While Real Madrid, Chelsea and Manchester Citeh appear to be unaffected by the economic crisis and are connected to just about everybody under the sun as possible transfers, other clubs have not been so lucky. Valencia and Liverpool, two clubs who are no stranger to financial controversy lately suffered another round of finanical embarrassments.
Valencia's well-documented financial struggles have claimed its president, Vicente Soriano. The President had been attempting to sell the land under the Mestalla Stadium to help finance the club's move to a new stadium. This will do nothing but stoke the transfer rumors regarding David Villa, David Silva, and Raul Albiol. Villa has been linked to Real, Chelsea, Citeh, Barcelona and comically, Liverpool. Silva and Albiol have been linked to more clubs because their transfer costs will be significantly less than Villa.
I say comically in regards to Liverpool, because it turns out the holding company of LFC has posted losses of £42m . Predictably, the British rags are claiming imminent financial doom for the Kop and the club sources are playing it cool. The truth probably lies somewhere in the middle. Hicks and Gillett have been attempting to refinance the £350m debt they hoisted on the club in its acquistion for some time having received a six-month extension earlier this year that expires in July.
Hicks has been attempting to sell some of his other sports interests and even defaulted on a loan payment for those interests in what is claimed to be a strategic decision. Indian and Middle Eastern interests have been linked to purchasing either the entire club or a portion thereof. Who knows if it will happen, but Reds fans would welcome either so long as it stabilizes the situation.
All of this turmoil certainly will not help Rafa Benitez's transfer policies. Rafa probably doesn't have much kitty at this point to acquire his targets and will need to sell assets to get what he wants. The same situation as last summer which caused the transfer sagas to draw out for the entire summer. Not a situation any party wants to recreate as it adds to stress and hampers the negotiation power of the club.
So, all in all, it is more of the same. Expect rumors of Valencia player transfers to fly all summer as the club tries to wring every last dollar out of them and Liverpool to struggle to complete transfers. Also, expect lots of clubs to be linked to acquiring Liverpool players because of the financial issues.
Fun times.
Friday, June 5, 2009
Hey Look, Financial Difficulties
Friday, April 10, 2009
Quick Throw: David Villa to Chelsea, or not?
Anatomy of a Transfer Rumor: because a lot can happen in 3 hours.
Friday morning, EARLY: Chelsea prep a 45 million pound bid for David Villa. [Guardian Sport]
Friday, 5.37am: No, sorry... Chelsea prepare 40 million pound bid for David Villa. [Daily Mail]
Friday, 6.42am: David Villa is adamant that he doesn't want to leave Valencia for Chelsea, but he'll be ready to discuss his future should a suitable bid come in for his services. [Guardian Sport]
Friday, 8.10am: David Villa says he wants to see out his crazy contract at Valencia. [Daily Mail]
In less than 150 minutes (or roughly the time it takes for Alex Ferguson to complete a regeneration in his wicked biochamber that's fueled by the souls of children), you damn journos have messed with the hearts of middle-class Chelsea fans everywhere.
For shame, Daily Mail and Guardian. Foooooorrrr shaaaaame.
Tuesday, March 10, 2009
Are Valencia CF the next AIG/Lehman/Bear/Northern Rock/WaMu/Wachovia/RBS/Anglo Irish Bank/etc....?
As the global economy continues to descend further into the mire, the football world has remained relatively insulated thanks to long term TV deals and billionaire investment (mostly in English clubs). That may all be about to change. Valencia, who are reported to be in debt to the tune of 450 million euros (!!!!), are essentially insolvent and have stopped paying players.
The club is reportedly 15 million euros in arrears to the players, who have taken it out on management by absolutely tanking on the pitch. Valencia lost last weekend to relegation-bound Numancia, haven't won since the beginning of February, and have fallen down to 8th place in La Liga. The new CEO, who was brought in to clean up the mess by the club's chief creditor, told Sky Sports that Valencia would have to consider selling David Villa and David Silva."The club has to control spending, grow income and sell assets.
"Selling Silva and Villa? Obviously we will consider that type of action. We have to control costs, and the biggest cost in a football club is maintaining a team."
The proximate cause for the Valencia's problems, as Sid Lowe was talking about on the Guardian Podcast on Monday, is debt taken out to finance the construction of a new stadium (on which work has been halted) to replace La Mestalla, as well as a new training ground. The plan was that the club were going to sell land around the old stadium to pay off the debt. Given the shambolic state of the Spanish property market these days, such a happy outcome is unlikely at best. As Sid notes:Between 2000 and 2004, Valencia reached two Champions League finals, won two league titles and the Uefa Cup. Then along came Juan Bautista Soler, football's very own Brian Potter. Four years later, Valencia had boasted five sporting directors, three director generals, three medical chiefs, three ostracised footballers, a day in court against their own captain, and no trophies. The club's debt had risen from €125m to over €400m, €17m each had gone on Nikola Zigic, Manuel Fernandes, and Ever Banega and over €30m was spent paying off Claudio Ranieri, Quique Sánchez Flores and Ronald Koeman. But there was always the pelotazo – develop the land upon which the training ground and Mestalla stood. Valencia would sell up, move somewhere better, and make a fortune. "We're going to be the envy of Spain," Soler said.
There was just one tiny flaw in the plan: it was rubbish. The property bubble that propped up the Spanish economy burst; economic crisis hit harder than anywhere else, leaving three million unemployed, two million new homes empty, hundreds of thousands of buildings half-finished, and Spanish football clubs owing the taxman over €600m.
Sid goes on to speculate that Valencia are in real danger of getting relegated, which reeks of what happened to Leeds United, although this implosion would be even swifter. Liverpool and others circling around David Villa - currently injured - would be advised to lowball. As an Arsenal supporter, I thank god that the club didn't decide to build Emirates stadium five years later. Liverpool (a 350 million pound loan coming due in four months) and Manchester United (600 million pounds in total debt, in search of a new shirt sponsor) might not be breathing so easily, however. Too bad none of these clubs can apply for bail out money from the US Treasury.
Wednesday, February 18, 2009
A Few Bad Days Is More Like It
Raul Albiol probably wants to bury his head under a pillow for a bit.
The Valencia central defender has hit rough patch here in the middle of February. First, he was credited with an own goal against Malaga on Saturday, allowing the home side to earn a 1-1 draw against a Valencia team now well within their sights on the table (just two points back). Not good when a true six pointer becomes a push.
But hey, it happens to the best of defenders. And to John Arne Riise.
Unfortunately for Albiol, it has happened twice to him, and in successive matches. In today's UEFA Cup match against Dinamo Kiev, Albiol netted a 63rd minute own goal so that the Ukrainians could level at 1 in their home leg. Video here. Although 101 Great Goals has it credited to Artem Milevskiy, the official score sheet has it as an own goal for Albiol. Milevskiy did get red carded in the 72nd but the Spanish side was unable to push another across, obviously.
Poor Albiol, perhaps he and the Dweez can commiserate.
Monday, January 14, 2008
The Poor Bastards Probably Want Rafa Back
Crisis? You want to talk about a club in crisis? I'll see Lingering Bursitis' Newcastle United and raise you Valencia C.F.
In the first half of the decade we call The Naughts, Valencia was Spain's other team, winning La Liga twice, reaching the Champions League final twice, and winning the UEFA Cup once. As recently as last year in the Champions League, they knocked out an Inter side that was unstoppable in Serie A (and treated us to the most hilarious fight, ever).
It's all gone to shit since then. Valencia finds itself in 7th place in the Primera Liga table after this weekend's loss to Atletico Madrid. Which doesn't so bad until you look closer and see they're 9 points behind Espanyol for the last Champions League place, while only 7 points separate them from relegation zone. And it's not exactly looking up, considering their last league win came eight matches ago, in November.
With Villareal, Atletico and Espanyol all enjoying resurgence, Valencia isn't even second tier any more. They're just part of a vast middle class that could be relegated just as easily as they could qualify for Europe. And for a club that boasts World Cup veterans like Joaquin, David Villa and Fernando Morientes, mid-table mediocrity isn't enough return on investment.
Happier timesTribalfootball.com has a nice rundown on the State of Mestalla, so I'll just give you the bullet points - it's not a pretty picture, and we're not talking about new signee Ever Banega playing with his Ashley Young on webcam.:
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