and I will not countenance any damage to those relations.”:

- "We've just had a long and a serious discussion of the Premiership's proposal for a 39th game at The Football Association Board. We are still, as I said in Parliament, and I repeat there are still a lot of fundamental issues for us" - Right. Jolly good. Glad to hear that you don't have any issue with this whatsoever, then.

- "There are serious problems of congestion in the season and I make it very clear that we would want to make sure that all of our own competitions can be played successfully, and that there isn't the usual overstretch that you get at that time of year which can have an impact on the England side. And I am very clear that it does not impact on the England side." - The problems with congestion in the season would be alleviated if the Premier League did as it once promised it would, and reduced its numbers to eighteen clubs. But that would miss two of them missing out at the trough, so that's not going to happen. It might also be alleviated if the clubs didn't jet off abroad every time on a marketing mission every they had a spare five days. Strangely, these never seem to contribute to fixture congestion, whereas the occasional League Cup match at Grimsby does.

- "Secondly, I think that we have to make sure that our international relationships are in good shape; there are very many reasons for that, and the 2018 World Cup is one of those reasons, and it is an important reason, but it is also true that we want to make sure we are working with international partners in a way that is effective" - Actually, the Premier League may already have caused irreversible damage to the 2018 World Cup bid with their insufferable arrogance in trying to colonise parts of the football world whose own infrastructures desperately need investment and support.

- "Third, there is bound to be continuing concern about whether the 39th game would change the symmetry of the competition or would introduce unfairness as it is perceived in the competition. We'd be concerned with any competition that we are responsible for, in the sense that we sanction competitions, that had that impact" - Well, it's not really "concern". It's "knowledge". It's 120 years of a format which is fearsomely simple and works. We already know that it will change the symmetry of the game and, to be frank, we don't need you to hold working parties for two years to tell us that.

- "And, it's a slightly different order of things but it's also significant, it's important to see that we're in a very difficult climate; people are very hostile and we've seen a great deal of that. We have to need to try to ensure that the football family as a whole feels more content with any proposal going forward" - Firstly, please stop calling it "the football family". If it is a "family", it's even more dysfunctional than the royal family. Secondly, if you oppose the idea, you don't have to "try to ensure that the football family as a whole feels more content with any proposal going forward". If you are against it, you should oppose it, and not recommend to UEFA or FIFA.

- "I summarise the points in the following way: at the moment we have not seen a sustainable plan to which we can agree. If the Premiership has things that it wants to say about changes or new variants, well then come forward. But personally I'd prefer it sooner rather than later because I don't want this to drift on particularly as we launch our World Cup bid" - Umm, it's not called "The Premiership" any more, but how are you to know? After all, you're only the Football Association. But I digress. The World Cup bid has already been launched, hasn't it? Whether it has or hasn't, it's going to ruin it.

- "In general, I think uncertainty is not very helpful going on for any length of time, but that's a matter for them, they will conclude whether they have got anything else that they want to say and we will always do them the courtesy of listening and thinking about it, and asking the right questions, and trying to make sure we have understood the detail" - Well, that's just bland platitudes, isn't it? I mean, that's just a very long sentence that doesn't actually say anything, isn't it?

- "That's what I want to say about the meeting we have just had, where I think there was a great deal of convergence right across our part of the football family about the issues" - There's that phrase again!

There isn't a great deal more to say on the subject than what I've put above, and that's because the FA didn't say much this afternoon. It's all just bluster and marketing speak. Spin. Whatever teeth the FA showed in their initial statement has already been watered down into "we'll see". All the Premier League has to do now is water down this (obviously unworkable) scheme, and the FA will support them. Be warned - they're going to sell us down the river here. They just haven't got the balls to come straight out and say it.

Saturday, February 16, 2008

Mock The Week

What a week we've had. As the wheels have started to come off Scudamore's Insane Experiment, the world has started to line up to criticise it all, but the damage may be long term. The FA's initial silence on the matter could already have blown England's World Cup bid out the window, and the practical nature of the objections has meant the there is yet the distinct possibility that other crackpot schemes will emanate from Gloucester Place over the coming weeks, months and years. Everybody on the inside track of the game was strangely quiet on the matter in the couple of days after the announcement was made. It felt as if those in positions of importance were playing a wait and see game on public opinion before coming out themselves and expressing an opinion.

The first to come out and speak publicly on the matter were the likes of Arsene Wenger (who appears to be singularly blind to the double standards at play in complaining about his players having too many matches to play and then coming out in favour of a plan that would involve his players flying half-way across the world to play a competitive match in the middle of the season) and David Gold of Birmingham City who was almost refreshingly honest in his opinion that it'll be GREAT because they'll make loads of money out of it (though we can safely disregard his opinions - I would suggest that there is a medium to high likelihood that Birmingham City won't even be in the Premier League by 2011). The press, frankly, let their readers down. At a time that they should have been giving them information on the plan and explaining just what the long term effects of this could be, they stayed largely quiet. As I noted on here before, the BBC's Sports Editor Mihir Bose did at least stick his head above the parapets, but only to post some ill thought-out comments about how great it will be because they'll make so much money from it.

One issue that seemed strangely overlooked in the forty-eight hours was the reaction of the international community. After all, this was a matter that concerned them. There were negative words from the USSF, the Asian Football Confederation and the authorities in Australia (the rumoured hosting cities had been Beijing, Bangkok, Hong Kong, Melbourne and Miami), but this was just a primer for the big guns coming out against it. Michel Platini, the head of UEFA, said, ""It's a strange and comical idea. I was laughing - soon you will have in England no English presidents, you already have no English coach, you have no English players and maybe now you will have no clubs playing in England. It's a joke". It was a devastating assessment, cutting to the core if the problems with the English game. The only thing we have left is the fact that the Premier League at least still plays in England. Get rid of that, and there is no such thing as top-class English football. More damaging yet was Sepp Blatter's assertion that, "This will never happen. At least this will not happen as long as I am the president of Fifa". Blatter, so often a font of wrongness in the football universe, hit the nail on the head and was as blunt in his assessment as Platini was in his: "I support the fans 100 per cent. If I was a fan in England I would say: 'No, please play at home and don't go abroad.' If the plan includes official league matches then, as a fan, I would protest".

These reactions were utterly predictable, and they made the FA's continuing silence on the matter all the more perplexing. One expects it of the Premier League, where the club owners are presumably so out of touch with the outside world because they spend all of their time sitting counting their money in the manner of Scrooge McDuck, but are the FA still so out of touch that they couldn't see which way this was going? It was almost as if they were sat at Soho Square, scratching their heads like cavemen while the rest of the world tore the plan to pieces. The penny seemed to finally drop with both the press and the FA when Platini and Blatter were so scathing. If there's one thing that means more to the press and the FA than keeping the big clubs happy, it's doing what they can to ensure that the 2018 World Cup bid is successful, and it was becoming apparent that this is likely to seriously damage it. At this point, the FA has still only expressed "serious reservations", when they should have been issuing an outright condemnation of the plan. They have been warned by Blatter that this may cost England the 2018 World Cup, and their hesitancy to side with the rest of the international football community may yet cost them dear.

The Premier League has been behaving like a bunch of old colonials in looking to expand out into an international market, and this won't be lost on many FIFA delegates when it comes down to voting for the 2018 World Cup. My belief is that the damage has already been done. When push comes to shove, all FIFA delegates will be more than aware that Premier League clubs will benefit greatly from a World Cup being held in England, and are they seriously going to want to give the any sort of financial reward, when the very same clubs are explicitly seeking to undermine domestic football in other continents for their own financial ends? Blatter, I believe, is not averse to England hosting the World Cup, and chose his words carefully to scare the FA into falling into line with them, but their failure to do this to the extent that they should have done could yet prove to be expensive. The press has hardly covered itself in much glory, either. Over the last couple of days, there have been numerous negative articles in the British press on the subject, but the question remains of why it took almost a week for these articles starting to appear. Was it because they were just waiting to see which way public opinion was going to go on the subject? Were they just slow in reacting? We may never know. By the early hours of this morning, though, even Manchester United were coming out against the idea. The best thing for all concerned now would be to just sweep the concept under the carpet and forget that it was ever mentioned.

Two serious questions remain. Firstly, what is to become of Richard Scudamore? In the course of the last eight days, he has exposed himself as being so far out of touch with public opinion that he may well have announced that clubs will using convicted paedophiles as their mascots from next season on, has exposed the Premier League (to anyone that didn't already know this) as being approximately a million times as interested in making money than it is in football, has exposed the FA to the risk of international criticism, and has exposed the England 2018 World Cup bid to being blown out of the water before it gains any momentum. All this, and he still seems to think that there is no problem - that the opinions of UEFA and FIFA are mere "technicalities" that can be overcome or over-ridden if needs be. His position in the Premier League (a company which has just two directors - Scudamore and Dave Richards, a man whose own competence is probably best summed up by the state that he left Sheffield Wednesday in when he quit as chairman: tens of millions of pounds in debt and heading towards two relegations and a financial crisis from which they haven't yet recovered) is surely untenable, but it remains likely that he will stay.

This fact, combined with what we already know about him, leads to the second big question: presuming that this plan will surely be killed stone dead in the next week or two, what other examples of "blue sky thinking" will he come up with? We know for a fact that he he doesn't give a damn about the integrity of the league system, so what's to follow? The FA Cup makes quite a bit of money that doesn't go straight to the FA - how about Premier League play-offs or dividing the Premier League up into northern and southern divisions, leading to a Championship match, like the Superbowl? How about scrapping relegation? Considering the events of the last nine days or so, there is almost certainly no plan too mad to be considered if it means that the Premier League makes a few million quid out of it. If or when this plan fails, we can be certain of one thing - we haven't heard the last of this most voracious forms of "modernisation" yet.

Thursday, February 07, 2008

Now - This Is Just Too Good

Many of you will already be aware of the concept of "jumping the shark". Named for an episode of "Happy Days" in which The Fonz jumped over a shark on a pair of water skis, it has come to signify a step too far. A metaphorical line which has been overstepped. Today, as you may have heard, the Premier League jumped the shark. I have been pondering over the last few weeks whether the Premier League has been orchestrating recent shenanigans for our entertainment. The low comedy of Newcastle United and the slowly building crisis at Anfield seem to have been tailor-made for cynics such as me, but I was, I have to say, caught somewhat by surprise by this. It's an announcement so staggering in its avarice that it has taken most of the afternoon for me to fully absorb it. It's brilliant.

For those of you that hadn't already found this out, the Premier League wants to play matches abroad. It doesn't end there. They plan to extend the season by one match (to thirty-nine matches) and have every club play one match abroad in January, starting in January 2011. As if that's not enough, the plan is for them to auction off the rights to host two matches each to five different cities, with two matches to be played in each city over the same weekend. Brilliant! This is the moment at which the Emperor's new clothes have finally vanished from view. It is the point at which any pretence of caring about anything other than money suddenly vaporises. It is the point at which the Premier League finally says to fans of clubs in its own home country that you don't matter any more. It's not about you. It's about the global dollar, and nothing is going to get in the way of it. Consider, if you will, this magnificent quote from Peter Scudamore, the Premier League's Chief Executive:

"We believe that an 'international round' of matches will enhance the strength of the Barclays Premier League as a competition; create extra interest in all 20 Premier League Clubs at home and abroad; and allow increased investment in talent development and acquisition, facilities as well as our football development and community programmes."

Yes, Peter. These will be the "football development and community programmes" that have left the England football team without one single international class goalkeeper then, I presume. I'm also interested in how this creates "extra interest in all 20 Premier League clubs at home". Isn't there enough already? If there isn't, there's a reason for that. It's because there never will be. You could build one stadium with a capacity of fifty million people and put the entire population of Britain in it with Sky Sports being broadcast on the palms of their hands and it wouldn't be "enough", because once you start pursuing money and money alone, enough is never "enough". They're fooling no-one. Everyone knows what this is about. The Fonz has done his trick and he's already back at Arnold's, drying himself off, whilst enjoying a root beer and a cheeseburger.

For the purposes of argument, though, let's take a moment to consider the details of the proposition. Clubs will be seeded, so that no one city hogs all of the "big" clubs. This still, however, causes a massive degree of lop-sidedness in the fixture list. Using this season's table as an example, someone would have to play Manchester United or Arsenal three times, whilst someone would have to play Derby County three times. Imagine being relegated on goal difference at the end of the season, knowing that your team had played Manchester United three times, while the team just above you had played, say, Portsmouth three times and beaten them in Shanghai the previous January. Would you be any happier, knowing that at least the directors of your club were £10m better off? Thought not. Imagine, if you will, being an inhabitant of, say, Los Angeles, bidding an enormous amount of money on two Premier League matches and ending up with Bolton Wanderers vs Reading and Manchester City vs Fulham. If we assume that The Big Four are separated, how many of the other six matches are going to sell out a 50,000 capacity stadium? It could even prove to be counter-productive. Having been fed a televised diet of Rooney and Ronaldo, how will the residents of, say, Tokyo react to seeing Manchester City and Newcastle United bore the hell out of everyone for ninety minutes? They may never see the league in the same light again.

When the NFL played its exhibition match at Wembley at the end of last year, a conference was held for Premier League clubs on how to market themselves abroad. The clubs appear to have left it high on a mixture of champagne bubbles and talk of big, big money, and this scheme is its logical upshot. The hubris, the self-importance and the greed of modern football are all present and correct. One of its first vocal supporters has been David Gold of Birmingham City, who seems blissfully unaware of the fact that Birmingham might well not even be in the Premier League by 2011 when he says, "We are making history. The Premier League, which is the greatest league the world has ever known, is being adventurous. It is looking forward and is looking to take an English brand global. The idea is very worthy of consideration. I find this amazingly exciting". In fact, in calling the Premier League "the greatest league the world has ever known", his lack of self-awareness is almost mesmerising.

The Football Supporters Federation have issued an understandably robust criticism of the idea, and one would like to think that the FA and the media would have a thing or two say about it. Don't go holding your breath waiting for it, though. The FA's initial statement on the matter has been unsurprisingly weak-kneed, and we can expect little more opposition from the press. Where do you think this statement might come from?

"The growth of the Premier League has been impressive in the last 15 years thanks to the sale of television rights in this country, but now the market in the United Kingdom is becoming saturated and it is the overseas market which is now the big target area. This is a chance for the Premier League to showcase its product around the world. Some fans may feel aggrieved, but their concerns will be outweighed in the eyes of the clubs by the financial advantages. The clubs will see this as a chance to make more money so they can invest in new facilities and better players. It will be like cities bidding for the Olympic Games or the World Cup"

Peter Scudamore? David Gold? Wrong. It comes from Mihir Bose, the BBC Sports Editor - a man who, if he can't offer any more of a robust critique of such a transparently money-orientated, non-sporting proposal, should probably be relieved of his position with immediate effect and moved to their "Business" section instead. Supporters of Premier League clubs, about whose interests very little (as ever) is being said, should surely now, if they weren't before, be wondering why they bother. The Premier League seems intent on fulfilling what it regards as its "destiny" to become a wandering, global circus. For the average English supporter of a Premier League football club, though, the message is a stark one. The fact of the matter is this - your money and your support simply aren't enough any more. It has been coming for some time, with the renaming of the Premiership as the Premier League to align with the fact that the league is called the "English Premier League" abroad and the reorganisation of kick-off times on Saturdays to better suit Far East and American TV audiences (in case you'd been wondering why two live matches are scheduled at lunchtime and tea-time every week, that's the reason). For the domestic audience, this might just turn out to be the straw that broke the camel's back for a good many Premier League supporters, and that, in turn, could be the best thing to happen for lower division football in England for years.

Thursday, January 31, 2008

Share & Share Alike?

Like many people, I had spent much of the last year or so wondering about the supine reaction of Liverpool supporters to the Gillett & Hicks take-over. Here were two people coming in with no apparent prior interest in Liverpool Football Club, making numerous promises and claims, but with the prevailing common knowledge becoming apparent that they didn't have the cash up front to pay for it. Very few people that closely connected wondered aloud where the money was going to come from. The club was being purchased for £300m and the new stadium will cost something like £400m. These are substantial amounts of money. They were also making promises of spending obscene amounts of money on players. In spite of this, Stars & Stripes flags were flown on match days. The arrivistes were feted as saviours. It was almost as if no-one had been paying any attention to what had gone on forty miles up the road at Old Trafford for the last few years or so. Considering that Liverpool is the city that was the birthplace of Militant, the home of the Dockers' strike and a city which remains one of the most politically left-wing in Britain, it was all most perplexing.

Over the last few weeks or so, the wheels have come spectacularly off the wagon for the new owners. They may have secured the refinancing package that they desperately needed, but it hasn't come cheap and it is now common knowledge that, just as at Manchester United, a football club is effectively paying for itself to be taken over by outside investors, and at a cost of £30m per year in interest payments alone - money which, ultimately, will come from the supporters themselves. The seeds of the problems for Gillett & Hicks were sown in their treatment of Rafael Benitez. Whatever the shortcomings of Benitez are, he has taken them to two European Cup finals in three years and is still enormously popular on Merseyside. The club's apparent misjudgement of this incurred the wrath of the supporters and a demonstration march to the ground towards the end of last year. The lack of harmony within the club may or may not be directly responsible for the club's slump in form, a slump so severe that it hasn't merely ended their Premier League championship bid but will quite possibly result in them taking part in the UEFA Cup next season rather than the Champions League. There was a further demonstration against Gillett & Hicks at the recent match against Aston Villa. Something, one suspected, was in the air. At last.

The upshot of it all is "Share Liverpool FC", launched today in the city by Rogan Taylor, a long time Liverpool supporter and the chair of the Football Supporters Association, Kevin Jaquiss, a lawyer specialising in employment law who was part of the group responsible for writing the legal model upon which all supporters trusts are based, and Phil French, a former director of communications of the Premier League who is now employed as the chief executive of Supporters Direct. In terms of knowledge and support, you couldn't really ask for much more experience. The plan is a simple (if ambitious) one: persuade 100,000 Liverpool supporters to pay £5,000 each and raise £500m to buy the club, and then run it as a not-for-profit mutual society, with no shareholder dividends and no profit. The group has had a somewhat shaky start (such was the level of interest that the web site collapsed fifteen minutes after it went live and, at the time of writing, hasn't recovered yet), but this would appear to bode well for them - a considerable amount interest in a concept that very few people had even heard about as recently as a couple of days ago.

So, can it work? Well, it
can. These are monstrous amounts of money, though - are there 100,000 Liverpool supporters in the world who will part with £5,000 in order to take control of the club? Are there that many supporters groups that will band together and buy shares between them? The next few weeks will provide a few answers to this, but it is worth remembering that if nothing else, we should applaud the principle of this idea. Some, such as the apparently "humorous" website Who Ate All The Pies, have already chosen to scoff at the announcement, with a magnificently ill-informed article on the announcement that appears to have been written on the back of a cigarette packet in the pub. I don't know which part of their piece on the subject (which I'm not linking to from here - if you want to see it, you can go and look for yourselves) is the worst: "They should leave the running of the club to the money men in suits who know about such things", or "this is communism at its most hare-brained" are vying with each other (and a whole host more) for the most the most ill-informed comment on the subject. Having embarked upon second and third readings of it, I can confidently state that more or less every single sentence of it is as bad as the one that preceded it.


My personal inclination is to think that this plan is unlikely to work, but that this shouldn't preclude people from supporting it. What, exactly, are the alternatives? Well, there's The Middle-Aged Man Possibly On The Cusp Of A Nervous Breakdown Model (Newcastle United), The Asset Stripping Leveraged Buyout Model (Liverpool, Manchester United), The Billionaire That Could Get Bored At Any Moment And Leave Your Club Staring Into The Abyss Model (Chelsea), The God Knows What He's Up To Or, For That Matter, What His Predecessor Was Up To Either Model (Cardiff City), The Buy The Club, Kick Them Out Of The Ground, Sell The Ground And Vamoose Model (Brighton & Hove Albion) or The Former Foreign Dictator Who Could Find All Of His Assets Frozen At Any Moment Model (Manchester City) to choose from. I'd be more inclined to be critical of this project if the people that have run our clubs for the last one hundred and thirty years or so were paragons of financial and moral rectitude, but the bare fact is that they're not. If Share Liverpool should fail, they'll have at least given it a go, and it might plant the seed of an idea in the supporters of other, smaller clubs. If does turn out to work, it might just revolutionise the way that English football is run forever. Seems worth a try, doesn't it?

Tuesday, January 22, 2008

Voting For Christmas

Finally, with just over a week to spare in January, My Football Club has released the details of the deal that they at the point of striking with Ebbsfleet United of the Football Conference, and what extraordinary reading it makes. It is notable, as much for what is missing from it as from what is contained therein, and culminates with what I can only describe as being an exercise in "democracy" so lightweight that it gives every impression of being little more than a legal rubber stamping exercise. The vote closes at midnight tonight, and will be the determining factor in sealing the purchase Ebbsfleet United by MyFC. There is a lot of legalese contained within it, and it's too long to post up on here in one hit, but I think it warrants further reading, so you can download it in full from here.

It is a most peculiar read, coming across as being more like an advertising pamphlet than giving any real information to MyFC members to enable to them make up their own minds on whether to vote in favour of or against the proposal to buy the controlling share in Ebbsfleet United. The opening section confirms that MyFC are to buy a 75% share in the club, and explains that the legal firm DLA Piper have carried out due diligence and create documents and, somewhat confusingly (given that they name the legal firm) an anonymous accountancy firm to carry out due financial diligence. They also state that they are unable, for legal reasons, to publish the results of the due diligences in full.

It then goes on to discuss how "numerous" clubs contacted them with a view to setting up a deal, and that, when everything boiled down, three choices were on the table. Irritatingly (though I'll do some scrabbling around on the grapevine and see what I can find out), the other two clubs aren't listed publicly, but it does say this much: "The former would have been too much of a gamble, and relied on a very significant upturn in membership to work, whilst the latter was eventually discounted on the basis of ongoing issues with the stadium". I think I know who one of them was (a Conference North club, once of the Conference, with a famously small support), but the other remains a mystery. There are a number of clubs that have ongoing issues with their stadium - which one could it be? York City? Barnet? Cambridge City? We may never find out.

Next, it's onto the sales pitch. What is noticeably missing from the "plus points" listed to MyFC members is what the benefits or potential benefits are to existing supporters of Ebbsfleet United. We see a lot about how good it will be for "the club" (ie, the new and existing owners) and how good it will be for the local area (the club sponsors, Eurostar, aren't mentioned by name, but they must be thrilled with all the news coverage an area that they have recently poured millions of pounds into is now getting). There are also a couple of interesting references to Ebbsfleet's tatty but homely Stonebridge Road stadium. In one breath, it is described as "small, but [with] bags of character", and that it "can apparently be fairly easily upgraded to league standard if the club is promoted" (almost all Conference grounds are practically League standard, by the way - a rash of clubs didn't get promoted from it in the 1980s and 1990s after falling foul of the Football League's regulations and the Conference reacted to this by tightening its own rules so much that, for a while, you had to have a better ground to get into the Conference than you needed to get into the League), but in the next it talks loftily about "the fact that the local area is being re-developed means that there is a good prospect that a new stadium will be built for the club, free of charge".

Hang on a minute. "
There is a good prospect that a new stadium will be built for the club, free of charge"? I thought that this was poor, impoverished Ebbsfleet, with no cash, small crowds and desperate enough to try anything to keep themselves alive. What is becoming apparent is that there is more to this than had originally met the eye. There is a lot of talk about "regeneration", "opportunity" and, of course, "highly confidential". There's a lot of talk about property, generally. Interpret that as you choose. It continues in this vein for several more paragraphs, along with some almost incomprehensible guff about having three different tiers of shares, plenty more about what a great opportunity this is for MyFC and with practically nothing about what will be for the best for the people that really matter in this whole, sorry circus - the supporters of Ebbsfleet United.

Monday, January 21, 2008

What On Earth Is Going On At Liverpool?

This season's major trend has been a very singular type of managerial sacking, involving "intolerable pressure" building up in the media, directors and owners panicking, and a manager's job becoming basically untenable, regardless of whether he deserves to be sacked or not. In some cases, it was undignified to the point of being embarrassing to watch, such as at Chelsea, where the boardroom politics, the despotic ownership and the ridiculous amount of control given to senior players were made public. At Newcastle, Sam Allardyce did the impossible, in becoming a figure of public sympathy for being ousted through a mixture of supporter ignorance and an owner that seems to be too eager to please said ignorant supporters.

Now, at Liverpool, the position of Rafael Benitez seems to have been undermined still further by the actions of their owners, George Gillett and Tom Hicks. It has become apparent as the season has worn on that Liverpool are not going to mount a serious championship challenge in the Premier League. In fact, if anything they seem to have taken a backward step since last season, and are currently playing like they have more in common with the likes of Everton, Manchester City and Portsmouth than they have with Chelsea, Manchester United and Arsenal. The money that was reported to be delivered to Benitez to further strengthen his squad doesn't appear to have been forthcoming, and now there are worrying rumours coming from Anfield regarding a need to restructure the club's finances ahead of the construction of a proposed new stadium in Stanley Park. There are some Liverpool supporters that are starting to sound increasingly alarmed, to the point of drawing similarities with the beginning of the decline of Leeds United.

The problem at the centre of Liverpool's current difficulties is the funding of their take-over last year. As with Manchester United, Liverpool were subject to a leveraged buyout, meaning that Gillett and Hicks utilised stock market rules to purchase the club for a fraction of its actual value. At the time, Liverpool's supporters were very supine about it all. Stars and stripes flags were waved at Anfield. The new owners were more than happy to lap up the praise when they got to the European Cup final in May, even though they'd had precious little to do with it. This season, their big summer signing Fernando Torres has carried them single-handedly through the season. They made a dog's dinner of getting through their group stage, losing to Besiktas and Marseille in a group that they should have had sewn up with games to spare. In the Premier League, they have slowly and consistently fallen further and further away from the top three since the start of the season.

The major problem for Liverpool FC is that they simply cannot afford to not qualify for the Champions League this season and, indeed, every season for the forseeable future. The buyout of the club cost £300m, which has been loaded against the club itself. On top of this, one of Gillett and Hicks' first acts when they took over was to promise to build a new stadium, at a cost of a further £300m. Liverpool were already said to be £80m in debt at the time of the buyout. Gillett and Hicks are said to be trying to restructure the club's finances through the banks, but this in itself is an expensive business. A recent report in the Daily Telegraph put the cost of the restructuring at £15m, and the cost of the new stadium has already risen to £400m, with £20m having already been paid to architects.

In the beginning, Liverpool's supporters were open to the idea. Broadly, they supported Gillett and Hicks against their rivals in bidding, Dubai International Capital, who represent the interests of the ultra-wealthy Maktoum family. Gillett and Hicks said the right thing. However, leverage buyouts are done for one reason. To buy something that is considered under-valued in the market without putting much investment in and sell it on at a profit. DIC may well have the funding to underwrite the club's debts, but they have already stated publicly that they don't much want to pour money into a black hole (and why, indeed, should they?). The danger, for Liverpool, is that they could end up hundreds of millions pounds in debt, unable to service so much as the interest payments on debts that they may already have unnecessarily run up.

At Manchester United, supporters were already protesting before the Glazer takeover. It might not have been enough to prevent the buyout there from going through (although anyone looking at the end of year figures coming from Old Trafford will be able to tell you that journalists stating massive profits there simply hasn't read the full story of how they've been massaged), but their disaffected supporters at least have an alternative. Liverpool supporters might just find that things could get a lot worse for them before they get any better.

Wednesday, January 09, 2008

Who's Football Club?

Most of you will probably remember the little bit of investigation that I undertook on the subject of the My Football Club take-over of Ebbsfleet United towards the end of last year. Well, I thought that it was time for a quick update on how things were progressing for this peculiar little exercise in "fan" ownership. At the time of my last piece on the subject, the take-over of Ebbsfleet United seemed to be just about imminent. It would appear that the situation now is just about the same as it was then. The site has accumulated another 5,000 or so members (thanks, no doubt, to the mass of media interest when the news of which club it would be was made public), but they don't appear to be much closer to having confirmed their take-over.

Now, you may well think that this is not particularly important. After all, it's very important to carry out the due diligence required to ensure that they're not buying a turkey. However, we're now a third of the way through January, and it would appear that any purchase is unlikely to be completed before the end of the January transfer window. The directors of Ebbsfleet have reportedly confirmed that they will put their hands in their pockets themselves to buy any players that the club needs before the end of the transfer window, but there can be little doubt that MyFC members will have no say in the players signed by the club until the summer, at the very least. Arguably more worrying for MyFC members is the lack of communication from the people running the whole venture. The forum is still up and running, but the last "diary" update on the front page of the site is dated the 25th of December and reads as follows:

"I hope you excuse a shorter than usual Diary entry. There’s a limit to how much “nearly there” talk anyone can take.

As you can imagine, much work took place over Christmas. Both last week and this have been extremely busy too.

The good news is, I’m very confident this will be the last-ever pre-takeover Diary. Due Diligence is a whisker away from becoming Done & Dusted."

Turning our attention to matters on the pitch, Ebbsfleet are still having a decent time of it on the pitch. They are currently in eighth place in a very competitive Conference table, and have won both of their last two league matches against Weymouth and Grays Athletic by four goals to one. However, anybody that assumed that they would be cashing in on all of the publicity generated by the MyFC circus would be mistaken. Crowds at Stonebridge Road are down on average this season, from an average of 1,165 last season to an average of 1.016 so far this season. They may have made enough money from extra merchandise sales to have covered this gap (although it's also worth pointing out that the MyFC shop still only stocks MyFC merchandise, and nothing relating to Ebbsfleet United FC) but, in a league in which match day revenue provides the majority of a club's funding, these look like worrying figures. Moreover, it would be worth reminding MyFC members getting excited about the possibility of bringing Kaka to Stonebridge Road that the Conference has a salary cap based on the average two seasons' turn-over, meaning that they will be limited to their current wage bill in terms of any higher wages that they may be hoping to be able to pay.

So, we can surmise that it is highly unlikely that any take-over by Ebbsfleet United by MyFC is unlikely to take place before the end of the January transfer window. Leaving aside any moral considerations on this subject (and I think I've made my opinions on that pretty clear in the past), the question that remains is this: If I was a member of MyFC and had faithfully forked out my £35 in the summer, what exactly have I got for my money, so far?

Monday, November 19, 2007

My Football Club Re-Visited

It's funny how writing this blog ebbs and flows (no pun intended). A couple of weeks ago, I was really struggling to find things to put up on here and now I haven't got enough time to write as much as I'd like. Over the weekend I downloaded 800mb of terrible football songs from all around the world. The vast majority of them are untagged, so I've got no idea which clubs or players they're even about. Will I be posting regular selections of them up here for your delectation? Well, what do think? There will also be more vintage Baker & Kelly (probably later tonight, as it goes), a live commentary, no less, on the England vs Croatia match on Wednesday night (providing I'm not called up to play myself, and I haven't yet completely ruled that out), my thoughts on the man that must surely be football's biggest Judas (I think you can probably guess who that is) and much, much more.

However busy I am over the next few days, though, I am unlikely to be as busy as Will Brooks has been over the last few days. Will, after all, had to combine the enormous media interest in MyFootballClub with a long trip from his London home to Oxford United on Saturday to see his newly-beloved Ebbsfleet United play in the Conference and fit the time in to write a quick hagiography on his new project for the BBC. Interestingly, the media have been getting their claws into this project over the last few days, with The Times' Martin Samuels and The Observer's Jamie Jackson both coming to the conclusion that there may be more to this than the MyFC publicity machine would like you to believe. Now, I'm not going to suggest that anything underhand is going on here, but it would have been nice to see the BBC offer some slightly more balanced reporting of the matter. It might be unsurprising, given that Brooks was one of their own, but I would ask you to consider whether, having looked at their supporters' message board (the nearest that we have to an acid test at this precise moment in time), whether this is something that Ebbsfleet's own supporters actually want or not.

Before we go any further, I would like to reiterate a couple of points that I made in passing on here, which I really think should be made again. Firstly, I cannot overstate how very strange I find it that an IPS would make one of its main rules the need to maintain a contract with a private company. This is simply something that I have never heard of before. Secondly, for all the talk of Trust status (and, to be fair to MyFC Trust, they do appear to have copied and pasted a considerable amount of their Trust rules from the Supporters Direct pack), their trust document, I have it on very good authority, falls some way short of what SD themselves would describe as "best practice". To put it another way, this is quite simply not the sort of set of Trust rules that SD would endorse.

I have commented on here before that it is strange that, considering the standard Trust requirements for transparency and openness, their forum should be closed to anyone that isn't a fully paid-up member. How fortuitous, then, that the rest of us can get access to it if we know the right people to ask. I have decided not to post wholesale messages on their from the site's administrators that I find "of interest", so we'll just suffice to say, for now, that the message from "The Legal Team" dated 30th August 2007 was something that I found most illuminating. Points such as this:

7. As to the GBP7.50 and where it goes - we don't really want to get drawn into a long debate about this.

Do not exactly fill me with confidence. I would say that Trust members have the absolute right to know where 21% of their membership fees go. The key question, which I still haven't seen a convincing answer to, is this: What mechanism is in place for the supporters of the club, who will still be there long after the media circus has left Ebbsfleet United FC, to have a say in the running of their club? Saying "they can join MyFC" is a whitewash. Their 1,000 voices will, if they differ from those of the 20,000+ members of MyFC will be drowned out. If it all goes wrong, they will be the ones picking up the pieces. My position on the matter remains unchanged, and nothing in their PR machine has had any effect on me other than leaving me feeling most uneasy about this entire venture.

I don't disagree, in principle, with the concept of the supporters (or whoever) managing the team. You can do whatever you like to the team, and the chances are that there will still be someone for the supporters to support at the end of the day. At non-league level, a large number of the fans don't even really care that much if the team wins or not. Gravesend & Northfleet, for example, have bounced between the Conference, Southern League and Isthmian League for the last 30 years or so - if MyFC were in charge of the team alone and got them relegated, it wouldn't be the end of the world for their supporters.

You can't fuck about like that with the club, though. The problem with MyFC is twofold:

- No-one was going to just let them run the team. They'd have to buy a controlling share in the club in order to do what they wanted.

- In order to buy a controlling share in a club, they'd have to get tens of thousands of people to sign up and, to get tens of thousands of people to join, they had to promise something BIG. So, they couldn't start a club from scratch - too many overheads, and is Joe Average, who quite possibly doesn't give a shit about anything below the Premier League, going to want to start in the County Leagues and pick his or her way through the non-league system for five or ten years before they even get a sniff of Conference football? So, they had to buy a club that was some way up the ladder already and, in doing that, they're buying into something that is more important that "just a little football club". It's a contradiction to which there is no resolution.

This is why AFC Wimbledon and FC United could start at the bottom and build up. People that are fans of the club will stick with it for years. They'll probably get to the Football League (or close to it) in ten or twenty years, because they have people there willing to put the hours in to put the building blocks in place. So far as I'm concerned, the line that you draw is between the team and the club. Do what you like to the team, but don't take over a club and use it as the basis for an experiment.

(Some of you may recognise the last couple of paragraphs from OTF - it's as near as I've managed to crystallising my thoughts on the matter in less than 1,000 words so far)

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