Is the FA Cup the root of all evil?

Has this world famous trophy been responsible for bringing a pair of finalists to their financial knees in just two years?

David James seems to think so.

The ex-England and current Portsmouth goalkeeper believes the club's FA Cup win in 2008 resulted in their spectacular financial meltdown, suggesting that win resulted in bonuses being paid that could not be afforded, and a European campaign being fought that the paper-thin squad could not sustain.

Maybe that explains the near identical scenario facing Cardiff City, the team they beat two years ago.

As I wrote about earlier this year, both clubs have faced several dates in court with the tax man in an effort to reclaim unpaid debts.

Although the methods in its near downfall appear different, the economic fallout looks remarkably similar in south Wales.

For many clubs outside the Premier League, an FA Cup final appearance would be seen as a one-off event to be celebrated for what it was, to certain extents, a fluke.

However, at Cardiff, it appears the Chairman Peter Ridsdale and the board's ambitions were already out growing the club and its purse, but the day-out at Wembley may have given them all the encouragement needed to believe this was a significant glimpse of the future.

The merest hint that they could replicate the big four of Chelsea, Manchester United, Arsenal and Liverpool in their near annual trips to the home of football for one of the big finals was too much to resist.

Paying the price

Instead of continuing the general path being taken of low-budget player signings using manager Dave Jones' transfer market experience, (putting aside the huge contracts given to high profile but aging strikers Robbie Fowler and Jimmy Floyd Hasselbaink), the purse strings were loosened, including a £4m return to the club for now record transfer Michael Chopra.

Granted, a much needed new stadium was also a vast expense to be paid, but knowing that this project was in the motions, and that these things never come cheaper than advertised, a policy of financial prudence elsewhere within the club would have seemed preferable.

Sadly, this was not followed, and now Cardiff and its fans are paying the price, wondering if they will still have a team to support come next season, let alone which division they will be in.

In the end Pompey could not avoid the ignominy of becoming the first Premier League club to enter administration.

Their relegation to the Championship has since been confirmed, but Cardiff's fate still lies in their own hands.

So far, the Bluebirds have only avoided following the south coast side into administration by the skin of their teeth, but the potential of replacing Portsmouth in the top division is still too tempting to ignore.

On this occasion though, there is no possibility of reinforcements.

Barring a collapse greater than the one witnessed this time last year, Cardiff will finally make the Championship playoffs, to battle with three other sides for one last promotion spot.

Victory in a different Wembley final would take them to the Premier League “promised land”, and a certain degree of financial breathing room, if not security.

Losing out would mean another term in England's second division, and probably result in a significant sell-off of players, but maybe the avoidance of administration, although the potential of Malaysian investment still, apparently, remains a possibility.

All this shows that maybe those presently among the smaller members of the football community should learn from Icarus, and not fly too close to the sun, or their wings may fall apart.

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To add an ironic twist to this tale, Portsmouth have once again reached the FA Cup final, with reports escaping the club that some players may not be able to play in that game unless they waive contractual bonuses that would be due to them.

In this circumstance it is the administrator ensuring only that which can be afforded is spent, and the players are left with the decision – loose a bonus they probably won't get anyway, or take the opportunity to play in the final of the greatest knock-out cup competition in the world.

For once, most of the players seem to have the right idea.

Ajax boost title hopes with vital victory

Ajax 3 – 0 FC Twente:

From Owain Thomas at the Amsterdam ArenA

Goals from three different players reinvigorated Ajax’s Eredivisie title challenge as they eventually eased to a comfortable win over FC Twente.

Demy De Zeeuw, Marko Pantelic and Dennis Rommedahl found the net, but it could have been so different had Twente taken any one of several glorious early chances.

Instead, De Zeeuw’s low skidding drive opened the scoring on 22 minutes, squeezing in at the far post, past a slow to react Sander Boschker in the visitor’s goal.

And Pantelic bundled in a second shortly before halftime after a beautiful swerving effort from captain Luis Suarez crashed against a post.

That gave Martin Jol’s team a commanding but scarcely deserved lead at the break, to which they added as Dennis Rommedahl lashed home to finish off a sustained spell of pressure fifteen minutes from time.

By now Ajax were in full cruise control and the influential Suarez should have already been on the scoresheet, but his effort was incorrectly ruled offside.

Wasted Chances

Steve McClaren’s side deserved that slice of luck, which otherwise appeared to desert them for much of the match as both goalkeeping and finishing let them down.

The former England manager was visibly frustrated throughout the contest, prowling around the coach's technical area and occassionally growling at his team, particularly after his side conceded the first goal at which point he felt they lost "control and belief."

"The first goal was crucial," McClaren said.

"We had some glorious chances. The way we played in the first 20 minutes until they scored the first goal was very very good, but they improved and we went down, which was disappointing.

"The game hinged on Ajax scoring goals fom nothing, which they did and we didn't, so we don't deserve to win the game," he added.

Indeed it was the visitors who had looked the more likely to score in the early going.
After Pantelic’s flick-on brought a sharp low save from Boschker just two minutes in, they dominated as Ajax’s defensive nerves were exposed.

However, both Blaise Nkufo and his strike partner Kenneth Perez twice failed to capitalize on defensive lapses, having been set free by incisive midfield passing.

Bryan Ruiz and Chelsea-loanee Miroslav Stoch looked particularly dangerous on the flanks, and their darting runs and nimble footwork continuted to trouble the Ajax backline throughout, but unfortunately for McClaren's men, the strike duo just couldn't find the target from those openings.

As so often happens though, Twente were left to rue those missed opportunities, although they did almost sneak a consolation at the death, but Perez’s curling free-kick smacked against a post and was cleared.

The victory pulled Ajax within six points of their second placed rivals and also avenged a 1-0 defeat in November, however they remain nine points behind leaders PSV Eindhoven.

Cup finalists face fight for their lives

Just 21 months ago Portsmouth and Cardiff City faced each other in front of a packed Wembley Stadium and worldwide television audience in the FA Cup Final.

Today, in a cruel twist of fate they will both appear before the same court just minutes apart in a battle far more important to their thousands of fans than victory on that Saturday in May 2008.
Defeat on this occasion could lead to one or even both clubs to fall into administration, and in a worst case scenario, to be wound up altogether.

The opponent this time is none other than Her Majesty, or rather Her Majesty’s Revenue and Customs, who are trying to recoup millions of pounds in unpaid taxes from the two clubs.

It’s estimated that more than 100 million people around the world watched Portsmouth lift the famous trophy after a 1-0 win, but since that highlight, fortunes have turned for the worse.

The south coast club faces estimated debts of £60m, is already on their fourth owner of a season that has barely passed its mid-point, and lies bottom of the Premier League staring at the near certainty of relegation to the Championship.

Meanwhile Cardiff, who currently lie a very respectable fourth place in that Championship, are thought to owe around £30m, with HMRC targeting £2.7m of that total debt today.

While both clubs can put much of their ills down to poor ownership decisions that some may call downright financial mismanagement at boardroom level, this is a trend that is fast becoming alarming in its frequency.

Already this season, Crystal Palace, one of the Welsh club’s Championship rivals, have been placed into administration, while League One Southend United will also face a winding-up petition.

There have been 53 professional club administrations since 1992, and that date is more than a coincidence.

It marks the year football entered its new era with the breakaway of the country’s top division and subsequent formation of the Premier League.

With this new league came new money from massive television and sponsorship contracts that brought more matches into more homes, and even to a global audience.

However, this new found wealth has meant that many clubs are living off vast amounts of borrowed cash, paying vastly inflated transfer fees and wages for players in a bid to reach the Premier League promised land where the sport is paved with gold.

Unfortunately, as Dick Whittington discovered on his arrival in London, this is often not the case.

Few teams manage to reach the giddy heights, and even one season of failure can lead to the club’s financial ruin.

So common has this occurrence now become, the sports’ powers have had to introduce football related penalties in an attempt to ensure clubs live within their means.

Crystal Palace have already suffered a ten-point penalty alongside the uncertainty of finding new owners, while previous Premier League regulars Southampton began this campaign in League One with a similar deduction following their troubles last term.

HMRC has begun taking a harder line with football clubs that fall into debt after losing vast sums in overdue tax revenue thanks to this rapid increase in administrations.

A clause of the administration process determines that players must be paid first and in full from any monies available, often meaning that other creditors are left high and dry, receiving only a few pennies from each pound owed.

This has resulted in a big hole often being left in the tax purse, and so the agency has decided to start taking preemptive action in an attempt to recoup all it is owed, rather than wait for the remaining crumbs.

It seems Southend and Cardiff may have some chance of meeting Her Majesty’s demands as eleventh hour bids for cash are pulled together, but for Portsmouth the signs are bleaker, and the club’s survival may come down to the court granting a stay of execution.