Showing posts with label Credit Crunch. Show all posts
Showing posts with label Credit Crunch. Show all posts

Tuesday, 16 March 2010

Rooney leaving United? No chance!

As Wayne Rooney's stature in the world game grows, the tabloids are screaming! Manchester United must offload their main man under the weight of a billion dollar debt. Rooney's goals in the San Siro and Old Trafford against AC Milan flag him up as a diamond of the first water.
For Sale to Barca or Madrid at £90million?
United need to service their £715m loan; the Glazers, having whipped twenty million out of the club are restructuring the biggest red balance sheet in football history - just to keep the behemoth afloat.
But the cock-eyed rumour mill fails to factor in the most important pillar at Old Trafford; the manager, Sir Alex Ferguson.
Not while Fergie's at the club will Rooney leave United. Madrid and Barca have two hopes of capturing Wazza: no hope and Bob Hope while the Govanator's in charge. And he is in charge.
And oh yes, United are fighting for the Premier League title, Carling Cup winners - and desite the shock of losing to Bayern Munich in the Champions League, still did for Milan. A 7-2  aggregate mauling. Does a certain Mark Twain phrase of overstated demises spring to mind?
If Wazza leaves while Sir Alex is in charge, you can be sure the Ravens will have also left the Tower. For it would demonstrate the wave of financial misfortune had swept over the Fergie Empire - and washed it away in a startlingly brutal consequence of the Credit Crunch.

No no no, Fergie is the King Canute of Football's Credit Crunch and Wayne Rooney, once a Blue, is now very much a Red.

Click here: The Champions League has less competitive integrity than the Premier League


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Saturday, 4 July 2009

We're heading for a transfer market crash!

All the signs are there... we're heading for a sharp correction in what big clubs are prepared to pay for top talent.

That might seem an odd thing to say at a time of screaming tabloid headlines.

The world record transfer fee has been smashed twice this summer: Kaka's £56million and then £80million for Cristiano Ronaldo to both join Real Madrid obliterated the £47m which took Zizou from Juventus, also to the Bernabeu.

Carlos Tevez is off to Manchester City for over £25million.

And the action won't stop there: Bayern Munich are holding out for over £60million for their French midfield star, Franck RibĂ©ry.

It's such a huge bounty that only three clubs can afford him. Freespending Real plus Manchester United and Chelsea. But Bayern's board know: If not now, when? the time is ripe for a financial killing at the expense of the world's biggest clubs.

Ahead of a crash, every market throughout time reacts in the same way; an intense inflationary bubble followed by interminable financial heartache. The Western World's property and London's Art Market to name but two.

And the same question always seems to be asked in the months leading upto disaster: "Is the Art/Property/Transfer Market recession proof?"

And the answer is always, "Emphatically, NO!"

I'm willing to make a prediction that Cristiano Ronaldo's transfer fee will be the high bar for a decade.

Sir Alex Ferguson remarked in a recent news conference just how maddening prices have become. Aside from being an accessory to creating the new excitement, he claims he's putting the shutters up as far as buying is concerned this close-season.

In the US, it's basketball's close-season and all the talk surrounds lower wages and fees to reflect economic reality.

If revenues from TV, the Champions League, gate receipts and merchandise start falling (some of those are more volatile than others) then the transfer market, which is the most volatile confidence indicator of all - will crash and burn. It happened in 1981.

Manchester United and AC Milan sold well.

You read it here first.

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Monday, 26 January 2009

Tony Adams is the ideal candidate to manage Portsmouth's decline

From Jonny's I Told You So File! I wrote this at the end of October. I don't wish ill on Adams, but he'd be advised to pipe up a bit and focus, focus!
Tony Adams doesn't have the ability to be a Premier League manager.
On paper, he has all the credentials; a giant and courageous figure as Arsenal and England skipper, he always led from the front.
But so did Bryan Robson and he's proved a less than convincing boss.
Portsmouth, forced on to the backfoot by the lightning-quick exit of Harry Redknapp have appointed his assistant, who's only previous coaching experience lies in short-term junior roles in Holland and a spell at Wycombe Wanderers which ended in relegation. His news conference was a wishy-washy attempt at standup and demonstrates he's been caught on the hop. Adams had to take the job just as Portsmouth needed to act quickly.
"My time has come" and "Welcome to Hell, I'm coming to get you, Arsene told me". Its true, Wenger and his teenage all-stars will!
Boy, did he need Joe Jordan to keep things upright! Now Jordan's set to join Redknapp at Spurs. Bad news indeed for Adams.
Luckily, Adams has inherited a very good squad - but just how committed will they be? So many of them were tempted to unfashionable Fratton Park because Redknapp was such a credible boss and achieved so much there.
One of those must be Peter Crouch, who declared he was happy with Adams' appointment as it demonstrated continuity and he knew the man's methods and style as opposed to working for a new character.
It's just the sort of complacent attitude which can unravel a small club like Portsmouth in doublequick time. Of course some players need no motivation from their manager to play well. But most do.
By all accounts, Pompey needed the £5million compensation injection that Redknapp's departure brought. How else can we explain his cloak-and-dagger overnight beeline to Tottenham? Portsmouth obviously accepted it unconditionally.
I don't like to see Portsmouth fall over especially as they've done so well in the Premier League the last few years - but if they were in better shape, they would NOT be appointing Tony Adams.
Needs must. But Premier League standards are falling. The Credit Crunch is forcing the hand of England's second and third string Premier League clubs. Portsmouth are on their way down - and Adams is the man to manage the steady decline.

Monday, 5 January 2009

Big 4 massive debt will produce change we can believe in!

Most of the Premier League's twenty clubs are up for sale - URGENTLY! Keith Harris, who's sold five top-flight clubs in his time admits to having two hopes of selling Everton:

No Hope and Bob Hope.

Toffees chairman Bill Kenwright instructed Harris of merchant bank, Seymour Pierce, to find new investors after admitting the club couldn't keep borrowing. They've yet to finance the new stadium at Kirkby.

Harris explained it's not a rich city and Everton's cause isn't helped by sharing it with Liverpool either. Which brought him onto Liverpool and the subject of this piece: Arsenal, Liverpool and Manchester United really do play in the red!
Harris is concerned that the Reds' huge £350million debt with two stricken banks Wachovia and RBS, are due for repayment in a few days. They've an option to renew for another six months - but time is running short for Liverpool owners Messrs. Hicks and Gillett, to transfer the debt from done-for banks to other super-rich individuals.
Manchester United are £two-thirds of a billion in debt, following the Glazer takeover although United is probably the most multi-layered football business in the world, so it should be okay. They've just got to keep winning!
Chelsea's debt is owed to Roman Abramovich and is interest-free, so they're either here to stay or will fall like a house of cards.
So as the swirling winds of economic turmoil threaten to blow the tops off football's leading houses, it's time for a lofty prediction!
Football's great believers and idealogues will start winning trophies at the expense of debt-laden monsters.
Who couldn't have been immensely impressed by Wenger's kids in the League Cup this season? And by the time they're 21-year-old first-teamers, Liverpool's debt will have been re-structured and some of their best players may have been sold off.
Arsenal with "only" £260million of debt, and that to pay for the Emirates (at 5% per annum) are well-poised to dominate - if they can keep patient with Wenger's average team right now.
That's "good debt" compared with the other big three. It's secured against the world's bigget matchday revenues, increased sponsorship opportunities and secondary rights sales. Looking good, Arsenal.
I take them to win the title either next season or definitely the year after. And once they do, they can dominate for a while.
Aston Villa can take advantage too. The very best chairman - supportive, committed, low-profile. A manager who's been there and done it, as both a player and a boss. Huge supporter-base. Non-controversial. Aston Villa have also done it before!
As football evolves from a debt-led orgy of win today to a more egalitarian lesser-leveraged future, football's great planners and dreamweavers will win the day.
We may never return to a period of such austerity that allowed Nottingham Forest to jump from 3rd in Division 2 to Champions of Europe in two years, but one thing is for sure, football men with football ideas will have more chance of producing winning teams without always being trumped by Big Spending Giants.

In the spirit of Brian Clough, the sport may be about to become much more competitive. As football fans, can we raise a glass to that? Yes We Can!

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Sunday, 28 December 2008

No Deal Or No Deal. But Ashley's return to St. James' Park is GOOD news for Newcastle.

Doh! Just when he thought he'd seen the back of St. James' Park for good, Mike Ashley's got no takers for Newcastle United.
No Deal or No Deal. "Damn the Credit Crunch!", he must be thinking over a Domino's Pizza and pint. But is this such gloomy news for the Toon as things stand?

Ashley was booed out of St. James' Park hot on the heels of quitter Kevin Keegan, declaring he'd "got the message" that he wasn't wanted by the fans as club owner.

Trouble is the crisis heralded an air of austerity and humility at the club. No coach worth his salt wanted the job, leaving it to those desperate for a last chance of the big time.

Enter Joe Kinnear, without a sniff of work in football for four years, but with a decent top-flight record at Wimbledon - and he's done rather well, steadying the ship and getting his squad performing consistently. An example of a football man written off prematurely in the over-judgemental world of the English game.

It's not as if Newcastle hasn't got quality: Michael Owen, Damien Duff, Nicky Butt, Obafemi Martins, Shay Given, Geremi and Mark Viduka: all good enough to keep them up.

Ashley's decision to drink up, then wash and go sent Newcastle into freefall. Suddenly there was no manager, an AWOL chairman and a middle-management dubbed cockney mafia, starring Dennis Wise. Who on earth was going to work in that framework and get the team performing? It was the very definition of football's poisoned chalice. Worse than managing England!

But a few months on, the picture's rather different. Ashley's renewal of vows maybe good news for Newcastle United.

They're a decent bet to stay up and though the squad isn't good enough long-term, the fans still turn up in their thousands for the Toon and there's lots to build on.

It's time the Toon Army buried the hatchet and got behind their owner. I think this new version of recession-hit Newcastle minus the Fancy Dans and bad boys can start to prosper.

Also on Jonny's Soccermongery: Thailand's new Prime Minister is a Geordie! and Keeping Michael Owen is out of Newcastle's hands or Home Page for the latest entry.

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Wednesday, 3 September 2008

It's Official. Football IS recession proof!

And there we were worrying that our gleaming English game would be affected by the worldwide economic downturn. That sooner or later, job losses would lead to less Sky subscriptions, empty seats and eleven Englishmen at Everton!

But Manchester City’s lightning quick purchase by Abu Dhabi Babby shows there's still a billionaire somewhere ready to buy the Premier League dream. Just who and where he comes from has shifted from west to east quicker than you can send tanks through a neighbouring state.

World capital is suddenly in the hands of the oil rich, the cash rich and the sovereign wealth fund – and they all want a piece of our game too!

This season we might see embarrassingly half-empty stadia for supposedly big games, but when you’re Barry Bigshot after instant status and a lot of fun, there’s seemingly nowhere better to splurge your cash than at ... Manchester City(!)

Spiralling wages and transfer fees will continue. Sadly the difference between fan and player will also become bigger.

Football’s economy bears no relation to the UK's because it's almost entirely without regulation. This is what happens when you truly expose yourself to Globalization. The Fit and Proper Person’s Rule is about the only regulation there is, and that’s about as sharp as pensioners teeth.

(By the way, I like it like this).

My main concern is that the Megamoney will make the mistake of believing the fans will be less and less important because they'll be contributing a smaller share of the overall financial pie.

But without the fan, there's no passion. Ultimately the billionaire's buying into them. Beware new investors; without the supporters your investment will shrivel.

And now, as with all finance-based editorial, here's a warning from our Compliance Officer: "Your investment in Manchester City could go down as well as further down."

Monday, 11 August 2008

Scolari shows even the big boys walk a tightrope to success

In their hurry-scurry to ship in one of the world's best-known coaches from his high-profile assignment with Portugal, Chelsea forgot to tell Big Phil Scolari that Frank Lampard may not be a part of his squad!

And if you were Peter Kenyon, under pressure from The Big Man to tempt the Brazilian to Stamford Bridge, why would you tell him of the near two-year impasse between the club and Lampard's advisors? Hence, Scolari's comments in his first news conference that the freescoring midfielder would be part of his team and his vice-captain.

Chelsea is after all about the desires of its owner, irrespective of the skills and experience of the coaches and executives below him.

Ditto Manchester United - except for one major difference, the power lies in the manager's office - not at board level. The Glazer's have geared United SO MASSIVELY that the team's on-field success disguises the delicate state of the business itself.

Have Arsenal got much in the locker if Arsene Wenger moved on? well, their board's always been supportive of him and they've shown vision and guile to build the new stadium - but there's no succession plan at all. I mean they can't even be sure of who'll be on their board by the end of this season.

And Liverpool, they've got no money and their new stadium plans are beset with spiralling construction costs and they've not even started building it yet. It's looking unsure at Anfield.

And that's the so-called big four.

All which points to one thing: never has there been a better opportunity for one of the Pretender Clubs behind the big four to challenge for silverware and Champions League qualification.

In these times of the Credit Crunch, increased raw material costs and job losses among the fans, there's a window of opportunity for those clubs with a tighter wage bill, a low-profile supportive board and a continuity of team management, to compete on the pitch in games - and off the pitch in transfers and youth policy.

Step forward Spurs, Everton, Villa and Pompey to not just close the gap to the big 4 but one of them to make the big-time this season!

More competition in the Premier League? - that's got to be a change for good.