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200 Million pounds loss for EFL


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If you were the government and knew that the sky tv deal is worth £5 billion pounds never mind the other billions that come from abroad, you knew that one club alone had committed to over £250m of transfer fees in the last two months,  the EFL tv contract was worth £600m and the chief shop steward paid a salary of £2m a year, you might just question why the professional sport as a whole needed any tax payers’ money at all. 
When Stevenage, or Derby or Port Vale (just examples) go out of business and their grounds get turned into shopping centres or housing estates because no one wants to take on the debts with no income coming in, no doubt the people whose fault it will really be - PL, EFL, FA, owners, PFA, agents  - will all be lining up to blame the politicians. The real problem is that ‘football’ as a whole has no moral substance, are no ‘family’ and have no leadership worth a light.
Chances of it changing as a result of covid? Zero.

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This is very serious ...it really got me down earlier today just thinking that the great game that we love and have grown up adoring is really on it’s knees ...I cannot see anyway back for a lot of clubs ...just how can they pay anyone with no gate money ....I can see it going down to maybe 2 divisions and the rest as amateur leagues ...at best if they’re lucky ....it’s such a crying shame but football just cannot survive without fans outside of the prem league I know it is sad but the reality is that this virus is going nowhere and a vaccine is the only answer and that seems miles off ...the game we love and enjoy will be crippled beyond repair as I cannot see any bail out from government ...why should they? the reality is sinking in with me and my footy loving mates that health has to come first ....football is not life or death although it does seem like that to some ...including me.....sad times indeed ...some hard days ahead for lots of good football clubs fans players staff  ...everyone ?☹️☹️☹️☹️

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7 hours ago, i-Ram said:

Football has been long overdue a financial reset. Players earning multi-millions a year. Shame it was a virus that needed to do it.

The real problem is though that it will be much more than a financial reset

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I mentioned this a while back but all that’s needed for financial stability is a redistribution on PL handouts (mainly parachute money). 
A fair distribution could see L2 clubs £1m each better off, L1 £3m better off and non-parachute teams £3.6m better off. That’s £180m of the £200m, although 7 parachute teams may not be too happy with losing out on that money.

Why aren’t the EFL pushing for a better TV deal? Get more games on TV both in this country and abroad. This is the best way to compensate clubs for not having any fans in attendance. Are clubs going to earn more from using RamsTV/iFollow/other or from more games on TV? 
Just to remind everyone that based on the current Sky deal, each domestic viewer for a Championship game is only worth 54p, whereas a domestic Premier League viewer is worth £6.87. 

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8 hours ago, S8TY said:

This is very serious ...it really got me down earlier today just thinking that the great game that we love and have grown up adoring is really on it’s knees ...I cannot see anyway back for a lot of clubs ...just how can they pay anyone with no gate money ....I can see it going down to maybe 2 divisions and the rest as amateur leagues ...at best if they’re lucky ....it’s such a crying shame but football just cannot survive without fans outside of the prem league I know it is sad but the reality is that this virus is going nowhere and a vaccine is the only answer and that seems miles off ...the game we love and enjoy will be crippled beyond repair as I cannot see any bail out from government ...why should they? the reality is sinking in with me and my footy loving mates that health has to come first ....football is not life or death although it does seem like that to some ...including me.....sad times indeed ...some hard days ahead for lots of good football clubs fans players staff  ...everyone ?☹️☹️☹️☹️

Hit the nail on the head with that one line. @S8TY

I am sure Mel is astute enough to realise he has the funds to survive another year without fans or he wouldn't be investing in players.

Yes he has gone for loans and freebies to reduce the wage bill. Selling on a few high earners. 

I would hope Ibe has taken a cut in wages and Jozwiak is probably relatively cheap in the wages department.

The sad reality are those in the lower leagues or those in our league who have purchased big in a hope to get to the promised land and have a good few high earners on their books.

Will the government bail out those? I very much doubt it

 

 

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8 hours ago, i-Ram said:

Football has been long overdue a financial reset. Players earning multi-millions a year. Shame it was a virus that needed to do it.

It's not the multi millionaires that I'm arsed about. I'd feel for those earning a solid living in the lower leagues who have worked extremely hard to be able to do their dream job full time. They might well be robbed of that.

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13 minutes ago, DarkFruitsRam7 said:

It's not the multi millionaires that I'm arsed about. I'd feel for those earning a solid living in the lower leagues who have worked extremely hard to be able to do their dream job full time. They might well be robbed of that.

And lets not forget about the fans and businesses that rely on their local football club.

Anyone fancy telling a lower league B4 that his beloved club is no more?

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21 minutes ago, DarkFruitsRam7 said:

It's not the multi millionaires that I'm arsed about. I'd feel for those earning a solid living in the lower leagues who have worked extremely hard to be able to do their dream job full time. They might well be robbed of that.

It's every supplier, subcontractor, connected business and their families that suffer most. Clubs go on - players sign for another club somewhere (the clubs ditch their debts and pay pennies in the pound and go back to business as it was), managers still keep their gigs in the industry - we've seen it doesn't matter how much you fail, there's a club will take you on as a manager somewhere - it's down the pecking order where it gets serious.

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As ever the Premier League will probably shrug it off too, in the long term. Gate receipts are only a minor part of Premier League income; TV money and sponsorship are far more important. No gate money for lower league clubs is catastrophic, but not so much for Premier League clubs. Whether those at the top table will agree for more money to filter downwards to those who need it remains to be seen, but on past experience I'm not hopeful.

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1 hour ago, S8TY said:

The real problem is though that it will be much more than a financial reset

No different to any other business or indeed any other household. Sorry, I will not shed any tears if football takes a big hit. It will always be around in some form. Perhaps one I will like more.

 

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4 minutes ago, Marriott Ram99 said:

Here's a question - If Forest went bust how would you feel? You could laugh about it but we'd loose our rivals and alot of people would be out of a job. 

Its sad for the community and fans when any club goes out of business - and you can't have a local rivalry without local rivals.

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52 minutes ago, DarkFruitsRam7 said:

It's not the multi millionaires that I'm arsed about. I'd feel for those earning a solid living in the lower leagues who have worked extremely hard to be able to do their dream job full time. They might well be robbed of that.

I have no difficulty with that observation. Although I don’t think they will lose out significantly.  There will be lots of clubs formed with the suffix of 2021 Ltd, and football regulations on creditor repayment keep the players pretty much insulated from too much financial harm. It will be lots of other small businesses, and employees, associated to the football club by supply of product and services that will again take the real financial hit.

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11 hours ago, sage said:

Should the government help football clubs and let other businesses collapse?

Are they really going to give a club like Derby financial help after we have just signed a player for £3.6m and have players on over a £1m a year? 

How much future tax revenues will be lost from the £1m a year wages?

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