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Visibly rattled, England struggled to get into any sort of rhythm afterwards and long shot after long shot made things simple for the Iceland defence. It got far worse for Roy Hodgson's team when Kolbeinn Sigthorsson forced a shot past Joe Hart from the edge of the area, the England keeper making a terrible error and allowing the ball to slip through his grasp and into the back of the net.
Iceland didn't struggle for the rest of the game and England rarely tested them. Hodgson resigned in an apparently pre-written statement minutes after the humiliation had been completed by the referee's final whistle.
Just in case you've been living under a rock - a volcanic one, perhaps - Iceland has a population of almost 325,000 - a fact that everyone in the world is trying to put into perspective.
Simply incredible: Iceland has a population smaller than the number people tweeting about Joe Hart!
The worst defeat in our history. England beaten by a country with more volcanoes than professional footballers. Well played Iceland.
If you used the pitch, and everyone breathed in, you might fit the population of Iceland into this stadium.
As rants go, this up there with some of Donald Trump's Twitter storms. Danny Baker has pulled no punches in dozens of tweets attacking England's performance tonight. Most of them are too rude to repeat, but here's a couple that are certified U.
I simply do not buy that footballers feel bad after game like that when they will be back on £200k in a few weeks. Its impossible.
I wish I was over there now as those useless under achieving ponces boarded their coach. "Booo! You charlatans! You frauds! You worms!"
It was a joke, but sadly it seems some folk on Twitter didn't find it that funny.
Things you really don't expect to hear on the BBC: a Beeb reporter calling the England team "overpaid nonces". Twitter couldn't quite believe it either.
Twitter can be quite cruel sometimes. But also quite funny. This rubs salt into the wound of Joe Hart, who, to put it kindly, could have done better for Iceland's second goal.
And the Brexit jokes just keep on coming.
Everyone loves a petition. After more than 3.8 million people signed a petition calling for a second EU referendum, many on Twitter want one for a rematch between England and Iceland.
It was only a matter of time. #Brexit 2 is now trending on Twitter as Europe laughs at England. Here's the continent revelling in schadenfreude.
Ask and you shall receive. Former Tottenham chairman Alan Sugar suggested Piers Morgan - an Arsenal fan - give his reaction to England's dire defeat. And he got it.
In a typically candid piece for The Telegraph, Harry Redknapp says he doesn't think much of the FA when it comes to choosing England managers.
Roy Hodgson could not possibly have survived as England manager but I've got no faith whatsoever in the Football Association picking the right man to succeed him.
Apparently Kevin Keegan says Glenn Hoddle is the only English candidate to replace Hodgson.
This is Twitter's reaction to that.
A video has emerged apparently showing the Welsh squad celebrating the moment England were beaten by Iceland and sent crashing out of Euro 2016. It didn't go down well on Twitter.
Steve McLaren was just saying how in control England looked and how Iceland posed no threat. When this happened.
Fair to say the guy commentating on the game for Iceland TV got quite excited when they took the lead.
Unsurprisingly, with the finale of the HBO show taking place tonight, the references are flowing, most notably from one Donald Tusk. That's right, the President of the European Council couldn't help but have a pop.
UK-Iceland 1-2. Winter is coming.
This is how Iceland reacted at the end of the game. Pah, look at Iceland, with their "small mentality", celebrating as if they've won ... oh.
England is resorting to gallows humour to cope with the humiliation. Scotland is simply laughing. And Twitter has gone into overdrive. Take a look at some of the best reaction to England's second exit from Europe in days.
Literally everyone in England has resigned this week.
Like the nation, we are disappointed to lose this evening and that our run in Euro 2016 has come to a premature end. We had high hopes of progressing through to the latter stages of the competition and accept that we have not met our own expectations or those of the country.
We back Roy Hodgson’s decision to step down as England manager and will discuss next steps imminently.
For now, we congratulate Iceland for reaching the quarter final and wish them well against France at the weekend.
Finally, our sincere thanks go to the travelling fans for their incredible support tonight and to everyone back home for getting behind the team.
When challenged to write the shortest, funniest story possible, Ernest Hemingway scribbled on a napkin: "Alan Pardew, England manager".
There may be some of you who don't find tonight's action all that funny and to you I offer my deepest sympathies, without actually feeling sorry. England were completely outclassed today by a team and country that were considered by most to be mere blips on the way to the quarter-final. At half-time the ITV chat was around who would play in goal instead of Joe Hart, Roy Hodgson didn't make his only decent substitute until the 85th minute and I have never seen a "top" side make so many poor decisions and passes... maybe ever.
I can't stop thinking about that movie Space Jam. It's like the monsters have taken their powers or something.
It took until the 85th minute for Rashford to come on and he was the only player who looked like he knew what was going on and how to fix it.
Jason Burt says England's pumped up Joe Hart has found himself deflated again, referencing Hart always being turned up to 11 before games start and then making stupid errors soon after.
Lee Dixon says he "doesn't care" if players say they're tired from a long season in the Premier League. The Bundesliga is pretty hard, as is Serie A - the Iceland league isn't exactly easy either.
So many things in this video that I got totally right. Yes I know, I am great. And modest too!
Ian Wright, Lee Dixon, Peter Crouch and Mark Pougatch are already discussing who should be the next England manager. It's almost as if Roy has deliberately timed this to deflect the mountains of deserved ridicule his players should be facing right now.
This discussion about whether Gareth Southgate should be the next England manager is even more depressing than the match.
This genuinely reflected Roy's tactical thinking in that match.
When did Roy write that speech?!
Did Roy PREPARE a resignation speech? OMG.
That was a prepared statement. Did he write it before the Iceland game?
Now is the time for someone else to oversee the progress of this young and hungry group of players.
When I was arrived I was told players didn't turn up to play for their country but I haven't seen any of that.
I'd like to thank Gary and Ray for their support and the part they've played.
It's been a fantastic journey and it's one I shall look back on with pride.
I'd lack to thank you the media, for your support over the last four years.
I wish everybody all the very best. I hope you all see England in the final of an international tournament soon.
Suffice to say, England have not come out of this one well.
That was embarrassing man. Balls going under people's feet... it was embarrassing.
A new low for England in international football. An exit in tune with a disastrous week back home. Hodgson finished. Players choked.
Talk has already turned to Hodgson's future, which was almost certainly decided at half-time. That game is the most embarrassing international performance I've seen since Germany 7-1 Brazil. I'd say they should have a day of mourning but I think people find it funnier than they do sad.
The absolute state of that.
Wow. Wowowowooww. Wow. Wowowoowwowoww. I cannot believe it. That was beyond embarrassing. There are people who wake up without their shoes, with a text from their boss saying they've been fired and an empty memory from the night before who have had a more successful evening.
ICELAND HAVE DONE IT! WOWOOWOWOWOWOWOWOWOWOWOWOWOWO!!!!!!!!
Sturridge is on the right, he clips a ball into the box and VARDY MUST SCORE! Corner.
Last chance saloon. Who's buying a drink? Rashford mugs himself off while trying to dribble into the box and Iceland clear.
Rashford is now - by a country mile - the best player on the pitch. England are throwing everyone forward! Can they grab an equaliser?!
Rashford finally gets the ball, dribbles around two players and gets to the near post! He could score or set up something here!!! But he wins a corner. Rashford sprints to take it himself, his corner is poor and goes behind for a goal kick.
Seriously - why is Harry Kane STILL taking freekicks?! In the dying moments of the most pathetic Euro 2016 exit that England could possibly have had nightmares of? Iceland are now keeping the ball in the corner. Walker throws it forward, Cahill fouls and Iceland have a chance to move the whole team forward and waste some time.
England look shell shocked. This is incredible.
This is embarrassing. Danny Rose and Marcus Rashford run into each other but somehow one of them wins a freekick. Harry Kane - oh my god it's still Kane taking them - takes the kick. It flies behind for a goalkick. There are not enough laughing emojis in the world to convey the farce that this game is.
Marcus Rashford is about to come on. What a great idea! With five minutes left and the entire team utterly gubbed, Rashford should enjoy his few moments of winning the ball, turning back and realising he is alone in the Iceland penalty box, like a fisherman in a giant sea.
Wayne Rooney comes off. Presumably this means that Rashford will now play at centre-back.
Gunnarsson! What is happening?! A ball through the middle completely cuts open the England defence and Jack Wilshere is the last man! He struggles to get back, Gunnarasson twists and turns and shoots in the box but Joe Hart manages to push this one away, instead of into his own goal.
This Iceland performance has been phenomenal. England are completely beaten.
Apart from Vardy, these England players look knackered. Vardy gives away a stupid foul near the corner flag, the Iceland defender showing greater maturity, experience and awareness than a player paid roughly four million times more than he is per week.
Danny Rose comes forward but runs out of ideas in the Iceland half, because he is Danny Rose.
Alli tries a ball over the top but it's a silly idea and badly executed. Silly because the defence is too close to the goalkeeper and always likely to crush the space, badly executed because it was. 10 minutes left.
KANE SHOULD SCORE! The ball is chipped into the back post and from eight yards, Kane heads straight into the goalkeeper's arms. What has happened to Harry Kane? Has he lost his magic boots? Has he woken up and it was all a dream?
Iceland cause more problems for the England defence! They come down the left and some last ditch defending prevents a shot blasting into the top corner. Sturridge then decides to help his team out by passing the ball directly to an Iceland midfielder and they slow the play down, keeping it nice and safe. Here come the substitutions.
England's forwards now also look knackered and are slow to press, giving Iceland time to pick their passes and keep possession. It's time to get Rashford on that pitch chaps! A bit of energy is what you need.
Genuinely this is one of the worst England performances I think I've ever seen. The entire team individually and collectively are all over the place here.
Everyone who laughed when I said Andy Carroll should be in the squad. Who would you rather throw on now?
Iceland are playing some delightful passing football now - it is putting England to absolute shame. One touch, two touch, assured and confident - they work the ball back from their own box all the way to England's and Saevarsson blasts a shot from just inside the area which is only a yard over the crossbar.
WHAT A TACKLE! Ragnar Sigurdsson chases back as Vardy gets in behind! It's perfect Vardy running space but the defender times it perfectly and slides into take the ball and the man, giving away a corner. Brilliant defending.
Rooney takes the corner and then a cross from the left just after. In case you wanted to know: no, neither of those things was good.
England are not good. There are still 20 long minutes to go, and I get the feeling there's a goal in here somewhere still, but they've been behind since the 19th minute and have offered almost nothing.
The players aren't making runs, there's no movement in the final third, the strikers are out of position, Danny Rose is England's most attacking winger, Wayne Rooney would struggle to get a game in the SPFL on this form... Roy Hodgson must be wondering what on earth has happened to these boys before this game kicked off.
Oh my god that's awful. Pathetic. Harry Kane takes a freekick so bad you'd be embarrassed for him if it were at five-a-side, he was drunk and you were on the pitch half an hour after your time had officially run out.
Everyone's been having a go at Sterling this tournament but Kane has been shocking.
I still have no idea where Jamie Vardy is meant to be playing. I'm going to assume through the middle but I haven't seen him near the ball yet. Meanwhile, Kane has dropped back into midfield to get the ball. Gunnarsson is booked for a foul on Alli just as England start getting a rhythm to their passing in the final third. Smart thinking.
"Oooh!" says Clive Tyldesley as Sturridge finds room in behind and runs, looking for the through ball. It arrives about five seconds too late and Iceland clear. Bjarnason chases and gives away foul near Joe Hart's box.
Rooney gives away another pass straight to the opposition. I'm a Rooney fan but he needs to either go up front and be useful, or be taken off. There's absolutely no need for both him and Wilshere punting the ball over the top.
Also, Kane keeps having to move out to the left wing. What is the point in him being there?
GREAT CHANCE FOR ALLI! Sturridge tries some... let's call it "confusing" dribbling skills out on the right, crosses into the middle of the area and Alli runs onto it, taking the shot on the volley first time. The ball flies over the bar! These are the chances England need to take.
Walker tries to do a long-throw but it's not as impressive as Gunnarsson's. More uninspired attacking from England as balls are pinged into the box to no great success. Sterling tries to dribble past the right back but is easily stopped - it's been another bad showing for the youngster but he's young so stop being mean.
Here comes Jamie Vardy in place of Sterling. Set phasers to... GOAL.
WHAT A SAVE! Well, it's straight at him, but Ragnar Sigurdsson has just tried a bicycle kick in the six yard area and been unlucky to see it punched back off Hart's fists.
Iceland go close again! Those freekicks and throw-ins are causing havoc in the England defence.
Hodgson needs to change something, immediately. This is not working.
Look at the colours on that.
Wayne Rooney wins "Worst Pass of the Night" award by giving the ball directly to an Iceland midfielder while trying to find one of two England players either side of him. Luckily for him, the counter-attack isn't really on this time.
Dele Alli runs onto ANOTHER long ball from Jack Wilshere but the keeper gathers before the Spurs player can get there.
Danny Rose is fouled on the edge of the area which will give England a decent chance to get ball into the box. Aaaaaand Harry Kane is going to take it. One of England's best header of a ball. His freekick is useless and Wilshere gets it wide right, knocks a long ball into the box and Kane heads down into the keeper's arms.
Roy, mate. With all due respect, and I know you've had an ever so slightly longer career in football management than me - your central striker shouldn't be crossing balls into the box from free-kicks. The player he's supposed to be crossing into is the one crossing in.
Sterling dribbles down the left but runs into trouble again.