O'Neill Resigns

[evertoncol]

This is something General Charles Krulak (Villa board member) who posts on 'Villatalk' regarding the situation:

Martin's decision to leave was just that...Martin's decision. He quit 5 days before the beginning of the season. He was not pushed out. Rumors that there was a row between Randy and Martin over the sale of some players (Young and Friedl) are just that...rumors!!! There is absolutely no substance to the rumors that either player are up for sale!! Martin's decision was a surprise to the Club. Randy had spoken to Martin last week and on the weekend and then flown back to the US. This morning, Randy was informed that Martin had quit and so Randy is now on a plane flying back to the UK. Martin was fully involved in the Milner deal...every step of the way...from the very beginning. It is a good move when look at in totality. We have not suddenly become a "selling Club"...we have a good offer that makes sense. That does not make us a selling club. There is no question that if ANY Club has players that are on the payroll but not playing on the pitch...it is prudent to sell them if possible. As I know I have mentioned MANY times before, a Premier League Club must balance wages against revenue...cutting wages must include the sale of players. I have also written many times that we are trying to run the Club in a sustainable and sensible manner BUT the amount of money we have spent over the past 4 years should tell everyone that we marry this approach with aggressive ambition!! Some of the comments I have read are truly amazing! Randy is NOT broke! Randy is NOT selling the Villa! Randy has NOT lost interest! I have even seen comments about Randy's divorce! All of this is utter nonsense. Like all of you, I am not privvy to Martin's thinking when he made his decision to quit. I am sure we will read enough about it in the media. My only hope is that whatever comes out, it comes out on both sides. What I do know is that Randy cares deeply about the Villa!!! He cares deeply about the Fans!!! I have not posted thousands of comments on 3 sites without caring about the Club and the Fans!!! We will all get through this together...we will get the right man and we will continue to move forward. As I get more info, I will pass it on.

o'neill was backed and now when he has blown the wage budget through the roof, he throws his toys out of the pram and up and leaves. can you really blame lerner when 80mil over 2 years has gotten him players like heskey on 60k and 6th place again? heres a table of his spend.

thelonestriker.wordpress.com/2010/08/10/why-did-oneill-quit-wages-and-poor-signings/

 

[HirsuteBlue]

http://www.guardian.co.uk/football/2010/aug/06/everton-pay-more-david-moyes
Bigger picture here people. It is not just the sky 4 that can blow big money on wages now, such a fiasco sunk Leeds. The Pompey story will out eventually. Will Abramovich's loans ever get called in? City continue to throw petrol money around like it is going out of fashion.
All about the harmony, we have seen what a squad do when they all hate each other (England SA 2010) and those squabbles start at club level, who is paid the most, image rights, the snidiest agent.
Is it wrong of me to suggest a lot of the internal politics at clubs changed for the worse with the massive influx of foreign players? Gallas is a snide. But well before him Pierre van Hooijdonk was celebrating his Forest goals alone because he was so despised.

 

[Rook]

Fact is that MON spent millions on backups. He spent 4M on Heskey to back up Carew, 12M on Downing to back up Young, 6M? on Sidwell etc. All of which carry a hefty wage bill to boot. That's the difference between us and Villa. We develop players like Anichebe, Rodwell and Coleman or buy them when they are young and cheap like Gosling.

 

[Ara]

Was a shock to hear that he has resigned. Can only be good for us.
Villa are in worse debt then most people think. 20mil there getting for Milner an he wasn't allowed to reinvest it. Don't blame him for walking

 

[Deleted member 28206]

http://www.avfc.co.uk/page/NewsDetail/0,,10265~2118261,00.html

" size & resources " Very important words.

 

[pfim]

Was a shock to hear that he has resigned. Can only be good for us.
Villa are in worse debt then most people think. 20mil there getting for Milner an he wasn't allowed to reinvest it. Don't blame him for walking

He wasted about 120 million, ran the wages up to 85% of revenue, and quit 6 days before the opening match. I think he takes the majority of the blame.

The issue here is that Lerner was tired of bankrolling Martin O'Neill's medocrity, not that Lerner can't afford what they're spending.

 

[tsubaki]

He wasted about 120 million, ran the wages up to 85% of revenue, and quit 6 days before the opening match. I think he takes the majority of the blame.

The issue here is that Lerner was tired of bankrolling Martin O'Neill's medocrity, not that Lerner can't afford what they're spending.

Someone has probably already said this on the thread, but isnt it true that Lerner hasnt actually spent money but has just underwritten loans that are on Villa's books?

 

[Matt Damon]

He wasted about 120 million, ran the wages up to 85% of revenue, and quit 6 days before the opening match. I think he takes the majority of the blame.

The issue here is that Lerner was tired of bankrolling Martin O'Neill's medocrity, not that Lerner can't afford what they're spending.

89%... its a joke isn't it mate.

And that debt jumped 18% last summer, along with the "black debt" Officially it's £90million but as you say it's known to be actually above £100million.

LERNER-WRONG!

He wasn't actually bankrolling anything. His company took £9million out in "consultancy fees" last season and there's no such thing as "free money". All he's put in is owed to him and his holding company.

 

[pfim]

They're all loans, no one is dumb enough to put their own money in as equity if they don't need to, unless it's a drop in their fortune like an oil tycoon or Russian Oligarch. The more loans Lerner makes (even through his own holdings), the more risk he takes on that he won't recoup that money when he sells.

http://www.guardian.co.uk/football/2010/aug/10/martin-oneill-aston-villa

My point is, O'Neill understood (or should have) that Lerner was going to reel him in, and waited until August before throwing a hissyfit and resigning. It's pretty pathetic. It's not like they were lifting hardware each season with him at the helm, and their Europa flameout last year had to sit pretty heavy in Lerner's stomach.

 

[Matt Damon]

They're all loans, no one is dumb enough to put their own money in as equity if they don't need to, unless it's a drop in their fortune like an oil tycoon or Russian Oligarch. The more loans Lerner makes (even through his own holdings), the more risk he takes on that he won't recoup that money when he sells.

http://www.guardian.co.uk/football/2010/aug/10/martin-oneill-aston-villa

My point is, O'Neill understood (or should have) that Lerner was going to reel him in, and waited until August before throwing a hissyfit and resigning. It's pretty pathetic. It's not like they were lifting hardware each season with him at the helm, and their Europa flameout last year had to sit pretty heavy in Lerner's stomach.

To put it in context.

Everton and Villa have very similar turnovers. (despite Villa's ground having been renovated recently)

Everton spend between 55-60million on wages.

Villa spend 70million on wages a season.


And on top of that Villa have been spending more than us in signing fees etc.


Thats the context. And that shows that people were calling Kenwright... but when it comes to "investment" Lerner wasn't all that after all was he?

Plus he's taken out of the business 9million last season too!


Villa's a tangled web of deceit financially.

LERNER-WRONG!

 

[pfim]

I see the comparison, but Lerner is using his considerable collateral to help the club. Kenwright doesn't have that.

I understand debt is a terrible, terrible word in football, but it's a very familiar scenario to a US sports fan.

 

[HirsuteBlue]

First there was Deadly Doug, now they have Lethal Lerner.

 

[Matt Damon]

I see the comparison, but Lerner is using his considerable collateral to help the club. Kenwright doesn't have that.

I understand debt is a terrible, terrible word in football, but it's a very familiar scenario to a US sports fan.

Debt means, without a substantial increase in turnover.... that you're saddled with future costs (interest) - which without the increased turnover you have to pay out of existing revenues.

Its a completely unsustainable business model as eventually debt catches up with you if revenue isn't increasing.


i.e. debt allows bad management and inefficiencies to thrive in business.

What I'm saying mate is - its almost gambling. Debt has real consequences.

Yes we took on some. But it was balanced by it being done over the space of 8 years, matching increasing revenue increases. Not over one summer.

It was also done whilst everyone else's debts were increasing at a MUCH MUCH faster rate than ours.

 

[pfim]

Debt means, without a substantial increase in turnover.... that you're saddled with future costs (interest) - which without the increased turnover you have to pay out of existing revenues.

Which is why Martin O'neill is out of a job. The flameout in the Europa league affected revenues and his ridiculous spending wasn't offset by an increase in turnover. They probably had budgeted a certain amount for turnover and O'Neill wasn't living up to his end of the bargain.

It is gambling. But Villa isn't in dire straights and really just needs to cut some fat from the wage bill. There is excess there that doesn't need to exist and they really need to tap into other countries for talent like their competitors are, something O'Neill was unwilling to do.

 

[Rook]

I kind of have a soft spot for the fans of Villa (not the team they are boring to watch). The fans always seem realistic and hate the RS as much as we do. The We're Not Fickle We Just Don't Like You sign directed at O'Leary is perhaps the greatest sign ever. The attitude on the Villa message boards seem to be: Thanks for Wembley MON and you are a prick. Everybody seems to be on management's side over there.