Source: Daily_Mail
One or more Premier League clubs could go under, warns Wolves chief
The financial crisis faced by the Premier League is so severe that one of the larger clubs could go under, one owner warned yesterday.[LNB] Wolverhampton Wanderers chief Steve Morgan is critical of the live now, pay later approach many clubs have adopted and said: 'You can't keeping hocking your future. It's like pawning your family silver.'[LNB] Heading for a fall: Manchester United high earners (from right) Wayne Rooney, Michael Carrick, Ryan Giggs and Patrice Evra in high spirits ' but it could all come crashing down[LNB] With Manchester United desperate to find buyers for a £500million bond scheme and Liverpool heavily in debt, Morgan, who once failed with an Anfield takeover, warned: 'Unfortunately, too many football clubs at the moment are spending too high a proportion of their income on meeting interest payments and paying wages that they can't afford and going out and paying transfer fees which are unsustainable.[LNB] 'It has got to come home to roost. It will be sad but I think it's inevitable there will be problems. It's not impossible that one of the larger boys could go. Certainly one or more Premier League clubs - we all know the obvious one at the moment - I could see them going under and others following.'[LNB] Morgan, who bought Wolves for £10 in 2007 after making a guarantee to outgoing owner Sir Jack Hayward that he would invest £30m, is clear about the business model he believes clubs should follow.[LNB] 'Two and two make four no matter what business you are in,' he said. 'The laws of economics are exactly the same and the figures have to add up. Anybody who goes out and does something different, it's up to them but I do scratch my head sometimes as to how and why they do that.'[LNB] Morgan's comments were supported yesterday by Burnley majority shareholder Brendan Flood, who was critical of United's £700m debt and said his club were sticking to a far more intelligent business model.[LNB] Burnley view relegation as preferable to plunging the club into heavy debt, and in appointing Brian Laws as their new manager this week, they chose a man specifically to work to a strict budget. Whereas Manchester United's best-paid players earn £120,000 a week, Burnley's highest earners make £15,000.[LNB] Flood said: 'We're being independent-minded about it and I think we're brighter than the others in the way we're looking at it.[LNB] 'The world is coming round to us. You only have to read every day about Manchester United who are £700m in debt, Liverpool £300m in debt, Portsmouth, Hull City, Everton £65m in debt.[LNB] 'All of these clubs are scratching their heads and thinking where are they going to go? They're all going to have to start cutting their wages and cutting their players.'[LNB] Morgan maintained that the Molineux club was debt free and that he would not risk the club's financial stability.[LNB] 'I refuse to over-stretch myself with this club,' he said, 'It's important that this club is run for the long term. We're lucky in that we're not paying part of our income to banks in big interest payments. If you borrow big money to develop the squad in the short term that's fine but in the long term it's got to be paid for.[LNB] 'I would definitely support some sort of regulation that introduces some good old-fashioned common sense into football and makes football sustainable.[LNB] 'I think everyone should take stock and just say, "For God's sake, let's run football clubs as proper businesses".' [LNB] [LNB]
