Norwich not ruling out player sale to help finances

Not only on the pitch, but off it, things are looking bleak for English Norwich.

The club announced a GBP 7 million financial shortcoming with the end of its parachute payments, and chief executive Neil Doncaster will not guarantee that there won't be a player sell-off to help bring financial stability.

With the club also struggling on the field, it could give Doncaster more incentive to hold a sale with his players.

On the face of it, the financial situation didn't appear too bad. The club had a GBP 90,000 profit for the 2006-207 fiscal year, and reduced debt by GBP 1.5 million to GBP 17.7 million.

But the loss of the parachute payment has Doncaster concerned. And club director of finance Shaun O'Hara said, after making less than a GBP 100,000 profit, losing the parachute payment will present a challenge.

"Remember that this year we will not have that payment, which has been made since relegation from the Premier League," Doncaster said. "The situation this club faces is incredibly tough.

"I don't think it's helpful to rule in or rule out the sale of any particular player. Players will continue to come and go. We need to try to work towards a situation where we don't have to sell players for financial reasons."

Part of the financial situation was helped as joint majority shareholders Delia Smith and Michael Wynn Jones erased GBP 800,000 in club debt by converting an outstanding loan into GBP 30 shares.

The last fiscal year includes a GBP 2.5 million profit on player sales, while player wages dropped by GBP 1.6 million. Gate receipts increased by GBP 100,000.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.