Re: Reading

Worcestershire

Unlikely as they have owners who will allow the debt or clear it. I thought that wasn’t allowed?

Again, debt is not the issue.

Consider the average homeowner. They might owe three or four times their average salary on their mortgage, but as long as the mortgage is paid every month, who cares?

Likewise with clubs. As long as the bills are being paid, debts aren't an issue in the short term. They can be a problem if an owner wants to sell, as they will normally have to take a haircut on what they are owed.

LOSSES are the problem.

Losses are not the same as debts. Losses are where a club spends more money than it makes every year; something that makes a club unsustainable and dependent on infusions of cash from their owners. I can already hear people saying that if owners are putting the money in then that's fine ... which is true, until they can't / don't want to do it any more... something we've seen at Blues.

This is where a problem could lie for any relegated Premier League club; an owner decides they want out cos they went down and doesn't want to fund the club any more. Thats when issues quickly start.

The reason relegated Premier League clubs have it easier is that they have parachute payments, which were designed to help soften the impact of a huge loss of income a club suffers on relegation. With most player contracts having clauses which ensure they get paid less in the Championship, this impact is lessened a bit and it's easier for clubs to avoid making the losses which expose them to FFP.