When I look at the Premier League I see a firm divide.

There are nine teams in the Premier League who are the mainstays - clubs like Manchester United and Chelsea and the Villas and Evertons.

Then at the other end of the scale we have the Hulls and the Wigans – clubs who will be probably be relegated from the Premier League sooner rather than later.

Some teams will flirt with the top end of the table - Bolton Wanderers for example who were in Europe at one point and are now 19th in the table. Who can forget that team from Suffolk back in the early years of the last decade who, after a top five finish, played in Europe but were relegated at the end of their second season?

However, there are teams who spend shrewdly and hold on to their Premier League status for a prolonged period of time. They are the most likely to avoid financial ruin - Fulham are the best example of this they do not over spend on players or wages, and yet there are still in Europe.

Clubs do, sadly, get caught in the financial black hole that is Premier League relegation. Look at clubs such as Leeds and Southampton, both now in League One, who have both incurred administration soon after Premier League relegation, both after unsuccessful promotion campaigns. Leeds have had a total of 25 points deducted from them and Southampton have had a total of 10 points deducted. Both have also had to start League One seasons with negative points.

Leeds could look back on their situation and think they got away lightly, when you compare their situation with Portsmouth. Leeds spent beyond their means to try to buy success, in the way that only Blackburn had previously. Leeds qualified for the Champions League, and then later suffered a financial crash, which saw them relegated soon after. They then almost made the quick return they desired, but failed and were again relegated, and subsequently plummeted into administration, and were given a 15-point penalty, which they overcame.

Portsmouth’s future will be decided this week – they may be the first Premier League club to go bust. Portsmouth have an estimated £75m worth of debt. They have over-spent to try to keep their Premier League status. Now there is a chance they will lose their professional status all together. Ipswich appeared to be one of the first of many clubs who would suffer administration soon after relegation. However, Town have been the exception to the rule and avoided relegation from the Championship.

The flip side of the coin are the clubs who have ruined themselves trying to get to the Promised Land for example Luton Town, who breached over 50 FA regulations. In four years Luton Town have gone from 10th in the Championship [2005/6] and are currently fifth in the Blue Square Premier.

"The FA has today issued over 50 charges in connection with alleged breaches of rules at Luton Town Football Club during the period from July 2004 to February 2007." - 15th November 2007

The message is that football is financially sick. I say this as there are currently four teams I can think of who have been given winding up petitions by HM Revenue and Customs. The gap between the rich teams and the poor teams is getting bigger all the time, and the bigger it gets the more the poorer clubs suffer.

Aspiring to reach the Premier League is fine and a target for many clubs but these clubs are not prepared for the financial strains placed on a Premier League club. More clubs should model themselves on Fulham, who have sustained their top flight place while being financially prudent, and are now reaping the benefits. All newly promoted Premiership teams need a financial plan - and be more prepared for the worst case scenario, relegation.

vestanpance added 14:08 - Feb 15 I'm not sure Fulham are particularly financially prudent, they have a rich benefactor. Fulham might not pay huge transfer fees but they pay some of the best wages in town. Same as Wigan, same as Bolton, same as Pompey, all of those clubs have HUGE debts, although I'm not sur ethe extent of Fulham's. I think there's a bout a dozen clubs who have been the subject of winding up petitions of late. John Beech's site is well worth visiting if you are that interested. http://footballmanagement.wordpress.com/

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Facefacts added 20:40 - Feb 15 Fulham have possibly the best English manager currently available, and I think that partly explains their apparent stability in the Premier League. But is the away end at Craven Cottage still an uncovered terrace, and if it is, how can they still get away with that? I've not been there since Simon Milton scored for us from about 35 yards out, a memorable goal. Perhaps you could have speculated further on whether you really want Ipswich Town to reach the top flight again, or whether you view that scenario with trepidation. I'm guessing it's the latter. It won't be happening any time soon. Quality loanees only get you so far. We would need to start producing our own young players capable of making the step up, probably about 3 or 4 of them all at once, and the right manager to recognize their potential and give them the right opportunities to grow, and also reject the overtures of top clubs. I'll give you an example. Compare Jason Dozzell with Connor Wickham. each making their debut at 16. However Jason's bow was in the then First Division. I haven't seen enough of Connor to make a real comparison, but Jason would have grown up with better players around him than Connor. How many people reading this would say that Connor Wickham will have a more successful career than Jason Dozzell? We're starting from such a low position now. We're so desperate for success soon (fuelled by the management, 'Operation Premiership' was it, desperate to sell season tickets?) that any young player is saddled with great expectations. Part of it is down to our successful history. COYB

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WadzillaBhoy added 13:09 - Feb 16 Aren't Liverpool in debt?
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