Chester Perry wrote: ↑

Wed Mar 31, 2021 3:37 pm

The Agents fees to 1 Feb 2021 have been released - some may be surprised at our near £4.5m bill given the summer and January windows but there have been a slew of deal extensions. Only West Brom have spent less than us in the Premier League and only Watford of the 3 that went down have spent less (though that is half what we have paid)

https://twitter.com/KieranMaguire/statu ... 5692639234

The Guardian on how Paul Scally The Chairman of Gillingham managed to pay zero agents fees in the last year - the only club in the 92 not to do so

How did Gillingham become the only EFL club not to pay agents a penny?
League One club’s owner, Paul Scally, says weak people are funnelling vast sums to agents who not needed in football

Ben Fisher
Tue 6 Apr 2021 10.39 BST

When the Football Association released last week the latest sums paid to agents, eyes inevitably moved towards the headline figures: Premier League sides stumped up a record £272m in a year – they have shelled out more than £1bn over the past four seasons – with every top-flight club spending more on intermediaries than the whole of League One combined, including Gillingham, the only club in the top four divisions to not pay a penny.

Championship clubs spent more than £40m in the 12 months to the start of February 2021, League One £3m, League Two £1m and National League clubs almost £275,000, with Guiseley spending £450. Over the past six seasons Gillingham have, according to the FA, spent £86,457 on agents’ fees, a figure eclipsed by fourth-tier Salford City in the last year alone. Across that six-year period Manchester United have paid intermediaries £125m, and Liverpool’s £143m spend is enough to buy Gillingham’s £600,000 record signing Carl Asaba 238 times.

Gillingham are an anomaly in an era awash with super-agents and overspend. They will not pay agent fees unless they “absolutely have to”. “I don’t aim to pay zero,” says the club’s owner, Paul Scally, who celebrated 25 years as chairman last summer. “There are occasions when I have to pay an agent but I try and avoid it and do it very rarely. I don’t like agents. I don’t like their business, their trade. We managed before agents came along and it was probably a better world.

“For the first 10 years I dealt with players or their families, sometimes a solicitor or a representative, but most of the time I dealt with players. They would come in and we would agree a contract. Since agents came in it’s gone downhill from there. I think they either don’t bother coming to us because they know I don’t like agents, I’m not going to pay them a fee or will fight them over a fee … or they realise that they’ll get their player in the shop window, we’ll develop their player, their player will then have more worth and if they get sold to a Championship club they will get more money.”

Playing hardball does not mean Gillingham struggle to get players through the door; since last summer they have loaned a dozen and made 11 permanent signings, seven of which, according to the FA, involved agents. “If an agent represents a player, then the player should pay the agent,” says Scally, whose annual budget is about £2.6m. “I shouldn’t pay the agent. In times of austerity, such as we are, I’m looking at every penny to keep the business going. Why would I waste money on agents? We don’t need them in our industry.”

Shrewsbury, Gillingham’s third-tier opponents on Saturday, coughed up £95,000 in agent fees and the league leaders Hull City £543,238. By Championship standards Wycombe (£126,053) and Millwall (£255,715) paid a pittance, but why do more clubs not resist paying vast sums? “Because the people that make those decisions are weak,” says Scally.

“The people that make the decisions to pay the agents are often not the owners; they are often people working on behalf of their owners. They are weak because, invariably, it is not their money and they think the money is just going to keep on coming, keep on coming. They think bringing these players in is going to guarantee them success and promotion. That is why the Championship is in such a mess, because of this frenzy to get hold of the Premier League money.”

The millions spent by top-flight clubs, four of whom have used the government’s furlough scheme, particularly rankle. “It’s absolutely pathetic. It is all money that should have stayed in the game and should have been fed down into the pyramid. When League One and League Two asked for some help [to combat the impact of Covid-19], they all cried poverty. So we ended up with a £30m grant and £20m loan. We are going to them with begging bowls when they are paying that kind of money to agents.

“When you talk to fans generally, they are sick and tired of the nonsense at their club, the waste and the money they are spending on wages, agents etc. The average man cannot relate to the sums of money that are being wasted in the Premier League and, to some extent, in the Championship.”
Mehmet Dalman, the Cardiff City chairman, has said the game requires a “Big Bang” to reset financial order and Fifa is pressing ahead with plans to introduce controversial regulations for agents. The dizzying numbers have made Scally question his future across a challenging 12 months but he has been encouraged by emails of support from fans since detailing some of his observations in a 14-page open letter last month. Gillingham remain fiercely competitive despite operating within rigid parameters.

“There are people who have supported us for 40 years saying: ‘We’re never going to be a top, top club, we’re never going to be glamorous but we’re still going and we love what we’ve got because it’s real,’” Scally says. “If the Premier League and the Professional Footballers’ Association don’t get their heads out of their backsides and start realising the way they are going there is no sustainable long-term future, it is going to be a very rocky road ahead.”

Cardiff's Mehmet Dalman has previous for this kind of approach though

search.php?keywords=Mehmet+Dalman&t=20891&sf=msgonly

and we cannot forget his stance with Nice of the Emiliano Sala tragedy, the financial wrangling of which is still being bitterly fought out. You suspect Dalman's biggest problem is his evaporating parachute payments, they desperately need that unlikely promotion that Mick McCarthy currently has them charging for, I wonder if his tone would change if they do get promoted

After the recent financial updates from Arsenal and Manchester United you cannot imagine that the tone of this message will go down well with the Premier League, many of whom are still to report on last season with the firm knowledge that this season has been even more financially damaging to them - from the Telegraph

Exclusive: EFL urged to 'wage war' on Premier League as clubs warn half the Championship is on brink of collapse
TOM MORGAN MARCH 08, 2021

The Football League has been urged to "wage war" on the Premier League as clubs warn half the Championship is perilously close to collapse amid bail-out turmoil.

Fresh help from the top tier was cited by one leading executive as the only option after a £100million-plus bank loan was blocked by 11th hour Treasury demands on player pay.

The Premier League, which signed off a potential £50million grant package for League One and Two but only contributed towards £15miillion in loan fees for the Championship, now has a moral duty to help, according to Cardiff City.

"We're now at the edge of an abyss and we're about to step forward," said Mehmet Dalman, the club's chairman, as he said it was "100 per cent" time to start a "war". EFL chiefs must "stand up and be counted for", he said, by returning to the negotiation table to demand a new and improved support package from elite clubs that "feed" off the Championship. "I think the EFL needs to pick a fight, not just with the Treasury, but with the Premier League," Dalman added.

Dire warnings from several leading Championship clubs were issued as Telegraph Sport reveals scenes of unprecedented acrimony between ministers and the league over the collapse in financial support.

The EFL has been left with few places to turn as relations between Rick Parry, the EFL chairman, and Nigel Huddleston, the sports minister, have been hostile since October. Whitehall took exception when Parry wrote in an open letter that clubs feel they are either being "ignored" or "victimised".

The professional game was first told to sort out its own problems last June after the first cheques were handed out from more than £100billion in Government support for jobs during the pandemic. The mood within the EFL has been described as going from bad, to worse to "apoplectic" in the last week as ministers announced another £300million support package for other sports, while also offering to fund extra matches at Euro 2020 and back a 2030 World Cup bid.

"You get a bit fed up with the empty words," said one senior figure within the league. "We hear how important the EFL is and then ministers are coming out with 'Oh Euros, fantastic - we'll do the whole thing' and then the World Cup bid. Give them a bauble and their eyes light up. When it really comes to helping out at the grass-roots level, we see where the priorities lie."

Championship clubs were given just 48 hours notice last month that the Treasury was blocking an expected payment that would amount to £8.3million for every club in need. The EFL had accepted pay freezes on executive payments, but, following last-minute instructions from senior figures within Government, the rule was extended to players too. The clauses were instated despite Arsenal and Tottenham Hotspur borrowing a combined £295m through the same Bank of England “Covid Corporate Financing Facility”.

Whitehall insiders alleged that Parry had previously told Government the EFL had private finance options, and it was unclear why this has not since materialised. That version of events is denied by EFL sources. Steve Kavanagh, the chief executive at Millwall, described the Treasury's stance as "completely unacceptable" and "ridiculous".

"The whole football eco-structure is at risk here and Championship clubs find themselves in the worst place of everyone," he told Telegraph Sport. Clubs feel cheated after many showed handed over venues and facilities as goodwill gesture to aid vaccination and testing during the pandemic. "These clubs have all stepped up when asked by the Government to support their communities," Kavanagh added. "The real story is what we did before Covid-19 without being asked and what we'll do after, because we understand the importance of helping each other. I think a lot of people need to take a long hard look at themselves and look again at what football is and does for our society."

Around two thirds of the Championship were hoping to draw down money from the Treasury-blocked loan. "Club owners have been amazing in keeping these community assets going, but they need help," Kavanagh added. "The Championship hasn't had any bailout or support whatsoever. Don't believe the smoke and mirrors, when clubs go under and communities suffer then don't be surprised."

Figures within the EFL Board suggest the competition is minded to resist a request from Dalman's Cardiff to reopen negotiations with the Premier League.

Dalman, however, says the EFL should take a much more aggressive stance with England's top tier to ease concerns in an increasingly disenchanted Championship. "The pain is substantial," he added. "The Premier League is the richest league in the world, and one of the reasons for it is because they feed off the Championship. If they didn't have promotions and relegation, it wouldn't be as exciting. So why don't we, why don't we have that fight with them.

"You cannot keep this level of uncertainty to any business, never mind football. I would be really surprised if half of them are not able to even pay wages. How far can you stretch, you can stretch maybe another month. But sooner or later something's got to give."

Cardiff say the EFL deserves criticism for failing to secure a package by now. A £15million package from the Premier League to help seek a loan after months of bargaining in the summer and autumn underwhelmed clubs. Sources close to the Premier League defended the support package, saying top tier clubs could end up recording losses of £2billion relating to the pandemic. The help announced late last year was in addition to other parachute and solidarity payments. At the start of the pandemic, funds of around £125milion were also advanced to the EFL and National League to ward off the immediate threat.

Dalman said the Championship had been let down by false promises. "EFL came out and they talked to the member clubs, and made a lot of promises, which they can't deliver," Dalman added. "We can look at whose fault that is, but at the end of the day, the EFL has got to stand up and be counted for it."

The clubs are unanimous in refusing the Treasury's demands to abandon player bonus and renegotiations. Alternative financial solutions, including the existing option of the Treasury, are still being explored by the EFL.

Figures within Whitehall suggested similar clauses had been attached to previous loans, including the two drawn down by Tottenham and Arsenal. The Government said in a statement: “We know the pandemic is having major consequences for sports sectors across the country which is why we've provided £600 million to support sports and grassroots clubs through the pandemic when survival was threatened. At the top level of football there is more ability to help themselves, as we saw with the £250 million support package we helped broker between the Premier League and the EFL. The government has offered multi-billion pounds worth of wider support for businesses, which football has also been able to access. The Covid Corporate Financing Facility is currently helping to support almost 2.5 million jobs in the UK. Companies wishing to take out loans have to agree to certain conditions on dividends and pay restraint as taxpayers would expect."

Not for the first time this year there are stories of a potential Championship breakaway are being mooted - from the Telegraph

Exclusive: Fears grow of Championship breakaway after 'rebel' chief executives meet secretly
TOM MORGAN OCTOBER 06, 2020

English Football League clubs fear Championship breakaway threats loom again after "rebel" chief executives met secretly yesterday to voice frustrations at league officials over the rescue package saga.

A host of second tier club boards - including Cardiff City's on Telegraph Sport - have gone public with simmering anger at failures by both the EFL and Premier League to thrash out terms on a bailout for the pyramid.

Secret talks were held yesterday between a group of leading figures in the division, with sources saying they were keen to "get their ducks in a row" to ensure frustration was voiced at an EFL Board meeting on Thursday.

Consternation within the ranks is of serious concern to the EFL after a host of clubs - including Derby County and Stoke - previously met in autumn 2018 amid threats of a breakaway. Julian Aquilina, of Enders Analysis, recently told Telegraph Sport that the Championship had been "under-valued" in previous broadcasting rights sell-off.

Derby's chief executive Stephen Pearce will be present at the EFL board meeting tomorrow and was described by one source as "potential key figure" in the Championship retaining a united front.

Backing from Leeds United and Aston Villa can no longer be counted on due to the two clubs' promotion, but more than 10 Championship clubs previously expressed appetite for a break away to secure more TV money. The current five-year TV deal is be worth around £120m, a fraction of the £1.4billion carved up in the Premier League.

Championship executives were "appalled" to see transfer spending in the top tier hit almost £1.2billion this week. Mehmet Dalman, the Cardiff City chairman, believes around half of clubs' in the Championship may now be for sale because there is no end in sight for the financial disaster caused by Covid.

Ongoing reticence in agreeing to the EFL's £250million continues between Richard Masters, the top tier's chief executive, and Rick Parry, the EFL chairman.

A counter offer from the Premier League has been ruled out until next week, but several top tier clubs want any potential installments to be delayed even further to allow the second transfer window to close on Oct 16. A package for League One and League Two is certain to be reached, but the main reservation expressed by smaller top tier clubs is that their financial outlooks are already broadly in line with effective rivals in the division below under the parachute payment system. As a result, the Premier League is expected to require assurances that the second tier will curb excessive wage spending.

The last available accounts show Norwich, Derby, Sheffield Wednesday and Wigan all spent beyond 150 per cent of revenue on wages. Reading were worst hit of all, recording figures of 226 per cent.

The esk wrote: ↑

Mon Oct 05, 2020 9:49 am

It is interesting that the £250 million requested/demanded by the EFL is less than 1% of the total estimated net worth of all the EFL Club major shareholders. Whilst clearly a number of clubs do not have significantly wealthy owners, there is sufficient wealth across the League to make a meaningful contribution to their own competition and thus the welfare of their own clubs.

and yet this evening we have this in the Telegraph - bear in mind Cardiff were in receipt of Parachute payments last season and will be again this season

EFL bailout deadlock: Championship bosses criticise Premier League's 'I'm alright, Jack' elite
TOM MORGAN OCTOBER 05, 2020

The Premier League's deadlock in talks with the English Football League over a rescue packaging has been branded "pathetic" and "ridiculous" by furious Championship executives.

In an interview with Telegraph Sport, Mehmet Dalman, the Cardiff City chairman, launched a scathing attack on failures by governing bodies to strike a deal to ensure money is funneled down from the "I'm alright, Jack" elite.

Another Championship executive, speaking on condition of anonymity, added that he was "appalled" to see transfer in the top tier hit almost £1.2 billion as the international window closed. "And yet the posturing continues," the chief executive added.

Well placed sources have told Telegraph Sport that a bail-out counter-offer from the Premier League is not expected for another week at least because smaller top flight clubs fear handing any competitive advances to clubs such as Cardiff.

Dalman believes around half of clubs' in the Championship may now be for sale because there is no end in sight for the financial disaster caused by Covid.

"It's ridiculous," said Dalman of the lack of progress by Richard Masters, the Premier League chief executive, and Rick Parry, the EFL chairman. "The negotiations with the EFL, the Premier League, the LMA [League Managers Association] is best summed up as being pathetic. Nobody wants to move, nobody wants to make a decision."

Why Championship clubs' overspending and financial troubles are stalling Premier League's EFL bailout
Cardiff ruled out doing any business as the transfer window closes. Dalman refused to criticise the top tier for spending heavily, but said there was an "I'm alright, Jack" attitude in the elite, while the EFL is in a "terrible state".

Dalman, who estimates his club is "burning through" up to £3.5 million a month, says ongoing delays in negotiations between players and coaches unions are making life impossible.

"People keep talking about referrals, but they're just a red herring – you're still going to have to balance books," he added. "Referrals don't actually help at all, apart from short term relief or financial repression. There's a real need to show some sort of action. We're burning through two and a half, three and a half million pounds a month, and with no spectators, no merchandising sold, no hospitality offered, it's just not a sustainable model."

After a summer in which Chelsea have spent more than £200 million on transfer fees alone, the Government has said that there was an obligation for the Premier League to show solidarity with the cash-strapped lower tiers. Dalman agrees: "I think it's wrong for us to ask the Government to give us a handout... I think the Government has got enough on their hands without worrying about us".

"On the other side, the Premier League depends on the Championship for the excitement that they create, with the relegation battles, the promotion battles," he added. "Even if they come short term it will be a massive help. If they were to hand out 20 per cent of the money that they actually receive, Championship clubs will be financially viable."

Dalman said he had seen "zero movement" in discussions, and "nothing is happening". "It's just not sustainable and it's also clear to me that the coronavirus is not going to go away in the short term," he added, adding that the whole football industry will need "some steps to be restructured".

"I would not be surprised if half of the Championship clubs are for sale," he added. "I know at least six clubs that are for sale in the Championship. So, I'm sure the remaining are not having a comfortable time either."

Cardiff, he said, "are in a better position than most", but the club is finding it impossible to cut costs because players and staff are tied into contracts. "You can't sell players at the true valuation because nobody wants them," he added. The Championship is open to the prospect of a wage cap, with many clubs spending already more than 100 per cent of revenue on salaries pre-Covid, but Dalman says the measure will not solve the immediate crisis.

"The problem is your fixed costs are high, wage levels are high," he added. "The only answer I can see is that the Premier League has to distribute some of its wealth to the lesser clubs."

-----------------------------------------------------------------------------------------------------------------------------------------------------------

The guys at Vysyble have taken note and sum it quite neatly

https://twitter.com/vysyble/status/1313187306359185411

Royboyclaret wrote: ↑

Sun Jun 21, 2020 7:13 pm

Unable to help there, Chester, but suspect the Athletic article will be very much a replica of the message from the Cardiff Chairman Mehmet Dalman higher up the page. Dalman's comments should be compulsory reading for anyone with a financial interest in our great game and his reference to a reset for the EFL and a new "normal" after the virus are particularly relevant.

No doubt, like me, you will have picked up on this specific point he made......."Outside of the Premier League, nothing gets filtered down. They are sitting on £1.5billion cash and yet how much of that money goes into the Championship, League One and Two?"........Quite how that reconciles with our various posts yesterday on parachute and solidarity payments and just how much remains in the Premier League pot after distributions are complete, I'm not too sure.

solidarity payments work out around £3.7m a club in the Championship (which is not too different to Sean Dyche's reported wage) - Cardiff of course are on parachute payments

Chester Perry wrote: ↑

Sun Jun 21, 2020 5:58 pm

Anyone able to transcribe this article from the Athletic - ‘The casino mentality has to stop’ – why the Championship has changed for good

https://theathletic.com/1875381/2020/06 ... ed_article

Unable to help there, Chester, but suspect the Athletic article will be very much a replica of the message from the Cardiff Chairman Mehmet Dalman higher up the page. Dalman's comments should be compulsory reading for anyone with a financial interest in our great game and his reference to a reset for the EFL and a new "normal" after the virus are particularly relevant.

No doubt, like me, you will have picked up on this specific point he made......."Outside of the Premier League, nothing gets filtered down. They are sitting on £1.5billion cash and yet how much of that money goes into the Championship, League One and Two?"........Quite how that reconciles with our various posts yesterday on parachute and solidarity payments and just how much remains in the Premier League pot after distributions are complete, I'm not too sure.

Interesting comments from the Cardiff chairman yesterday with regards to the number of Championship clubs that are up for sale at giveaway prices - from the Mirror

Cardiff City chairman fears a third of Championship clubs could be sold for £1
Mehmet Dalman says Leeds United will have 'serious restructuring to do' if they don't win Premier League promotion - and fears some clubs may have to sell up or go bust
ByJohn CrossChief Football Writer
07:19, 20 JUN 2020UPDATED08:29, 20 JUN 2020

Cardiff City chairman Mehmet Dalman believes nearly a third of Championship owners would sell up for £1 because of the coronavirus crisis.

Dalman believes the situation will only get worse for English football’s second tier because of mounting debts. He says they cannot sustain their huge spending and some face the prospect of going out of business.

It is a grim prediction from Dalman who has also warned it will be promotion or bust this season for Cardiff ’s next opponents Leeds, who are pinning all their hopes on getting into the Premier League.

Former investment banker Dalman, who helped broker the Glazers’ takeover of Manchester United, said: “I have spoken to seven clubs in the Championship who would be quite happy to sell up for £1.

"They’ve just run out. You can’t live with the cost base that’s coming.

“What’s going to happen to the game when you have a second wave of this virus? It’s not as if we will play out the season, get to August and all will be well. It won’t be.

“I’m really concerned about the game. Clubs have realised it will not be sustainable in the long term, they are looking at double digit losses, mid-table or fighting against relegation for two or three years.

"Every year losing £10m isn’t very appealing.

“It will be a travesty if Leeds don’t get the opportunity to go up. They’ve deserved it. They’ve made a huge investment, they’re almost there and if we suddenly stop then that’s unfair.

"But if they don’t go up then they will have some serious financial restructuring to do."

He added: “Clubs are bleeding, particularly in the Championship. I think the decision to finish the season is right. We can’t put so much work and effort in and then be denied the chance of promotion - ourselves included because we’re two points off the play-offs.

“But I think there needs to be a reset - and my fear is there won’t be. People will try to ignore it and go back to normality. But the reality is you won’t be able to do that or the damage at these Championship clubs will be irreversible.

“Clubs will have to bring in more capital, they will have to sell or they will fold. It’s one of those three things.”

Dalman has been at Cardiff for nearly seven years, and has overseen incredible change during his tenure as they have gone up and been relegated from the Premier League and are now still in with a shout of the play-offs.

The former Crystal Palace triallist, who became an elite investment banker, knows the game inside out but also has a passion for football which means that, while Cardiff is run responsibly, he fears for other clubs and their financial futures without any support from the Premier League.

Dalman added: “Outside of the Premier League, nothing gets filtered down. They are sitting on £1.5billion cash and yet how much of that money goes into the Championship, League One and Two?

“Why is the Premier League so exciting? It’s because we have promotion and relegation to and from the Championship, so of course the EFL plays a part. We need a healthy league.

“Everyone has got to go from chasing rainbows in the Championship, trying to get into the Premier League to producing your own players through the academy, selling them to survive and following the French model to be creative rather than spending tonnes of money to get promoted.

“Someone asked me: ‘What sort of budget will Cardiff have for this summer’s window?’ I actually think the question should be: ‘How many players are we going to let go?’ Football is going through its worst crisis, certainly since the Second World War.

“But I don’t believe we will learn the lesson from the current crisis and predicament that we are in. That’s the really sad part.”

Unlicensed football agent and private airplane booker Willie McKay (see post #555 http://uptheclarets.com/messageboard/vi ... &start=554" onclick="window.open(this.href);return false;) is looking likely to be going to jail for Fraud - From the Telegraph


Exclusive: Willie McKay facing up to two years in prison after being charged with fraud - Ben Rumsby
25 June 2019 • 5:00pm

Willie McKay has been charged with fraud, Telegraph Sport can reveal.

The man who booked Emiliano Sala’s doomed flight is due to appear in court next month after being charged with two counts of fraudulent transfer of property.

News of McKay’s latest brush with the law comes a day after Telegraph Sport revealed police had issued a harassment warning to the Scot following a complaint he threatened to “burn” Cardiff City and to “kill everybody” there.

Charges were issued following a probe by the Insolvency Service, which said on Tuesday: “William McKay is due to appear at Manchester Magistrates Court on 31 July having been charged with two counts of fraudulent transfer of property.”

If found guilty, McKay faces up to two years in prison.

The Scot was issued with a harassment warning last month after being accused of making threats to Cardiff chairman Mehmet Dalman, chief executive Ken Choo, player-liaison officer Callum Davies and one other man.

As revealed by Telegraph Sport, the Metropolitan Police launched an investigation after McKay, who turned 60 this month, found out where one of his alleged victims lived and confronted him at a nearby cafe before committing what the force described as a “possible public order offence”.

It said the incident was not being treated as “threats to kill” amid claims the Scot subjected the same man later that day to threatening phone calls in which he said, “I’ll shoot the lot of you”, and, “You don’t know who you’re dealing with”.

Confirming its investigation into the February 22 altercation had “now concluded”, the Met said: “A man, aged in his 50s, was interviewed under caution on Tuesday, 28 May. He was not arrested. The man was issued with a first instance harassment warning.”

The force issued a statement less than a week after the pilot McKay asked to organise Sala’s fatal January 21 flight was arrested on suspicion of manslaughter by an unlawful act.

Dave Henderson, 64, was held by Dorset Police amid an investigation into the striker’s death, including into accusations the man drafted in to fly the plane, Dave Ibbotson, was not properly licenced.

McKay has repeatedly stated he had no input into the selection of Ibbotson – who is missing presumed dead – while Henderson has yet to comment on his own arrest or role in the tragedy.

He has also denied threatening Cardiff officials or that he was issued with a harassment warning by police.

Following the Telegraph’s reporting of the outcome of the Met investigation, McKay responded to requests for comment with threats relating to the reporter's family.