1976_Child Posted 24 October, 2008 Share Posted 24 October, 2008 So the country is now in a recession and the Governor of the BoE is saying it will last for over a year. The full extent of the credit crunch has not yet hit. Many prominent economists are predicting 3 million unemployed by summer next year and the country has a predicted £125,000,000,000 short fall in its budget. National debt has gone through the roof and taxes will - not possibly, WILL - have to rise in the coming years to pay for it all. And in all this our football club can't even afford to pay Stern's appearance fees and atendance is significantly down on last year. As the recession bites, taxes go up, jobs are harder to find and the lads don't score goals we will see the attendance at SMS drop further still. I can see no way - save for a takeover - of the club being able to remain solvent at the end of the season. Sorry to be blunt about this but Southampton FC is broke and out of luck. I hate being pessimistic about my club. I love this club, but facts are facts: we are royally buggered. Christ, we have cut all the fat out and are now having to loan out our most experienced player because we can't afford him! I also don't think we will be the only club going bankrupt before long. Football is going to have to face up to some very stark realities in the near future. I'm going to cry now. :cry: :cry: :cry: :cry: :cry: Link to comment Share on other sites More sharing options...
alpine_saint Posted 24 October, 2008 Share Posted 24 October, 2008 There is NO other way to realistically look at this situation. You are spot on. We need a takeover by the end of the season, or 124 years of history will come to a close.. Link to comment Share on other sites More sharing options...
trousers Posted 24 October, 2008 Share Posted 24 October, 2008 There is NO other way to realistically look at this situation. You are spot on. We need a takeover by the end of the season, or 124 years of history will come to a close.. + 1 Link to comment Share on other sites More sharing options...
Alanh Posted 24 October, 2008 Share Posted 24 October, 2008 If we can keep paying the bills we won't go into administration. I don't think the mortgage on the stadium is likely to send us into admin as there is very little benefit in repossessing the stadium as there is no other viable use for it. It might be that the stadium could be repossessed, sold to a third party and then we could rent it, however that's not a route to administration. The bill that generally puts clubs into admin if not payed is the tax bill and HM Rev and Customs calls in the administrators. If we can get the high earners off the wage bill then our overall tax bill comes. In those terms loaning out Stern John took us a little step further away from administration today. Link to comment Share on other sites More sharing options...
1965onwards Posted 24 October, 2008 Share Posted 24 October, 2008 I said weeks ago that we had not done enough to reduce overheads and our overdraft had increased,but the usual suspects poo-pooed it. Too few on here have any perspective on finance or football,not to mention those running the club and the team. Link to comment Share on other sites More sharing options...
John B Posted 24 October, 2008 Share Posted 24 October, 2008 I said weeks ago that we had not done enough to reduce overheads and our overdraft had increased,but the usual suspects poo-pooed it. Too few on here have any perspective on finance or football,not to mention those running the club and the team. Very true but what is our actual overdraft has it been published Link to comment Share on other sites More sharing options...
Thedelldays Posted 24 October, 2008 Share Posted 24 October, 2008 could we be the first big(ish) club to cease to exist...? Link to comment Share on other sites More sharing options...
NickG Posted 24 October, 2008 Share Posted 24 October, 2008 I said weeks ago that we had not done enough to reduce overheads and our overdraft had increased,but the usual suspects poo-pooed it. Too few on here have any perspective on finance or football,not to mention those running the club and the team. I will be the first to admit I do not have a real understanding of our finances. It is clear we are poor and income from tv and attendances are well down. I understand that we had to cut costs and get rid of the salaries of higher earners. What I don't know, and would be grateful for anyone who actually knows the facts, is are we at all likely to go into administration? We all have known of struggling businesses who cut costs and even make huge redundancies without going near to administration. What I haven't got a clue about are these cost cuttings to prevent adminisration, or are these a forerunner to administration? No idea Link to comment Share on other sites More sharing options...
1976_Child Posted 24 October, 2008 Author Share Posted 24 October, 2008 could we be the first big(ish) club to cease to exist...? yes, it is a possibility. There is going to be one club outside the big four which ceases to be. At the end of the day if a club goes bankrupt and a buyer can not quickly be found then the administrators will sell the assets and wind down the 'business'. It is highly likely that at least one club will fail in this way, especially if the big rich men are feeling the pinch too. in the case of ordinary businesses, a struggling company can get out of trouble by being takenover by a rival. So perhaps we will see footy clubs merge. Not beyond imagination. Perhaps we might have to merge with, say Bournemouth. Not sure if that would be palatable for us fans though. Certainly could never merge with the other bunch. That would be a step too far. bad days ahead for the beautiful game. let's hope that SFC comes out the other side in one piece. Link to comment Share on other sites More sharing options...
trousers Posted 24 October, 2008 Share Posted 24 October, 2008 could we be the first big(ish) club to cease to exist...? Who currently holds that record? Aldershot? Link to comment Share on other sites More sharing options...
alpine_saint Posted 24 October, 2008 Share Posted 24 October, 2008 Who currently holds that record? Aldershot? Were they big ? I would have said Accrington Stanley. Link to comment Share on other sites More sharing options...
trousers Posted 24 October, 2008 Share Posted 24 October, 2008 Were they big ? . No, not at all....was just trying to think of someone bigger....Accrington might well fit the bill.... In which case, I would say...."yes"....we will become the first "big" current club to go under..... We will rise again though....I know I will be shot down in flames for this but I'm actually quite looking forward to supporting a 'grass roots' club again when we rise from the ashes next season.... Link to comment Share on other sites More sharing options...
1976_Child Posted 24 October, 2008 Author Share Posted 24 October, 2008 We will rise again though....I know I will be shot down in flames for this but I'm actually quite looking forward to supporting a 'grass roots' club again when we rise from the ashes next season.... Yes it would be quite exciting to see only local lads play, and only for the treat of an orange at half time. Not sure about losing the stadium though. Could always play on the common i guess. Save cash and not bother with goal posts as well. A couple of coats or jumpers at each end should do the trick. Link to comment Share on other sites More sharing options...
1965onwards Posted 24 October, 2008 Share Posted 24 October, 2008 The tipping point will come if we fail to pay any tax or vat bill,as they are the people most likely to force us into administration. Also,if the bank refuses to sanction any further money to the plc,we will be in the position of being unable to meet our commitments as they become due,which will be the test required for the board to apply for administration as required by law. Link to comment Share on other sites More sharing options...
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