Debt rumours

[eye_nose_hat]

Rumours are also spreading now that the club is in a lot more debt that realised. Not sure exactly how much it is but that is why we're not seeing any movement in the transfer windows and likely why we didn't/couldn't spend the money on Woods.

We must be absolutely desperate to get Bony and Narsingh off the books, I feel there's worrying times ahead. Fer/vdH out of contract in the Summer and we have a squad that needs building on if we're to improve on a mid-table finish.

You have to ask, if the rumours are true, how can we be in such debt? Which is apparently a decent sized 8-figure sum. We made £45m on transfers last Summer and will get £50m in parachute payments, with another £50m coming in over the next 2 years.

 

[keith margam]

I’ve heard the rumours as well, let’s hope it’s just that, rumours.
The wages of the high earning players are draining resources.
The lack of cooperation between majority and minority shareholders and no information on our present financial status forthcoming, make it a worrying time.
Plus we have the anomanoly of a puppet Chairman (Jenkins), and a COO (Pearlman) who is pulling the strings on behalf of the missing majority shareholders.
Both of these are on ridiculously high salaries, especially for a Championship club, and are non-productive in their roles.

 

[keith margam]

Pearlman says in a recent statement that the club has the EFL's rules on Profit and Sustainability - which limit club's losses - "on their radar" but says the Swans are in line to meet their obligations, though he claims several Championship clubs have fallen foul of them or are in danger of doing so.

And he says the club's owners have made a steadfast decision to avoid debt and any repeat of the club's past dalliances with financial issues, despite the temptation to follow the lead of divisional rivals in their transfer and salary spending.

"There's a handful of different ways clubs choose to approach it. Some are willing to put a lot of money into the club, flirt with the possibility of falling foul of the profit and sustainability regulations that exist in the EFL and roll the dice," Pearlman said.

"If they don't get promoted, they'll be in a really tough position and have the possibility of having a transfer embargo.

"That's not a great way to run a business, and it puts the club in a more difficult position moving forward.

"I'd be lying if I told you we are going to make a lot of money this year - we're not going to make any money this year, we're going to lose money.

"But at the same time, we're doing what we can and the important thing is to run the club in a financially sustainable way where we are not putting the club in debt, we are not spending money that we don't have.

"There's a history at this club, there's a history at a lot of clubs in the UK where clubs have either gone into administration or teetered on it and been close to it. Looking right now at the Championship, there are rumours swirling about a few clubs' financial health and difficulty.

"We don't want to get to that point - we won't let the club get to that point. We have to act in a smart way which at times has been difficult.