Paul Lambert fears for the future of Scottish football after Rangers were forced into administration.
Norwich City boss Paul Lambert fears for Scottish football
Paddy Davitt, EDP Sports Writer
Friday, February 17, 2012
1:16 PM
Paul Lambert today labelled Rangers’ financial mess as a ‘disaster’ for Scottish football.
The Norwich boss – who won multiple honours as captain of fierce Glasgow foes Celtic – believes the Ibrox club’s slide into administration is a major wake up call. Lambert, however, insists his former club can still prosper north of the border despite the financial crisis engulfing their bitterest rivals.
“I think it is well-documented the situation they find themselves in. What has happened up the road is not great for Scottish football. That is for sure,” said Lambert, ahead of Saturday’s FA Cup fifth round home tie against Leicester. “I don’t think it is great for the game up there given the size of Rangers football club. I said before Celtic and Rangers are global – it’s not just European terms. They are worldwide football clubs and for the game up there it is a bit of a disaster.
“But I’m not so sure Celtic need a strong Rangers. I think Scottish football needs one. Celtic had their problems in the 1990s but I’m not sure the two clubs need each other. Fergus McCann took it over and saved it and built the stadium and the team got built from there.
“I understand coming from Glasgow what the people are going through up there. It must have happened for years and years gone by, the spending. You don’t have to be Einstein to look at it and say where it has gone wrong. The spending has probably outweighed everything.”
Championship club Portsmouth were earlier today forced into administration for the second time in the past three seasons. The south coast strugglers could be deducted upto 20 league points following the High Court winding up order. City chief executive David McNally stressed again this week the importance of fiscal responsibility and Lambert agrees the balance has to be right.
“You also want to be successful. I want to be as successful as I can be here and sometimes to do that you need to try and spend to compete,” he said. “I understand there is a balancing act to it but I am pretty sure this football club won’t go the way it was heading a few years ago when it was just about to follow Rangers.
“It can happen. Money doesn’t buy you success, but it certainly helps. That is for sure. It helps you.”
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18 comments
Its hardly surprising that Scottish football is heading down the toilet with Doomcaster as chief executive
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robotsthatcare
Saturday, February 18, 2012
Good Lord, two sensible comments ethered, however repeats are apparently allowed.
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Swiss Canary
Saturday, February 18, 2012
The gist of the ethered comments. In the German Bundesliga, clubs income is fairly evenly balanced between tickets, media rights, sponsorships, transfers and merchandising. They have to show that they have sufficient finance for the next 18 mths and cannot be repeatedly making an operating loss. It is not possible for the income to be dominated by capital inevestment from owners as this is destabilizing. Average gates are 43K compared to 36K in the Prem, ticket prices are half that of the Prem and salaries make up less than half of the budget compared to 63% in the Prem. In order to get a licence to operate, the clubs have to make significant investments in academies which benefit the National team. Like in German industry, several stakeholders have a voice in the direction of the clubs, fans, members and owners. Thy may not have won so many European trophies of late but their league is sustainable.
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Swiss Canary
Saturday, February 18, 2012
There is an old adage "mend the roof while the sun`s shining". (Approximately!). Administration looms for more clubs. There are clubs in the Championship whose players` wages exceed turnover. Sugar Daddies get bored. Go broke. Get caught! Have hidden agendas......
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Mad Brewer
Saturday, February 18, 2012
The free market as operated in UK football results in many clubs being saddled with substantial levels of debt which inevitably leads to a number of failures and the fans losing out. In the German Budesliga, average attendance is 42K compared to 35K in the Prem. Ticket prices are €21 compared to €43 in the Prem. In Germany, payroll costs are 45% of the budgets compared to 63% in the UK. In Germany, clubs have to demostrate to the authorities that they have sufficient liquidity to cover the next 18 months and there are no failures. This is done by a social contract that gives an equal say to fans, members and owners and the strict enforcing of a licensing system that requires substantial investment in academies to develop home grown talent and the adoption of the EUEFA "Fair play" financial guidelines. The injection of huge amounts of owners cash is prevented as it ultimately destabilizes the system. Income is more equally balanced between gate receipts, sponsorship, media rights, merchandizing and transfer fees. The only downfall of this system is that in recent years German clubs have won fewer European Trophies than than British, Sanish and Italian clubs but the home market is strong and the national team benefits.
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Swiss Canary
Saturday, February 18, 2012
I can't help but register, login, and post, to make a few simple facts clear. Footballers are paid what the market is willing to pay them. Enough people subscribe to Sky Sports, pay their tv licences, buy merchandise worldwide, attend matches, etc, etc, for top players to be able to demand wages in excess of 100k a week. Football is NOT "about to go down the pan" and players are worth than 5k a week. Weekly tv audiences across the world prove this! If ticket prices were too expensive, would carrow road be full every home game? NO! Would it be better if footballers were paid less, and match tickets were cheaper, YES! Is that going to happen? NO! Stop moaning, and understand the principles of market value, and supply and demand. C'MON CITY!! p.s. PL is a god!
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tomhuckle@live.co.uk
Saturday, February 18, 2012
I largely agree Tom; it is market economics and for teams like Barcelona it is working very well. But for a lot of teams, we are seeing basic market failure. The difference between Rangers and most other businesses is that they are judged not on their financial statements and sustainable profits, but on success on the pitch. This model encourages them to try to outspend their rivals, to a point where it is unsustainable. It is even worse in the Championship. You have many quite evenly matched clubs but the potential reward for spending that bit more - that bit too much - is 100s of millions in the premier league. When so many football clubs are mon the brink it's a race to the bottom. When markets fail, even the most ardent capitalist will tell you that there is a need for regulation. It's impossible to regulate just for the uk as clubs like Aresenal who are well run need to be able to compete with European rivals who are unrestricted. The regulation needs to be at a European level. The financial fair play laws need to be much stronger and apply for all clubs in their domestic leagues. There should be an expenses cap for all UEFA clubs based on combined expenses vs combined income averaged over a few years. Obviously there would be some dispensation for promoted clubs to spend in line with new anticipated income, and for relegated clubs like portsmouth to reduce their spending along the samle lines. It should not be that difficult. Yes it is the free market that is doing this, but it's not working as it is.
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Letsby Avenue
Saturday, February 18, 2012
I am sure that the Big Six clubs claim that they are spending at a high rate to match the European competition in Italy and Spain, where the whole country is, or is about to, go into administration. A worrying trend.
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Swiss Canary
Saturday, February 18, 2012
should learn a lesson from american football and baseball where the bottom teams get first pic of the new players and salary caps apply. They stop the top teams dominating everything - having said that it seems theres far fewer pro teams in a much bigger country
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SussexYellow
Friday, February 17, 2012
Football as we knew it is in danger of going down the pan. Silly money is being spent all round and that is disaffecting many people from what is fundamentally a 'simple' game that most of us used to relate to and have a go at on a Sunday morning. The amount of talent that a player or manager has now plays second fiddle to the amount of money that is available to waste. Solution..................cap all clubs total wage bill and expenditure on players (depending on the division). Only then will we see true talent rise to the top as we will have a level playing field that owners with money cannot tip in their favour. But what about the big earning foreign stars? Simple.............we don't need them but they are welcome. The fact is that English football is watched throughout the world because of its honesty and commitment not because of who plays here. It is the STYLE of football that people want to see. Perhaps then we might start to see ticket prices that reflect the current economic circumstances for Mr Joe Public and not just the corporates.
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john doe
Friday, February 17, 2012
i do believe that the problems started when clubs stopped funding themselves through gate money, fund raising ,and started to bring in multi millionaries and sky tv.if the millionaries walked away and sky pulled the plug,iwonder how many clubs would survive
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bluelight
Friday, February 17, 2012
Now, this puzzles me. Can anybody explain how a club can go into administration TWICE in 2 years? Why arent they kicked out? Know its not the forum but any insight appreciated.
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zebbee
Friday, February 17, 2012
It`s been a long time coming, this reality check. Some of those Premiership Prima Donnas spend more, weekly, on their silly haicuts than an old age pensioner can on his or her annual heating bill. Good riddance to them all. Too many spivs and too many "smuggies" around.
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Mad Brewer
Friday, February 17, 2012
Saw a Scotts Prem game at Celtic Park the other week and the standard was very poor,Probably equal to League 1! Mind you Neil Doncaster is up there so its doomed to failure!!!!
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dave123
Friday, February 17, 2012
Football could learn from Rugby League, with wage caps. No matter how good players are, are they really worth more than £5,000 per week, maximum? [£260,000pa]
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Soglio Star
Friday, February 17, 2012
The arithmetic is not complicated is it? "Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery." Clubs great and small going in to adminstration and Big Time Charlies throwing huge wads of cash around because they are very rich. Anyway, back to work.........
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Swiss Canary
Friday, February 17, 2012
Football can take a look at Rugby League for wage caps. There in lies the main problem, especially as players are viewed as 'assets' and continue to command high wages even during administration processes.
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Soglio Star
Friday, February 17, 2012
I'm afraid it's been a cancer in the game for years (buying players you can't afford). Often when you find a player you like, some other debt ridden club will offer more and higher wages to boot. The sooner it is sorted out the better. If it means some clubs going under so be it. Anyway, what about all the smaller businesses that are owed money when a club goes into administration. it's a knock on effect. I know Norwich were in a pickle and are OK now but ..................
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Lobbo
Friday, February 17, 2012