Scudamore calms crunch talk

10 October 2008 08:15
Chief executive Richard Scudamore has played down fears that Premier League clubs will be hit hard by the current turbulent financial climate. Earlier in the week, Football Association chairman Lord Triesman issued a warning about the rising amount of debt incurred by top-flight clubs and called for a review of the domestic game's finances to be carried out. West Ham United are the latest club to be mentioned as possible victims of the credit crunch as Iceland's second-biggest bank, Landsbanki, was placed into receivership on Tuesday. Bjorgolfur Gudmundsson is a major shareholder in both the Hammers and Landsbanki. But despite admitting he has concerns, Scudamore insists that Premier League clubs are well position to cope with the current economic conditions. "Debt is neither good or bad, it is inevitable," he told Sky Sports News. "It depends on the value of the asset the debt is against and some of our clubs are hugely valuable assets. "It is also a product of whether you can service the debt - and that is a debate that goes on. "I'm not saying we don't have concerns, but it is also dangerous to be alarmist in the current financial conditions. "We have always worried. Football has always spent a little bit more than it has earned. "But football is very sustainable. Club names are very sustainable, they don't disappear, and revenues are very sustainable. "We are not complacent. I am not saying we won't at some time feel the wind of the consumer crunch, but generally we are not in such a bad condition."

Source: ESA