oldskyblue58
CCFC Finance Director
Was asked by skyblueman to take a stab at where we were going forward. So here is my guess at the budgets going forward. I am not going to exclude things like interest to ARVO etc because those costs are relevant to viability and a legal debt. Player sales will be budgeted for by TF
Turnover. In a recent CWR interview TF said that the budget was based on a turnover of £5m so if thats what he says I will go with that. It is going to depend very much on how the team does on the pitch, but I also think will include player sales.
Player Wage Costs. In league 1 this is capped at 65% of Turnover. Costs includes wages medical bills, PAYE, agents fees etc. It excludes in the calculation youth players on a professional contract (must be under 20 at start of season). TF said in same interview that this season they would use the rules to full advantage so player wages costs £3.25m (excluding youth players). Given the players coming in they must be using that budget to the full.
Youth Players Includes Wilson, Ruffels, Daniels, Roberts, Phillips,Thomas, Henderson, Willis, Burge. Am taking what I would call a conservative guess and estimate an annual cost (wages/PAYE/Agents/medical etc) at £250k
Non Playing Staff This would include the likes of Thorne, Shaw, Carsley, Waggott, Ogrizovic etc. Would £500k for the lot be unreasonable ?
Academy We have just been told we are spending £500k on the Academy to get a similar amount as a grant (total spend £1m net spend £500k). Personally I think it is playing around with figures and allocating costs elsewhere to here but lets go with what we are told
Direct Costs These usually work out at around 8% of turnover (from previous accounts) so call that £400k
Rent As it stands the rent is £1.2m. It may change but it wont be zero
Other overheads Apparently a lot of cost savings made. Lets be very optimistic and say that these costs have been reduced to £1.5m (i think they will be more possibly even £1m more))
Interest in the 2011 accounts this was over £700k and will have included that years interest paid to RR. Since then we have interest to ARVO to pay. Lets estimate the total at £500k
Result That easily leaves losses at £3.1m before any player contract amortisation charge.
Just comments
- even a rent of £0 still leaves us making losses - ie living beyond our means as a club
- SISU will need either to sell players January, cut costs further or to put more money in this coming year to fund the loss
- some of the costs above i think are probably a bit light (other overheads in particular) If things do not go well on the pitch then the situation could be worse.
- If you were ACL, Council, Charity would this look like a viable business to you given that SISU apparently do not want to put more in? Would you say yes we take a big hit on our income but it is ok for CCFC not to be viable? Would you say we accept the risk and fore go income not just this year but for years to come ?
- There have been additional costs built in to the budget by TF to cover people like Waggott but also to cover the finance specialists they have brought in plus the interest to ARVO. Will only add to the other overheads etc and make loss bigger
- Have seen comments about buying the Stadium. Would you lend to CCFC the money to do it on the basis of these figures? Could SISU find another £10m for half the shares based on this ?
But there you go ...... I reckon that the club is budgeting for a £3m + loss this year coming and it will be close to that even after selling Bigi and Keogh. Is it viable on its own ? .....no not yet.
As ever it is only a guess. Thoughts?
Turnover. In a recent CWR interview TF said that the budget was based on a turnover of £5m so if thats what he says I will go with that. It is going to depend very much on how the team does on the pitch, but I also think will include player sales.
Player Wage Costs. In league 1 this is capped at 65% of Turnover. Costs includes wages medical bills, PAYE, agents fees etc. It excludes in the calculation youth players on a professional contract (must be under 20 at start of season). TF said in same interview that this season they would use the rules to full advantage so player wages costs £3.25m (excluding youth players). Given the players coming in they must be using that budget to the full.
Youth Players Includes Wilson, Ruffels, Daniels, Roberts, Phillips,Thomas, Henderson, Willis, Burge. Am taking what I would call a conservative guess and estimate an annual cost (wages/PAYE/Agents/medical etc) at £250k
Non Playing Staff This would include the likes of Thorne, Shaw, Carsley, Waggott, Ogrizovic etc. Would £500k for the lot be unreasonable ?
Academy We have just been told we are spending £500k on the Academy to get a similar amount as a grant (total spend £1m net spend £500k). Personally I think it is playing around with figures and allocating costs elsewhere to here but lets go with what we are told
Direct Costs These usually work out at around 8% of turnover (from previous accounts) so call that £400k
Rent As it stands the rent is £1.2m. It may change but it wont be zero
Other overheads Apparently a lot of cost savings made. Lets be very optimistic and say that these costs have been reduced to £1.5m (i think they will be more possibly even £1m more))
Interest in the 2011 accounts this was over £700k and will have included that years interest paid to RR. Since then we have interest to ARVO to pay. Lets estimate the total at £500k
Result That easily leaves losses at £3.1m before any player contract amortisation charge.
Just comments
- even a rent of £0 still leaves us making losses - ie living beyond our means as a club
- SISU will need either to sell players January, cut costs further or to put more money in this coming year to fund the loss
- some of the costs above i think are probably a bit light (other overheads in particular) If things do not go well on the pitch then the situation could be worse.
- If you were ACL, Council, Charity would this look like a viable business to you given that SISU apparently do not want to put more in? Would you say yes we take a big hit on our income but it is ok for CCFC not to be viable? Would you say we accept the risk and fore go income not just this year but for years to come ?
- There have been additional costs built in to the budget by TF to cover people like Waggott but also to cover the finance specialists they have brought in plus the interest to ARVO. Will only add to the other overheads etc and make loss bigger
- Have seen comments about buying the Stadium. Would you lend to CCFC the money to do it on the basis of these figures? Could SISU find another £10m for half the shares based on this ?
But there you go ...... I reckon that the club is budgeting for a £3m + loss this year coming and it will be close to that even after selling Bigi and Keogh. Is it viable on its own ? .....no not yet.
As ever it is only a guess. Thoughts?
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