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

3 Comments

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.

FIFA force pace on $25B Club World Cup, global league plan

AP Photo/Hassan Ammar
Leave a comment

GENEVA (AP) FIFA is forcing the pace on talks over a $25 billion offer to revamp the Club World Cup and create a global national team competition.

FIFA says President Gianni Infantino hosted a meeting last Friday with invited officials from some top European clubs.

[ MORE: Everton gets past Newcastle behind Walcott strike ]

The European Club Association has strongly opposed FIFA’s hope for a four-yearly club tournament starting in 2021, which could rival the UEFA-organized Champions League.

UEFA has also proposed a Global Nations League. A similar project is tied to the FIFA-controlled $25 billion, 12-year offer from a consortium including investors from Saudi Arabia and China.

FIFA says it’s holding “informal ongoing discussions with different stakeholders on the topic of the future Club World Cups.”

Infantino is set to meet confederation presidents and general secretaries “in the near future,” FIFA says.

Video: De Rossi, Roma make classy visit to Hillsborough memorial

Michael Regan/Getty Images
Leave a comment

On many occasions there are instances where teams and individuals exemplify the fact that real-life occurrences are more meaningful than sports.

Ahead of Tuesday’s UEFA Champions League meeting, Italian giants AS Roma visited Anfield –where they will face Liverpool in the competition’s semifinals.

After walking around the venue where the two sides will compete in less than 24 hours, Roma captain Daniele de Rossi and the rest of the Roma squad visited the Hillsborough memorial at Anfield to pay tribute to the 96 victims lost in the 1989 event that rocked the entire country.

De Rossi was seen laying a floral arrangement on the site, along with a note from the club that read, “In memoria delle vittime di Hillsborough AS Rome.”

Liverpool, Roma ride major emotions into the UCL semifinals

John Powell/Liverpool FC via Getty Images
Leave a comment

Four clubs remain in this season’s UEFA Champions League competition, and while two of the teams have been considered heavy dogs in the fight all year long the other two sides look to continue on their storybook run.

Liverpool, Roma, Bayern Munich and Real Madrid have found themselves in the semifinals of this season’s UCL, creating a strong mix of storylines as the tournament heads towards its most critical point.

[ MORE: Everton gets past Newcastle behind Theo Walcott’s strike ]

Anfield will be the site for Tuesday’s first leg between Liverpool and Roma, with both sides still riding major highs from their victories in the last round.

The Reds enter the final four after having disposed of fellow Premier League side Manchester City in relatively dominating fashion. Meanwhile, Roma completed a seemingly impossible comeback against Barcelona to progress in the competition.

Liverpool is led by three of the year’s top goalscorers, including Mohamed Salah — who has scored eight goals in the UCL and 41 across all competitions.

For Roma, much of the side’s success has been predicated on finding defensive strength at the right moments throughout the tournament.

Despite falling behind 4-1 in their first leg defeat to Barca in the previous round, Edin Dzeko and Co. rallied for a 3-0 win at the Stade Olimpico to stun the Catalan club by holding Lionel Messi and his side in check.

Manager Eusebio Di Francesco will have to find creative ways to halt the Liverpool attack though over the course of two legs, with the Reds boasting the top attack in this year’s UCL.

Liverpool has scored 33 goals in 10 UCL matches, while only conceding seven in the process.

Keeper Ederson hopeful he can score this season for Man City

Matthew Lewis/Getty Images
Leave a comment

The prospects for a goalkeeper scoring during a match are usually uncommon, but that hasn’t halted Manchester City’s number one choice from aiming to break the trend this season.

Ederson — who has moved into the starting role at the Etihad Stadium with relative ease in 2017/18 — has dreamt of scoring a goal of his own for the Premier League champions in waiting.

“I heard the fans chanting my name, asking me to take the penalty but Gabriel went there,” Ederson said. “Unfortunately he missed it and Bernardo happily scored. But if the manager have asked me to go there, definitely I’d score.

“I’m not sure if I would be able to do set-pieces, but I’m good at penalties, either using power or technique on shooting it. But City have [their] regular penalty-takers and we are well-served.

Citizen supporters chanted for the goalkeeper to take a penalty kick over the weekend in the team’s 5-0 win over Swansea City.

However, Gabriel Jesus was the man selected for the opportunity, but had his attempt saved by Lukasz Fabianski before Bernardo Silva was in the right spot to score the game’s fifth goal.

“If Pep asks me to take it, I’m there,” Ederson said of the penalty kick. “Hopefully it will happen [before the end of the season], I’d like to score.”

This isn’t the first time Ederson has discussed exploring opportunities outside of the net, though.

The Brazilian shot-stopper has long been a fan of former Brazil international goalkeeper Rogero Ceni — who scored 65 goals for club side Sao Paolo.

Earlier this season, the 24-year-old joked around with the media, saying that he’d be more than happy to fill a role in the midfield when City was experiencing some injury issues within the squad.