Showing posts with label financial. Show all posts
Showing posts with label financial. Show all posts

Sunday, 6 December 2015

10 Years On - The Redknapp Retrospective


On This Day - Redknapp returned to Portsmouth in 2005

December 7th 2005: Harry Redknapp causes a South Coast earthquake, resigning from his role as Southampton boss to retake the reins at his former club Portsmouth. Although this was one of the most dramatic tales of the season, it would be impossible to envisage the impact it would have on Pompey. The fallout of Redknapp's decision fundamentally changed the course of history for the club. His reputation with the fans remains as characteristically divisive as ever, but a decade after his second appointment, just how does Redknapp's stature deserve to stand on the blue corner of Hampshire?

There number of different reactions within the Portsmouth stands was equivalent to the amount of voices belting out a pre-match 'Play Up Pompey'. Some were enraged. Some recognised the talent he brought with him. Some were suspicious of his motives. But even the most irate supporter recognised that Portsmouth stood a much better chance of avoiding relegation with Redknapp at the helm, following turgid performances from a calamitous mish-mash of a squad put together by Frenchman Alain Perrin. 

Redknapp patched things up with chairman Milan Mandaric

And so it was that Portsmouth achieved the impossible by battling to safety, although there are a few foreboding footnotes to add to this early Redknapp accomplishment. Russian businessman Sacha Gaydamak became co-owner and injected a hefty amount of money into the club in January, allowing Redknapp to spend £11.6m to bolster Portsmouth's paltry squad (not an enormous amount of money in the modern context, but for a relegation-bound side ten years ago, this was significant).
The gamble paid off, and this inspired Gaydamak, who soon assumed full control of the club from Milan Mandaric, and Redknapp to set their sights higher and spend more money on improving the team. Though transfer fees were kept relatively humble in the build-up to the 2006-2007 season (£3.5m for Niko Kranjcar was Portsmouth's top spend), it is understood that ample wages paid to the likes of Kanu and Sol Campbell began to change the dynamic of how the club was operating financially.


Nevertheless, the football undoubtedly became some of the best in Portsmouth's modern history. Fans were left purring by the tremendously solid back five, including the acrobatic athleticism of goalkeeper David  James, and were being treated to Kanu's sedately silky skills up front. Victories over Liverpool and Manchester United permeated a joyful campaign which was a cat's whisker away from bringing European football to Fratton Park for the first time in the club's history. 

Campbell and James brought international quality to Pompey.

At this point, things were probably running in a reasonable fashion. Money was being invested, but not to an overtly irresponsible degree. Transfer fees were low, wages were rising, but the players being signed were of fantastic reputation and quality, ensuring that the financial input was matched proportionately to on-field success. Redknapp's contribution was to ensure that a side of good players was producing the best football possible, and there was no doubt that he was achieving this.

However, after the 2006-2007 season, starry-eyed ambition took hold and things began to get out of hand. It may have been more prudent to give the squad another season of careful investment to see how things played out, but instead Gaydamak looked to capitalise on the club's upswing by investing heavily in both fees and wages. £24m was spent on new signings, including £6m for David Nugent and £7m for John Utaka, none of which was recuperated by any sales. 

Gaydamak (left) was rumoured to be plundering his father's fortune.

Considering Portsmouth's stature, this was never going to be a sustainable strategy. Fratton Park's 20,000 capacity would never offset the money spent, and although Redknapp was undoubtedly a talented manager, it is unclear quite how much success this team would have required to make this move financially sustainable.

It's depressing to talk about a manager's contribution with such a heavy emphasis on the financial impact of every season, but because we know how the story ends, it's impossible to ignore. Without the ultimate collapse of Portsmouth, these transfers could simply be seen as the clever squad strengthening that allowed for the club's first FA Cup in nearly 70 years. Instead, it is evidence of the foundations being laid for the complete dismantling of Pompey.

The fateful crescendo of Portsmouth's Premier League era.

The 2008 FA Cup win, propelled into reality by the quality of Redknapp's acquisitions, was perhaps the straw that broke the financial camel's back. Many of the subsequent reports of Portsmouth's demise cites the enormous bonuses paid to the players on the back of this trophy as one of the major factors. At the time, there were no murmurings of disaster afoot, and fans were in dreamland. By this point, most had forgiven Redknapp for his brief transgression across the county.

It's hard to know exactly when Redknapp became aware of the Portsmouth's crumbling reserves. It could be suggested that he knew things would be scaled back when he sold fan-favourite Benjani to fund Jermain Defoe's move to Portsmouth, but this belies the £9m he spent on Peter Crouch six months later. It certainly seems likely that Redknapp knew it was a good idea to jump ship to Tottenham early in the 2008-2009 season, as he had previously resisted the allure of Newcastle when they approached.

Redknapp joined Tottenham less than that 3 years after his 'second coming'.

His second departure disappointed fans again, and thrust the majority opinion of him back towards ambivalence. Just a few days after leaving Portsmouth, he accepted the freedom of the city for the team's FA Cup heroics. Some at the ceremony booed, but it seemed that most fans had begun to look at his tenure objectively, detaching themselves from any real emotive opinion of the man himself.

This arguably changed over the coming months when the true jeopardy of the financial plight began to grip the club. Gaydamak's outlandish, horrendous judgement of his own cash situation sparked the fateful succession of dodgy, dishonest and sometimes non-existent owners. There was a lot more antipathy towards Redknapp when Portsmouth met Tottenham in their unlikely FA Cup Semi-Final encounter at the end of the 2009-2010, with some feeling that his inept handling of the club's finances led to the crisis.

How much blame should be rightfully apportioned to Redknapp?

While it is a tempting prospect to pin the blame on Redknapp for the club's catastrophic money troubles, the evidence for this doesn't stack up. Gaydamak made it very clear that he was happy to run the club at a loss, doing so from the get-go and making suggestions that he was able to fund this out of his pocket. It wasn't unusual either - most clubs were operating at a loss during this period, well before financial fair-play rules were even considered.

Fans, and perhaps Harry Redknapp, were under the belief that Portsmouth had a small-scale Abramovich pumping undiminishable funds into the team. Further to this, chief executive Peter Storrie was handling a lot of negotiations. Some argue that Redknapp was probably demanding that these players were signed at any cost, but it seems unlikely that men like Storrie and Gaydamak would have run themselves into financial ruin on the say-so of the manager. 

Gaydamak's liberal spending racked up a reported £60m of debt.

Portsmouth shocked Tottenham in the FA Cup Semi-Final by winning 2-0, offering closure on the Redknapp story which ultimately defined the club's Premier League stay. The effects of Redknapp's spending are still being felt, as the club looks to recover from the string of unavoidable relegations that occurred almost incidentally as the fans looked to salvage the tattered remains of the finances.

It's difficult to really summarise the feeling towards Redknapp from my own perspective. Some of the most memorable, wonderful moments as a Portsmouth fan were entirely down to his managerial prowess: Winning the FA Cup, Pedro Mendes scoring against Man City, watching Pompey in Europe. But he inarguably had a hand in the darkest period of the club's history, a time which nearly destroyed my interest in the sport for good. 

Supporting Pompey became about despising irresponsible men, as opposed to football.
So, perhaps just as we all felt immediately after his move to Tottenham, I don't think I can feel anything emotively towards him and what he did. I can only really see his work objectively, and my conclusion is that if it was inevitable that Gaydamak would plunge the club into the financial abyss, perhaps it was lucky that we had someone who could get a trophy out of it. I want to feel more grateful for that, but I think the seasons that followed truly have dampened my take on our Premier League period.

Things will be more special when we succeed as a result of the fans' stewardship of the club, that's for sure.

Thursday, 15 March 2012

You are tearing us apart, debt!

Erik Huseklepp to Birmingham, Liam Lawrence to Cardiff, Stephen Henderson to West Ham, and now Hayden Mullins to Reading. Despite a resilient spirit, our Pompey team is being torn limb from limb, and now we lay desolate in the gutters of the Championship. We now have the choice - we can try to get up and fight our tormentor once more in what will almost certainly be a vain bid for glory. Or, we can cut our losses and plan a life away from this monstrosity.

The befuddling metaphor above (and I'm not trying to be condescending when I refer to it as befuddling; I don't really understand it) regard's what I see as Pompey's choice now. We are faced with a pretty dire situation - Pompey sit eight points adrift of safety and are being broken up into pieces by an administrator who is, surprisingly, doing his job effectively. We must now decide whether we shall continue to battle against relegation, or admit defeat and concentrate all efforts into keeping the club alive.

At the moment it seems we are hedging our bets a little, and that's not the right way to go about it. What started as a squad capable of dealing with the ten points deduction is being whittled down into a demoralised mess. However, loans are still being brought into the side (albeit they are probably wage-free) and some of the club's major earners continue to play for the team. It's difficult to speculate on what measures may have been taken to remove some of these players, but if we were truly concentrating on financial survival, every single one should have been attempted.

It may be that we are doing our best to tick both boxes. Whilst steps are being made towards saving the club, the administrator may not want to take truly radical approaches to the situation in the interests of the footballing aspect of the team. However the time for radical steps is now, and while I can see the argument for both a gun-ho bid for survival financially, and a fully concerted effort to keep the club in the division, I cannot see how it is beneficial to try and do both.

Let us first consider survival in the league. Probably a less desirable option with regards to the short-term future of the club, one could still argue that the money drawn in from being in the second tier of the football league would justify not loaning out key members of the squad. Increased attendances and advertising revenue could all be considered as vital for the future of the club, so relegation could possibly be seen as a bigger disaster financially than continuing to pay the wages of the players.

On the other hand, there is the option to make every possible decision that will benefit the club financially. Firstly, this should involve the attempt to sell each and every player on the club's books. If this is unsuccessful, then each player should be given the option to either play for free, or to dissolve their contract with immediate effect (for free) and pursue their playing career at other clubs. If all that fails, then the club may even resort to a simple refusal to pay their players. This could lead to legal battles, but one would question whether or not a former player of Pompey would feel comfortable filing a legal suit that would potentially see the death of the club.

In place of the broken squad should go the youth team, or even local players (or just fans - I'd fancy myself to score more than Dave Kitson at the moment) who are willing to play for the club for free. While this measure would inevitably lead to relegation (and possibly lower attendances, although the novelty of having a completely inexperienced team on the field might be a draw to begin with), it would make every possible step to ensure the club's survival. If it was successful, then the club could try and build themselves up from League One, and that wouldn't be a disaster. We've seen teams like Leeds, Norwich, Leicester and even... them come out of the third tier looking a lot healthier.

Personally, I think our decision has already been made. We're too far off of 21st place, too many players have gone and it would be far too much of a risk to put a real push into staying up this year. We must now sacrifice the rest of this season in a last ditch attempt to keep the club alive. It may not work, but we don't want to be ruing the fact that we kept players on the books for an unsuccessful shot at keeping the team in the league.

I've done this post in about a half-an-hour (I'm between lectures), so I'm not really sure if my sentiments are coherent on this one (I say that like I'm normally sure, but that's far from true). However, my general feeling is that I can accept League One. I can accept some awful performances and scorelines for the rest of the season. I can even tolerate a bit of embarrassment on April 7th. If there's even a thread of hope that we can keep the club in business, then I think it only makes sense to begrudgingly pull out all the stops to make it happen.

Wednesday, 11 January 2012

Death of a Football Club

Why nobody wins when a club closes its doors.

Over the past couple of weeks, Darlington Football Club has limped and stammered around having received a stab to the heart through administration. Upsettingly, it seems that time has run out and The Quakers are rushing headlong into the hard, cold dustbin of non-existence.
You may be saying “So what?” (in your head). Well that’s very despicable of you (even though you only thought it). Any football club going out of business is a depressing event, and I’d argue that the story becomes even more harrowing when it’s a smaller club involved. All I imagine during an event like this is the 65-year old lifelong supporter who has had the same seat for 40 seasons and harboured dreams of seeing the club in the FA Cup Final. It’s alright if a team had that moment, but for a club like Darlington they never enjoyed the grand day out I’m sure many of their supporters dreamed about. When a club that never reaches its ambitions is obliterated, you can’t help but feel people’s hopes ended up wasted.
There’s nothing to smile about when a club goes out of business, even if said club happens to be your nearest and most reviled rivals. Jobs are lost, years of footballing history are blown away like dust, fans end up feeling betrayed and disillusioned with the sport in general and everyone involved with the team is just generally unhappy. Even through a competitive eye, outliving a club is nowhere near as satisfying as actually beating it. It’s like being the victor of a boxing match because your opponent suffered a fatal heart attack as he climbed into the ring – it’s not a good spectacle, it’s not an enjoyable victory and it leaves fans baying for blood.
It is perhaps an inevitability that in the economic struggles this unlucky generation suffers, a team in the Conference that has a 25,000 capacity stadium and only fills 8% of it is destined for bankruptcy. The more unshaken of you may argue that a football club has to operate like any other business, and if it lives beyond its means or dives into financial catastrophe it should be left to deal with the consequences. However, if you believe that football clubs are simply a business, then I’m sorry, but you really are missing out on the true beauty of the game.
Football clubs are an endless amount more than just a business. They are a community. After all, what other business would you keep returning to over and over again despite the fact that they eternally disappoint you? What other business would you indoctrinate your own children to support from birth? What other business would you give decades of faith towards in the hope that things will get better? What other business would be content with you turning up and bellowing offensive songs? Certainly not Posh Windows and Conservatories or anything like that, anyway.
I believe this sort of attitude is most common in those who have never seen their club face the abyss and yelped in terror over the prospect of their team being destroyed. Nothing in football is worse than the utter helplessness you feel when your team is constantly undergoing the threat of liquidation. You, as a fan, have done nothing wrong and yet it’s you who bears the brunt of the mistakes that emanate from the board. Nevertheless, people tell you that the fanbase doesn’t deserve sympathy because “you enjoyed the good times”, which is probably the stupidest thing I’ve ever heard.
In truth, football should be united when events like this occur. We should all pull together and keep teams from going under, because in the end it will be hugely beneficial to the sport. Fans would feel reinvigorated by the justice of their team being kept alive, new life would be exhaled into grass-roots football, and people would continue to attend matches as a result. I mean, just imagine if Manchester City donated enough money to save Darlington Football Club. It would cost barely a fraction of their routine transfers, and yet Man City would be seen by many as a hugely positive force in football.
It’s not fair to throw the obligation upon them. Really, it should be the FAs job to prevent things like this from happening through the ‘stringent’ examinations of the Fit and Proper Persons’ test and the division of prize money across competitions. The point is, though, that there’s enough money in football today to keep a club like Darlington in business, for the good of their fans. Whether or not you want to set a precedent is irrelevant, when a club goes bye-byes, it is the local area, the fans and the employees of the club that suffer. Not the owners.

Tuesday, 29 November 2011

Stop! We Want To Get Off!

Ahh, for a moment I thought we’d reached stability. Reassuringly, it’s today been revealed that Portsmouth’s parent company CSI has been declared insolvent and has gone into administration. Thank Christ, I thought we’d found someone who was fit to provide boring financial security.
The implications for this afternoon’s revelation are unclear. Whilst Portsmouth themselves are ‘not in administration’, the only funds we can be definite about are for the very non-specific ‘short-term’. That could be the next three days for all we know, so the situation could again be absolutely dire. This seems especially likely when you consider the very downbeat tone of the club's official statement.
On top of that, the FA may well be docking Portsmouth points, as their rules indicate that the insolvency of parent companies can lead to the penalties of the club. Already in a relegation fight, this would be a sturdy iron blow to an already depleted and somewhat deflated squad, and one that our money troubles will only exacerbate.
Supporters can only ask how this has happened again. Since their FA Cup triumph in 2008, Portsmouth have been passing through fiscal travesties relentlessly, and every ‘new horizon’ has proved to be further murky waters ready and willing to suck the club into the mire and drown it.
Sacha Gaydamak, Sulaiman Al-Fahim, Ali Al-Faraj and now Vladimir Antonov have all proven to be walking (yet sometimes invisible) disasters for the club. It beggars belief really. The FA’s ‘Fit and Proper Persons’ test seems to be a completely phantom process. If it had any sort of effectiveness, at least one of the above names would have been prevented from running the club.
It truly is a disgrace. Sorry, but I’m going to keep this point going. The FA has the balls to threaten clubs with the deduction of points if their owners or parent companies go into administration, and yet can’t be arsed when it comes to actually preventing these people from being involved in football in the first place. The consequences of that are now subject of a beautiful summation at Portsmouth.
Worst could come to worst here. With the club statement itself projecting a gloomy outlook on the future, a grim pessimism is possibly the wisest prediction. If Portsmouth Football Club - champions of England in 1949 and 1950, and winners of the FA Cup in 1939 and 2008 – go out of business, then the FA have tragically failed at maintaining an iconic part of the English football picture.
Being a Pompey fan has been a difficult experience over the past three seasons. It’s been a stream of terms that no football supporter likes to hear: ‘insolvency’, ‘administration’, ‘the end is nigh’, ‘Carl Dickinson’. Really, all I want is to get out of this tedious and potentially fatal roundabout, and it’s clear we need help with that from a governing body. We need someone to put us directly in the hands of someone who is interested in the team and wants to provide financial composure.
I hold out hope things will get better, as I always do, but Pompey fans have been punched into the ground so often that it’s no longer easy to conjure up the spirit that embodied our terrific fanbase. One possible subdued ray of light could come in the form of Balram Chainrai. Perhaps the only man in the last five years who offered any degree of steadiness in his time as owner, Balram will presumably be owed money by Portsmouth still, and may be able to assume control of the club. He was never particularly bothered by the club, but he did keep us alive and we have to give him credit for that.
Again though, it’s complicated and we can’t know for sure that he’ll come to our rescue again. All we can be certain of is that, once more, we need a miracle.