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Football Finance

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Takeover gives hope to Owls

The takeover of Sheffield Wednesday by Hafiz Mammadov has given new hope to Owls fans, although the owner's ambition of a return to the Premier League may take a while to achieve.

Mammadov also ownes Baku of Azerbajan and French club Lens.   The deal is worth about £35 and is subject to ratification by the Football League.   His company specialises in oil, gas, construction and transporation in Azerbajan.

Reading takeover near

Corporate recovery company Begbies Traynor have now taken over the sale of Reading FC from Sir John Madjeski.   The club had to sell top scorer Adam Le Fondre to cover one tax bill and another one is due shortly.

Hereford United expelled from Conference

Hereford United have lost their battle against expulsion from the Football Conference.   Despite a number of extensions of time to give them an opportunity to sort out their finances, their debts were too big to deal with.

Speaking on the Hereford United website last night, Hereford United owner Tommy Agombar gave the following statement:

Two Conference clubs given Thursday deadline

Hereford United and Salisbury City have been given until 5 p.m. on Thursday to sort out their ownership issues and football debts.   If they fail to do so, they may be thrown out of the Football Conference.

Brokers make World Cup predictions

Financial analysts have been busy making predictions about the World Cup.  The 'stochastic [probablistic] model' of Goldman Sachs predicts a victory for Brazil, but most brokers are more interested in which companies might do well out of the tournament.

Financial problems hit three Dutch clubs

The Dutch football association has placed three Eredivisie sides on special measures because of their precarious finances. FC Twente, NAC Breda and Excelsior will come under KNVB supervision as will De Graafschap and Fortuna Sittard from the Jupiler league.

Premiership revenues top £2.5bn

Premier League clubs’ revenue reached a record £2,525m in 2012/13, according to the 23rd Annual Review of Football Finance from the Sports Business Group at Deloitte. In total, the revenue of the top 92 clubs in English football reached almost £3.2 billion.

Reprieve for Hereford United

It looks like another eleventh hour reprieve for a football club with the winding up petition against the club brought by a former manager suspended by the High Court for 28 days yesterday.   This is to give the club time to sort out its options.

The club has been taken over by a London businessman Terry Agombar.   However, the Football Conference is insisting that all debts to football creditors have to be dealt with by their annual general meeting on Friday.

How smart clubs use amortisation

Amortisation sounds like and is deadly dull accountants speak, but smart clubs can and do use it to their advantage.   Basically it means spreading a transfer fee over the lifetime of a contract.  That allows for creative accounting opportunities to comply with financial fair play (FFP) regulations.

Sports lawyer Daniel Geey takes the example of the David Luiz transfer to explain how it makes it easier for both Paris Saint-Germain and Chelsea to comply with FFP.

Hereford risk being thrown out of Conference

Hereford United are at risk of being thrown out of the Football Conference.   They did submit a budget for next season, but the league is insisting on compelling evidence that they can meet their obligations and pay football creditors.