Administration looms for Southend and many others

[Uke]

As our more vocal posters continue to clamour for us to spend all or cash, here's another timely reminder.

http://news.bbc.co.uk/sport1/hi/football/teams/s/southend_utd/8328096.stm

I used to live in Southend and was at Roots Hall when Gilkes' leg was broken just in front of where I stood.

The numbers of clubs now going into administration is nothing to be happy about (even if it is Pompey or Oxford)

[Deathy]

More than happy to see Pompey or Oxford go into administration, but I wouldn't like to see them go bust though. Just miserably fall out of the football league would do.

[Dirk Gently]

The problem is that when a club goes into administration they always get saved one way or another - another buyer comes along, the Trust rescues them or something like that. Even Newport, Aldershot and Halifax have re-emerged one way or another.

So administration isn't the critical business it really ought to be!

I sometimes think that we need a big club to go bust - and really go bust, with no rescue - before people start to take things really seriously. It'll be terrible for the supporters of that club, of course, but perhaps we do need to see one die for the greater good of the others.

[Uke]

The sums of money involved and the lack of any attachment to the club (or even the country) from owners like Gaydamak, Gillett, Mandaric, Glazers, various shady sheiks, etc. mean that this will inevitably happen one day

As an aside how many Spanish/Italian clubs are in foreign ownership?

[TFF]

As an aside how many Spanish/Italian clubs are in foreign ownership?

All of them?

[Uke]

As an aside how many Spanish/Italian clubs are in foreign ownership?

All of them?

You are Dick Griffin AICMFP

Non-native ownership

[papereyes]

As our more vocal posters continue to clamour for us to spend all our cash ...

What cash did Southend spend?

I mean - they've barely done anything for a few seasons and are in trouble. Not sure they're the greatest counter argument to use.

[Uke]

As our more vocal posters continue to clamour for us to spend all our cash ...

What cash did Southend spend?

I mean - they've barely done anything for a few seasons and are in trouble. Not sure they're the greatest counter argument to use.

Probably because they had no mone having spunked it all on redeveloping Roots Hall and Freddie Eastwood

[papereyes]

So is that an argument against expanding the stadium and infrastructure? Spending millions on enhanced press facilities and the like?

[Uke]

No

It's more to do with ensuring you have enough in reserve so that when a recession bites you are able to survive

[Deathy]

I sometimes think that we need a big club to go bust - and really go bust, with no rescue - before people start to take things really seriously. It'll be terrible for the supporters of that club, of course, but perhaps we do need to see one die for the greater good of the others.

Relegation could make Tigers extinct

Hull's accountants have serious doubts over the club's "ability to continue as a going concern" should they drop out of the Premier League.

The Tigers managed to retain their top-flight status on the final day of last season, and are currently third from bottom of the table.

The accounts have now been filed, five months late, to Companies House.

The period covers the year ending 31 July 2008, when Hull made a loss of nearly £10million as they won promotion to the Premier League via the play-offs.

This does not include any figures from the club's first season in the top tier of English football, and the directors remain confident the next set of results will be much more positive.

However, auditors Deloitte nevertheless warn a surplus of some £23million would need to be raised just to meet current liabilities.

Should Hull stay up, they would still, according to the report which is now a matter of public record, need to produce an additional £16million, with another £7million needed should they go down.

The report read: "These forecasts demonstrate that in order to operate within the company's finance facilities Hull City AFC will need to generate a surplus £23million during the next 12 months through player trading, match day and commercial income and/or through additional finance raising.

"In the event that the club retain Premier League status for the 2010-11 season, the additional funding required for the 12 month period will be in the region of £16million. This is reduced as a result of the guaranteed level of Premier League distributions that will be received.

"As is common with all football clubs, Hull City AFC will make player purchases and sales during the course of the season to manage the company's cash flow as and when required.

"The directors acknowledge that player purchases and sales are uncertain in terms of timing and quantum and some uncertainty exists over the availability and quantum of additional facilities should such be required.

"These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company's ability to continue as a going concern."

Hull, though, remain confident once the additional revenue from their first Premier League campaign is factored in - worth an estimated minimum of some £40million - then the results for 2008-09 will be more positive.

The directors' statement concluded: "The financial benefits arising from the Premier League's broadcasting rights are not recognised until the following financial year, where the losses incurred this year are forecast to be made good.

"The club are currently in advanced discussions with finance providers for the acceleration of known Premier League distributions for amounts of £7million. These discussions are expected to be concluded in the near future and would reduce the surplus finds required by £7million.

"The directors have a reasonable expectation that the company have adequate resources to continue in operational existence for the foreseeable future."

[TFF]

When you read stuff like this you have to wonder how anybody can criticise SJM and the management for our current predicament.

Better bottom three with hope for the future than not here at all.

[Uke]

But of course the club were faking the accounts, the missing millions all went to SJM we keep getting told by those who know best.

If only they lived in the real world

[BR2]

At least Hull could always sell Stephen Hunt for millions as he deserves to be playing in The Premiership.
BTW after his initial flurry he now seems to get substituted every game but presumably he has a fixed salary for 3 years of somewhere around £25,000 per week (That's nearly £4million over 3 years and you can buy a lot of caravans with that sort of money)so he won't be worrying unduly.

As for Southend we were talking about holiday town football clubs and their potential.
Looking at Southend,Torquay,Bournemouth,Blackpool,Morecambe etc none of them look as though they would get crowds in excess of 10,000 so they can never think in terms of top level football and possibly only occasional periods in The Championship.
Towns like Portsmouth,Brighton,Southampton etc are so much bigger and are much more than just seaside towns and can attract 30,000 plus crowds so their potential is that much greater and sustainable.
Back to Southend they never seem to spend much on players so it's a shame to see this happening.

[papereyes]

No

It's more to do with ensuring you have enough in reserve so that when a recession bites you are able to survive

Fair enough - the recession was always going to hit those clubs that always struggle a bit first.

Its nothing much to do with spending all their cash - just being a cosy little club in a cosy little town, struggling away and finding it that little bit tougher one year.

[Jerry St Clair]

As for Southend we were talking about holiday town football clubs and their potential.
Looking at Southend,Torquay,Bournemouth,Blackpool,Morecambe etc none of them look as though they would get crowds in excess of 10,000 so they can never think in terms of top level football and possibly only occasional periods in The Championship.
Towns like Portsmouth,Brighton,Southampton etc are so much bigger and are much more than just seaside towns and can attract 30,000 plus crowds so their potential is that much greater and sustainable.
Back to Southend they never seem to spend much on players so it's a shame to see this happening.

I'd lump Blackpool in with the bigger clubs. They have a shitload of history and will pull in large crowds if they get a sniff of success.

[Uke]

On paper Southend has a catchment all along the A13 - which becomes clear if you ever have to go to Shoeburyness

Pitsea, Thundersley, Hadleigh, Leigh-On-Sea, Chalkwell, Prittlewell, Southend's the end

They never bragged about it though

[The Surgeon of Crowthorne]

My home town club (born on Canvey Island and went to school there & Shoeburyness) - and the first professional game I saw

There is a big catchment area there, but they all support West Ham. The year they went up to (what is now) the Championship for the first time, they were selling out Roots Hall and with a decent stadium, they could see their crowds grow much like Reading's have. But I guess it's building that stadium that's put them in this situation.

EDIT: just seen what Uke was getting at now. It starts off in Wapping, there ain't no stopping...

[Smoking Kills Dancing Doe]

When you read stuff like this you have to wonder how anybody can criticise SJM and the management for our current predicament.

Better bottom three with hope for the future than not here at all.

Yeah we may have had to sell our best players, replace them on the cheap with poor Championship players and youngster not cut out for the fight and find ourselves in the bottom 3 of a very poor league.

Oh.....

[Uke]

EDIT: just seen what Uke was getting at now. It starts off in Wapping, there ain't no stopping...

Glad you being so obliging and noblesse too...