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MLSE explores notion of buying English clubs


Free kick

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There are other optons out there.... D&T have been commissioned to reviewing the clubs that are, or are verging on insolvency (administration)...

"While we are used to reading about the enormous wealth and success of the top clubs in football, there is another side to the game which exists in parallel: the large number of clubs that experience financial difficulties and enter into an insolvency process. The roll call of clubs entering administration is long: Bradford City (with debts of £36.5m), Leeds United, AFC Bournemouth, Luton Town, Wimbledon FC, Notts County, Port Vale, Leicester City, Ipswich, Barnsley, York, Huddersfield and Exeter City FC are all recent instances. The full list is longer. So why have so many clubs gone into administration? The answer is that very few clubs break even as a result of player wage costs. Notorious schemes have been devised to surmount this difficulty, such as that used by Bradford City - ominously referred to as ‘off-balance sheet third-party transfer funding’. This scheme worked by the club ‘buying’ players by way of a lease from a third-party, such as a bank, over the length of the players’ contracts. The attraction of this scheme is that the selling club receives its money upfront and the buying club has the benefit of paying in instalments. However, the accounting treatment of this scheme concealed the true extent of Bradford City’s insolvency."

the above was taken from an article titled:

Commercial and Chancery Bar: The law of the game

full article here:

http://www.legalweek.com/Navigation/35/Articles/1102959/Commercial+and+Chancery+Bar+The+law+of+the+game.html

I have a good source in the MLSE hockey division and he had an opportunity to read a portion of what D&T provided MLSE and he suggests that the interest isn't passing. It's very real and highly probable that MLSE acquires an English based football club. It was my contact that pointed me to the article above.

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