Huddersfield owner Phil Hodgkinson warns '50 or 60 clubs' could go bust

[Spijed]

You'd hope there is some help from the FA, Government and even the PL

https://www.bbc.co.uk/sport/football/52790371

[tiger76]

It's not alarmist to state that the very nature of the English football pyramid is under threat.

What the solution is is hard to say,but if lower league clubs expect financial aid from other parties,then it's reasonable to expect them to get their affairs in order at the same time,so no more overspending,rigorous fit and proper owner tests,that'd be a couple to start off with.

[claret2018]

I don’t think it’s necessarily a bad thing if it means the ludicrous amount of money swimming around the game Is drastically reduced

[Blackrod]

Shouldn’t be any bailouts. Whilst clubs can afford to pay millions to players it’s tough luck really. They need to cut their cloth accordingly and a prudent business would not be run in the way football clubs are. Football clubs and players need a reality check.

[huw.Y.WattfromWare]

It’s a sad indictment of the clubs. 99% over-spending just to keep up.
Squad salary caps is the way to go. Some of the PL income has to be shared down the pyramid but, for me, not below NL level. This share must be a percentage per league and not some skullduggery where the “bigger” clubs get a bigger share.

[tiger76]

I don’t think it’s necessarily a bad thing if it means the ludicrous amount of money swimming around the game Is drastically reduced

Yes there is opportunity in this moment for the game to become more grounded and realistic,the chase for the PL millions will always be a lure though for ambitious chairmen.

You'd have thought the Bolton,Bury and Southend debacles amongst others would have served as a warning,but still many clubs in leagues 1 & 2 insist on throwing money away like confetti,the wages/turnover ratio at some clubs beggars belief,and even without covid,many would have been facing serious financial difficulties.

[ksrclaret]

These clubs need help to survive this, no doubt about that. Their fans simply don't deserve to lose their football clubs in the way the Bury fans did. We can't allow these owners and now the pandemic to kill all these brilliant clubs. I would be devastated if Burnley went to the wall.

However, this is an opportunity to rethink and rebalance the extent to which money corrupts the game. The responsible bodies must take the opportunity and bring football back into the real world. That has to start from the top and work its way down the pyramid.

[Spijed]

Yes there is opportunity in this moment for the game to become more grounded and realistic,the chase for the PL millions will always be a lure though for ambitious chairmen.

You'd have thought the Bolton,Bury and Southend debacles amongst others would have served as a warning,but still many clubs in leagues 1 & 2 insist on throwing money away like confetti,the wages/turnover ratio at some clubs beggars belief,and even without covid,many would have been facing serious financial difficulties.

The one issue that will never go away for lower league clubs is the interest level.

We found out from ITV Digital that few people in places like Asia are interested unless it's a Premier league match.

That's where the money will always be.

[GodIsADeeJay81]

Bailouts only on the proviso that they expect financial caps put in place.
Wage bills shouldn't exceed income, there is no justification for it.
Any and all loopholes need closing down too.

[Rowls]

You'd hope there is some help from the FA, Government and even the PL

I hope the government does nothing of the sort. It's not the role of the government to be paying off the private debts of football clubs.

****

I suspect that the comments of the Huddersfield owner might be more representative of the state of affairs for his own club than football as an industry.

[ksrclaret]

I hope the government does nothing of the sort. It's not the role of the government to be paying off the private debts of football clubs.

****

I suspect that the comments of the Huddersfield owner might be more representative of the state of affairs for his own club than football as an industry.

These are not exactly normal times though, are they? I doubt the business of government was to pay the wages of employees at private companies before this...

And I highly doubt it's just a Huddersfield problem.

[Rowls]

These are not exactly normal times though, are they? I doubt the business of government was to pay the wages of employees at private companies before this...

And I highly doubt it's just a Huddersfield problem.

It certainly won't be just Huddersfield's problem, no. What I'd meant to convey was that although the situation will be dire for many, the panic in the Huddersfield owners statement is probably more representative of his own club than the industry as a whole.

[ksrclaret]

It certainly won't be just Huddersfield's problem, no. What I'd meant to convey was that although the situation will be dire for many, the panic in the Huddersfield owners statement is probably more representative of his own club than the industry as a whole.

Okay fair enough. Huddersfield were known to have spent vastly beyond their means during their foray into the PL, so they're probably one of the Championships sides feeling it hardest right now.

If someone doesn't intervene though, be it the PL or government, I think there is a real possibility fans will lose their clubs as the Huddersfield owner makes clear. We're in the unique position of having been run soundly, but imagine if we were one of the many on the other side.

[Chester Perry]

I hope the government does nothing of the sort. It's not the role of the government to be paying off the private debts of football clubs.

****

I suspect that the comments of the Huddersfield owner might be more representative of the state of affairs for his own club than football as an industry.

Yes a man who used a shell company with assets of £10 to take over the club last summer on the proviso that the interest free loans from the previous owner were repaid - Hodgkinson is paying them off from the Parachute Payments the club is receiving. Similar in a number of ways to the Sunderland takeover from Moderco, except they persuaded Ellis Short to write off loans then paid for the club with parachute payments.

On you first point it is in the interests of the government to support an industry that directly employs tens of thousands and indirectly employs hundreds of thousands in this country, brings billions to local economies, generates billions of export income and directly pays over £4 billion in taxes each year, before you begin to add the contribution they bring to the health and welfare of their local communities, often filling gaps vacated by local government in the recent age of austerity. Some of this why the French and Swiss government have provided state guaranteed loans to leagues in their countries.

[Rowls]

Okay fair enough. Huddersfield were known to have spent vastly beyond their means during their foray into the PL, so they're probably one of the Championships sides feeling it hardest right now.

If someone doesn't intervene though, be it the PL or government, I think there is a real possibility fans will lose their clubs as the Huddersfield owner makes clear. We're in the unique position of having been run soundly, but imagine if we were one of the many on the other side.

Yes there will be a real danger of clubs going bankrupt. It's a very real possibility.

But did Bury get a bail out from the taxpayer?

Does your Aunt Fanny want her taxes being spent propping up the debts of, for example, the Venkys?

It's best government stays out of this.

I suspect a lot of clubs will struggle -really struggle- and that one or two may go bust. But it will be the usual story. They will be the clubs who have overspent and not set aside money for contingencies.

Fingers crossed no club goes bust because it's a tragedy for supporters and community alike.

[LS7]

Hard to imagine that bailing out League 1 & 2 clubs will be a priority, since they are mostly financially precarious anyway, and are not big employers.

[dsr]

I hope the government does nothing of the sort. It's not the role of the government to be paying off the private debts of football clubs.

****

I suspect that the comments of the Huddersfield owner might be more representative of the state of affairs for his own club than football as an industry.

The government could validly point out that companies in need of bailouts could furlough their staff. Companies with high paid employees that they have continued to pay for doing nothing, won't be first inline for bailouts.

[Rowls]

The government could validly point out that companies in need of bailouts could furlough their staff. Companies with high paid employees that they have continued to pay for doing nothing, won't be first inline for bailouts.

Well exactly.

And that's just for starters.

[ŽižkovClaret]

Let them go bust.

Reform AFC clubs, start at the bottom of the pyramid, regionalise L1 and L2, either North/South or East/West, and spend within club's means.

Otherwise what is the point of any club trying to work sensibly?

[Billy Balfour]

The govt would be deeply irresponsible to going anywhere near this. So I expect football club bailouts to be announced in the coming months.

[NottsClaret]

They might go 'bust' but football will carry on. People will still go and watch their team, it's just players won't get a half million pound salary to play for Reading or Birmingham.

Everything I've heard about how damaging this is to sport is about money. The minute team sports are allowed again, all the thousands of amateur sides will crack on. Hundreds of thousands of kids will be playing again the day after we get the green light. That's the sport to me. All the panic, bleak warnings and impending 'armageddon' surrounds large businesses and rich young men and their agents being worse off.

[Billy Balfour]

If the govt was silly enough to spend our money on football club bailouts - then there would need to be root and branch reform. Starting with wage and transfer caps etc. I'd rather they went nowhere near this, though.

[joey13]

Okay fair enough. Huddersfield were known to have spent vastly beyond their means during their foray into the PL, so they're probably one of the Championships sides feeling it hardest right now.

If someone doesn't intervene though, be it the PL or government, I think there is a real possibility fans will lose their clubs as the Huddersfield owner makes clear. We're in the unique position of having been run soundly, but imagine if we were one of the many on the other side.

Wouldn’t say Huddersfield vastly overspent ,they did waste a lot of money though , Huddersfields main problem is that Hoyle wants all his money back

[bfcjg]

If the government have spare cash for bail outs surely it should go to care homes.