This is the red flag.
Clubs are encouraged to overspend because it increases their chance of success.
Vice versa not overspending increases a clubs failure odds.
And they’re losing massive amounts of cash despite having this largest income in the league.
I’m not having a go at the mackems, they’re operating within the rules.
He’s a great player.
Anyhow, the only way we could afford the increased level of player spending is by loans to the club by me to our club.
Putting the club in debt.
Selling assets like the stadium.
Often, it’s a self inflicted insolvency event.
Created by and owners desire not only to progress, but also to survive.
Failure on the park threaten the survival of clubs as much as overspending.
No matter which way I go as an owner, our club is at risk.
If I overspend and build debt our survival is threatened.
If I manage within our means and the club is relegated, I MUST make good and lost cash as a result.
If a club..
And so it begins....
Even if an owner doesn’t want to gamble, it makes rational business...
If we were in the lower reaches of @SkyBetLeagueOne in January, facing the potential of relegation and the loss of £750,000 a year, EVERY YEAR, surely it makes sense to risk £750,000 once to stay up?
So the rules of the game creates gamblers.
Now @EFL are running round like headless chickens trying to protect their competitions.
The fact is that the only hope of protecting their competitions is to sort themselves out.
Their operational rules and distribution...
They created the trap for owners.
They are the failure.
Owner failure is a symptom of a bankrupt model.