Freddy Eastwood

[Mr. Benedict]

TO be fair to Lua Lua he's held his own in the premier league, not spectacular, but good enough to remain there.

On the Cardiff finances point, it's shocking that a football club should be allowed to do that kind of thing - the FA and the league really need stricter controls, otherwise sooner or later they'll lose a club through this kind of shocking financial management.

 

[canveyshrimper]

Quote[/b] (Mr. Benedict @ July 18 2006,12:11)]On the Cardiff finances point, it's shocking that a football club should be allowed to do that kind of thing - the FA and the league really need stricter controls, otherwise sooner or later they'll lose a club through this kind of shocking financial management.

Seeing that Peter Ridsdale is the chief executive at Cardiff, I find this unsurprising considering what happened to Leeds under Ridsdale. What does surprise me is that he is allowed to try the same financial scenario with Cardiff.

Bear in mind that it is barely 18 months since Cardiff were saved from going into administration by a loan from the PFA. I don't think they have an Abramavitch on tap, therefore their sudden "cash richness" is strange.

 

[sufcintheprem]

Quote[/b] (Gremlin @ July 18 2006,11:23)]

Quote[/b] (sufcintheprem @ July 18 2006,10:37)]

Quote[/b] (Up the Shrimps @ July 17 2006,18:40)]

Quote[/b] (pboreham @ July 17 2006,18:38)]Actually, where on earth are Cardiff getting all this money from?!

They are taking loans out secured on their existing players!  Very dodgy business similar to what caused so many problems at Leeds I believe.

That's shocking.  I can't even believe they can get away with doing that and still pass an audit.  How can you secure a loan on an asset (or assets) that could, in theory, reduce in fair value by a quarter, half or all of it's value with one (or several) bad tackles in the next match??  The risk involved is preposterous and I'm sure that any bank making such a loan will charge a large premium on it because of the high risk.  Why not cut to the chase and make pre-arrangements with the bank to secure a loan based on the future acquisition of a player?  Then every player you get comes on a free as long as he generates as much revenue as the amount he costs.  Oh, hang on, we all know that there are only a handful of profitable football clubs around....

What's more, the club can then secure a loan on the new players until you have a squad that is completely reliant on maintaining or increasing its value to allow the squad to continue to make debt repayments.  In other words, one bad season (Leeds only needed to miss out on the Champs League) and suddenly you have to sell one or more of your star players with no funds to bring in a replacement.

How can they get away with doing this?!  The only ones that are going to lose out are the fans.  The players will move on and the board will move on but the fans may well be left with a penniless club or no club at all.

Playing devil's advocate for a moment, how is that any different to securing a loan against a property which may fall/burn down, blow-up, get struck by a falling tree etc., is subject to wear and tear and may reduce in value?  After all, players are insured.

Ok, fair point. I would suggest that the premium on footballers is over-inflated but yes, it is pretty similar.

The biggest point there is definitely the upshot of a bad season or players losing form. If Freddy is currently worth, say, two million because of his potential but has a bad season next season, suddenly teams think he isn't good enough for the Championship, let alone the Premiership and his value would plummet. If we have taken a loan based on this then suddenly our asset has fallen disproportionately to the repayments we have to make on the loan and we can't afford to make the repayment without selling from elsewhere.

Personally, I can't agree with players being used as assets unless they are properly risk-assessed and I don't know where you would start with that when you have to factor in form.

Regarding the board losing money, in theory some of them might. In his role as chief executive, Ridsdale may not have had to invest anything although you can bet your bottom dollar his salary will be doing ok out of all these loans.

 

[Matt the Shrimp]

Quote[/b] (pboreham @ July 17 2006,18:38)]Actually, where on earth are Cardiff getting all this money from?!

Cameron Jerome - a £3.5m flog from Cardiff to Birmingham City this close season has presumably helped their cash-flow...

 

[Norwichsufc]

This might be more realistic than another Freddy rumour.
From The Sporting Life

TOON EYE £10 MILLION ASHTON SWOOP
Newcastle are preparing to launch a senasational £10million-plus bid to lure West Ham hitman Dean Ashton to St James' Park.

Glenn Roeder is feverishly searching for a replacement for the retired Alan Shearer and the former Norwich striker is seen as the ideal replacement.

The Magpies are desperatley short of cover with the season under five weeks away.

With Michael Owen injured, Shola Ameobi is the only fit first-team striker on the books, and he has been plagued by hip problems. Albert Luque started and scored against Lillestrom in the Intertoto Cup on Saturday, but he was partnered by midfielder James Milner, with Ameobi only fit enough to play a substitute's role.

It's understood the Magpies have made an enquiry about the Hammers' 22-year-old record buy - who cost them £7.25m.

Alan Pardew is keen to keep hold of the man who made such a big impact at Upton Park since his arrival in January - scoring six goals.

But Newcastle are determined to add Ashton to their ranks and could be persuaded to go up and above the £10million mooted fee.

 

[Ljubljana Branch]

Quote[/b] (fredheim_holm @ July 18 2006,10:49)]very good point phil, erm i was thinking, wouldnt the board lose their money too?

Fred, as its a limited company they wouldn't lose all their money, just the amount invested. Unlike a sole trader who is personally liable. (If my business studies knowledge is correct, I'm sure I'll be corrected if wrong)

 

[fredheim_holm]

So they'll lose the money the put in, thats what i thought.

 

[Streaky]

The Welsh FA will probably bail them out when they go t*ts up... Grrrrr

 

[Jonny_Stokes]

Quote[/b] (Up the Shrimps @ July 17 2006,18:40)]

Quote[/b] (pboreham @ July 17 2006,18:38)]Actually, where on earth are Cardiff getting all this money from?!

They are taking loans out secured on their existing players!  Very dodgy business similar to what caused so many problems at Leeds I believe.

Well, at least Peter Risdale isn't inv....oh.

 

[sufcintheprem]

Assuming they are a limited company then they can only lose what they have invested. Depending on their capital structure this could be anything from most of the value of the club to a minimal investment. I tried to check on their website what their current set up is but nothing to be found. My guess would be that most of them are acting in an executive role and can, therefore, claim a salary on topof any return on shares.

Basically, I'm sure the board have covered themselves. Ridsdale may not have the best long-term interests here but he will make sure he won't go short.