League chiefs expect cash woe
By Mark Walker, PA Sport

04/10/02

FOOTBALL LEAGUE chiefs have warned Barnsley will not be the last club to face serious financial problems - but insist the game is big enough to ride the current financial crisis and move into a bright new era.

Barnsley, relegated from the First Division last season, became the latest club to go into administration after suffering from the effects of the collapse of ITV Digital.

Bradford, Bury, Lincoln and Carlisle have all gone into administration under similar circumstances, but the League's head of communications John Nagle was quick to point out no club had folded in the last 10 years.

"It's worth remembering most clubs that have come out of the other side do so much stronger," he said. "Nobody wants to see any club go into administration, but those that have done are better off for it in the long run.

"It gives them chance to take stock, reschedule their debts and introduce more prudent measures.

"QPR and Middlesbrough are both good examples of clubs that have been through it in the last 10 years and during that time no club has gone out of business."

Nagle conceded most, if not all, League clubs would struggle financially during the next two seasons but insisted the League were working hard to generate more funds.

"They are not the first and in all likelihood they won't be the last. There is a pretty serious cash hole in the finances of the Football League for the next two seasons, there is no question of that," he said.

"But in the long term we have every confidence in our product. It's a very good product and we are optimistic people will want to see it.

"Barnsley have shown that not just clubs in the First Division are affected, but all three divisions. How many more clubs will be affected during the course of this season and next, we don't know yet.

"But what the League board are concentrating on is what can be done. We're bringing in as much cash as possible in the short term in order to help alleviate those clubs in trouble."