Cardiff City v Everton - Premier League

Promotion-winning season saw Cardiff City absorb $47 million loss

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En route to winning last year’s Championship, Cardiff City lost just over $47 million, the club’s accounts reveal. The total brings the club’s current debt to over $194 million, though the team’s place in the Premier League along with a mechanism to convert debt to shares are expected to improve the team’s financial outlook.

According club chairman Mehmet Dahlman, a place in the first division means last year’s spending can be offset by this year’s income, with the increased revenues associated with Cardiff’s Premier League status set to eliminate the club’s $194-million hole.

“If we remain in the Premier League, debt will not exist and profit will begin to accumulate,” the chairman told Welsh radio (according to the BBC), “which means better players, better football and so on.”

A big part of eliminating that debt will be current owner Vincent Tan’s willingness to accept shares in lieu of cash for investments made in the club.

“We want to get rid of the debt by converting to equity,” Dahlman said of the current $108.7 million owned Tan. Since taking over the club in 2010, Tan has put over $247 million into the team, an investment he’s willing to forgive to increase his share in the team.

“[Taking equity] means Vincent Tan will own this club 98%. And it will have no debt.”

Among the more interesting aspects of the BBC’s report are comments from Keith Morgan, an accountant who sits on the board of Cardiff’s supporters trust. Underscoring the gravity of the team’s increasing debt, Morgan concedes the situation will be fine provided Tan is willing to accept shares instead of cash. If, however, that promise doesn’t persist, “we’re knackered,” Morgan says.

In that way, Cardiff’s situation is not unlike Chelsea’s previous states, with the London club having periodically been indebted to their own owner, Roman Abramovich. Those debts, forgiven in 2007 ($1.37 billion in debt turned into equity), have never come back to haunt the Blues, who have grown into one of the world’s most affluent clubs under their owner.

On a smaller scale, Tan has had similar effects as Abramovich, the latest financial reports showing how crucial the Malaysian businessman’s investment was to securing the Bluebirds’ place in the Premier League (increasing payroll by 45 percent last season). If, however, the club ceases to provide a return on his investment — if they get relegated back to the second division — will these debts come back to haunt Cardiff City? Or will Tan seek to flip his investment before making good on his promise, saddling whomever takes his place with an obligation to the former owner?

Until that obligation is converted into shares, there’s always going to be a doubt, but while Tan remains true to his word, the much-maligned owner continues to fuel the club. Saving the team from a perpetual state of near-administration, Tan has spent to get the club to the top-level. And if the club’s management is correct, that investment will be rewarded with increased equity in a team whose value will grow with every year in the Premier League.

Europa League preview: Saints, Man Utd hope to join Spurs in Round of 32

SOUTHAMPTON, ENGLAND - NOVEMBER 03:  Yuto Nagatomo of Internazionale (R) and Ivan Perisic of Internazionale close down Nathan Redmond of Southampton during the UEFA Europa League Group K match between Southampton FC and FC Internazionale Milano at St Mary's Stadium on November 3, 2016 in Southampton, England.  (Photo by Ian Walton/Getty Images)
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Tottenham Hotspur will be seeded in the UEFA Europa League’s Round of 32. What do Manchester United and Southampton need to do Thursday to join them?

Both the Red Devils and Saints enter the final group stage match day in their respective groups’ second place, but only United can claim a seeded place in the Round of 32.

[ UCL: Scenarios for Premier League sides ]

United can still win Group A, and would need to better Fenerbahce’s result on Thursday. Jose Mourinho’s men are in Ukraine against bottom-dwelling Zorya Luhansk, while Fener are away at Feyenoord.

Manchester United will advance with a draw, and could also go through if they lose and Feyenoord doesn’t defeat Fenerbahce.

As for Saints, Claude Puel‘s men are level with Hapoel Be’er Sheva and welcome the Israel side to St. Mary’s after drawing 0-0 in the reverse fixture.

Southampton needs to beat Hapoel or hold them to a scoreless draw. A scoring draw would push HBS through via road goals.

Full UEL schedule

11 a.m. EDT
Konyarspor vs. Gent
Qarabag vs. Fiorentina
Osmanlispor vs. Zurich
Braga vs. Shakhtar Donetsk
Villarreal vs. Steaua Bucuresti
PAOK vs. Liberece

1 p.m. EDT
Vikrotia Plzen vs. Austria Wien
Apoel Nicosia vs. Olympiacos
Sassuolo vs. Genk
Anderlecht vs. Saint-Etienne
Zorya Luhansk vs. Manchester United
Rapid Wien vs. Athletic Bilbao
Young Boys vs. Astana
AZ Alkmaar vs. Zenit Saint Petersburg
Feyenoord vs. Fenerbahce
Maccabi Tel-Aviv vs. Dundalk
Mainz vs. Gabala
Astra Giurgiu vs. Roma

3:05 p.m. EDT
Panathinaikos vs. Celta Vigo
Standard Liege vs. Ajax
Inter Milan vs. Sparta Prague
Southampton vs. Hapoel Be’er Sheva
RB Salzburg vs. Schalke
Nice vs. Krasnodar

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Report: Club Brugge agrees fee for USMNT keeper Ethan Horvath

HAVANA, CUBA - OCTOBER 07:  Goalkeeper Ethan Horvath #1 of the United States converses with his team during the match against Cuba at Estadio Pedro Marrero on October 7, 2016 in Havana, Cuba.  (Photo by Kevin C. Cox/Getty Images)
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A report confirms speculation that USMNT goalkeeper Ethan Horvath is moving from Norway to Belgium.

The promising Molde keeper is set to become the promising Club Brugge keeper after the two sides agreed to a transfer fee, according to Goal.com.

[ MORE: Examining Leicester, Man City ]

Horvath, who won’t turn 22 until June, has been capped in a 2-0 win over Cuba by the USMNT after starring for the U-23 side.

From Goal.com:

If terms are agreed to, Horvath will join a Brugge side that is second in Belgium — a point off the top spot. The Belgian club was in the Champions League this season, but was eliminated in the group stage. He will have to compete with 33-year-old Frenchman Ludovic Butelle, who has started all 17 of Brugge’s league games this season.

It’s a step up for the youngster, provided he’s able to play. Well-traveled French ‘keep Ludovic Butelle is between the sticks for Club Brugge in the UEFA Champions League match against Copenhagen today, with a pair of Belgians as Nos. 2 and 3.

The only bummer here: Would Club Brugge allow Horvath to head into the USMNT’s January camp, where the youngster has a good chance to impress Bruce Arena?

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Kane pleased Spurs give Wembley fans winning UCL finale

LONDON, ENGLAND - DECEMBER 07:  Harry Kane of Tottenham Hotspur celebrates scoring his sides second goal during the UEFA Champions League Group E match between Tottenham Hotspur FC and PFC CSKA Moskva at Wembley Stadium on December 7, 2016 in London, England.  (Photo by Dan Mullan/Getty Images)
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It took a while, but Tottenham Hotspur found its home form at Wembley Stadium in the UEFA Champions League.

Now it will have to take that to the Europa League after finishing third in its group to Bayer Leverkusen and Monaco; Spurs will be seeded in the UEL’s Round of 32.

[ UCL: Scenarios for Premier League sides ]

Spurs striker Harry Kane and playmaker Dele Alli were the stars of the show, and both were pleased to give their fans a 3-1 win over CSKA Moscow after previous home matches yielded just one goal in losses to Bayer and Monaco.

Here’s Kane, from the BBC:

“We’ve learned to be better at home. You have to win your home games – you can’t rely on away results.

“We’ve finished the campaign well, there’s a bit of pride to send the fans home happy.”

Spurs finish three points back of Bayer and four back of Monaco, meaning a home win over either would’ve put them into the knockout rounds. That’s a lot to dwell on as Spurs consider Wembley versus White Hart Lane.

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Champions League field set: Who can Arsenal, Man City, Leicester draw?

MANCHESTER, ENGLAND - DECEMBER 06: Leroy Sane of Manchester City (R) shoots from a freekick during the UEFA Champions League Group C match between Manchester City FC and Celtic FC at Etihad Stadium on December 6, 2016 in Manchester, England.  (Photo by Clive Brunskill/Getty Images)
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We have to wait until Monday for the draw, but the field is set for the UEFA Champions League’s knockout rounds.

Seeded
Arsenal
Atletico Madrid
Barcelona
Napoli
Monaco
Leicester City
Juventus
Borussia Dortmund

[ MORE: Examining Leicester, Man City ]

Unseeded
Paris Saint-Germain
Bayern Munich
Manchester City
Benfica
Bayer Leverkusen
Porto
Sevilla
Real Madrid


Premier League scenarios

Who can the three remaining clubs from England’s top flight face in the first knockout round?

Arsenal: Bayern Munich, Benfica, Bayer Leverkusen, Porto, Sevilla, Real Madrid.

Leicester City: Paris Saint-Germain, Bayern Munich, Benfica, Bayer Leverkusen, Sevilla, Real Madrid.

Manchester City: Atletico Madrid, Napoli, Monaco, Juventus, Borussia Dortmund

As for Tottenham Hotspur, they are set to be seeded in the Europa League’s Round of 32.


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