qWhy is the richest football league in the world creaking with debt problems?
aThe quick answer is success and the fear of being relegated to a lower division. Clubs such as Manchester United, Liverpool and Chelsea have spent small fortunes on players' wages in the chase for domestic and European honours. Liverpool's debt is more than £200 million (Dh1.12 billion), while you can more than double that for United. Chelsea have limited debt, but are owned by a billionaire. The rest are just trying to keep up ... and stay in the top flight.
So, if the top clubs are saddled with debt, what about the others?
Some are in real trouble, such as Portsmouth and West Ham with multimillion pounds of debt. But then, there is hardly an English Premier League (EPL) team that does not have red ink on their books. Sunderland, for example, who are hovering around the middle of the table, had debts of about £69m, according to accounts for the year to July 31 2008 that appeared in The Guardian.
Is it possible to find an EPL club that is not in debt?
Tricky question. Stoke City are a small club that have punched above their weight. Accounts for the year to May 31 2008 show Stoke had debts of about £2.3m, which could have grown since.
There must one debt-free club.
Again tricky. Chelsea at one point had debts of about £700m, but they have been greatly reduced. The rest is believed to be converted into shares, which are owned by the Russian tycoon Roman Abramovich who controls the club. Simply put, he owns all the debt. "It's zero, since the shareholder loans were converted to equity," said Keith Harris, the chairman of the investment bank Seymour Pierce. "Losses last year were reduced to about £47m." Manchester City are also free of debt since the takeover by Sheikh Mansour bin Zayed Al Nahyan.
That, at least, is two pieces of good news. Or is it?
Not really when you take into account the other clubs and the drain on finances through bloated salaries. Wages in proportion to turnover at Chelsea, for example, were running at 68 per cent, accounts for the year ending June 30 2008 show. At Stoke, they blew out to 106 per cent in the same period.
This must become unsustainable.
For the small clubs, yes, but the big teams will carry on spending as long as they have billionaires to pay. Manchester United still head Forbes magazine's rich list of clubs at £1.1bn because of their turnover potential and TV deals. "Despite the large amount of debt most clubs accrue, investors are continuing to pick up teams around the globe, due in large part to [football's] growth prospects in emerging markets," Forbes said.
* Gordon Watts
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
More from Rashmee Roshan Lall
ZAYED SUSTAINABILITY PRIZE
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal
Rating: 3.5/5
RACE CARD
6.30pm Maiden (TB) Dh82.500 (Dirt) 1,400m
7.05pm Handicap (TB) Dh87,500 (D) 1,400m
7.40pm Handicap (TB) Dh92,500 (Turf) 2,410m
8.15pm Handicap (TB) Dh105,000 (D) 1,900m
8.50pm UAE 2000 Guineas Trial (TB) Conditions Dh183,650 (D) 1,600m
9.25pm Dubai Trophy (TB) Conditions Dh183,650 (T) 1,200m
10pm Handicap (TB) Dh102,500 (T) 1,400m
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Sholto Byrnes on Myanmar politics
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Marathon results
Men:
1. Titus Ekiru(KEN) 2:06:13
2. Alphonce Simbu(TAN) 2:07:50
3. Reuben Kipyego(KEN) 2:08:25
4. Abel Kirui(KEN) 2:08:46
5. Felix Kemutai(KEN) 2:10:48
Women:
1. Judith Korir(KEN) 2:22:30
2. Eunice Chumba(BHR) 2:26:01
3. Immaculate Chemutai(UGA) 2:28:30
4. Abebech Bekele(ETH) 2:29:43
5. Aleksandra Morozova(RUS) 2:33:01
