Published: 21 May 2012 - 16:47:06
Tottenham's exclusion from the Champions League due to Chelsea's triumph in the tournament will cost Spurs up to £35million in cash - but the real damage could be far greater in terms of keeping their stars, say football finance experts.
Brendan Guilfoyle, a football expert at P&A Partnership, said the headache for Spurs will not just be about balancing the books.
"In terms of the effect financially, Spurs is a well-run club but revenues will inevitably be lower so they will have to adjust that in terms of the wages they can offer and the transfer fees they can pay and still remain in the black," he said.
"The perhaps more immediate worry for fans, and I am a Tottenham fan myself, is that in terms of signing top players we won't be as attractive as we cannot promise the highest level of club football any more.
"There is also the worry that some of those star players, having tasted the Champions League already, will want to do so again and look to move elsewhere."
Spurs finished fourth in the Barclays Premier League, which would normally guarantee a place in the qualifying rounds of the Champions League, but they lose out because Chelsea take that fourth English place as European title holders.
Tottenham will earn only around £5m in media rights from the Europa League instead of a guaranteed £25m from the Champions League. There is also a significant loss in associated matchday, merchandise and sponsorship income that could see a further cost to the club of around £10million.
Even more concerning for fans is the possibility of star players such as Luka Modric and Gareth Bale pushing for a move to clubs that are in the Champions League next season.
Spurs fans have reacted furiously to missing out on Europe's elite club tournament but UEFA say their competition rules, brought in after Liverpool won the competition but finished outside the top four in the Premier League, are clear.
Tottenham earned 31.1m euros (£25.1m) in TV money and bonuses from their 2010/11 season in the Champions League. An English club making the Europa League quarter-finals earns a total of 6m euros (£5m).
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Government's flagship export scheme only used by 5 small businesses - The Guardian
The Department for Business is poised to announce the outcome of a review into a flagship scheme to help exporters that has been used by just five firms since its launch in April 2011.
The export enterprise finance guarantee scheme is intended to help small businesses increase exports but a series of parliamentary answers tabled by Labour has established that the number of firms applying for help has totalled five, after one firm pulled out at the start of the year. Some £2.9m has been lent.
Shadow business secretary Chuka Umunna said: "It is astonishing that the number of firms helped by this scheme has actually fallen since January with only five businesses given assistance in its first year."
He said it was "worrying" that the scheme was failing to have an impact given the government's commitment to bolstering economic growth through exports.
"Export finance plays a crucial role, and that's why it is so worrying that the government's export enterprise finance guarantee scheme has had such a minimal impact," Umunna said.
The figures follow analysis by the National Audit Office of another fund aimed at bolstering the economy – the regional growth fund – which the watchdog said had spent £200,000 creating one job in some of the projects it was backing.
The export scheme is described as an attempt to help small businesses that are unable to obtain export finance products such as letters of credit or export invoice finance from banks as they do not have enough security for the loans. The scheme provides the lenders with a guarantee of 60% of the lending while the customer pays an up-front premium of 3%, plus any fees. A Department for Business spokesman stressed the scheme had been launched as a pilot in April 2011, among other measures to try to help exporters. "It is for businesses to decide if they would like to make use of schemes like this, but government is doing all it can to assist exporters by making schemes like this available," the official said.
"The Department for Business, Innovation and Skills (BIS) is conducting a joint review with the exports credit guarantee department on the operation of these products. We will be announcing the outcome of this review shortly," the spokesman added.
A parliamentary answer by Liberal Democrat MP Norman Lamb, a BIS minister, in March conceded that the scheme had "helped facilitate short-term export finance facilities for five small and medium-size enterprises, with a total value of £2.9m".
Lamb described this as a "corrected figure" to the one provided to Umunna in January "as a business offered a facility decided against using it".
Making Money from Gold as a Personal Dealer with the “Gold Profit Formula” - YAHOO!
Novices are making money from gold with Absolute Wealth's new gold dealing training course.
Austin, TX (PRWEB) May 21, 2012
Making money from gold doesn’t have to involve a brick and mortar business, or a pawn shop mentality of cheating the customer. Any one, no matter how much or how little experience they have, can become a successful gold dealer and earn more money than they could have imagined, according to a recent AbsoluteWealth.com article. Thanks to outrageously high gold prices, the business is booming and people are jumping at the chance to dump their unwanted precious metals, the article said.Sellers are earning good money, and buyers are turning their items in to refiners for even better money, said the article. Absolute Wealth has recognized the growing interest in gold dealing, and has accessed one of the most experienced and knowledgeable minds the jewelry and precious metal business has ever seen.
That expert shares his story and his advice in the “Gold Profit Formula,” the new training course that molds people into legitimate gold dealers. It teaches about the types of gold, silver, and other pieces of jewelry that get good money and shouldn’t be treated as scrap. It also teaches how scrap (whether it’s old, broken, or just not high-quality) can be turned into major profits through the refining process. It’s basically an easy gold guide that’s jammed with valuable information, the online article said.
It’s all about learning the value of precious metals and offering accordingly. The tools used to determine weight, size, and financial worth are explained using video trainings and a full-scale manual. “Gold Profit Formula” also guides people in the process of confidently connecting and communicating with potential customers to make them comfortable enough to conduct business. Sometimes the sleaziness of a “Cash for Gold” company creeps people out, said the article. If dealers act in a professional and fair way, they’ll see business pick up fast and have more customers than they could have ever expected.
Absolute Wealth is an expert team of real investors and advisors devoted to identifying winning strategies for exceptional returns. Members subscribe to the Independent Wealth Alliance for professional investment analysis and recommendations on the latest trends and progressions. For more information and subscription instructions, visit AbsoluteWealth.com.
Folks are eager to access the value of their gold, giving dealers the opportunity for real income generation. This is a chance to gain a significant amount of extra cash with the “Gold Profit Formula.” The article said it’s the most complete source of information on making money from gold, and it’s available now from Absolute Wealth.
Paul Norwine
AW Research Publishing, LLC
512-892-3022
Email Information
Forex: AUD/USD rebounds from 7 month lows - FXStreet.com
EU finance ministers haggle over bank rules - Yahoo Finance
BRUSSELS (AP) -- European Union finance ministers are to meet in in Brussels Tuesday to hammer out an agreement over how high banks should build their defenses against future financial shocks, with the U.K. running the risk of being isolated over who should set the height.
The EU's 27 members agree on the need to increase capital reserves of banks, following an international agreement called Basel III, which was negotiated by the world's largest economies to avoid another financial meltdown such as the one brought on by the collapse of U.S. investment bank Lehman Brothers in 2008.
But the U.K. wants national regulators to be able to set requirements significantly higher than those of the EU — a position opposed by almost all other EU members, who fear investors might then prefer UK banks and flee from those in other countries.
On his way into the meeting Tuesday morning, George Osborne, the British chancellor of the exchequer, was non-committal about the possibility of reaching an agreement.
"This is a time of considerable uncertainty in the eurozone economies," he said, referring to the 17 countries — the U.K. not among them — that use the euro currency. "And that uncertainty is undermining the entire European recovery. And I think we're reaching a point where we've got to make a decision to see the eurozone stand behind their currency. A very important part of that, of course, is strengthening the entire European banking system. And that is what we intend to do today."
Once enacted, Basel III would require lenders to increase their highest-quality capital — such as equity and cash reserves — gradually from 2 percent of the risky assets they hold to 7 percent by 2019. An additional 2.5 percent would have to be built up during good times. All members of the G-20 have agreed to implement Basel III; if the European Union succeeds, it would become the first entity to institute the new requirements.
The U.K. is arguing that, because national taxpayers have to bail out banks when they fail, national authorities should be able to set more stringent requirements to guard against such failures. A compromise proposal offered by the Danes, who hold the rotating presidency of the European Union, would allow national authorities some leeway to increase requirements beyond those called for in the Basel III agreement. That proposal has broad support — except, so far, from the U.K.
The finance ministers can approve the compromise proposal without British support, through what is known as qualified majority voting, in which member countries have different numbers of votes according to their populations. However, there is a tradition in the EU that changes that would affect an industry in a particular country — such as the banking sector in the U.K. — are not forced into effect over the objections of that country, and consensus is sought.
"I think there should be a unanimous decision on such an important issue," Swedish Finance Minister Anders Borg said on his way into the meeting.
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