Rent & wages (1 Viewer)

[Sky Blues]

Tim Fisher gave away an interesting nugget of information in his radio interview this morning. Paraphrasing, he said our rent was 10 to 12 times what it should be for a League 1 club.

That suggests Sisu only want to pay £100,000 to £120,000 a year, which would explain why they rejected the 50% reduction offer.

Fisher then spoilt his argument that we should pay a League 1 rate by admitting we our paying substantially more in wages than people like Yeovil and Bury, who he said were spending £900,000 & £1.1m respectively on wages. He said our was highest or second highest budget, along with Sheff Utd, but stopped short of saying how much. Didn't we work out it'd be something like £3.5m? Regardless, you can't argue with any logical coherence that all League 1 clubs should pay roughly the same rent on the one hand, but on the other hand trumpet paying substantially more in wages.

 

---

[crowsnest]

He didn't say what Cov should pay, he just pointed out that the club pay 10 to 12 times what other clubs at this level are paying.

I am sure the club know that we would have to pay more as we have a bigger ground.

He did say any rent would have to include match day revenue as this can be used to increase the clubs turnover.

 

[Sky Blues]

He did not say what Cov should pay, but he did say the rent was "completely and utterly off market" then later made his comment about it being 10 to 12 times more than what most League 1 clubs pay. Therefore, I think he was giving the impression he was suggesting the club should be paying closer to a market rate which he appeared to define as being about £100,000 to £120,000 a year (which is what you get if you divide our current rent by 12 or 10 respectively). Others may have a different view on what the market rate is for using a nearly new, expensive-to-build 32,000 all-seater stadium, but he did appear to me to be defining market rate as being what other clubs in the same league were paying.

 

[johnniericoh]

Tim Fisher gave away an interesting nugget of information in his radio interview this morning. Paraphrasing, he said our rent was 10 to 12 times what it should be for a League 1 club.

That suggests Sisu only want to pay £100,000 to £120,000 a year, which would explain why they rejected the 50% reduction offer.

Fisher then spoilt his argument that we should pay a League 1 rate by admitting we our paying substantially more in wages than people like Yeovil and Bury, who he said were spending £900,000 & £1.1m respectively on wages. He said our was highest or second highest budget, along with Sheff Utd, but stopped short of saying how much. Didn't we work out it'd be something like £3.5m? Regardless, you can't argue with any logical coherence that all League 1 clubs should pay roughly the same rent on the one hand, but on the other hand trumpet paying substantially more in wages.

Apparently Ipswich only pay £100,000 rent per year in a league higher !!!

PUSB

 

[lordsummerisle]

Didn't Mutton insist that Sisu spent more money on the team or they wouldn't get a sniff of taking over the Arena?

 

[oldskyblue58]

First off there is no set rent for being in League 1

Secondly if we are comparing with other clubs then compare like with like

Walsall pay £350k apparently ...... £100k is a supposed average for League 1 ...... would like to see the calculation and to see the notional market rent that each should pay. Ipswich pay £100k which is a discounted rent

If CCFC want the match day income then they have got to take the match day costs also .... it isnt and should not be a one way street

If rent is coming down so significantly because we are in League 1 then perhaps CCFC should consider their own ticket price policy as the same argument would apply as to rent.

£100k for use of the Ricoh is a hugely subsidised rent and to add in losing the match day income rubs salt in the wound for all the ratepayers of Coventry...... at a time when times are hard for all and CCFC are contributing less than ever to the local economy.

I am all for a deal to safe guard both the club and the Ricoh - what TF wants amounts to is robbery

And yet we choose to spend out on wages more than we can afford ...... but thats ok because its football!!!!

 

[skyblueman]

For Fisher to reject a VERY generous rent offer and peruse an agenda for paying only 10% of the contract price for the Rioch is embarrassing - seriously has he lost it completely?

 

[OyJimmy]

The real answer is for ACL to offer to buy Sisu out for the market value of the club. For arguements sake that might be 10 million for a debt free club. If Sisu find that unacceptable then fine but they will then just have to accept that the rent is what it is.

ACL can't lower the rent by much because they are barely profitable as they stand. And besides if yo lose your job and take a lower paid one that doesn't entitle you to lower rent does it. Bit of commercial reality need here.... But not from ACL who are doing their job correctly