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BOND MARKET GIVES THUMBS DOWN TO UNITED – 3/2/10

Things may be looking up on the pitch for Manchester United, but the market doesn't like their bonds very much. Of course, the club has already trousered the money, but they may find it more challenging if they come back to the market in the future. The bonds have become one of the worst performers this year. Of course, they were mainly bought for the interest 'coupon' rather than capital gain. However, the sterling bonds have fallen to just 93 per cent of the value. If the investor had splashed out around £100,000, they would have already made a paper loss of £5,000. The dollar denominated bonds have done slightly better with the bid price falling to 94.5 per cent of face value. Analysts suggested the bonds had been priced too highly at launch and also referred to the lack of a credit rating. However, the club has no plans to return to the market and it has been suggested that a greater priority is placating fans angered by the bond issue. Their reaction has reached the point where it threatens to cause reputational damage to the club and no global brand wants that.

DON'T BE RIDICULOUS UNITED SUPREMO TELLS FANS – 1/2/10

Manchester United chief executive David Gill has criticised fans planning a protest at the Champions League match against AC Milan on 10 March. Concerned by the debt the club has built up under the Glazers, a number of fans plan to enter the ground 10 minutes after kick off to expose empty seats at the ground with millions of people watching around the world. Gill told Radio 5, '[The protest] serves no purpose and it won't change a thing. Let's not have ridiculous protests of that nature.' Gill emphasised the long-term nature of the Glazers' involvement with United, noting that the Glazer family bought the Tampa Bay Buccaneers American football team in 1995 and were still there 15 years later. Gill also said that there were no plans to sell either Old Trafford or the club's Carrington training ground. The bond sale prospectus suggested Carrington could be sold to a holding company controlled by the Glazer family and leased back to the club. Gill commented, 'I am 100% convinced that will never happen under Glazer family ownership. The sale and leaseback opportunity within the bond document is done for financial and tax planning. Manchester United Limited continue to have complete control of Carrington.'

Manchester United Supporters' Trust chief executive Duncan Drasado found Gill's assurances unconvincing. He told BBC Sport, 'The key point here is, how much money are the Glazers putting into Manchester United versus how much they are taking out. The answer is they are putting none in and taking a hell of a lot out. The key to the bond issue is that it has opened the door to Manchester United's vault and now the Glazers can drive in with a fork-lift truck and load up cash. They are leaching huge amounts of money from our football club - money that fans are paying through huge increases in ticket prices.' A wealthy group of fans has approached football financier Keith Harris to see if he can broker a purchase of the club from the Glazers. The difficulty is that the club is not for sale. Read more here: Red Knights.

CLUB FOR SALE FOR £1 – 1/2/10

Owner Stephen Vaughan has put Conference club Chester City for sale for £1 providing that the purchaser settles all outstanding debts. The club got a stay of execution in the High Court last week and have until March 10 to settle a £26,000 debt to HM Revenue and Customs. Meanwhile, an official fans' boycott has got under way. Elsewhere in the Conference Salisbury City have vowed to fight a controversial Conference ruling to stop the Whites being relegated to the Southern League this summer. City may not be eligible for any divisions of the Blue Square League if they do not repay all their creditors every penny by the second Saturday in May. City are set to exit administration in three days' time with a CVA agreed with Revenue and Customs - to whom they owe almost £200,000 - and other creditors to repay a minimum of 35p in the pound. It is understood that a benefactor has agreed to settle the footballing debts totalling more than £30,000. Northwich Victoria face a similar threat and are considering obtaining a court ruling on the legality of the Conference requirement. The Conference are believed to be considering an amendment to their rules which would allow clubs three years to pay off debts.

TAX CRACKDOWN – 31/1/10

We have been talking for a few weeks on this page about a tougher stance by Revenue and Customs towards football clubs who do not pay their tax debts (which is at the expense of taxpayers in general). It's pleasing to see that the Financial Times has now picked up on the story and has produced a report that exhibits the thoroughness and balance that is characteristic of the Pink 'Un. There is no doubt, as the report suggests, that the campaign is working and may encourage clubs to take a less cavalier attitude towards thier tax debts. Nevertheless, we do not think we have seen the last winding-up petition from HMRC.

LIFELINE FOR POMPEY – 31/1/10

With the transfer of Younes Kaboul to Spurs apparently going ahead for around £6m, even though the transfer of Asmir Begovic has fallen through, Portsmouth look to have escaped going into administration for the time being. Without this injection of funds the beleaguered club could not have paid the £1.75m wage bill due at the end of the month. The transfer embargo on the club has been partially lifted, but they are allowed to sign players only on loans or free transfers. The club received very little of the £1.6m reported to remain from their share of the television payout, with the League setting some aside to pay Watford and West Ham United instalments due on the transfers of Tommy Smith and Hayden Mullins respectively. Portsmouth still face a winding-up petition from Revenue and Customs on February 10 and there are fears of a Crystal Palace scenario with administrators being called in the day before the winding-up petition was due to be heard.

COMPLEX SITUATION AT PALACE – 31/1/10

Crystal Palace fans will be have heartened by the win against Peterborough yesterday which took them away from the relegation zone, but the situation surrounding the Championship club following its entry into administration is complex as this interesting report demonstrates. It may take some time for the situation to be resolved. In Palace's favour as a far as a prospective buyer is concerned is a place in the Championship and a stadium in a well populated area of South London. There are five Premiership clubs north of the River Thames, but none south of it, although Charlton, Palace and the old Wimbledon have all played at that level. An interesting opportunity does, therefore, exist at Palace but it needs a good buisness model and someone with sufficient cash and an interest in football. There are not many buyers are out there at the moment which is why there has been an interest in a possible continuing role for Simon Jordan or even a return of Ron Noades in some capacity, a role he has indicated he would be willing to undertake.

POMPEY FANS RALLY ROUND – 29/1/10

The latest blow at Portsmouth was the collapse of the club's website because the relevant bill had not been paid. It can't have been a big bill and I can't remember a case of this happening before when a club had not actually been in administration. The bill was settled and the website came back. However, with many fans wanting ticket news about the classic cup clash at Southampton, Pompey fans involved in the Supporters Trust offered to provide any relevant information on their own new site. The Pompey Trust site might in any case be worth keeping an eye on as events at the troubled club unfold.

THE RISK FACTORS AT OLD TRAFFORD – 29/1/10

The 322-page document released by Manchester United to accompany their successful bond issue lays bare some of the most fundamental risks that the club faces as a business. It therefore provides a level of transparency that is not usually possible. Journalists and analysts like ourselves can provide our assessment of what we think is happening, but this document tells us how the club sees things. And there are some real concerns. Here a few highlights about some of the main ones:

• Goodbye Sir Alex Sir Alex Ferguson has contributed greatly to the club's success. Yet he is 68 and even he cannot go on for ever. He has said that he will not stay beyond the age of 70. The club admits, 'Any successor to our manager may not be as successful as he has been. A downturn in the performance of the first team may adversely affect our ability to attract and retain such coaches and players.
• The Manchester City problem United may have defeated City over two games on the pitch, but they are much more serious rivals than they were. The club states, 'In the Premier League recent investment from wealthy team owners has led to teams with strong financial backing. The increase in competition could result in our first team finishing lower in the Premier League than we have in the past and jeopardising our qualification for or results in the Champions League.
• Proposed Uefa regulations on debt There is a risk in conjunction with player salaries and transfer fees, the "financial fair-play" initiative could limit our ability to acquire or retain top players and, therefore, materially adversely affect the performance of our first team.'
• Economic climate 16 per cent of United's corporate and executive tickets remained unsold at 30 September 2009. 'Continued weak economic conditions may adversely affect our match-day and media revenues and could eventually affect our commercial and sponsorship revenues, each of which could have a material adverse effect on our business.'
• Threat of terrorism 'Our club and our players could be potential targets of terrorism and civil unrest. [Directed at the Glazers? - ed] In addition, Old Trafford is an iconic stadium and a potential target for terrorism.'

There is no doubt that the bond issue has forced Glazer advisers to say far more about the family's stewardship of the club and views of the football business than they would prefer. The Glazer sons do have a long-standing interest in soccer as it would be called in the US. Joel, Bryan and Avram were season ticket holders of the Rochester Lancers, who played Major League Soccer in New York where they were born. At college, Joel roomed with an English student who was a fanatical Spurs supporter. However, the family always believed that United underexploited business opportunities. The club's commercial side is run from a 45-strong London office headed by former JPMorgan Chase banker Edward Woodward. Ticket prices have risen, but the club's continuing reliance on debt means that it is banking on continual trophy accumulation to meet interest payments. This is a high risk strategy.

'POOL STAY IN THE RED – 29/1/10

The imminent sale of the Texas Rangers baseball team by Tom Hicks Jnr., the Liverpool co-owner, may boost his bank balance, but will do little to help Liverpool Football Club. Hicks is expected to raise over $500m (around £310m) from the sale, but none of the money will be plouged back into the club. Liverpool continues its quest for investment in an effort to reduce the £237m of debt built up by Hicks and co-owner George Gillett since their 2007 takeover. However, that is none too easy with other clubs falling by the wayside and offering fire sale bargains. Hicks' debts in the US are such that his creditors will have first call on the revenue produced from the sale of the Texas Rangers. Late last year Gillett raised a reported C$550m (about £323m) when he gave up ownership of the Montréal Canadiens ice hockey team but he has not invested that money in Liverpool. It has been estimated that anyone who wants to buy out the Americans and bring Liverpool back to world class standard, which means building the much needed new stadium, would require about £1bn. There aren't many people around who have that much money to splash out.

EAGLES GO BUST – 26/1/10

Championship side Crystal Palace are the latest club to enter administration. The South London side have not always been able to pay their players on time in recent months and face a winding up order in the High Court tomorrow over a £1.2m tax bill. A Cayman Islands company from whom they had borrowed five million pounds pulled the plug. Attendances have been falling at Selhurst Park recently, despite the club looking as if it could challenge for promotion. Once the paperwork has been received, the customary ten point penalty will be applied, but Palace have enough points in the locker to avoid dropping straight into the relegation zone. The administrators are looking for a purchaser for the club and, once its debts are cleared, it might well prove attractive to someone given that it is effectively the club for the populous area of Croydon. There are not so many potential buyers of clubs as there once were, but it might be seen as an opportunity at the right price.

GLAZERS SELL BONDS – 25/1/10

'Glazer: Forever In Your Debt' read the large banner held by Manchester United fans outside Old Trafford on Saturdays. However, the Glazers managed to sell £500m of bonds on the open markets to refinance their debts, albeit not without some difficulty and at a relatively high interest rate. The first football club to sell bonds of this kind, United embarked on a week-long series of road shows across three continents. The bond issue was oversubscribed, but United chose to sell more of its bonds in dollars than in sterling and had to offer an interest rate at the high end of the expected range to attract investors. More than 50 low-risk investors such as insurers and pension funds stumped up the cash to receive a fixed interest rate of 8.75 per cent for one tranche and 8.375 per cent for the other. The annual interest bill on the bonds will be just under £45 million. The bond issue cost £15m in fees and expenses to investment bankers and lawyers, enough to buy a player.

The bond issue should now enable the Glazers to pay off the pik notes which are held by them personally. The interest rate on these will increase to 16.25 per cent in August if a debt threshold is crossed, although this could be avoided by down payments of £20m. The Glazers will be able to use up to £70 million of the £117m of cash on United's balance sheets to start repaying the pik notes, although fans would prefer to see that money spent on players. The pik notes were originally held by three New York hedge funds but are now thought to have been acquired by about 20 so-called 'vulture' funds, financial institutions with an appetite for high-risk loans.

NORTHWICH VICTORIA FACE DEMOTION AGAIN – 25/1/10

Blue Square North side Northwich Victoria may be relegated after winning a fight against expulsion last season. Appendix E of the Conference rules states that clubs must pay all their creditors everything they are owed by the second Saturday in May. Northwich agreed a deal with their creditors of just over 40p in the pound. The conference has insisted that every club knew the rules before the season started. Northwich could appeal to the FA. The rule has been criticised as harsh, but if it is applied flexibly it ceases to be a rule and will be disregarded.

Elsewhere in the Conference, the woes of Chester City continue. The Conference are demanding emergency talks with club officials after they failed to turn up for a general meeting. On Wednesday they face a winding up order over the £26,000 they owe the taxman. Now fans have started a boycott of home matches through City Fans United. Just 426 bothered to turn up to attend a Blue Square Premiership home fixture last week. Chester have still not paid their players' wages from November and December and have been rebuffed in their request to boxing promoter Frank Warren to save the club.

IT'S THE GREEN AND YELLOW AT NEWTON HEATH – 24/1/10

Manchester United supporters who are unhappy with the Glazers' stewardship of the club have adopted the green and yellow scarves of the predecessor club, Newton Heath. Indeed, the scarves are reported to be a much sought after item on the streets of Manchester. Newton Heath was formed by railway workers but became Manchester United when a brewer paid off the club's debts in return for the right to sell beer at the ground, offering an early example of commercial sponsorship and suggesting that business money has been involved in football right from the early days of the game. There were also protests against the Glazers at Old Trafford yesterday. Manchester United regained top place in the Premiership after beating Hull and their record of sporting success under the Glazers has been a good one. The protest came as the Glazers secured their £500m bond issue to reorganise the club's finances. However, this increases the likelihood that will stay on for the long run. Supporters are concerned that money they would like to buy and pay players will be used to pay off the debts the Glazers have incurred. Sir Alex Ferguson insists that the money is there if he wants it, but some fans have been upset by what they perceive as his lining up with the owners. More analysis will follow.

IT ALL KICKS OFF AT HULL – 24/1/10

Relegation threatened Premiership club Hull City seem to be facing a much deeper and more complex financial crisis than appeared to be the case when the club changed hands last November. The club has launched a High Court case against their former executive chairman Paul Duffen. The club accused Duffen of taking kickbacks, alleging that his company received payments from agents in return for using those agents to deal with transfers. Hull have served papers in the High Court in London that relate to allegations of 'a lack of fidicuiary and management control, personal expenditure, negligence and breach of contract.' Hull are claiming substantial damages and compensation and they want repayment of a portion of Duffen's salary, based on allegations of frequent absenteeism. Duffin has emphatically denied the allegations and succeded in having an eight-day old order freezing his assets lifted when he agreed to put up security, including his house and luxury yacht in France. He also agreed to hand over compuer files. Learned counsel Lexa Hillard QC, Duffen's barrister, told Mrs Justice Proudman that although her client had consented to the orders 'this was not taken as an admission by my client of any allegations against him.'

The view taken by Hull City chairman Adam Pearson is that the Barclays Premier League club was left in good order when he sold to a consortium led by Duffen in 2007. They had £1m in the bank and a wage bill of £4m a year, although this was before they were promoted to the Premiership. When he returned the debts stood at almost £10m and the wage bill had increased to about £36m which put them among the top spenders in the Premiership. Another £2m was reported to be payable in appearances and bonuses and £5.3 committed to be paid in agents' fees. Pearson then called in auditors to launch an investigation and this led to the High Court action. The chairman is seeking £25m in additional investment but a relegation threatened club - they lost 4-0 at Old Trafford yesterday - is hardly an attractive prospect at a time when relatively few investors are available.

WEST HAM PURCHASE WELCOMED – 24/1/10

The purchase of a 50 per cent stake in West Ham by David Sullivan and David Gold in a deal that valued the club has been generally welcomed. West Ham fans see them as one of their own and hope that a troubled period for the club under Icelandic ownership will now come to an end. It offers a rare example of a Premiership club reverting to British ownership. There were other potential puchasers, including one from Malaysia, and there were reports that the Icelandic owners were worried about the association of Gold and Sullivan with the adult entertainment business. However, Iceland hardly looks pure as the driven snow after the financial crisis. It is generally acknowledged - if not all by Birmingham fans - that Gold and Sullivan did a good job at Birmingham City, now riding high in the Premiership. Karren Brady, who was chief executive at Birmingham, has been appointed vice-chairman and may in time have a larger role at Upton Park.

David Sullivan admitted that the deal 'made no commercial sense'. Of the £50m they paid for the club, Icelandic bank Straumur and its partners will receive about £10m, with the remainder used to reduce debts estimated at £110m and to provide workng capital. Their willingness to take on full responsibility for the club's debt was a key consideration for Straumur. The purchasers must exercise an option to buy the remaining 50 per cent if the club meets certain financial targets in relation to revenue and debt within the next four years. Sullivan has predicted that the next set of accounts will show a loss of £40-£50m and has not ruled out selling the naming rights to Upton Park, also known as the Boleyn Ground. The debts are the result of excessive spending on wages and transfers and borrowing against future income. The club owes Sheffield United more than £20m for breaking rules on players' third-party ownership, there are unpaid transfer fees to settle and also a severance payment outstanding to former manager Alan Curbishley.

The new owners have targeted qualifying for the Champions League within seven years and also want to move to the Olympic Stadium after the 2012 games, which might not be popular with all West Ham fans, particularly given that a running track will surround the pitch. Olympics minister Tessa Jowell has opened the door to a revised bid from the club to move into the stadium, but made it clear that there could be no deal without 'money on the table'. Three years ago the government rejected plans for the club to buy or rent the stadium. The Boleyn ground is three miles from the Olympic stadium and the ideal solution for West Ham would be a similar one that saw the 2002 Commonwealth Games stadium rented to Manchester City by the local authority. It is thought that the costs of moving a football club into the £540m stadium would be £150m and another £100m if the running track was removed which would increase its attractiveness for football but would mean that it would not be available for athletics. Meanwhile, Gold and Sullivan have to stabilise the club and ensure that it is not relegated which would be a disaster.

STATE BANK BACKS MAGPIES – 24/1/10

State owned Northern Rock have renewed their sponsorship agreement with Newcastle United in a four year deal worth a potential £10m to the promotion chasing Championship club. The bank was nationalised during the 2008 financial crisis, but government tries to have a 'hand offs' relationship with its financial sector acquisitions using small supervision vehicles such as UK Financial Investments. Gary Hoffman, the bank's chief executive, said it was 'mindful of our responsibilities under government ownership', saying it only considered advertising and promotion deals that delivered a high return on investment and were a good commercial fit. He added, 'Brand awareness and promotion are important elements in the continuing development of this company.'

SCOTTISH FA TO VETO MEERKATS – 18/1/10

The Scottish Football Association is likely to veto the re-naming of Stirling Albion as Stirling Albion Meerkats. The cash strapped club which is £1.5m in debt and has survived two winding up orders has been in discussion with Compare the Market.com famous for their meerkat adverts. The supporters trust wants to buy the club and sell its naming rights for £50,000 a year. However, the proposal is not 'simples' as far as the SFA is concerned. A somewhat stuffy spokesperson at the SFA commented, 'Given that a name change for commercial purposes would have huge implications, the integrity of the game would be paramount in any decision-making process.' However, that may not be the end of the matter. Sources close to the European Commission have indicated to us that any such stance by the Scottish FA could be seen as an abuse of dominant position.

SOME GOOD NEWS FROM THE NON-LEAGUE – 18/1/10

Non-league clubs with limited reserves and a fragile cash flow have been hit hard by the economic downturn. So it's encouraging to hear some relatively good news. Blue Square South club Lewes survived a winding up order when their debt to the taxman was paid 24 hours before a winding-up order was due to be heard in court. The 125-year old club is fortunate to be located in a relatively prosperous area and supporters rallied round to find the £48,000 required. King's Lynn did go under over an unpaid tax bill of around £70,000, but are set to return next season as Lynn FC. West Norfolk District Council have awarded King's Lynn Stars speedway owner Buster Chapman the lease of the Walks stadium. The former Unibond Premier club is likely to re-appear in the Ridgeons Eastern Counties league. The new owner plans to build links within the community and to be careful about spending. Fans had mixed emotions. They were pleased to have a club to support once again, but disappointed that the Blue and Gold Supporters' Trust bid had been unsuccessful.

SUBDUED TRANSFER MARKET HITS CLUBS – 17/1/10

An interesting report in The Times suggests that this could be a particularly subdued transfer window. For many years Premiership clubs have been turning increasingly to foreign players so that the 'trickle down' effect to clubs in the Football League has diminished. In the past there were even cases where clubs were able to build a new stand from the transfer of a player to the top flight. Leaving aside the plight of Portsmouth, it is Football League clubs which are in real danger. Many Championship clubs have a tendency to overspend in an effort to reach the Premiership. As we have discussed before, League 1 and League 2 clubs are very reliant on short-term cash flow like any smaller business. Former Premiership clubs relegated to League 1 have to maintain expensive infrastructures designed for the Premier League. Sooner or later a club is going to disappear altogether, as has happened in the non-league, not just go into administration and reappear free of debt. Some think that is the wake up call that football needs, but it would be devastating for the fans of the club involved, even if they formed a 'phoenix' club.

GROWING DESPAIR AT LIVERPOOL – 17/1/10

Stuttering performances on the pitch have increased the despair among Liverpool fans. Much of their anger has been directed up to now at the 'absentee' American owners. However, they have become increasingly critical of manager Rafa Benitez. He has made it clear that he is digging in for the long term and it is believed that, given the nature of his contract which was renewed last year, the club could not afford to sack him. The counter argument is that the club cannot afford not to sack him, but that overlooks the underlying financial realities. It was observed on Radio 5 yesterday that, whereas in the past, one might discuss strikers before a game, now one discussed bond issues and liabilities which is not what fans go to a game for. The anger of Liverpool fans with the board was increased by an offensive E mail sent by Tom Hicks Jr to a supporter. . Hicks Jnr. subsequently resigned from the Liverpool board, but that has not really defused the anger among fans whose perception is that the board treat them with contempt.

UNITED FANS LOSE THEIR PATIENCE WITH GLAZERS – 17/1/10

The Glazers have never been popular owners at Manchester United. The Manchester United Supporters Trust has been resolutely anti-Glazer since the family bought the club in 2005. The club's proposed bond issue, on which we shall be providing a detailed analysis, has reignited that anger. Duncan Drasdo, the chief executive of the Trust, told The Times 'Now is the time for the Glazers to go. The bond issue is just rearranging the deckchairs and still leaves the club with huge debts, which they expect supporters to continue to fund. The day the Glazers put the club up for sale you can expect celebration on the streets of Manchester. Most supporters have had enough. Under their ownership the club has become liable for more than £260m in interest payments alone and the latest trading statement would have shown a substantial loss if it had not been for the sale of Ronaldo.'

Radio 5 did a vox pop with United fans outside Old Trafford before the match against Burnley yesterday. The fans were arguing that there were plenty of potential buyers out there. I am not sure that that is the case to the extent that it was: many of the sources of so-called 'sovereign wealth' have taken a hit from the global downturn. Nevertheless, the fans pointed out that United are an iconic club and an outstanding global sports brand. That means that anyone buying them would have to have deep pockets, but there have been rumours of a Far East consortium. However, the Glazers give every indication that they are in it for the long term and faced open hostility from fans when they first bought the club. It would probably take a really good offer to dislodge them and it is more than likely that any new owners would want to make a profit from the 'franchise'. Arguably, Liverpool have suffered more from mistakes made by their 'franchise' owners.

POMPEY MAY SUE PREMIERSHIP – 17/1/10

The Press Association has just reported that Portsmouth is contemplating sueing the Barclays Premier League over their refusal to lift the club's transfer embargo so that they can at least bring in loan players during the transfer window. My view is that Portsmouth are increasingly losing touch with reality and they should be very careful how they tread, even if the law is on their side. There is an appetite out there to make an example of a club to bring home to football clubs that they cannot go on living beyond their means. In the latest move, chief executive Peter Storrie told the Sunday Mirror 'I can confirm that we have issued a legal letter to the Premier League to demand that the transfer embargo should be lifted. We believe we've got a very good case against them. They have absolutely no right to withhold TV money in advance of future payments to foreign clubs.' The League claim that they are entitled to do so on the basis of rule C47. Interviewed on Radio 5 at the end of last week, Portsmouth chief executive claimed that all outstanding debts to English clubs had been paid. What sort of world is it in which one doesn't have to settle debts to foreign clubs? They might be reluctant to sell to English clubs in future.

It is very difficult to get hard and reliable facts about the situation at Portsmouth. Mark Jacob, the executive director of the south coast club, claimed on Radio 5 that the debts were much less than the widely quoted £60m but refused to be more explicit. This led Gordon Taylor, the chief executive of the Professional Footballers Associaton to demand more information about the club's finances and warn that Portsmouth could suffer a similar fate to Leeds. Jacob admitted that he had never met owner Ali al-Faraj. He had some difficulty in explaining his motives for owning a club that he has never seen play in person. Jacob stated, 'He is not the only absentee owner in the Premiership. I have been explaining to him and also to his brother [who has attended matches] that there is a real need for him to come to games.' His welcome from Portsmouth's fanatical supporters might not be assured, however.

The Premiership diverted £7m of television money to help pay off outstanding transfer and loan fees of about £10m. The clubs who will now receive money direct from the Premier League include Chelsea, Spurs and Watford in England; and elsewhere in Europe, Lens, Rennes and Udinese. Portsmouth are also believed to owe various sums to agents. They claim that the winding-up order served by HM Revenue and Customs is based on figures for VAT are too high and they are confident that the High Court will agree with them.

One possible financial lifeline collapsed when a proposed loan deal for David James at Stoke City fell through. Not only does this jeopardise the keeper's World Cup prospects, it also means that they will have to carry on finding his substantial wages. Portsmouth understood, as is customary in such deals, that they would have to pay a proportion of James's £45,000 weekly wage, but insisted that Stoke should pay him from the last Premiership game on 9 May to the end of his contract on 30 June. It is believed that if James play a set number of Premiership matches, thought to be 20, Portsmouth would have to offer him a 12-month extension on his contract. This would amount to another £2.5m on the wage bill, leaving aside the money Pompey would have to pay him between now and June. It could be argued that Pompey have shot themselves in foot in an attempt to save £300,000.

There have been claims that al Faraj is about to arrange a substantial new bank loan. However, in the absence of transparency from Portsmouth, it is difficult to be optimistic about the club's prospects of avoiding administration. Turning to the lawyers could be seen as a desperate last throw which could backfire. The local management is undoubtedly highly professional, but they are facing difficult circumstances not of their own making, and the way out is not to paint themselves into a corner.

NON-LEAGUE CLUBS IN TROUBLE – 12/1/10

A number of non-league clubs are in trouble. Blue Square South club Lewes need to find £48,000 by tomorrow or face an Inland Revenue winding up order. The problem for the club is that Lewes, nice though it is, is hardly a football town and any fans there are can go into Brighton or even up to London without too much difficulty. Former League club Chester City, threatened with relegation from the Conference to the Blue Square North, have not paid their players for November and December and now they have been told to find other clubs. At Conference club Kettering, Imran Ladak has quit as chairman saying that he will no longer subsidise it to the tune of £5,000 a week. Ladak has been involved in a long-running dispute with the FA in which he claims he has been the victim of poor communications. However, a bigger issue is that Kettering are not eligible for promotion as the lease on their Rockingham Road stadium runs out in three years and there has been little support from the local council for a new stadium.

However, there is a limit to what local councils can reasonably be expected to do. Zamaretto Midlands side Bromsgrove Rovers, once a Conference side, have complained that the local council is killing off the club. £350,000 in debt, they offered creditors 5p in the pound. They needed 75 per cent of creditors to accept the offer, but only 68 per cent did. Among those who rejected the offer were HM Revenue and Customs, to whom they owe £75,000, and the local council. No one likes to see a club disappear, but a council owes a duty to its taxpayers as a whole, not all of whom may be football fans. The days when football clubs could expect to run up big debts with the taxman and then not get chased for the money are over. Indeed, David Sullivan, who is interested in purchasing West Ham but has also been looking at other clubs, said on Radio 5 today that he had been alarmed by what he had found out about the financial condition of clubs. He feared that one Premiership club might go under, while a number of Championship clubs were teetering on the brink.

However, non-league clubs defeated in the 3rd round have benefitted from their cup run. York normally lose £300,000 a year and received a £150,000 boost from their trip to Stoke City. Luton's trip to Southampton earned them about £150,000 which will be used to reduce budgeted losses. Barrow made £200,000 from this year's cup run. However, the club's regular attendance of 1,000 - 1,300 at home games is not really enough to support Conference football, let alone promotion to the Football League. 1,600 - 1,700 is needed for the club to break even, but they are aiming at an average of 2,010 for the remaining games of the season to help them financially.

BIG FREEZE HITS FOOTBALL – 10/1/10

It's nothing like the cold weather events of 1946-7 or 1962-3, but freezing weather in Britain has already had its effect on football. Fixture congestion looms and there are concerns about the possible effect on England's World Cup preparations if the cold weather persists. However, there are also substantial financial implications, particularly for lower league clubs where, as in all smaller businesses, cash flow is king and gate money is a big source of it. League rules also require the home club to pay a visiting club's travel expenses when a game is postponed or abandoned. Although there is no suggestion that they have financial problems, Rotherham United have not played since December 12th. They were expecting some good crowds for their games over Christmas and their hospitality packages were sold out.

Next season it will be compulsory for Football League clubs to either have undersoil heating or a pitch cover. At present there are about 15 clubs who have neither. However, the pitch can be playable, but a match can still be postponed because of health and safety concerns arising from the condition of roads and pavements around a ground. The postponement of Arsenal's game against Bolton, after some away fans had made the journey, was also influenced by the fact that early closure of nearby tube stations could make it hard to get 60,000 fans home. Arsenal manager Arsene Wenger reflected, 'We live in a society today of 100 per cent security. We don't accept any risk. If one of 60,000 has an accident, you feel very guilty. Nobody accepts that the slightest insecurity exists in our society. We have gone from individual initiative to collective responsibility.'

However, it is not just a question of attitudes, but also of vulnerability to litigation and in particular what your public liability insurance will and will not cover. Rob Elvin, the head of the safety, health and environment group at law firm Hammonds explained to The Times, 'A football club has duties, like any other company, to not expose employees or members of the public to health and safety risks. If you know people's journeys are going to be treacherous, then arguably the match would be the cause of any accidents. You're creating greater risk by putting the match on. Clubs could leave themselves exposed to criminal proceedings if they fail to act on the advice if they fail to act on the advice of police and local authorities ... there is an argument in health and safety law that failing to cancel the match carries an exposire to risk and is a breach of the law. The clubs will be insured against personal injuries to a certain level but you can't be insured against criminal cases.'

A club could play behind closed doors, but that would involve a considerable loss of revenue and would annoy fans. Attitudes to risk clearly differ across society and no doubt many fans would say that they are prepared to take a risk with icy pavements, but that does not absolve a club of its legal responsibilities. It's not really practical to get fans to sign an individual indemnity and that might not stand up in law. I'm going off to the ice hockey now: there we want the pitch to be frozen.

CITY CONVERT DEBT INTO EQUITY – 10/1/10

Manchester City's owners have followed the lead of Chelsea by converting the club's debt pile into equity. From the point of view of fans, this means that both clubs are debt free. It also means that they should escape any Uefa sanctions directed against clubs thought to have too much debt. One point that has been missed in some of the commentary is that it also makes the clubs easier to sell should their owners wish to do so. A buyer would not have to acquire a pile of debt but would be able to make an offer for the club which would allow the owner to recoup some of his investment. This is probably most relevant to the case of Chelsea, given that Sheikh Mansour's investment at City is very recent. He has converted £304.9m of shareholder loans into equity and has also purchased further shares to the value of £89.9m. We have always been sceptical about stories that Abramovich wants to sell at Chelsea and we see no reason to change our mind. However, it would now be easier for him to sell up if he wanted to. The problems that a pile of debt can cause for new owners are evident at 'pay up Pompey' where £3m of television money has already been diverted by the Premier League to pay debts to other clubs.

Manchester City's losses in the year ending 31st May amounted to £92.6m, only eclipsed by Chelsea's losses in their first two seasons under Russian ownership. The net operating loss at City was 'only' £34.2m, with the balance made up by the cost of buying players. The losses for the next financial year are likely to be even higher considering last summer's transfer outlay and a soaring wage bill which is now among the highest in the Premier League. There will also be compensation costs for Mark Hughes and his coaching staff and a no doubt substantial sum that had to be paid to bring in Roberto Mancini as manager. On the income side, City's turnover rose by only 6 per cent from £82.3m to £87m in the course of the financial year. The club are clearly spending well beyond their means, but the board anticipates a big rise in revenue in coming years. Qualification for the lucrative Champions League is an essential part of that plan. From the perspective of City fans, they are hoping for some silverware after a gap of 33 years with the Carling Cup the first target.

NORWICH MAY SELL GROUND TO DEAL WITH DEBT – 10/1/10

League 1 has four clubs who have descended recently from Premiership glory (Oldham were there much longer ago). Each of them has faced financial problems. After a regime of overspending, Leeds was eventually rescued but paid a penalty on the pitch. Southampton were rescued from administration at the last minute. Charlton have put together enough money to get through the season, but face a real threat of insolvency if they don't get promoted or find a new investor. Now cash strapped Norwich has come up with a plan which has divided Norwich fans: sell and lease back their Carrow Road ground. It is only one option being considered as the club deals with a £23m debt mountain. Axa would be the most likely buyer: the club owes the insurance firm £11m. The annual rental might be fixed at around £1m which is less than City pays Axa in repaymemts on the debt. Carrow Road is valued in the club's accounts at £34.5m which seems on the high side to me given the location and the current state of the property market. It might also be possible to do a deal for the Colney training complex, as Charlton proposed to do at one time for their Sparrows Lane training ground. Built-up parts of Colney are included in growth plans for 'Greater Norwich', but the training complex is not near the urban area.

Mike Reynolds of the Norwich City Supporters' Trust told the Eastern Daily Press 'If it's a question of no Norwich City Football Club or having football and not owning Carrow Road, then it could be looked at. Our view is that it would be very much selling off the family silver - once it's gone, it is gone and you can't go back and use it as an asset. We as a trust would like to see them go through other options. Things like the Barcelona model which puts the ownership of football cluns into the hands of fans and local businesses.' Terry Pyle, chairman of Norwich City Shareholders' Association said drastic and unpopular decisions would have to be taken. He said, 'The board has got to explore every avenue, none of which are going to be enjoyed by any of the supporters. Whether it is selling the naming rights of Carrow Road, selling the ground or selling players. Other options are to raise income through increasing season ticket prices, or reducing the wage bill of the club through staff and players. We have to trim the expenditure because it's very difficult in the present financial climate to increase commercial activities.' Some comments have argued that part of the strength of the fan base arises from the location of the stadium near the city and the station, but it is not actually proposed to move the stadium which would incur the cost of a new build.

Norwich made a loss of £5m in 2008/9 and saw a reduction in turnover from £19.2m to £18.2m. What chairman Alan Bowkett described as 'tough' negotiations have taken place with two major lenders, Axa and Lloyds Banking Group. These were successful in relation to this season in the sense that they provided a football budget that allows Norwich to maintain their challenge for automatic promotion to the Championship (they are currently second in League 1). However, the challenge is to secure continued support for next season, even if television, gate money and commercial income improved as a result of promotion to the Championship. Mr Bowkett told the Lowestoft Journal 'The figures make grim reading but we've taken the club by the scruff of the neck. Thankfully our lenders have been very supportive.' The problem for clubs like Charlton and Norwich is that they have high and unavoidable infrastructure costs on their grounds and training complexes such as business rates, insurance and maintenance. There are clubs in League 1 that much have smaller gates, but they also have more compact grounds and limited training facilities which is fine given that the the extent of their aspirations is in effect to stay in League 1.

ARE BONDS THE WAY OUT OF DEBT? – 6/1/10

What do Cambridge University and Manchester United have in common? They are both proposing to issue bonds, in the case of Cambridge to raise funds for further investment, in the case of United as a more efficient and cost effective means of managing their debt. All sorts of companies and institutions are turning to the bond market to raise money because as banks rebuild their balance sheets they don't have as much money to lend as they did before the financial crisis and they charge high rates of interest on what is available. Cambridge Uni are hoping for a triple A rating on their bonds as befits an institution that has been going for around 800 years. Although they are also a global brand, it remains to be seen whether United will do as well.

A typical purchaser of bonds would be a pension fund. Bonds are promises to pay a sum at a fixed interest rate, which has to be sufficiently high to attract purchasers. The bonds can be bought and sold like shares. Bond issues are used extensively in the US by state governments and local authorities to fund infrastructure projects. Manchester United are being advised by JP Morgan, the US bank that engineered the Glazers' £790m takeover, and Deutsche Bank. One possible problem is that the Glazers would prefer to pay back the more costly PIK debt which we have written about recently. However, bankers would like to see bank debt paid off which is likely to have higher interest rates than those that would be paid on the bond. The club has been insistent that debt is not a problem because the annual interest on its various loans is covered by its operating profit, although that only left a margin of £3m (£72m against £69m) in 2008. If the cost of servicing the debt could be reduced, in principle more money would be available for the team.

LUDO RIDE TO RESCUE OF COUNTY – 5/1/10

Insolvency stories are dominating this week's football finance news. With HM Revenue and Customs cracking down on clubs that don't pay their tax bills, a second winding up petition has been served against League 2 club Notts County. Only two months ago the Magpies paid a bill of about £400,000 in unpaid tax. The new petition, issued against County's parent company Blenheim 1862 Limited, will be heard at the Royal Courts of Justice on January 27. To add to their misery, the Football League has imposed a transfer ban on County which means that they will not be able to sign players in the January window. But new supremo Peter Trembling who bought the club from Munto Finance in December has issued a 'don't panic' message to shell shocked supporters who have been on a roller coaster ride in the last few months. All potential investors have been kept informed about the troubles with the taxman and 'they are fully relaxed about this' which suggest a fairly laid back attitude to financial challenges.

However, it seems that there is some substance in this positive attitude. Director of football Sven Goran Eriksson has secured a sponsorship deal with Ludo, a telecommunications company from Norway. This will probably be for shirt sponsorship and be worth around £300,000, a decent sum even for a League 1 club if County get promoted, but it won't kick in until next season. Meanwhile, debts of £1.5m have to be dealt with, of which £600,000 is for PAYE. However, apparently agreement has been reached with various investors to cover the PAYE bill by the end of next week. Tomorrow, wintry weather permitting, Sven Goran will travel down to London to attract more investment into the club. Why anyone should want to invest in a finacially struggling League 2 club, albeit one with substantial ambitions, is an interesting question, but perhaps Sven can exercise his charm. However, some of the realities of the situation are emphasised by Trembling's admission that 'Clearly, the postponement of three fixtures over the festive period has not helped the club's cash flow and this is an area we are currently actively addressing.' If he can make the wintry weather go away, he may really be on to something.

RIDSDALE SLAMS CARDIFF INSOLVENCY RUMOURS – 4/1/10

In the present climate of preoccupation with the solvency of football, it is very easy for unfounded rumours to gather pace. Once such reports appear in the press, creditors become understandably nervous about their commercial relationships with a club. Cardiff chairman Peter Ridsdale has moved swiftly to rebut reports that the Bluebirds are close to administration. A story in a Sunday newspaper claimed that the Welsh club, now enjoying their new stadium, must settle a £2.7m tax bill with Her Majesty's Revenue and Customs this week or face being hit with a winding-up order. Against a background of government debt, the taxman has become more willing to use such orders recently in relation to delayed payments which would not have attracted such action in the past.

A statement from Ridsdale on Cardiff's official website said: 'Cardiff City Football Club are concerned at an article in one of Sunday's national newspapers. We are also taking legal advice about the damaging contents of this article. Some of the information contained within this article can only have come from documents which have been stolen from officials at the club and are currently the subject of a police investigation. This information has been used out of context, is not the latest position, nor does it contain all the current facts and is therefore inaccurate. We are happy that Cardiff's relationships with its creditors, including HMRC, are such that we will not have any financial issues that will affect the ability of the club to continue to trade as normal in all aspects of its business.'

THAT WAS THE DECADE THAT WAS – 3/1/10

With the noughties ending in the most serious recession in the global economy since the Second World War, there has inevitably been discussion of the impact on football. In many respects, football has turned out to be recession proof, both in terms of gates and television audiences. This is not so surprising when low inflation and falling interest rates mean that the incomes of those in work have not decreased and in some cases have increased in real terms. Unemployment has increased, but not as much as was feared, although there has been an increase in short-term working. The Premiership remains a uniquely attractive product, both nationally and globally. The creation of the Premier League in 1992 and with it the ability of the clubs to negotiate their own collective broadcasting rights and sponsorship deals created an explosion in revemues, transfer fees and player salaries that many argued was unsustainable. A frequent question was when would the bubble burst? There was no doubt that some wanted to see it burst, particularly those who resented the route to riches offered by football from those with little education and often from poor or ethnic minority backgrounds.

If there was a bubble, it didn't burst. Leading football finance expert, John Beech of Coventry University's centre for the international business of sport, told the Financial Times, 'The growth in influence of television money has continued to dominate the game and, notwithstanding the occasional setback such as the collapse of ITV Digital and Setanta, TV money just gushes into the game - and out again, to players and, to a lesser extent, their agents.' However, there are some worrying signs. There are fewer foreign buyers of clubs available and some of them have difficulty in converting assets into regular cash flow or stay for only a brief period. The rising burden of debt is a concern and, as we have noted, HM Revenue and Customs is taking action against defaulting clubs more rapidly. Professor Beech commented, 'Insolvency events in football clubs were relatively uncommon until 1999. But now they are happening with frightening frequency - there were six in May alone this year.'

Nevertheless, there are many positives. Jon Smith, a long-term football agency and chief executive of entertainment agency First Artist (a revealing combination of roles) told the Pink 'Un that English football was 'the single most succesful entertainment on the planet. The only thing that gets close is a blockbuster Hollywood movie. You can go to the backwaters of the planet and they will know that Hull City play in the Premier League.' Perhaps, although particularly in the United States where there is no tradition of promotion or relegation in sporting competitions, only of transferring franchises, the appearance of 'rookie' teams can cause confusion. Asked for his views, leading authority Dan Jones of Deloitte's sports business group noted that, particularly at the top level, 'these are very desirable businesses to buy and there aren't that many of them.' Professor Beech, however, takes the view that the benefactor model is unsustainable and clubs like Chelsea are trying to move away from it, although it is easy to become addicted to an apparently never-ending supply of cash.

CRISIS DEEPENS AT POMPEY – 1/1/10

Portsmouth failed to pay their players' wages yesterday, the third time this season that payment has been late. The club hopes to get hold of enough funds to pay the outstanding wages by January 5th. Debts at the troubled south coast club are estimated at £60m, with £10m required by the Premier League to pay off creditors before a transfer embargo can be lifted. Supporters are getting increasingly frustrated with the situation and made their views known during the 4-1 home defeat by Arsenal on Wednesday: one chant was 'Where has all the money gone?'. Supporters would like to take over the running of the club through a Supporters' Trust. To those who say that this would be the lunatics taking over the asylum, Dave Boyle of Supporters Direct commented 'Portsmouth is a case where they would struggle to do any worse.' Dr John Beech, a Portsmouth fan and football finance expert at Coventry University, commented, 'It all seems to depend on "the new investors", but if I was a multimillionaire, I wouldn't invest in them. I would want to keep being a multimillionaire.' That logic often doesn't work in football, but there are better footballing and catchment area prospects than Portsmouth for someone with some money to burn.

As far as the winding up order is concerned, Portsmouth claim that they owe only two months' worth of PAYE, VAT and National Insurance contrbutions. However, this still amounts to an estimated £3.5m. It is thought that the Revenue would like to sell players in the January transfer window. They could also offload England keeper David James. They wouldn't get that much for the 40-year old keeper, but it is understood that he is on high wages. The broader agenda of the Revenue is to push themselves high up the payment pecking order which normally sees football debts settled first. With tax revenues falling and a massive government debt, the Revenue is getting fed up with the failure of football clubs to settle their tax bills, or to treat them as the last bill to be paid. It is understood that five winding-up orders have been issued against clubs in the last two months.

CHELSEA GO DEBT FREE – 31/12/09

In a generous gesture of support, Roman Abramovich has made Chelsea virtually debt free. In the previous financial year, he reduced the debt from a peak £760m. In the year to 30 June he converted the £340m of interest free loans owed by the club to him into equity. The move has reduced the club's debt almost to nil and puts it in a strong position ahead of proposed rules seeking to prevent European football clubs from taking on unsustainable levels of debt. Losses for the year to June fell from £66m to £44m and would have been lower but for a payment of £12.6m, to former manager Luiz Felipe Scolari and three staff following his sacking during last season. Revenue fell slightly from £231.1m to £204.6m. Net capital expenditure was reduced from £85.1m to £4.2m following the completion of major capital projects such as the club's training centre at Cobham. The debt conversion is consistent with a long-term plan for 'Phase II' of the Abramovich era aimed at reining in Chelsea's spending on player transfers and wage bills as the club seeks to break even financially. One doubt is whether it can be financially viable at the level at which it wishes to compete with its present ground, but a satisfactory alternative has never been found and would involve very substantial capital expenditure.

TAXMAN TAKES COURT ACTION AGAINST POMPEY – 30/12/09

HM Revenue and Customs has brought a winding up petition against Premiership bottom club Portsmouth. The tax authorities applied for the petition just before Christmas, but a full court hearing will not take place until February. Portsmouth is disputing the amount of money owned and has asked for the petition to be withdrawn. The petition is really a shot across the club's bows, but if it does not sort out its financial affairs by February, it could be the first Premiership club to go into administration. This would be a considerable embarrassment to the Barclays Premier League who will no doubt do what they can to prevent it happening.

BROTHEL STORY RAISES BROADER ISSUES – 24/12/09

There has been considerable internet speculation about the possible identity of a Premiership football manager who was reported by the Sun to have been identified visiting a brothel. Described as a 'Thai vice den' located on an industrial estate, it might at first appear that the premises offer facilities such as Jacuzzis and saunas. However, what is on offer amounts to more than an opportunity for exiled Finns to enjoy a social activity from their homeland. A Sun reporter who visited the premises alleges that he was offered sexual services in return for payment and in the time honoured manner of journalists in such situations made his excuses and left. The Sun has refused to identify the manager for fear of a privacy action brought under human rights legislation.

What is of interest from the point of view of this website is whether such an activity by a manager could lead to reputational damage for a club which would affect its business. The Government is in the process of introducing legislation which would make it an offence to pay for sexual services in certain circumstances with the onus of proof on the defendant, although many think that the legislation is not a good use of police resources and effectively unenforceable, not that that ever stops governments passing such laws. The Sun quoted an anonymous 'football insider' who said: 'This is a man who oversees a football club which has been involved in multi-million pound transfers and pays players tens of thousands of pounds every week. Behaving like this leaves him and the club wide open to the threat of blackmail by criminals. Football is a massive business and he has a huge responsibility to the directors, the players and, of course, the fans. It's scarcely believable that he could be so reckless.' If a manager was named in connection with such activities, it could be embarrassing for a club seeking to promote a family image and sponsors could be upset. However, it is possible that many fans would simply shrug their shoulders.

MANDARIC FIRM IN DENIAL OF TAX ALLEGATIONS – 24/12/09

Milan Mandaric, the chairman of Leicester City is to face legal proceedings for alleged tax evasion from HM Revenue and Customs. The allegations date from his period as Portsmouth chairman from 1998 to 2006. He will face charges of 'cheating the public revenue' alongside Spurs manager Harry Redknapp who was in charge of the Portsmouth first team at the time. Mandaric strenuously denies the allegations. A statement issued by his solicitors Cartwright King read: 'Milan Mandaric is astounded and dismayed that proceedings are to be brought by HMRC in the new year alleging a connection with unpaid tax on a personal payment he made to Harry Redknapp in 2002. These will be vigorously defended. During a two-year investigation he has fully cooperated and has strenuously denied any wrongdoing. Expert tax advice has confirmed that Mr Mandaric has no tax liability. The decision of HMRC to bring proceedings is very surprising.'

The statement went on to outline the essential unfairness of bringing such a proceeding against someone with an unsullied reputation who has contributed millions of pounds to the nation's finances: 'Through a successful and respected 45-year international career he has gained an impeccable reputation and has never been accused of the slightest wrongdoing, nor had his integrity called into question. Over the last 10 years in English football, the clubs that Mr Mandaric has invested in have employed hundreds of people and paid millions of pounds in taxes to HMRC.'

WATFORD STEP BACK FROM BRINK – 23/12/09

Championship side Watford have managed to avoid administration, but the more general lesson that emerges from this episode is that clubs can be put at risk by feuds on the board or the decisions of an individual that is funding them. Earlier in December Watford Leisure said that it required a further £5.5m to cover cash flow needs until July 2010. The company made a pre-tax loss of £2m in the year to 30 June on revenues of £23.1m compared with a £400,000 profit in the previous 12 months. Total liabilities amounted to £10.7m. The club's shares on Aim had to be suspended after the Russo brothers (chairman and vice-chairman) stormed out before the annual general meeting, leaving former manager Graham Taylor to chair the meeting. Their business, Valley Grown Salads, demanded immediate repayment of a £4.9m loan to the company. VGS has 30 per cent of the shares, Lord Ashcroft's Fordwat investment vehicle controls 37 per cent and he is backed by former chairman Graham Simpson who has 17 per cent. Lord Ashcroft, deputy chairman of the Conservative Party, stepped in to pay the £4.88m debt to Russo. Lord Ashcroft is viewed by his opponents as a controversial figure, but he managed to save the club for now. Sir Elton John who has had a long association with the Hornets plans to stage a fund raising concert in 2010.

Trading in Watford shares resumed on December 23rd, but they closed down 11 per cent at 6p after an initial fall of 18 per cent. Sources close to the club described the loan as 'a road map to get us through the season.' However, Watford Leisure warned that it would still need further short-term funding at the end of January while it organises a rights issue. It is hoped to make some use of money from advance ticket sales for Sir Elton Johm's 'Paying for Players' concert which will not take place until June. The funds would be paid back to be available for player signings after the rights issue is completed.

FA HIT COLLEGE TEAMS – 23/12/09

College teams are a leading feature of American sports such as basketball and American football. However, in Britain they attract some resentment. This seems to be based on part on the view that they use taxpayers' money, but in fact all universities have many other sources of income. At Warwick University, the proportion of income that comes from HEFCE funds is now down to 23 per cent. Team Bath managed to get to tier two of the non-league pyramid before they folded. Now the Leagues Sub-Committee of theFA has recommended that university or higher education clubs should not be allowed to compete above step five of the non-league system. This would hit Cambridge Regional College who currently top the Step 5 Ridgeon [Eastern Counties] league. CRC are trying to get round the ruling by claiming that they are not really a college team but a stand alone team sponsored by the college where some but not all players study for a National Diploma in Sports Studies. What is not clear is why the FA needs such a rule in the first place.

IT WAS THE COMPUTER – 23/12/09

After Arsenal drew at Burnley, Arsene Wenger blamed the fixtures computer for the congestion it had produced. This is a new entry in the Big Book of Managers' Excuses, but there is a more serious issue. Football attendances have held up well in the recession, but during these midweek fixtures five Barclays Premier League clubs recorded their lowest league attendances for between two and five seasons in midweek. Chelsea, Manchester United, Liverpool, Sunderland and Bolton Wanderers took a hit at the turnstiles as they staged their second home matches in four or five days. It was the Premiership's first midweek round of matches pre-Christmas in December since 1993. The chairman of the Football Supporters' Federation, Malcolm Clarke, commented that to ask fans without season tickets to fork out for two games just before Christmas was a pretty high outlay.

Clarke acknowledged that the fixture compilers have a tough job, especially this season, when an earlier finish to the campaign was needed to give England time to prepare for the World Cup in South Africa. But he was surprised that clubs had been required to pay two games at home in quick succession. He commented, 'I can't believe that it's not possible to programme to computer to avoid that problem. I know the fixtures working party have lots of difficulties but it's something they should look at in future years.' The FSF is represented on the working party.

Liverpool's commemoration of the 50th anniversary of Bill Shankly's appointment as manager could not prevent their lowest crowd at Anfield (41,106) since March 2005 to see them play Wigan. Manchester United's figure of 73,709 for the visit of what turned out to be the Wolves reserve team was the lowest in the league since Old Trafford was expanded in 2006, although not that far behind their average of 74,901 this season. Chelsea attracted 40,137 to see bottom club Portsmouth, compared with an average this season of 41,337. Sunderland attracted 34,821 to see high flying Villa, their lowest in the league since March 2007, and 5,000 below their average of 39,836. Bolton Wanderers had a miserable 17,849 for the visit of West Ham, although their average is only 21,521. Some might say that reflects the discontent of fans with manager with Gary Megson, but someone remarked to me this week that Bolton was a small town outside Manchester that happened to have a very nice stadium. Ouch!

SPURS BACK REDKNAPP OVER TAX CASE – 23/12/09

Spurs have given manager Harry Redknapp their 'full support' after it was announced that the Inland Revenue were to institute proceedings against him relating to his time as Portsmouth manager. His solicitors said in a statement, 'Harry Redknapp is extremely surprised and disappointed to have been informed that HMRC intend to institute proceedings against him in the week commencing January 11, 2010. We believe that the decision [will] be shown to have been totally misconceived.' Spurs consider the matter to be a private tax issue 'which is not related to football matters. He has the full support of the club.'

TIME ADDED ON AT ARSENAL – 22/12/09

The battle for Arsenal Football Club has now entered time added on, although in the Premiership this can be quite a long period of time. American sports franchise owner Stan Kroenke needs to acquire only 17 more shares to trigger a mandatory takeover bid for the club. He has purchased another 25 Arsenal shares at a cost of £212,500. It takes his holding to just short of the 29.99 per cent threshold beyond which he would be forced to make an offer the remaining shares under Stock Exchange rules.

WEST HAM REJECT BID – 21/12/09

Notwithstanding yesterday's 1-1 draw against Chelsea, West Ham remains cash strapped and relegation threatened. Nevertheless, two alternative bids have been made by David Gold and David Sullivan, the former owners of Birmingham City. Gold and Sullivan submitted their formal bid to Rothschild and Standard Bank which has been appointed to handle any offers on behalf of owners CB Holdings. This is the company made up of the Icelandic bank Straumur and other creditors of Bjorgolfur Gudmundsson, the former owner of the Hammers. However, it is understood that Straumur will reject the bid in the belief that they are about to be given some much-needed breathing space by their own creditors in Iceland. One of the offers made by Gold and Sullivan was for a full-time buyout valued at £50m and the other for a 50 per cent stake in the club. However, CB Holdings values the club at £120m and with debts of approximately £40m are hoping for an offer of around £80m.

There remains potential interest from Intermarket Group, a London-based investment group and Tony Fernandes, the Malaysian founder of Air Asia, but that has yet to materialise into a serious offer. Straumur is understood to have injected £5m into West Ham last month in order to ease some of the financial strain on the club, but they are not in a position to offer funds to strengthen the squad when the transfer window opens. Indeed, there have been fears of a fire sale of players like Carlton Cole. The immediate cash flow position is stable, however, as £7m in broadcast revenue is due to arrive from the Premiership at the beginning of next month.

David Gold's Rolls was recently seen at The Valley and Plan B is to buy Charlton Athletic. However, some think that the interest in Charlton is being used to increase leverage on West Ham by demonstrating that there is an alternative. Charlton's latest accounts suggest that the South-East London club is on the brink of insolvency. A £7m cash injection by the directors should provide enough funds for the rest of the season, but if the Addicks are not promoted or acquired, it is more than likely that they will go into administration. My guess is that Gold and Sullivan will eventually get West Ham for something between their offer of £50m and the £80m the owners expect. My best guess would be £70m. So it may be a happy new year for West Ham fans after all.

ROW OVER ENGLAND WORLD CUP VENUES – 20/12/09

Whether England's bid to stage the 2018 World Cup will succeed is doubtful, but the choice of potential venes has already provoked controversy. 15 stadiums were chosen, supposedly on the basis of a stringent list of criteria which focused on the host city as much as the stadium itself. Each bid faced one hour of questioning from the panel. However, there are suspicions that geographical balance came into play, although eight of the 15 chosen stadiums are in London, the North West and the North East. If anything it was the Midlands that lost out with bids from Derby and Leicester, both with modern stadiums, being turned down. In any case, even if Fifa do choose England, it will whittle down the number of stadiums to a dozen, some of which may stage only two or three matches, so the pot of gold may be illusory.

What has annoyed many fans is the choice of Milton Keynes because of its association with the MK Dons which many of them regard as Franchise FC, the franchise having been in effect transferred there from Wimbledon whose last home was Selhurst Park. Ann Limb, the chair of MK 2018, said that she expected the decision would spark sufficient interest in MK Dons (who have faded on the pitch recently) to increase attendances at the League 1 club which have been averaging around 9,000 this season. The MK Dons redevelopment which will create a 45,000 seater stadium at a cost of £24m is not linked to a successful England bid.

Another city to hit the jackpot is Plymouth where Argyle are currently bottom of the Championship and banned from transferring players, a punishment imposed because of unpiad debts, although the club claims they will be cleared in time for the January transfer window. Last summer, Yasuki Kagami, a Japanese businessman, became the club's majority shareholder. He owns a combined 51 per cent with executive director Keith Dodd and chairman Sir Roy Gardner who used to chair Manchester United. In Septemebr, Gardner said that 'balancing the cashflow' was a problem. However, to the delight of Plymouth mad Radio Scilly presenter Steve Watt (where we contribute to the Friday evening sports programme), Home Park has been chosen as a potential venue. The ground is being redeveloped from a 20,000 to 44,000 seater stadium at a cost of £50m.

ONE BILLION POUND BID FOR UNITED – 13/12/09

Reports are claiming that six Asian billionaires are poised to make a £1 billion pound bid for Manchester United. Variously described as being based in Bangkog or Beijing, they have been working on the project for three months. They think that financial problems at Old Trafford mean that this is a good time to make a bid. United has debts of £699m, the biggest in football's history, and an annual interest bill of £60m a year. There are fewer season ticket holders at Old Trafford this year with just 55,000 taking up a renewal option after an agreement with the Office of Fair Trading. There has also been a reduction in the number of hospitality packages being sold, partially a result of the economic downturn. Last week Malcolm Glazer sold his home in Palm Beach at a profit of $10m.

Before yesterday's 0-1 home defeat by Aston Villa, Sir Alex Ferguson warned United fans not to expect any big name signings in the near future. However, the United manager dismissed claims that he has no money to spend because of the club's huge debts. Ferguson said that he was unlikely to buy in the winter transfer window because he does not see 'any value' in the transfer market, a sitiation that he fears could persist until after the summer because of the World Cup finals in South Africa, when prices for players may remain 'inflated'. He said that the £80m Real Madrid paid for Ronaldo, coupled with other big money deals such as Zlatan Ibrahimovic's £60.7m move to Barcelona and Carlos Tevez's £47m signing by Manchester City, have distorted the market. He commented, 'Last season's deals did inflate the market. It was silly season, with the prices paid for players. The prices we quoted were not reasonable and that's why I didn't do anything.'

NOTTS COUNTY RESCUED – 13/12/09

Notts County chairman Peter Trembling has completed his takeover of the League 2 club, meaning director of football Sven-Goran Eriksson will stay. Trembling bought the club from Munto Finance for a nominal fee, only five months after the mysterious Middle Eastern consortium took over at Meadow Lane. There had been concerns that the owners, registered offshore in the British Virgin Islands, would demand a price of £3m despite having acquired the club for almost nothing. Backed by what looked like impressive financial guarantees, and setting out ambitious plans, more than 90 per cent of members of the Supporters' Trust voted to give their shares to Munto. Steve Thompson, a founder member of the supporters' trust, commented, 'we didn't have much choice because the club appeared to be heading towards administration, with an unpaid tax bill for £400,000.' Trembling, who arrived in the summer with the Munto Finance takeover, has already passed a Football League fit and proper person test. The club is currently in the play off positions in League 2, and Trembling has emphasised that much remains to be done before the world's oldest professional football club achieve their ambition of reaching the Premiership. One encouraging sign is that average gates have doubled this season.

FA CUP DEAL AGREED WITH ESPN – 13/12/09

The FA has agreed a four year television deal with ESPN to broadcast FA Cup ties as the Walt Disney owned broadcaster strengthens its position in the British market. The new contract, which is worth £70m, will run from the next summer to the end of the 2103-14 season and will sit alongside the existing deal held by ITV until 2012. The new contract will fill the void left by the collapse of the British arm of Setanta in June, one year into a four year deal worth £150m, over twice the size of the new arrangement. ESPN will have live coverage of up to 25 matches per season, including one semi-final. The Cup Final will be broadcast on ESPN and ITV.

FINANCIAL CRISIS AT POMPEY – 11/12/09

Portsmouth have emphatically denied reports on supporter websites that they could be the first Premiership club to go into administration. However, the financial crisis at the club is so serious that they could be forced to sell at least two players in the January transfer window. New owner Ali Al-Faraj is urgently seeking to refinance the club's £60m debts which include around £16m due to football creditors and former owner Sacha Gaydamak by the end of January. The Premier League may divert the Sky television money due to them to pay off football creditors. Faraj's advisers have requested a meeting with Gaydamak's representatives to discuss the repayment schedule for £33m of debts owed to the former owner, £8m of which are due next month. The club has ended a long-standing relationship with Barclays which has become strained by recent events. They are understood to have paid off a loan secured against Fratton Park, enabling them to offer the stadium as a guarantee to new investors. Faraj borrowed up to £20m from Hong King-based businessman Balram Chainrai to pay the players and settle tax debts. He is now seeking to refinance and may offer an equity stake to new investors, but the club insist that Chainrai will not become a shareholder in the club.

KING'S LYNN ON THE BRINK – 07/12/09

Unibond Premier League club King's Lynn FC face being wound up on Wednesday. The Norfolk club owe the taxman £67,000. A rescue seemed to be on the cards last week after potential investors came forward and the local council pledged support for improvements at the stadium which has faced ground grading problems that have held the club back. An appeal against the winding up order was due to be heard last week but the High Court not hear the case and they were given a seven day reprieve. However, with potential investors unable to produce and players unpaid for a third week, director Michael Chinn has washed his hands of the Linnets and 130 years of history will probably end this week. He complained that 'the taxman put the club in this situation', but the taxman acts on behalf of taxpayers and clubs have a responsibility to pay their taxes like any other business. Supporters are likely to form a phoenix club on the lines of AFC Telford.

Things looked slightly better at crisis club Chester City after they avoided being kicked out of the Conference last week. Controversial former owner Stephen Vaughan produced the £36,000 needed to settle football debts and keep them from expulsion. Banned from serving as a company director, Vaughan loaned the cash to his son. However, fans have been discussing plans to form a breakaway AFC Chester club.

UPDATE: The end of King's Lynn - official statement - 09/12/09

GLAZERS HIT PROBLEMS WITH DEBTS – 6/12/09

The Glazers, owners of Manchester United, are finding it difficult to refinance their huge debts against the background of the recession. There are increasing concerns about the possible impact on the club. They have been trying for some time to secure a refinancing package for part of the club's £699m debt. There are doubts whether the £80m obtained from the sale of Ronaldo to Real Madrid will ever be reinvested in the club. The main concern is thought to be about the £175.5m worth of debt that the Glazers are personally responsible for, not the £518.7m of loans secured against the club. It is these so-called Payments in Kind (PIK) notes, money borrowed from US hedge funds that 'rolls up' at an annual interest rate of 14.25 per cent that the Americans are believed to have been trying to refinance. The intention was always to pay off these loans within a few years of the takeover in May 2005, but while they managed to redeem some of the original PIK debt of £275m, the credit crunch has made this a more challenging task.

By the time the debt matures in 2017 it will stand at £580m unless the Glazers can pay part or all of it before then or secure a preferential rate of interest. With the club also facing capital repayments from 2013, the PIK debt is a concern. It grew from £152m to £175.5m in one financial year. Claims that the Glazers could persuade the banks to refinance by offering securitisation against future match day revenues are said not to be well founded given that ticket sales are already factored into the borrowing. Given that the 14.25 interest rate was agreed the last and only time the Glazers were able to refinance in August 2006, when the financial climate was much better, they will do well to secure a lower rate of interest. United are thought to be operating well within the financial terms set by their lenders. However, the two US hedge funds that provided the Glazers with PIK loans - Perry Capital and Citadel - get a range of rights over the club in the event that their financial performance falls below a defined level, including the right to appoint their own directors to the board. Ultimately they could seize control of the club should revenues plummet. They could also put a cap on United's spending.

THE HIGH PRICE OF AGENTS – 6/12/09

Intermediaries are never popular in any market: think estate agents. Many fans think agents are leeches who take money away from clubs and out of the game. Figures released recently for Premier League clubs would seem to confirm their worst fears. More than £70m was paid out to middlemen between the beginning of October 2008 and the end of September 2009. Following their takeover by Sheikh Mansour Manchester City spent the most on agents, no less than £12,874,283 - one fifth of the total. Perhaps more surprising is that Manchester United spent a relatively modest £1,517,893. Burnley are bottom of the table with agents' fee s of £468,398. However, there are some doubts about the accuracy of the figures with Hull City stating that the amount paid by them was £1,820,250, about £120,000 more than the total given.

Even renegotiating contracts with existing players can be expensive as the example of Chelsea shows after a year in which they paid only one transfer fee. The bulk of their £9,562,223 fees were paid to keep their existing squad together with the likes of Didier Drogba and John Terry signing new deals. Chelsea are one of several clubs who regularly pay agents to offload players which explains several other anomalies. For West Ham United to pay out £5,227,448 to agents might seem odd given their parlous financial state, but if it saves them wages in the long run it will be money well spent. Agent fees are also generally higher in free transfers which may explain why Wigan Athletic spent £3,576,972. The system of transfer windows turns what is already a highly competitive scenario in which good sense often goes out of the window. Fifa once issued a 'guideline' that agents should receive 5 per cent of a transfer fee, but a club that thinks it desperately needs a player before deadline day may willingly hand over more.

POMPEY OVERCOME WAGES CRISIS – 4/12/09

Portsmouth have secured a loan which means they can finally play their players' wages for November. Portsmouth also paid their players late in September. Portsmouth were placed under a transfer embargo in late October until they settle debts owed to other English clubs, although they hope to have this sorted out by the time the transfer window opens. PFA chief executive Gordon Taylor expressed his concern at the latest developments at the club. He commented, 'This week we've had problems with wages at Crystal Palace, at Watford and we've had lower division clubs who've had trouble paying wages when sometimes that's not entirely unexpected. But at Premier League level, that's the last place you would expect there to be trouble paying wages on time. It's not good for the image of the Premiership and you have to wonder about their financial book keeping.'

END OF MY FOOTBALL CLUB DREAM – 2/12/09

Just 18 months after buying Ebbsfleet for £635,000, the MyFootballClub dream is dead. Members have voted overwhelmingly to scrap the team selector which was never used. They voted to buy the operating system from founder Will Brooks for £15,000. He previously took 21 per cent of membership fees to cover the cost of running the site. Ebbsfleet is now effectively a fans' club. At renewals day in February, 21,000 members disappeared. Cashflow went through the floor and the manager was forced to release all but three of his squad. With a playing budget of just over £6,000 a week, the Conference side now look likely candidates for relegation. The club are facing annual losses of £250,000, and they need at least 2,500 of their 9,000 current members to stump up a membership fee increased by 65 per cent to £100.

SHARED STADIUM FOR MERSEYSIDE ON AGENDA AGAIN – 27/11/09

The issue of a shared stadium for Liverpool and Everton is on the agenda again after Everton had their stadium plans turned down. But although it might make economic sense, it is unlikely to appeal to fans and will probably not get anywhere. Everton's plan to build a 50,000 capacity stadium at Kirkby on the outskirts of Liverpool was turned down by the government. The development would have involved Tesco and Communities Secretary John Denham decided that the scheme breached policy to discourage supermarket chains sucking business away from town centres. He took into account that the scheme could serve as a catalyst for regeneration in Kirkby. The decision pleased the Keep Everton In Our City campaign, but may leave Liverpool without a suitable venue should England succeed in securing the 2018 World Cup.

The news followed the publication of Everton's financial figures for the year ending 31 May. Boosted by an appearance in the FA Cup Final and a new marketing deal with online retailer Kitbag, Everton's turnover was up from £75.7m to £79.7m. The wage bill remained at about £45m, a quarter of that for Chelsea. Profit before player trading fell slightly from £6.8m to £6.2m. Goodison Park has a capacity of 40,000, but a tenth of those seats have such a restricted view they are rarely filled. Some 21,000 out of 40,000 seats have a pillar between them and the pitch. Everton has a big fan base with almost 27,000 season ticket holders, but space is so restricted that some corporate members are housed in a marquee in the car park. On a match day Everton takes £800,000 compared with £3.3m at Arsenal. Everton are 33 per cent behind the average league club in terms of income: five years ago it was 19 per cent. But even if fans' opposition to a shared stadium was overcome, it is doubtful whether Everton could afford half the £150m cost.

Ground sharing is more common on the European continent because stadiums are often built by municipal authorities who rent them out. However, even there the attractions are fading. Inter Milan are thinking of moving away from the San Siro which they shared with AC Milan since 1947. They think they would have better commercial opportunities in a stadium of their own. Roma, after years of sharing with Lazio, have announced plans to leave the Stadio Olimpico for a new ground, which although smaller, would have greater revenue potential. In Germany, Bayern Munich and 1860 Munich share the Allianz Arena which is lit up with different colours according to which team is playing at home. But everyone knows that Bayern are the senior partner and 1860 the poor relations. It's a scenario Everton would wish to avoid, but they are running out of options.

RESCUE AT WEYMOUTH, MORE TROUBLE AT CHESTER – 27/11/09

Blue Square South side Weymouth have been saved by the brink of liquidation by a consortium led by Chris Ryan. Until the consortium offer it had looked as if it was really the end of the road for the Terras who are around £700,000 in the red. But with Ryan's consortium promising to inject more than £160,000 into the club and entering talks with the administrators to break even within 12 months, it seems football at the Wessex Stadium will continue. Former Cambridge United chairman George Rolls had also made an offer for the club.

Things are less happy at Chester City who are bottom of the Conference having already been deducted 25 points for breaches of financial rules. They have been given a new deadline of November 30th to pay their football debts. Controversial owner Stephen Vaughan no longer meets the requirements of the FA's fit and proper person test because he has been disqualified as a company director until 2020. It follows his involvement in a £600,000 VAT fraud. FA rules mean that he can now only hold 30 per cent of the club's shares, so he will have to reduce his stake. There is a suggestion that Vaughan could transfer the shares to one of his sons, but whether the FA would be satisfied by that move remains open to question. However, the club could be expelled if they do not pay their football debts which includes money owed to Vauxhall Motors for a loan signing and to Wrexham for away ticket sales.

HENRY A DAMAGED BRAND – 21/11/09

Thierry Henry could pay a heavy price for his hand ball that gave France victory over Ireland. Henry has been earning £15m a year from sponsorship deals. He has been the face of global brands including Renault, Nike, Gillette and Pepsi. Between 2001 and 2006 he earned a reported £14m from Nike, a company he ditched in 2006 to sign with Reebok for a signing-on fee believed to be over £19m. With a certain irony, Reebok use him in advertising campaign entitled 'Play Responsibly'. He replaced David Beckham as one of the faces of Gillette and this earns him around £2m a year. The company said it picked Henry because he embodied 'true sporting values'. He also earns £3m a year from Pepis-Cola, as well as promoting the Thomas Hilfiger fashion label. However, now his brand has suffered serious reputational damage. It may affect his attempt to follow Beckham into the lucrative US market through his proposed move to MLS side New York Red Bulls next season. Fans and therefore sponsors in the US tend to care more about the moral standards of their sporting heroes.

TOP SCOTTISH CLUBS OWE £100m – 21/11/09

Scotland's top football clubs are carrying debt totalling nearly £100m. Rangers and Hearts owe about £30m each, Kilmarnock and Aberdeen approximately £9m each, Dundee United £6.6m and Hibernian £3.6m. Stephen Morrow, head of Sports Science studies at the University of Stirling, said, 'It is difficult to see, in the current trading model that Scottish football is in, how they can find a way to pay that off. That's not to say that can't manage that debt. They can look after the interest payments on it but unless something changes in the structure or the finances of those clubs - or something substantial changes in their trading environment - then all they will be doing is very, very slowly bringing the debt down.' He does not, however, expect to see a SPL club to enter administration in the immediate future. He also pointed out that the sums involved were relatively small compared to most business debts banks were dealing with.

STANLEY FIND SAVIOUR – 20/11/09

Accrington Stanley fan Ilyas Khan has become non-executive chairman at the club two weeks after staving off a winding-up order with a £160,000 donation to pay off a long outstanding tax bill. It is said that Khan, who runs his own investment company after a career in banking, is worth tens of millions of pounds. One of the hopes is that will be possible to build up relations with the Asian community in the area, including businesses with an Asian background. Khan has pledged that he will settle the club's extensive debts and provide some money for a future promotion push.

WEST HAM IS PLAN A FOR SULLIVAN, ADDICKS PLAN B – 20/11/09

Former Birmingham City owner David Sullivan and the Gold brothers would prefer to use the money they pocketed from the sale to buy West Ham. They grew up in the area and have an emotional attachment to the club. However, they are worried about the scale of the Hammers' debts. These total around £100m with £45m owed to various banks, £19m to Sheffield United over the Carlos Tevez affair, £15m to other clubs for players, plus running losses of £20m this year. Their plan B is to go for former Premiership club Charlton now in League 1. With good infrastructure in terms of The Valley and the training ground, plus a strong catchment area of support that has been well nurtured, they think that there is potential in the South-East London club.

IT ALL KICKS OFF OVER SALE OF RIGHTS TO CHINA – 15/11/09

The sale of rights to broadcast Premiership football in China, potentially the largest market for the world's most successful football league, is forcing league bosses to paper over widening splits between its big and small clubs. The divide pits clubs such as Manchester United and Chelsea, household names and successful brands in much of Asia, but not yet in China, against the likes of Bolton Wanderers and Wigan Athletic. The bigger clubs have pushed for a return to a free-to-air model in football-mad China, which potentially gives their games exposure to hundreds of millions of viewers. These clubs believe they can translate the exposure from free-to-air broadcasts into revenues through sponsorship and merchandising and related sales. Smaller clubs, struggling with finances, want to extract every penny from upfront payments, an approach that favours pay TV operators. Last season each Premier club took £9.6m in international rights fees.

In 2006 the winning $60m bid for the China rights from Win-TV, a pay-TV operator backed by the US publishing group IDG, reportedly trebled the next highest offer. But it has been suggested that coverage was frozen out of most regions by TV companies and was hit by piracy problems outside large cities. Second round bids for the rights in China and neighbouring markets are due tomorrow. At least four bidders are expected to take part. The league has put forward a hybrid model combining free and pay-television. Up to 20 per cent of the rights could be available free to air. Whatever happens over the Chinese rights, a major division between the clubs now arises from Champions League revenues rather than from the Premier League competition itself.

BIG BLOW FOR SCOTTISH FOOTBALL – 15/11/09

Scottish football has suffered a big blow after the Premiership effectively ruled out Celtic or Rangers ever joining the competition. The Old Firm have been eyeing Premiership membership as a possible escape route from their financial troubles for some time. However, Premiership clubs voted heavily against a proposal to admit them. There was a recognition that the political and regulatory challenges were likely to prove insurmountable, but also that the commercial value would not be that great. Although Celtic and Rangers enjoy huge support in Scotland and among expatriates, the consensus was that the commercial gains would be relatively small at a time when the league's emphasis is on expansion in growing global markets. Ralph Topping, the new chairman of the Scottish Premier League, has admitted that Scottish clubs lack a clear vision about their place in the world. The income of £16m from broadcasting and sponsorship rights generated through the SPL this season compares unfavourably with the £29.5m received by the bottom placed clubs in the English Premier League in 2007-8. Rangers are in acute financial trouble, having moved from a pre-tax profit of £7.2m in 2007-8 to a pre-tax loss of £12.7m. Scottish hopes may now reside in Uefa creating an Atlantic League for smaller European countries.

The Premiership had not ruled out the idea of a 28-club league split into two divisions with no promotion or relegation from the second tier. This controversial proposal, which would represent a move towards a more American style competition, finds little favour with fans but is to explored over the next year. However, the idea of admitting a Dublin franchise into the league appears to have been dropped along with the Scottish proposal. This was originally mooted when it was suggested that Wimbledon could move to Dublin.

176,000 LOGGED ON TO WATCH OLDHAM vs LEEDS – 13/11/09

The FA Cup First Round tie between Oldham Athletic and Leeds United, streamed exclusively live on TheFA.com, achieved an audience 176,000. The FA are claiming this as a UK record for a free-to-view competitive football match on the internet. The FA's technical partner in the FATV project is digital sports specialist Perform Group. Oliver Slipper, Perform's joint-CEO, has said that the match ranked as one of the top five live web sports events in UK history.

SPURS FOR SALE IF THE PRICE IS RIGHT – 11/11/09

Tottenham Hotspur's majority shareholders will not put the Premiership club on the market but would be prepared to sell of a big cash offer came along, according to non-executive director Sir Keith Mills. Last month Spurs submitted a planning application to build a 56,000-seater stadium on the White Hart Lane site to take advantage of a long waiting list for season tickets. However, the location lacks good public transport links which had earlier inspired a search for alternative sites. Rumours of interest from abroad have surfaced in recent years and may return as the stadium plans progress towards completion in 2013.

Spurs have reported a record £33.4m pre-tax profit for the year to 30 June, up from £3m last year. This is largely the result of a £56.5m profit on player trading. The club spent £119.3m on players and a further £29.4m since the year end. Sales have recouped £72.5m, including a £23.4m profit made from the transfer of Dimitar Berbatov to Manchester United and a further £20.8m after the end of the financial year. Revenue was slightly down on last year at £113m and operating profit prior to football trading and amorisation fell from £27.5m to £18.4m. The club is reported to be close to finding a new shirt sponsor and is expected to earn £10m to £20m a year from the deal.

CLUBS LINE UP FOR NAMING RIGHTS DEALS – 7/11/09

Fans at Newcastle United protested today outside and inside the ground at the re-naming of the stadium as sportsdirect.com@St. James' Park. However, a number of clubs are hoping to secure lucrative naming deals. Chelsea has said that it will consider selling the naming rights to Stamford Bridge with a hoped for fee of £10m per season. Tottenham take the view that their plans to build a new stadium which will not be White Hart Lane gives them an advantage in the naming rights race. However, Aston Villa have ruled any such move out. Manager Martin O'Neill commented, 'I'd be very much against it, it's one thing if you've got a new ground like when Arsenal moved from Highbury to the Emirates, but even then, what happens after a few years if that sponsorship runs out? I can't see Villa Park being called anything else'.

KROENKE EDGES CLOSER TO ARSENAL BID – 4/11/09

Stan Kroenke has snapped up another batch of Arsenal shares, edging the US sports franchise owner to within less than 300 shares from launching a mandatory takeover bid for the club. Kroenke Sports Enterprises paid £8,500 a share for a majority of the 1 per cent stake previously held by former Racal chairman Sir Ernest Harrison who died in February. This took Mr Kroenke's holding to 29.6 per cent. Although the purchase tightens the American's hold on the club, it is generally expected that he will sit tight at just under the 29.9 per cent shareholding that would trigger an automatic bid. He is unlikely to want to trigger a mandatory offer until next March at the earliest. Takeover Panel rules would require Mr Kroenke to make an offer at the highest price he paid for shares in the previous 12 months. This was the £10,500 a share he paid to the Carr family last March. Russian steel magnate Alisher Usmanov continues to use his Red and White Holdings vehicle to buy small parcels of shares when they become available and has a stake of more than 25.5 per cent.

The news of Mr Kroenke's tightening grip on the club has not pleased supporters, not that they have anything against him personally. The Arsenal Supporters Trust, which owns a small stake collectively, said that it did not believe that a takeover was imminent or desirable, particularly one funded with debt. The AST commented, 'Two red lines that cannot be crossed are the use of debt secured on the club's assets to fund a takeover and an ownership structure which excludes small shareholders.'

WEMBLEY STADIUM COULD DEFAULT ON BANK DEBTS – 2/11/09

Wembley National Stadium, a wholly owned subsidiary of the Football Association, made a pre-tax loss of £31m last year and could default on finance arrangements if wealthy patrons fail to renew their season tickets. The stadium hosts England football internationals, the FA Cup final and Football League play-off finals. The company made an operating profit of nearly £6m in the year to December 2008. However, there was a £26.6m interest bill and the £10.9m write off of bank fees associated with the stadium financing in 2002. The overall loss was £23m after tax, an improvement on the previous year's loss of £36m. The company said that its business plan had always forecast that it would not break even until five years after the stadium opened in 2007 at a total cost of £757m. During the year, management refinanced the business, although it still has debts of more than £320m. The deal cut its interest rate from 7.8 per cent to 6.9 per cent and extended the repayment dedaline from 2018 to 2023.

The downside risk is that the new arrangements include cashflow undertakings that it could default on if there is a fall in the number of Club Wembley licence holders, who pay annually for boxes and premium seats. This is possible in a recession. The company has said that the situation has been discussed with the FA who have assured them that they would bail them out if necessary, although this would presumably impact on the FA's other football activities. The sale of boxes and seats is an important revenue stream, accounting for 59 per cent of the £900m annual revenue. Club Wembley's 4,500 private members license the seats for an average of eight to 10 years and pay annual season fees. In 2008 about 87 per cent of the licensed seats were taken, up from 82 per cent the previous year. Corporate boxes are available on three to ten year licences, starting from £79,350 a year. These are the stadium's most popular offerings. Deals on premium seats start from £950 a year. There is no doubt that the stadium is iconic, but that comes at a price which some corporate clients may find increasingly difficult or awkward to afford.

WE ARE NOW ON AIR – 11/10/09

You can listen to items from this page on Radio Scilly's new weekly sports show broadcasting from 5 to 6 on Friday evenings. If you don't live on the islands, you can listen online at Radio Scilly

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