More problems for Cardiff

[Nodge70]

From today's Digger column in The Guardian...and as posted on QPR Report

" Whether Cardiff City's loan agreement with the Player Finance Fund, which was revealed here on Wednesday is the subject of a Football League inquiry, has broken any rules depends on the involvement or otherwise of Ray Ranson. The Coventry City owner manages the Sport Asset Capital hedge fund that Cardiff's parent company accounts say had been owed £3.5m by the club. When that debt was renegotiated, the Player Finance Fund loan was secured against Cardiff's player-transfer income. This mortgage might bring into play rules preventing interested parties from exercising third-party influence over another's administrative affairs. Perhaps, though, Ranson has nothing at all to do with the Fund. But it is impossible to tell, since the Fund is registered offshore in the Cayman Islands. The rules become pretty meaningless when influence can be exercised by impenetrably opaque offshore vehicles"

Oh dear oh dear oh dear

[Dazzer1977]

So what does this mean then?

[Olly]

So what does this mean then?

in layman's terms?

[maddix]

From today's Digger column in The Guardian...and as posted on QPR Report

" Whether Cardiff City's loan agreement with the Player Finance Fund, which was revealed here on Wednesday is the subject of a Football League inquiry, has broken any rules depends on the involvement or otherwise of Ray Ranson. The Coventry City owner manages the Sport Asset Capital hedge fund that Cardiff's parent company accounts say had been owed £3.5m by the club. When that debt was renegotiated, the Player Finance Fund loan was secured against Cardiff's player-transfer income. This mortgage might bring into play rules preventing interested parties from exercising third-party influence over another's administrative affairs. Perhaps, though, Ranson has nothing at all to do with the Fund. But it is impossible to tell, since the Fund is registered offshore in the Cayman Islands. The rules become pretty meaningless when influence can be exercised by impenetrably opaque offshore vehicles"

Oh dear oh dear oh dear

Errrr.... Could someone give me the simple English version !!

[Nodge70]

Two things.

The Football Club itself are running a hugely unsustainable model in terms of player wages v turnover (nb - so are we). Cardiff's current owners are not picking up the tab and are taking loans to cover the shortfall secured against transfer income. Whether Cardiff's current squad have much transfer value attached to them is also a moot point (Bellamy - not their player, Bothroyd - out of contract, Chopra - questionable discipline, Whittingham possibly a few mill)

What this means is a) they are betting the farm on promotion this season. b) the company they have taken the loans from may be in breach of Football League regulations as they are owned by the Chairman of Coventry City ( remember the loan we had set up with Simon Blitz being vetoed). c) questions the long term commitment of the current regime.

All will be well for them "if" they go up but really wouldn't want to be in their shoes if they don't.

However - much can be equally applied to us.

edit - still staggered that have failed to get a naming rights partner for the new ground. Ridsdale really shafted them by leaving that unsold.

[maddix]

I would laugh my f*****g nuts off if they went bust !!

It really couldn't happen to a more deserving team !!

[Olly]

I would laugh my f*****g nuts off if they went bust !!

It really couldn't happen to a more deserving team !!

then they could use their stadium for sheep grazing

[QPR1234]

would love cardiff to hit the wall but just dont expect it to happen.. some how..

[stanley75]

Isn't the worst that could happen here that Cardiff have to pay the £3.5 they owe this Trading company and then they get a slapped wrist and a fine from the FA for breaching rules (but being the Welsh FA how likely is that). Doesn't look like imperilling their future as even the tightest Malay brd member would pay the bill as it would otherwise be baby and bath water time. Or I may have misunderstood!

[Nodge70]

That 3.5m is just ONE loan. What about the others?

[davman]

I slagged Cardiff off endlessly on this living above their means until I saw OUR accounts. We are doing nothing different from them and don't fool yourself in thinking that our rich owners are bailing us out - they clearly aren't as the accounds show £45m liabilities. This is the clubs debt and nothing to do with the owners. Careful for what you wish on cardiff as we are clearly in ex9tly the same boat. Football is well and truly up the creek without a boat let alone a paddle; well done Sky and the FA for creating the Premiership, which will soon be the root cause of the demise of some football clubs. Live above your means and its only a matter of time before you fail...

[G.T.P]

all our prem money will be gone before we even get it.
getting to the prem just buys us time, nothing else.
and you can bet your bottom dollar we will not spend hardly anything when we go up, cos if they didnt to get us up, they sure as hell aint going to do so to keep us up.

[Gerryhatrick]

I slagged Cardiff off endlessly on this living above their means until I saw OUR accounts. We are doing nothing different from them and don't fool yourself in thinking that our rich owners are bailing us out - they clearly aren't as the accounds show £45m liabilities. This is the clubs debt and nothing to do with the owners. Careful for what you wish on cardiff as we are clearly in ex9tly the same boat. Football is well and truly up the creek without a boat let alone a paddle; well done Sky and the FA for creating the Premiership, which will soon be the root cause of the demise of some football clubs. Live above your means and its only a matter of time before you fail...

Agree with all that. Plus they also have a new stadium with the capacity to increase turnover if they go up. We still have the 16500 rust bucket that we might not own anymore. So next year if we go up, supply and demand must surely mean higher tix prices, or far too many people will want entry, and this is only a short term solution. Cardiff with the new stadium have potential sustainabilty, something we don't have atm, and this is a recipe for dropping down again sooner.

[Nodge70]

I slagged Cardiff off endlessly on this living above their means until I saw OUR accounts. We are doing nothing different from them and don't fool yourself in thinking that our rich owners are bailing us out - they clearly aren't as the accounds show £45m liabilities. This is the clubs debt and nothing to do with the owners. Careful for what you wish on cardiff as we are clearly in ex9tly the same boat. Football is well and truly up the creek without a boat let alone a paddle; well done Sky and the FA for creating the Premiership, which will soon be the root cause of the demise of some football clubs. Live above your means and its only a matter of time before you fail...

Yep - I've noted this. Our only saving grace is that the loans remain "in house" and their repayment would form part of any sale of the Club.

Our big problem is around the ground ownership. Thanks Chris Wright

[alexferguson60]

I would laugh my f*****g nuts off if they went bust !!

It really couldn't happen to a more deserving team !!

Before seeing 2010's report and accounts, I would have joined you. Now? Notsomuch....