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description= Commentary on the management of over 160 English football clubs by Dr John Beech, winner of the FSF Writer of the Year Award 2009/10 Twitter: @JohnBeech Curator of Scoop.it! Football Finance;
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ed history of portsmouth s financial ills and indeed its ownership ills seem to be moving towards a denouement certainly as a member of the pompey supporters trust and a strong advocate of fan ownership i want the trust to win the case they are not a directly participating party hence the quotation marks the case for a much lower valuation is a strong one and for once i m optimistic that the result will for once go the right way if it doesn t it will almost certainly mean the liquidation of the club and the fight to establish a resurrection club will begin in earnest no doubt nearer to home literally as i live and work in coventry if not metaphorically the issue of the ownership of the ricoh is almost as prominent on my radar its origins go back to the heady days when coventry was enjoying a notably long and unbroken run in the top flight dating back to 1967 and the managership of jimmy hill its then stadium at highfield road dated from 1899 and with a post taylor capacity of approximately 23 500 it lacked any of the facilities that a premier league stadium needed to compete from a business point of view it was not a million miles from fratton park to be honest in 1997 under the chairmanship of bryan richardson grand plans were announced for an ultra modern stadium to be built on a brown field site on the northern edge of the city close by junction 3 of the m6 and adjacent to the coventry nuneaton railway line arena 2000 as it was originally to be called was to be the envy of many a self respecting premier league with a retractable roof and a removable pitch making it ideal for other revenue generating activities such as pop concerts what could possibly go wrong well just about everything the brown field site which had been the site of foleshill gasworks proved problematic contamination of the site required two years of remedial work to make it reusable 2 the club was being operated unsustainably by 2003 debts were at a level of 20 million 3 and continued to rise 4 and rise 5 on the pitch gordon strachan failed in the battle to keep the club up in 2001 in 2002 it was only possible for the building project to continue with the formation of a new joint company arena coventry limited 6 50 owned by coventry city council and 50 by the alan edward higgs charity a wealthy local charity for children which has a strong sports interest sponsorship of the stadium by local car manufacturer jaguar itself under financial pressure fell through as production of their cars in coventry ceased 7 to cut a long and tortuous story short the stadium was built but to a significantly lower specification than originally planned capacity was reduced to 32 500 ricoh took on the sponsorship and championship coventry played their first game there in 2005 not that this proved a particular turning point for the club in 2007 a potentially club saving takeover by american consortium manhattan sports capital partners fell through 8 then having come within twenty five minutes of going into administration the club was acquired by venture capitalists sisu 9 although sisu planned to buy at least the 50 of the shares owned by the alan edward higgs charity this has not happened and the club continues to rent the stadium from arena coventry limited from the club s financial perspective the stadium is thus a monthly liability rather than the major asset and revenue generator originally envisaged relegation from the championship to league 1 in 2011 exacerbated an already difficult situation attendances and revenues were hit the agreed rent reported to be 100 000 per month became significantly unrealistic for a league 1 club to sustain again cutting a long story short the owners and club have been unable to agree a compromise rent that is realistic and the club sisu that is started a rent strike in march last year 10 obviously this is a situation that cannot run on indefinitely and in the last few weeks matters have come to a head with both sides apparently digging their heels in and maintaining collision course on the one hand deputy conservative leader john blundell says that acl may have to seek a winding up order over the unpaid arrears 11 while on the other coventry city chief executive tim fisher accuses arena coventry limited of pulling out of talks 12 whatever the rights and wrongs of the respective protagonists some compromise needs to be reached and rapidly as well as the two confrontational tales of fratton park and the ricoh there is a crumb of comfort on the stadium front at stockport county s edgeley park 13 where a deal has been announced that will see the club running the stadium at a reduced rent and retaining the revenues from it let s hope there will positive news to report shortly from both coventry and portsmouth share this share on facebook opens in new window facebook share on x opens in new window x share on reddit opens in new window reddit like loading posted in assets investors ownership stadium trusts tagged assets investors ownership stadium supporters trust 7 comments pompey the turning point posted by john beech on november 20 2012 i ve not blogged recently on the pompey basket case not because there wasn t much happening but rather because there has been almost too much happening to stop and take a coherent view in fact the last time i posted was back in march 2011 when i commented portsmouth city football club ltd is dead long live portsmouth football club 2010 ltd 1 and it reads today like some historical piece and at least a tad ironic to boot the tagline was onward and upward at portsmouth the announcement that a conditional sale to the pompey supporters trust has been agreed 2 brings at least some sort of turning point that the alternative bid from balram chainrai was turned down by the administrator can only be good news just how many times can the same person save a club trevor birch s choice may or may not have been influenced by the blogs of micah hall 3 but certainly the lack of response to the questions micah posed to tavistock communications portpin s pr company spoke volumes micah s digging deserves an award and shows how far a fan can go in the bigger picture of financial decision making the fly in the ointment of the sale is of course the issue of the value that chainrai is trying to place on fratton park unless he finally decides to bow out gracefully accepting that he made a very bad business call the matter will go to court with independent valuations at a much lower level the trust stands a very good chance of getting the desired result there is also the matter of a potential further ten points deduction on coming out of administration here i am less optimistic i fear it will be yet more evidence that the deduction of points is an entirely dysfunctional sanction but let s not burn our bridges before we come to them all in all there does finally seem to be a light at the end of the tunnel and this hopefully will prove a turning point in the club s miserable fortunes in the bigger picture it may well prove to be a turning point in the road to fan ownership of clubs it does need to be seen though as one of many turning points as i m sure brentford chester exeter wrexham and wimbledon fans and that s not a definitive list would be quick to point out it s significance will depend on how well the hybrid model involving high net worth individuals will work in practice if it does work it will doubtless encourage the supporters trusts at bigger clubs such as liverpool manchester united and newcastle as a member of the pompey supporters trust i feel considerably more confident regarding the future than i have for a very long time i ve even put a bottle of bubbly in the fridge but i ll not actually open it though until fratton park is in the fans hands the only certainty is the debt of gratitude pompey fans owe to the pst board let s show our gratitude by uniting behind them share this share on facebook opens in new window facebook share on x opens in new window x share on reddit opens in new window reddit like loading posted in community fans insolvency ownership points deduction sanctions stadium trusts tagged community fans insolvency ownership points deduction sanctions stadium supporters trust 3 comments round up of season 2011 12 posted by john beech on september 8 2012 the 2011 12 season has been characterised by long running sagas normally i find myself in an annual review recounting a series of relatively self contained accounts of the woes which have beset a number of clubs but many of those listed below are far from resolved scenarios the selection is not systematic it consists of the clubs who have found themselves on my radar screen further suggestions are welcomed ashford town for a club to have its two co owners feuding 1 was always likely to lead to tears before bed time add to this a withdrawal from its league in 2010 2 and there is a clear downward pattern this july hmrc issued a winding up petition 3 billingham town a long dispute with hartlepool over who should pay for improvements to the billingham stadium 4 had been resolved in december 2010 but in january this year billingham sought to wind themselves up 5 however hmrc then stepped in with their own winding up petition 6 the former of the these two seems to have been granted in april 7 but nonetheless the club is still is playing any insight into what has happened would be much appreciated coventry city coventry city have faced financial problems since their relegation from the premier league in 2001 not least because of the development of the ricoh arena a less ambitious materialisation of what had originally been called arena 2000 originally designed with a retractable roof and a removable pitch 8 in 2007 in a moment of financial crisis with the club having announced its intention to go into administration it was bought by venture capitalists sisu since then sisu has failed to inject enough money to buy back the rich from the local council and a local charity sisu have struggled to find the right balance between economising and maintaining team performance thus causing complaints from fans the financial struggle led to sisu stopping paying the rent for the stadium in april this year in an attempt to force a lower a rental the confrontation was resolved in court last month but details have not been made public 9 croydon athletic the imprisonment of owner mazher majeed for his part in cricket s spot fixing scandal last november 10 made the club unsustainable it was promptly fined and deducted 10 points 11 adding another straw to an already broken back unable to find a new owner the club withdrew from the isthmian league unable to fulfil its fixtures 12 a resurrection club afc croydon athletic has been formed however 13 darlington a sorry tale of desperation and despair covered in postings passim and on the twohundredpercent website but eventually one of hope in early may fans group darlington 1883 finally succeeded in taking over the club 14 but at what a price the club had been forced into exile 15 and 16 and demoted to the northern league division 1 17 onwards and upwards harlow town another sorry tale this time tied up with the owners divorce 18 and 19 note the dates the club entered a cva back in september 2009 20 last november the club faced a winding up order from hmrc 21 but this was finally dismissed in february in the same month new owners had taken over 22 any further insight from local readers would be appreciated kettering town not the ultimate car crash that comes lower down the posting but certainly one of the most dragged cases see postings passim and on the twohundredpercent website the season just finished was yet another traumatic one having started the season by going into exile at the former rushden diamonds stadium in irthlingborough less than ten miles away there seems to have been no synergy in attracting new fans as is reflected in the appearance of fan owned afc rushden diamonds also in exile at wellingborough ground sharing with wellingborough town less than five miles from irthlingborough debts built up and in june the club had to enter a cva with debts reported to be 1 2m 23 and hmrc hot on the club s heels 24 meanwhile want away owner imran ladak had handed over the reins to acting chairman george rolls at least until he was suspended from football for five years by the fa 25 ritchie jeunne took over as chairman 26 albeit extremely briefly and now in a chainraiesque twist ladak is back 27 the long suffering poppies trust continue to fight on doggedly 28 notwithstanding demotion and a 10 points penalty 29 neath chased over debts by hmrc and then barclays 30 the welsh premier league club was wound up at the end of may 31 northwich victoria another depressing season for the clubs fans evicted from their stadium 32 and then a crazy saga about where they could and couldn t play 33 and expulsion from the northern premier league 34 you couldn t make it up plymouth argyle it seems some time ago now but the final chapter in the club s survival was last october and so within last season mark murphy has a neat summary of events here port vale yet another long running saga see postings passim and twohundredpercent for details notable events and non events during the 2011 12 season were the appointment of an administrator in march 35 the lack of an attempt to take over by long time suitor mo chaudry 36 and the administrator s misplaced faith in keith ryder as a potential owner 37 portsmouth here we go yet again the club as company has been more or less continuously the basket case of english football for the past four decades and this last season has proved no exception with the arrest of the latest owners in november 38 and a now familiar drop into administration in february i m going to hold back in my lengthier comments for the moment as we seem to be on the point of either the start of a new chapter in the saga or dénouement suffice it to say in the red corner is balram chainrai threatening to save the club again to me this is a bit like giving up smoking you can t logically apply the phrase on more than one occasion in the blue corner is the pompey supporters trust vested interest declared i have made a pledge to buy shares and would urge all pompey fans to do likewise here prescot cables in an act all too rare in english football the supporter owned club took the difficult but realistic decision to return to amateur status 39 rossendale united effectively defunct at the end of the previous season the club still appeared on my radar screen in march the club was still being chased for 37 000 by hmrc 40 in january the defunct stadium had been gutted by fire 41 and the next month the owner andrew connolly had announced plans to redevelop the site with 50 new houses 42 this forced the abandonment of plans for a resurrection club 43 rothwell town which is by the way five miles from kettering and thirteen from irthlingborough in...
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