Caporegime
- Joined
- 18 Oct 2002
- Posts
- 33,188
This won't encourage sensible finances, it will encourage creative accounting. Creating a new company that pays a "sponsorship" fee that covers the difference between their losses and outgoings to even the balance sheet, nothing more or less.
Companies have been doing it for years anyway as have football clubs, its very rare for debt to be "owned" by the clubs themselves now but more the holding company or some other company created for it.
The fact is Italian football, Spanish football and English football have dozens of clubs in heavy debt and lots of debt being writen off here and there.
If it came to it, Chelsea can write off their debt, its convienient obviously for Abramovich to have the spare cash right now in a dodgey economy, but he can afford to wipe off the debt, likewise he can afford to create a new, fashion company from scratch, reduce Chelsea wages by 90% and give out lots of great modeling/sponsorship deals that shockingly would mean they end up with the exact same amount of cash as they did before.
Creative accounting is all that this will achieve.
