I’ve decided this week to have a look at a topic that is ruling the world of English football right now. In the words of Abba….money, money, money!
Even though it’s not the most exciting of topics it is one that is having a huge impact on the state of our beloved game in this country.
Some of those eagle eyed amongst you might have noticed the plight of Portsmouth FC this year. Since gaining promotion to the Premier League in 2003, Pompey had established themselves as a top flight side, secured a wealthy investor and enjoyed a spell in Europe. Everything looked rosy, but this season everything has fallen apart.
They’ve had more owners than Tiger Wood’s has had porn stars and wasted more money than a John Terry cover up. They are now facing insurmountable debts and for a while the future of the club looked bleak. Pompey are now all but certainly relegated and will have to start rebuilding from scratch in the Championship next year. It wouldn’t surprise many if they go the way of their biggest rivals and end up another division lower soon after.
Speaking of the Saints, how their fortunes have turned around. In 2005 Southampton were relegated from the top flight after 27 years and its gone slowly downhill since. Last season was their second consecutive relegation battle in the Championship, and unfortunately they could not replicate the heroics they showed the year before. Add to that the fact they went into administration, causing them to start life in League 1 with minus ten points and right there you’ve got yourself a ……. Situation!
There was the very real possibility that Southampton, like Portsmouth, could have folded and ceased to exist. That was until Swiss billionaire Markus Liebherr came along last summer and bought the club. He was an instant hit with Saints fans as he brought in Alan Pardew as manager, a man who has had previous Premier League experience. Not a bad little coup there my boy!
Then came probably the most astute piece of business that outside of the club probably went unnoticed. Liebherr hired Nicola Cortese as chairman. Tweleve months ago, Mr Cortese was managing billionaire’s finances for Banque Heritage in the Swiss capital of Geneva. During his short tenure, Saints have overcome their 10-point deduction, still have a chance of reaching the playoffs and have won their first trophy since they picked up the FA Cup in 1976.
The club took 44,000 fans to Wembley at the weekend for the Johnstone’s Paint final on Sunday to see their boys ease past League Two’s Carlisle United in a 4-1 win. This is evidence enough that the club are a Premier League club in waiting and with the right backing financially they can make it back there.
Cortese is no mug, he has seen from an outsider’s financial view that club’s are spending more than they have. In an interview with the Times he said
“They spend next year’s income. They spend money that will not arrive for two years and say, ‘But we’ll have some success and bring in more cash to cover the shortfall.’ It cannot be sustained.
“In good times you need to be saving money for the bad times. If we reach the Premier League, I would like to be in a position where we did not need parachute payments. In good years you should put money away for the bad years.”
Exhibit A, Portsmouth. This is a method that can maybe be justified for the top teams like Manchester United, who are in lots of debt, but keep winning the Premier League and keep reaching European finals. They know that the money will be streaming in on a regular basis. Portsmouth spent a lot of money they didn’t have in forming the team that won the FA Cup, expecting more success to follow. But it didn’t. A poor showing in Europe and the loss of Harry Redknapp to Tottenham disillusioned players, causing the top guys to leave (mainly for Spurs it seems), sent them spiraling down the table and all but into the Championship.
Something major needs to happen at Portsmouth in the summer to stop them from freefalling through the football league. As much as it will pain every Pompey fan to say this, they need to take a leaf out the ‘scummers’ book and think finances before they think football. Southampton have a five year plan to become self sustainable which they are currently well on course to do. The hope in that time is to also return to the Premier League, which if they sneak into the playoffs and back into the second tier this summer, will become a very realistic possibility.
