I CAN RUIN ANY CLUB DOT COM!This article in today's Guardian clarifies the complete mess and carnage caused by the indefensible running and operation of the club.
http://www.guardian.co.uk/football/2010/feb/24/peter-ridsdal e-cardiff-city-finances
Peter Ridsdale warmed up for today's Cardiff City shareholders' meeting with an interview on Radio 5 Live. "We haven't borrowed a penny from the bank since I came here: we've been self-sufficient and we don't have a bank overdraft," said the Cardiff chairman. It was PR Pete at his best.
Sure, Cardiff do not have an overdraft. But they do have a few mortgages to their name. Like the one that means the proceeds from potential transfers of about a dozen players, including Joe Ledley and Stephen McPhail, would not go to the club. The lenders on that mortgage are the former Wales rugby international Michael Hall and his business associate Paul Guy, both of them non-executive directors at Cardiff's stadium company. Presumably that is Ridsdale's idea of self-sufficiency. Indeed, Cardiff have hocked more of their assets to Hall and Guy, with all stocks, shares and credit balances as security, and all their property (at least that which isn't leased from the local council). Then there is this season's Football League merit award and television money, due at the season's end but which was advanced from Barclays last October (but not borrowed: Ridsdale has not had "a penny from the bank"). Even the jumbotron screen at Ninian Park was registered in a mortgage with Barclays.
And finally there is the "unsecured redeemable loan stock" (the word "loan" is key here), which is now believed to require a £10m settlement in December or increase in £1m increments each year it remains unpaid.
The taxman has a high court application to wind up Cardiff City, insisting "viable businesses" are routinely given time to pay. Ridsdale says it is only a "short-term cash issue". Obviously he knows best. Why else would he have earned £1m in 2007 while Cardiff made a £4.7m loss?
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