Died in granary

debt in MU

European football fans probably already looking at or at least read the complete latest report issued by UEFA on the financial condition and business 732 professional European football clubs.The consolidated financial year 2007-08, showing an explanation of why the Premier League clubs in England now paying the debt.

Based on the analysis of these reports, debt of 18 English Premier League club to reach 3.5 billion pounds, 56 percent of all European leagues debt. This amount is about four times more than the Spanish La Liga, the league with the highest debt after the Premier League. Premier League debt is also carrying more debt than the big European clubs rolled into one.

But at the same time the Premier League is also the most prosperous league in Europe. Premier League average profit per year around 122 million pounds. Far compared to the second rank, the German Bundesliga only 79 million pounds.

The question, of course, how could the league with the greatest profit in the world at the same time has the largest debt as well? Where's the harm?. The answer is in the prosperity itself and allowances provided ownership of the club in a free market.

Prosperity makes Premier League clubs in England have an attraction for investment targets businessmen or rich people from all over the world. With a count of the market will continue to grow, long-term investment in the Premier League, of course, tempting.

And with ownership released to anyone, provided that meet the test of appropriateness and feasibility, there is no obstacle for anyone, from anywhere around the world, happy or not with football, to have a club in England. What is needed, of course, is that telling a business touch to keep the firm (club) to stay healthy. Unfortunately not all employers who buy clubs in England have enough money like, like Roman Abramovich or Sheikh Mansour bin Zayed al Nahyan.

Take for example the fate of Manchester United. The club was before the Glazer family was purchased by the club's net debt and have revenues ranging from 260 up to £ 280 million with net profits ranging from 30 to 50 million pounds each year.Officially, Manchester United purchased for 812 million pounds in 2005. But Glazer's money to buy just 272 million pounds. The remaining 540 million borrowed from banks with unusually high interest.

Why were banks willing to lend? First, of course presentation that Glazer was able to convince the banks that the purchase will benefit them. Secondly, of course, a prosperous and Premier League Manchester United which is the brand best-known brands and most profitable club in mainland UK.Glazer family,smartly, then impose their personal debt to buy Manchester United became the club's debt. United fans couldn't do nothing because Manchester United is owned by them and they may do as they wish.

Manchester United - from one of the richest clubs in Europe -  just one night turned into one of the club with the biggest debt. Recorded five years after Glazer bought, the club's debt to swell even reach 716 million pounds, a fifth Premier League debt. Even if the debt had been paid 340 million pounds over five years, mostly interest payments.

Although trapped in debt, Glazer is not going to sell this club. They know Manchester United as the company continues to bring in net profit to around 50 million pounds. Which should be governed by the Glazer family is a way for the debt could be reduced little by little. This is what they do today. 

Manchester United's example is of course extreme. But many buyers of English club used a similar pattern of with varying degrees.Some have enough money to buy the club without borrowing money like George Gillett and Tom Hicks bought Liverpool in 2007 with a price of 218.9 million pounds.But then, they had to borrow money to buy and pay players wage because of club revenues are not sufficient to do so and had no more money to be planted. 

Yankees took over Liverpool

Gillett and Hicks then pawn, one of them, the potential of Liverpool into the Champions League to finance part of buying and paying players. Understandable if Liverpool's chance to the top four (UCL ticket) every year in Premier League like fixed priced for financial.Development of the planned stadium to replace Anfield reportedly stalled because of difficulties getting loans. 

Meanwhile Arsenal have used debt to build the Emirates worth over 300 million pounds. Arsenal officials justified the construction of the stadium was essential to maximize their revenue as one of the elite Premier League clubs. At least the club has a healthy life with the constant revenue, but still this club like the other Premier League clubs that have a huge debt. 

The owner of Premier League little clubs - same like the ohers - borrow money, similar to Liverpool, to buy and pay players. The difference is that Liverpool have the Champions League next Premier League, but this little clubs pawn solely their survival in the Premier League for it. While who knows a little bit left over funds to develop the club.

However, profit-sharing approach to survive on Premier League had high risk. If the respective clubs relegated of Premier League, clubs are usually drowning in unpaid debt. For example, Portsmouth. They buy large-scale players to survive in the Premier League until they were spending a larger than revenue they had. Club financial was so empty and all player salaries are not paid off several times.

Portsmouth : collapse in debt

When financial situation had begun to collapse, Portsmouth owner was forced to pawn 90 percent ownership, the club assets such as stadiums, and revenue from television broadcasting rights in the future. Portsmouth became the first club in Premier League history to be taken over by administrators. Portsmouth dead in granary.