Gold warns of administration risk

By Simon Atkinson Business reporter, BBC News

Mr Gold bought a stake in West Ham earlier this year

West Ham co-owner David Gold has said he is "concerned" that heavy debt levels will push more Premier League clubs into administration.

Mr Gold was speaking in Manchester during a BBC debate on the finances of football clubs.

His comments follow Portsmouth becoming the first top-flight British club to go into administration last week.

Mr Gold added that he considered clubs borrowing money beyond their means was "a form of cheating".

"The Premier League's a great league, but we're seeing a chink in the armour," said Mr Gold, who with his fellow ex-Birmingham City co-owner David Sullivan bought a 50% stake in West Ham earlier this year, valuing the club at £105m.

"It's possible that more will go. Portsmouth have gone, imagine if next year one or two more go. I'm concerned. I fear for the league if we do not act."

'Tragedy'

The Premier League accounts for 56% of the total debt of European football. Liverpool owe £237m and Manchester United £716m

And while these clubs are still seen as very strong financially, Mr Gold warned that a top-flight team may eventually go bankrupt and be forced out of business completely.

"Going into administration I could almost live with but what I fear is that a club could eventually go bust. That's a great possibility and that would be a tragedy... for the fans," he said.

"If one club is borrowing money beyond its means it's a form of cheating and that's why debt has to be addressed.

"Premier League clubs, in the main, say we run our clubs and don't interfere. But what about the fans? You can't take that attitude then find a club like Portsmouth going into administration.

Dan Johnson, chief spokesman for the Premier League told the debate - held at the Soccerex event - that "the important thing is preventing things from going wrong".

He said the league was "ownership neutral" in terms of who it allowed to control clubs.

Portsmouth entered voluntary administration with debts of about £60m. The club will be docked nine points as a result and face almost certain relegation to the Championship.

Pompey, who have had four owners this season, were due to face a winding-up order on 1 March but decided to go into administration in a bid to survive.

BBC chief economic correspondent Hugh Pym suggested that it was too easy for clubs to go into administration.

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