As the United Kingdom limps along after the recession, many of our football clubs are rumoured to have serious financial problems. In the past, it was always the smaller clubs in the lower divisions that faced going to the wall. That is not the case today because some world famous clubs have gotten themselves and their finances in to a real mess. Some of the expenditure is downright reckless and that is being kind.
There are plenty of English football fans wondering whether we could actually lose one of our clubs. The chances of a premiership club going out of business are very slim if you think about it logically. Cast your mind back to the recent banking crisis and the extra funds given to banks that the taxpayer was not told about. It is safe to assume similar rescue packages would be put together to rescue a football club if it came to that.
The scaremongers enjoy telling us that our domestic game is doomed. However
, if a premiership club went out of business the Football Association and the Premier League would look rather foolish in the eyes of UEFA and FIFA. It would not portray the British government in a favourable light either especially when you consider England is bidding to host future World Cup tournaments. This is why it is hard to see the aforementioned governing bodies just standing back and allowing a club to die.
There is no doubt many clubs have seriously overspent in recent years and the owners have lost money because of the recession. As a last resort, football clubs can go into administration. This is where the debts are effectively written off and the slate is wiped. It is not a win, win scenario because it involves football related penalties. This is usually in the form of a point deduction in the current or following season. Many clubs have said goodbye to financial woes after entering administration and taking the short term pain of a point penalty.
When it comes to financial issues, English football does have more than its fair share of problems. After years of boom, we are now experiencing the other side of the coin. Clearly, some clubs have just been badly run. Even so, the chances of a premiership club going out of business are extremely slim. Some of these great clubs have been around a long time and are part of our history and culture. There is simply no way they would be allowed to fold.
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