As we do not generate a good income will we be able to compete at all ? I mean you can only spend so much of income on wages and we do not generate an income so can we field a team?
As we do not generate a good income will we be able to compete at all ? I mean you can only spend so much of income on wages and we do not generate an income so can we field a team?
Not sure how this works. If SISU buy the stadium for £40M and then get several million income from all the additional stadium revenue streams. Do we forget the capital used for buying the stadium in the calculations but utilise the 65% from the revenue streams. If they build hotels etc on the site can they use the income from these to finance the team.
Basically, we provide the League with our budget at the start of the season and at various points during it. If you exceed the threshold, you're put under a transfer embargo-more to the point, you can be barred from making signings that could take you over it-in other words, if our wages are too high come the start of the season, we'll be barred from signing anyone.
But what is income ? Gate money obviously, the bit of TV money, no catering for us. But what about shirt sponsor money does that go towards it. And what if we get drawn away at Old Trafford or the Emirates in the FA cup will that boost our income above poor little Exeter for example who lose away at Colchester in front of 3000, hardly fair is it. What if a new owner wanted tp pump finance into a club, is he going to be stopped and is that restaint of trade ? I see fun and games ahead but you can see why SISU wanted us to go down, there will be no promotion whilst they are running things.
Owners will be allowed to invest £6million next season, £5million the following and £3million the following season.
Financial losses per season will also be curbed under the new regulations.
Clubs will be allowed to record a £4million loss next season, £3million per season for the next two campaigns, and £2million per season from 2015-16 onwards.
Bear in mind you can't add 6 to 4 also. If SISU pump in 5million that's fine, but that's a loan amount and won't be classed as revenue. That 5 million was to cover the losses for the year, therefore we've gone over the 4million loss limit.
They would only be allowed to put 6m in, if it looked like a 2m profit was going to be made.
Obviously just apply same logic to league 1 limits
So on this basis, could SISU be saying to the council we can not pump money in at a loss, give us half profit on stadium and revenue we will then put money in?
The League 1 and 2 rules seem a lot more basic than those being implemented in the Championship-the only criterion to follow is that wage expenditure is kept below the specified % of turnover. I'd be interested to know more about the turnover of other clubs in the division to see where Fisher's quote of £2.5-3m puts us.