Eight top clubs in financial crisis

The rescue of Crystal Palace should not distract from the eight other clubs
on the financial “critical list”, according to
Begbies
Traynor.

Using information collated by the insolvency specialists under its Red Flag
monitoring service, it finds that eight Premiership and Championship clubs were
on the financial critical list.

The Red Flag monitor measures a company’s financial wellbeing. Businesses
with significant problems are usually loss-making, have negative balances on the
balance sheet, file accounts late or face court action.

“[The] news that Crystal Palace has been saved is a welcome relief for all
those connected with the club but should serve as a wake up call to a number of
football clubs up and down the country,” said Gerald Krasner, Begbies partner.

“It is imperative that these clubs take steps as soon as possible to address
these issues otherwise Crystal Palace wont be the last club that we see
teetering on the bring of liquidation,” he added.

Krasner was chairman of Leeds in 2004 and administrator of Bournemouth in
2008.

Further reading:

Firms
struggle to stay afloat

Gerald
Krasner: An unlikely saviour for Leeds

Football
clubs collapse