Pompey become first top-flight club in administration

[AtW]

Whilst I probably wouldn't disagree with your sentiment regarding the Prem being a reflection of modern Britain on the face of it (assuming you mean badly managed and badly in debt).

Yes.

[Ravello]

It does not matter where it is - it can be on the Moon: laws of economics work even there.

IMO Premiership League is a reflection of modern Britain ...

It matters that you know where it is, in so much that it gives an indication of your level of interest in football, and hence your knowledge on the subject. Whilst I probably wouldn't disagree with your sentiment regarding the Prem being a reflection of modern Britain on the face of it (assuming you mean badly managed and badly in debt).

However, unlike modern Britain, some of the highest profile cases in the Prem are actually massively in debt not due to long term mis-management, but rather, as a result of foreign "investment". Here's a summary of the top 4 clubs financial situation:

Man Yoo sold the most profitable football club on the planet to the American Glazers who effectively borrowed the money to buy the club by mortgaging not just existing assets but future ticket sales. The interest alone on the £750m debt is some £50m a year, which is paid not by the Glazers, but by the club. This means that had Ronaldo not been sold for £80m earlier in the (financial) year Man United would have actually posted a pre-tax loss.

Liverpool are in a similar crazy situation, again with American owners.

Arsenal borrowed heavily against future season ticket sales to finance the construction of a new stadium. Arguably they are better managed in so much that they have significantly reduced spending since the move from Highbury. Net result of reduction in spend? Fewer players purchased, smaller squad, not won anything since the move.

Chelsea were bought for £140m by Abramovich back in 2003, at the time they had £80m of debt (ken Bates having increased the debt from £1.5m to £80m during his tenure). Abramovich paid off that debt and subsequently ploughed over £1/2bn into player purchases, training facilities and staff (managers, coaches, scouting network etc.). To this day Chelsea are still trading at a loss (last year losses of £44m were posted). However, they are virtually debt free, since the 'loan' from Abramovich has been converted into equity.

For the record, Pompey are a complete shambles both on and off the pitch.

[DimPrawn]

@AtW...do you even know where Pompey is?

In Italy? Covered in volcanic ash?

[ExMob001]

I'm just sorry that we may not meet each other in the championshipship next year....

Signed: A Saints Fan.....

[darmstadt]

Other stories which both refute and exonerate that claim:

http://www.guardian.co.uk/football/2...ancial-figures

http://www.guardian.co.uk/sport/davi...ebt-wages-uefa

[Doggy Styles]

It does not matter where [Pompey] is - it can be on the Moon: laws of economics work even there.

IMO Premiership League is a reflection of modern Britain

True.

The USA major leagues are quite strict about their own teams living within a budget. Yet strangely, the two English clubs with the biggest debts, Man Utd and Liverpool, find themselves in that position artificially because of their USA owners.

[mr_woo]

what about Chester City? They went under today or as good as!

[lilelvis2000]

You mean there are more than 4 teams!? Who knew!

[Mich the Tester]

Premiership League is a reflection of modern Britain ...

Pointless and unnecessary?

[AtW]

@AtW...do you even know where Pompey is?

It does not matter where it is - it can be on the Moon: laws of economics work even there.

IMO Premiership League is a reflection of modern Britain ...

[Flubster]

@AtW...do you even know where Pompey is? I'll give you a clue...you'll know you're near when you can smell fish... (couldn't happen do a 'better' club, flippin' skates)

[Jeebo72]

I hope they go out of business. This may be the opportunity for Rangers and Partick Thistle to join the premiership

[Mich the Tester]

[AtW]

Portsmouth, with debts of about £60m, have become the first Premier League club to enter administration.

The club will be docked nine points as a result and face almost certain relegation to the Championship.

Pompey, who have had four owners this season, were due to face a winding-up order on 1 March but decided to go into administration in a bid to survive.

It was reported that four parties were considering a takeover but no deal was completed before Thursday's deadline.

Administrator Andrew Andronikou, of insolvency experts UHY Hacker Young, now has the responsibility of beginning the process of cutting costs at the club to try to keep it as a viable entity.

More: http://news.bbc.co.uk/sport1/hi/foot...th/8538457.stm

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The most successful league in the world innit...