Post by QPR Report on Feb 11, 2010 7:22:27 GMT
The Guardian/David Conn
Lord Mawhinney blasts clubs for overspending on wages and agents' fees•
Football League chairman criticises 'out of control' finances•
Mawhinney highlights plight of small firms owed cash by clubs
Lord Mawhinney, the chairman of the Football League, says clubs cannot continue to live beyond their means. Photograph: Tom Jenkins
The Football League chairman, Lord Mawhinney, who will retire next month after seven years in the post, has strongly criticised overspending by clubs on players' wages and agents' fees, and those which have fallen into administration leaving other creditors unpaid.
Contemplating Cardiff City and Southend United, who are listed to face winding-up petitions in the high court today for unpaid tax, along with the Premier League club Portsmouth, Mawhinney said: "There are two sets of problems: the whole economy is not in good shape and this year may be even more difficult than last, but clubs are also spending more money than they have got and overwhelmingly are not in control of their finances when it comes to players' wages and agents' fees."
Mawhinney also lamented the practice of clubs going into administration, which has happened 53 times since the Premier League breakaway of 1992.
"There is never enough recognition of the small businesses, the taxpayer, and worthy groups like St John Ambulance who are left owed money after doing business in good faith with football clubs."
Peter Ridsdale, Cardiff's chairman, who is confident that a £2.6m bill will be rescheduled to Her Majesty's Revenue and Customs' satisfaction today, has blamed football's structure, particularly the enormous financial gap between the Football and Premier Leagues, for creating a "temptation to overspend". Cardiff are moving towards balancing their books, Ridsdale said, but are suffering from paying £4m towards fitting out their new stadium. He argued that Championship clubs without parachute payments or rich backers find it acutely difficult to compete.
Mawhinney clearly favours a more equal sharing of money between the leagues, but refuses to accept the gap as a reason for overspending.
"Some Championship clubs make that case," he said, "but you have to live within your means. Football clubs in recent years have had more money than ever in their history, but too few have invested in new grounds or facilities, like Cardiff. Instead they have spent it on players' wages and agents."
Mawhinney said when he retires on 15 March, he will write "a farewell letter" to all clubs, itemising issues he believes remain serious concerns for his successor, who has not yet been appointed. Although Mawhinney has overseen significant reforms, most recently the power to impose a transfer embargo on clubs falling behind with their tax bills, he has not persuaded clubs above League Two to introduce a salary cap, and said financial controls will be included in that letter.
"The way football clubs do business fundamentally does not work," he said. "I think people are taking this issue much more seriously now. What is given to players and agents is not sustainable. There has to be some element of control and restraint."
www.guardian.co.uk/football/2010/feb/10/lord-mawhinney-clubs-overspending-wages-agents
Lord Mawhinney blasts clubs for overspending on wages and agents' fees•
Football League chairman criticises 'out of control' finances•
Mawhinney highlights plight of small firms owed cash by clubs
Lord Mawhinney, the chairman of the Football League, says clubs cannot continue to live beyond their means. Photograph: Tom Jenkins
The Football League chairman, Lord Mawhinney, who will retire next month after seven years in the post, has strongly criticised overspending by clubs on players' wages and agents' fees, and those which have fallen into administration leaving other creditors unpaid.
Contemplating Cardiff City and Southend United, who are listed to face winding-up petitions in the high court today for unpaid tax, along with the Premier League club Portsmouth, Mawhinney said: "There are two sets of problems: the whole economy is not in good shape and this year may be even more difficult than last, but clubs are also spending more money than they have got and overwhelmingly are not in control of their finances when it comes to players' wages and agents' fees."
Mawhinney also lamented the practice of clubs going into administration, which has happened 53 times since the Premier League breakaway of 1992.
"There is never enough recognition of the small businesses, the taxpayer, and worthy groups like St John Ambulance who are left owed money after doing business in good faith with football clubs."
Peter Ridsdale, Cardiff's chairman, who is confident that a £2.6m bill will be rescheduled to Her Majesty's Revenue and Customs' satisfaction today, has blamed football's structure, particularly the enormous financial gap between the Football and Premier Leagues, for creating a "temptation to overspend". Cardiff are moving towards balancing their books, Ridsdale said, but are suffering from paying £4m towards fitting out their new stadium. He argued that Championship clubs without parachute payments or rich backers find it acutely difficult to compete.
Mawhinney clearly favours a more equal sharing of money between the leagues, but refuses to accept the gap as a reason for overspending.
"Some Championship clubs make that case," he said, "but you have to live within your means. Football clubs in recent years have had more money than ever in their history, but too few have invested in new grounds or facilities, like Cardiff. Instead they have spent it on players' wages and agents."
Mawhinney said when he retires on 15 March, he will write "a farewell letter" to all clubs, itemising issues he believes remain serious concerns for his successor, who has not yet been appointed. Although Mawhinney has overseen significant reforms, most recently the power to impose a transfer embargo on clubs falling behind with their tax bills, he has not persuaded clubs above League Two to introduce a salary cap, and said financial controls will be included in that letter.
"The way football clubs do business fundamentally does not work," he said. "I think people are taking this issue much more seriously now. What is given to players and agents is not sustainable. There has to be some element of control and restraint."
www.guardian.co.uk/football/2010/feb/10/lord-mawhinney-clubs-overspending-wages-agents