1 Feb 2010Cable calls on football clubs to 'face reality'

Football Clubs News | Football Finance News

Vince Cable has warned that many football clubs risk collapse unless they make drastic changes to their financial models.

Speaking to the Independent, the Liberal Democrats' Treasury spokesperson predicted a period of "major upheaval" in British football due to the large number of teams currently operating with "very high leverage".

Mr Cable was speaking after Crystal Palace were docked ten points for entering administration last week, while clubs such as Portsmouth are also struggling with well-documented financial problems.

"Football is a sector of the economy that simply hasn't faced up to the realities of the crisis, they've just gone on as if the world hasn't changed," he told the newspaper.

The economist suggested that many clubs will find it difficult to pay off their sizeable debts once interest rates begin to rise.

A poll conducted by the Times in September last year named Mr Cable, who is viewed as a leading authority on the credit crunch, as the most trusted of 12 leading politicians among UK voters.

Written by Terry Mitchell

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