05-06-2021, 11:00 AM
(05-06-2021, 09:34 AM)Wightblue Wrote: Pompey don’t have a financial plight !
What we are now seeing is the logical conclusion of Eisner’s Business Model ie ‘We only eat what we kill’ which in reality means ‘We will only spend the money that the Pompey fans (through Season Tickets, Merchandise etc) and Sponsors are prepared to stump up’
Yes, there is some addition cash from EFL and TV as well.
In some of our competitors cases, perhaps the owners are prepared to put their hands in their own pockets (as opposed to into the fans and sponsors pockets) and provide the wherewithal to improve their squads and / or retain players they wish to keep.
Yes, in some cases the owners of clubs may try and borrow against the clubs assets but my own reading of the Financial Markets (in which I am heavily invested) is that, whilst the wall of cash held by the banks is very significant, they have much tougher lending criteria than in the past (most now look for back to back guarantees on club assets to owners assets if they will lend to football clubs at all).
In a nutshell, Eisner's model is as safe as houses for him as long as The Fratton Faithfull buy lots and lots of STs and merchandise and sponsors are attracted to the club, should ST sales and gates drop and sponsors become disenchanted then the business model may need to be seriously addressed.
Young Mr Dreyfus at Sunderland will possibly have a different business model to Eisner and maybe the new owners of Ipswich and Wigan as well, Pompey and it’s fans are stuck with The Eisner Model ad infinitum so we just have to suck it up !
Anyway, the greater majority of posters on this Board are entirely happy with The Eisner Model and Deepblue and ExGaffer will soon be along to tell us why.
In the words of the old song, Life gets tedious don’t it !
The reason why is what is safe for Tornante is safe for the club too. They bought the club for a pittance because of the non-profit terms of the fan buyout and the £10m or so they have put in will be easily reclaimable if and when they sell. Until the ground rebuild actually starts or a championship campaign is funded they will have risked nothing, and more importantly the club will have risked nothing either.
If they sold today the club would be debt-free, and their ownership would have just meant a £10m donation to build a training ground, patch the stadium up to keep all 4 sides open, and get us through having little or no income for 15 months. That might not meet the ambition of people who want to spend big and load up the debt like we did under the likes of Gaydamak but we know where that leads.
Another reason we should be happy is that what we have got at the moment is what we voted for.
Sunderland's new owners sound like they will happily lose money, but the other league one clubs who outspend us will be doing so by loading up more debt onto their covid debts and no more than three of them can succeed so the rest will be left in deep trouble. They are welcome to that. The likes of Barnsley, Wycombe & Blackpool have proven that spending big is not the only way to get promotion out of this league - having good young managers and a team playing with spirit can work too so lets give our new management team the chance, and the support, to do that.