Quick Throw: Upton Park to go belly up?

Say goodnight to West Ham's Icelandic owner Bjorgolfur Gudmundsson, as he announced liabilities of 301m pounds this morning and that a group of his creditors, led by Icelandic bank Straumur, will be taking control of the club shortly.

Long story short, a bank he had a significant stake in collapsed, and now he's in the shitter and might even lose his house.

Not sure this means for West Ham in the long term (they should be able to keep their Europa League spot pending UEFA review of their financial paperwork), but I can safely say one thing: fire sale!

[Guardian Sport]

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The Continuing Saga of Ebbsfleet United: An Update

You've all been clamoring for politely asking about the fortunes of Conference Blue Square Premier club Ebbsfleet United, so here is your latest update. After losing 4-2 on aggregate over 2 legs to Stevenage Borough in the FA Trophy Semi-Finals and falling out of the Setanta Shield on a 1-0 loss to Forest Green Rovers (also in the Semi-Final), Ebbsfleet have only league matches on which to focus.

After going 3-1-3 in the month of April (including another loss to Stevenage Borough), Ebbsfleet find themselves in 16th place on 51 points. This total has them all but assured of survival in the Conference, and keeps alive the dream of progressing up the tiers next year.

More importantly than their results on the pitch, however, are the efforts of the owner/supporters to keep the club afloat. Of the initial 32,000 investors approximately 10,000 have renewed their membership at £35. However, of those there appear to only be approximately 1,500 who are active within the day-to-day activities of the club. These members vote on various petitions presented on the website and have made several decisions which directly affect the finances of the club.

Recent votes from the club members have included changing ticket prices for specific matches (i.e. charging a little more for high-profile matches, while reducing prices for others so that the local supporters can attend as many matches as possible), offering live streams of matches for international members (with many of these sponsored by club members in order to avoid charging for streaming), and changing kit suppliers for next year.

However, amidst all of these cost-cutting measures, the club leadership is looking to build a new stadium, despite opposition from the local and county councils. This is a controversial decision, particularly given that many of the local supporters seem to enjoy the current grounds, Stonebridge Road, very much.

Given that Ebbsfleet are out of all cup competitions and almost assured of staying up in the league, it would appear that there will be no significant changes (good or bad) to the current financial situation. Perhaps the Kent County Council and Gravesham Council have the right idea, as this really doesn't seem to be an ideal time for large-scale construction projects for a new pitch. The club should focus on the small-scale construction project of building a team that will advance out of Conference footy next season.

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Fox Soccer Report's Parent Company Is in Trouble

Chalk up another victim of the global credit crisis.

I know that we don't usually cover Canadian corporate governance structures, but try to follow along closely: Fox Soccer Report, which is licensed and broadcast by Fox Soccer Channel in the U.S., is actually produced by Fox Sports World Canada, which is managed by Global TV, which is owned by Canwest Media Inc., which is owned by CanWest Global Communications Corp., which is in deep, deep financial trouble.

How deep? On Friday, Canwest took a C$1.2-billion writedown of its assets, which resulted in a C$1.4 billion loss for the second quarter of 2009. Ouch. (A "writedown" is where a corporation announces a one-time reduction in the value of its assets, i.e. net worth.) And, this was the second writedown for Canwest in the past six months, with the company having announced a C$1 billion loss in November 2008.

Things get even worse, because Canwest owes the banks an imminent C$30 million interest payment. The payment was originally due in March, but the bondholders have provided a series of extensions -- the most recent to April 21. What happens if Canwest can't make the interest payment? The bondholders have the right to demand repayment of C$761 million in principal. And if Canwest can't make the payment? It's likely off to bankruptcy.

This latest interest payment might only be delaying the inevitable, because Canwest expanded rapidly over the past few years and as a result is carrying a whopping C$4 BILLION in debt. Most of this is due to Canwest's purchases of Canadian newspapers. Whoops.... Too bad the publishing industry is completely in the tank. At least one financial analyst thinks that Canwest is already "done."

And now for the important part: What does this mean for Fox Soccer Report? We've sent emails to Canwest's PR department, but so far have not heard anything back (we'll put up an update if we do). All we know is that, even if Canwest can stave off bankruptcy, it is spinning off any and all profitable assets. Could this include Fox Sports World Canada? The channel broadcasts Fox Soccer Report, Sky News, Serie A matches, the occasional USL game... and that's it. Oh, and the channel costs an extra C$2.99 a month to subscribers.

Here's the key to the whole equation: What does Fox Sports International want to do? Don't forget that Fox Soccer Channel (the U.S. channel) is owned by a separate entity, Fox Sports International, which licenses the rights to show Fox Soccer Report in the U.S. Does Fox Sports swoop in to purchase Fox Sports World Canada from Canwest? Does Fox Sport purchase only Fox Soccer Report? Or does Fox Sports use this as an excuse to produce a brand new program in the U.S.?

We'll just have to wait and see how this plays out. In the meantime, it's clear that things are bleak at Fox Soccer Report's parent company.

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Chelsea--A Hobby That May Just Run Its Course?

Roman's new taste?

Since 2003, Chelsea FC has been the place where great players congregate to get paid immense sums and there has been no such thing as budget. That has finally changed this year. First, Chelsea gets outbid by Manchester City and its oil barons for Robinho. Now, The Guardian reports that Chelsea is cutting its 25 man scouting division by 15.

The economic credit crunch is believed partially at fault, as is its woeful performance. There hasn't been a significant development from Chelsea's youth squads to the senior squad that I can recall. Given Chelsea's style on proven players--overpay them--you would think the same would occur for the youth teams. Clearly, that isn't the case or the scouts are truly awful and waste the money.

And now, British courts have ruled that Roman Abramovich's interest in Chelsea is purely a hobby. Despite proclamations that Roman wants to make Chelsea profitable, the court has had its say, and it says that is just a pipe dream.

Abramovich has poured hundreds of millions into the club but Clarke described his involvement as a "hobby and a leisure interest ... It is not a business investment. The sums that Mr Abramovich has given to the club far exceed any return that could possibly be expected".

The Guardian article details much of Abramovich's wealth that came out during a court case where Roman argued British courts did not have jurisdiction over him. It's a fascinating laundry list of chalets, villas, art and a fortune built off of shady business dealings.

So, what happens when Roman's tastes change? Does the $500 billion dollar interest free loan to

Is it all a sign the Roman Abramovich's interest in Chelsea is waning? If so, what does it mean for Chelsea? Will the $500 million dollar interest free loan be called in? What happens?

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