With regards the F&B I think the more customers we can attract to the stadium, the more F&BStruggling to comment on the takeover threads like a lot I'll wait until confirmed / signed however debating with other fans why being tenants at the Ricoh under the current arrangements we have no long-term future. Under our current arrangement do we:
get any % of the stadium sponsorship (Ricoh deal signed back in 2005)
any income from the advertising hoardings or is that all for WASPS
car parking what does the club get what do WASPS keep
food and beverages - is £72k the full amount for the year CCFC received for 2015/16
corporate hospitality - don't WASPS charge a quite a high rate per person and the excess is what the club gets to keep, corporate hospitality income is very low is that correct ?
Also does anybody know what the value of matchday costs are, and what costs do they cover
Its also wrapped up in the compass contract, so the profit margin isn't that good. I remember from the ACL Q&A on the trust website , the profit margin was only about 11%, and we only get a portion of that. Given that we averaged around 13k for the £72k, you'd have to both significantly increase the attendance and change the whole mindset/culture of the fan base to squeeze out and decent money given the constraints of thr compass contract.With regards the F&B I think the more customers we can attract to the stadium, the more F&B
people will consume, the more money we will make.
At the moment 'it would seem" we can't sell enough to make it worthwhile switching on the oven.
It wasn't that great at HR also as I recall.Its also wrapped up in the compass contract, so the profit margin isn't that good. I remember from the ACL Q&A on the trust website , the profit margin was only about 11%, and we only get a portion of that. Given that we averaged around 13k for the £72k, you'd have to both significantly increase the attendance and change the whole mindset/culture of the fan base to squeeze out and decent money given the constraints of thr compass contract.
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Agreed, but that £72.000 is for nowt, no staff, no produce no nothing, if we can't attractIts also wrapped up in the compass contract, so the profit margin isn't that good. I remember from the ACL Q&A on the trust website , the profit margin was only about 11%, and we only get a portion of that. Given that we averaged around 13k for the £72k, you'd have to both significantly increase the attendance and change the whole mindset/culture of the fan base to squeeze out and decent money given the constraints of thr compass contract.
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At the Ricoh? It was nothing to do with the club, it was ACL. They run all events at the Ricoh.Did compass just walk in and take over, or did the club sell them the right.
Because there it would have been theirs to sell, don't all stadiums use outside catering.At the Ricoh? It was nothing to do with the club, it was ACL. They run all events at the Ricoh.
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No idea and don't really get your point. Compass paid acl for the privilege so regardless of the cut we get, that's another bit of revenue our current arrangements mean we don't get. Thats not saying look we are hard done by, just a fact. We get get a tiny bit of parking, a small bit of f&b and that's it.Because there it would have theirs to sell, don't all stadiums use outside catering.
Most major venues outsource to someone such as CompassBecause there it would have theirs to sell, don't all stadiums use outside catering.
Did compass just walk in and take over, or did the club sell them the right.
Did compass just walk in and take over, or did the club sell them the right.
Did compass just walk in and take over, or did the club sell them the right.
Going to correct something on the F&B.
What the club get is 50% of the net profit on F&B with no costs to pay or risk to take. So the net profit margin on F&B is 144K in total. I believe this was for the 2015-16 season
Average league crowds for 2015-16 were 12570 or a total 289110 according to the Wasps accounts spend per head at football matches was £1.97 = turnover 569546 Gross less VAT = 474462
That gives an actual margin of 30%
What CCFC get is dependent on attendances to a great degree. If those fall much further then will there be a profit to share at all?
TF would dress it up that they don't get the full effect for SCMP purposes which is correct, however the amount to be included in that calculation would be a max of £144k (you have to deduct the costs from the turnover and what is left is what counts)
The match day expenses would to a large degree be payable if CCFC owned the stadium (the additional cost is really if ACL put any mark up on those costs)
I would think the next deal would be higher, how much so is debateable. It is going to depend on how long the club is signing up for if at all. If we get relegated does it make sense to the London number crunchers to stay there at all?
As far as I remember what Compass paid for was £4m for 23% of the shares in IEC Experience Limited. Not sure they have paid a fee for the rights to supply.
Simplistic nonsense.The contact for catering rights is with WASPS!
Yes, 1/2 of 30% profit margin = 15% of turnover = ~£72K, OSB explained it above except the terminally stupid like yourself seemingly can't read or understand basic maths.Maybe wrong but was informed the Club get 15%?
The contact for catering rights is with WASPS!
Having a known fixed contract with a known outlay de-risks the operation but reduces potential. Swings and roundabouts.Yes the thing is we make a profit however small, but if we owned the stadium with all the up keep costs etc. we would I'm sure make a loss with attendances as they are at present , renting is not all bad as Simon Jordan said.
Agreed and Sisu are shorted sightedHaving a known fixed contract with a known outlay de-risks the operation but reduces potential. Swings and roundabouts.
Why will the next rent deal be more?From what I understand we don't get any (and never have) of the stadium sponsorship and in terms of advertising hoarding we only get pitchside as they are temporary and removed for wasps matches.
IIRC we get a cut of the parking but parking plus f&b share was only about £74k combined. No idea what % wasps get, they have commissioned off parking to acpoa (sp?), I imagine they have paid wasps a flat fee up front.
When acl were renegotiating before sixfields they wanted to put up matchday costs to £12k per game.
And from whats been posted in here wasps charge commercial rate for corporate and we have to pay for the whole suite, regardless of whether we fill them or not
You've also got to factor in the next deal will be considerably more than the £100k pa rent we pay now.
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It's been a long 3 weeks.... any more news about it? I've aged 4 years since we last heard...Maybe wrong but was informed the Club get 15%?
Because wasps have a £4m black hole to fill, they naturally need to maximise any cash they can get in and that will include increasing rent when we renegotiate. The current deal was agreed prior to them arriving and as such their needs were never taken into a account. It would be niaive to think that any new deal will be on anywhere near as favourable terms as the current deal.Why will the next rent deal be more?
Because wasps have a £4m black hole to fill, they naturally need to maximise any cash they can get in and that will include increasing rent when we renegotiate. The current deal was agreed prior to them arriving and as such their needs were never taken into a account. It would be niaive to think that any new deal will be on anywhere near as favourable terms as the current deal.
Do you think the new deal will continue to be £100k pa?
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I think its a fairly solid assumption, and one that OSB has also made.Not a clue what it would be, hence why I asked
The Club must also get some advertising rights.
At the front of block 16 there is an advertising board saying to advertise here get in touch with CCFC.
Why would they pick it if they got nothing?
Ermmm... you don't seem to understand this IEC contract isn't just for matches it is all the catering at the Arena, it includes all the shows they put on and the day to day stuff, not sure how the hotel works as thats' a Hilton franchise operation now. Compass may even be in the Casino too? IEC turnover was £6.6M in the last ACL accounts.There is and always has been confusion about Compass contract, it was a joint venture partnership aimed at providing a great hospitality package and provide the club with a guaranteed percentage of profit.
In the catering world 5% profit is a great deal considering all staffing and product costs are taken out of the equation(the caterer would make their money from purchasing deals with a percentage returning to them) and if the club had managed its own catering as it used to it would have been a loss maker and a ball ache to run especially with our ever decreasing fanbase. This was outsourced and the club received a good deal based upon where we were as a club and our then relationship with ACL. Sadly we are no longer that club and no longer attractive to customers. Also you must take into account the Northampton year where Compass would have been losing money.
Also any contract was based upon projections over a number of years with a sliding scale of profit ( busier we were the more profit we received) that well and truly is no longer the case. At some point I suspect ACL and Compass revised the contracts downwards and Compass took on a greater percentage of the risk and reward. I suspect without Wasps they would be losing vast amounts and probably with them and us and all the other Ricoh business through the week they should be doing quite nicely.
There is and always has been confusion about Compass contract, it was a joint venture partnership aimed at providing a great hospitality package and provide the club with a guaranteed percentage of profit.
In the catering world 5% profit is a great deal considering all staffing and product costs are taken out of the equation(the caterer would make their money from purchasing deals with a percentage returning to them) and if the club had managed its own catering as it used to it would have been a loss maker and a ball ache to run especially with our ever decreasing fanbase. This was outsourced and the club received a good deal based upon where we were as a club and our then relationship with ACL. Sadly we are no longer that club and no longer attractive to customers. Also you must take into account the Northampton year where Compass would have been losing money.
Also any contract was based upon projections over a number of years with a sliding scale of profit ( busier we were the more profit we received) that well and truly is no longer the case. At some point I suspect ACL and Compass revised the contracts downwards and Compass took on a greater percentage of the risk and reward. I suspect without Wasps they would be losing vast amounts and probably with them and us and all the other Ricoh business through the week they should be doing quite nicely.
"I suspect without Wasps they would be losing vast amounts and probably with them and us and all the other Ricoh business through the week they should be doing quite nicely."Ermmm... you don't seem to understand this IEC contract isn't just for matches it is all the catering at the Arena, it includes all the shows they put on and the day to day stuff, not sure how the hotel works as thats' a Hilton franchise operation now. Compass may even be in the Casino too? IEC turnover was £6.6M in the last ACL accounts.
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