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Revenues - how much are they worth? (5 Viewers)

  • Thread starter Grendel
  • Start date Aug 8, 2014
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skybluetony176

Well-Known Member
  • Aug 8, 2014
  • #36
Grendel said:
Can you name 1 other football in the league that doesn't have match day revenues?
Click to expand...

Depends. Can you name 1 other club in the football league who has sold it's rights to match day revenues?
 

James Smith

Well-Known Member
  • Aug 8, 2014
  • #37
Grendel said:
The point I am making is that we sold them off over a 50 year lease. To purchase them for 3 years is a fraction of the selling price. £50,000 a year is 50% of the profit generated by ACL at its peak for these revenues. Therefore they should easily be packaged in a short term deal for the clubs benefit.
Click to expand...

What's with the three years? Are you coming round to the idea that we're going to need to actually build a new stadium, hence the limited rental period at the Ricoh?
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #38
James Smith said:
I don't know, not an expert in that area. I also don't know how many sold theirs on and haven't bought them back, again not an expert.
Click to expand...

skybluetony176 said:
Depends. Can you name 1 other club in the football league who has sold it's rights to match day revenues?
Click to expand...

They sold them in a package for half of ACL over a 50 year lease. Even if you assume half (generous) of that sale is for this revenue that is £60,000 a season and that was when prior owners were budgeting on twice the revenue they have now.

Can both of you answer one question with a one word answer.

What's the value of the revenues without the club?
 
J

Jack Griffin

Guest
  • Aug 8, 2014
  • #39
James Smith said:
What's with the three years? Are you coming round to the idea that we're going to need to actually build a new stadium, hence the limited rental period at the Ricoh?
Click to expand...

Why would ACL accept a short term deal unless they are losing money? Last night Steven Pressely said on CWR radio that he believed building a new stadium was still in the owners plans.

So in that case, in hard nosed business terms, wouldn't ACL be better to find a stable long term alternative for their business rather than letting a competitor build a stadium nearby to undermine their sustainability within a few years? If SISU want a deal then it has to be for the long term, with conditions negotiable and harsh penalties backed by insurance for breaking the contract..

I know many people want a quick resolution, but not settling the long term situation is just putting off inevitable trouble.. SISU are in a very weak position, it is time for ACL to use the negotiating technique SISU used and move the goal posts.
 

shmmeee

Well-Known Member
  • Aug 8, 2014
  • #40
Grendel said:
You said £2 million for 3 years was a starting point. Given the profit under ACL would be £300,000 over 3 years I would say you are not an accountant.
Click to expand...

Oh sorry I was talking buying outright not a 3 year lease.

Frankly for 3 years I'd give them away. But if we can agree terms for 3 years why not 30?
 

skybluetony176

Well-Known Member
  • Aug 8, 2014
  • #41
Grendel said:
They sold them in a package for half of ACL over a 50 year lease. Even if you assume half (generous) of that sale is for this revenue that is £60,000 a season and that was when prior owners were budgeting on twice the revenue they have now.

Can both of you answer one question with a one word answer.

What's the value of the revenues without the club?
Click to expand...

In answer to your original question. No I can't.

Now.

Can you name 1 other club who's sold it's rights to match day income.

Or even.

Can you name 1 other club who was given 50% of the management company that runs the stadium they play in for free only to sell that share at a later date?
 

shmmeee

Well-Known Member
  • Aug 8, 2014
  • #42
Grendel said:
What's the value of the revenues without the club?
Click to expand...

Depends what else the time and resources can be used for.

How much are the club saving at Northampton in the interim?
 

James Smith

Well-Known Member
  • Aug 8, 2014
  • #43
Grendel said:
They sold them in a package for half of ACL over a 50 year lease. Even if you assume half (generous) of that sale is for this revenue that is £60,000 a season and that was when prior owners were budgeting on twice the revenue they have now.

Can both of you answer one question with a one word answer.

What's the value of the revenues without the club?
Click to expand...

No. (10 chars)
 

James Smith

Well-Known Member
  • Aug 8, 2014
  • #44
Grendel said:
They sold them in a package for half of ACL over a 50 year lease. Even if you assume half (generous) of that sale is for this revenue that is £60,000 a season and that was when prior owners were budgeting on twice the revenue they have now.

Can both of you answer one question with a one word answer.

What's the value of the revenues without the club?
Click to expand...

Grendel said:
They sold them in a package for half of ACL over a 50 year lease. Even if you assume half (generous) of that sale is for this revenue that is £60,000 a season and that was when prior owners were budgeting on twice the revenue they have now.

Can both of you answer one question with a one word answer.

What's the value of the revenues without the club?
Click to expand...

I wouldn't be able to answer because I haven't seen the accounts of IEC which would be the ideal place to start. Although I would need to hire someone to help me translate them into English and make an expert opinion. I think you'd need to know what the current revenue is without the club and it would also be interesting to know whether the events etc. that are taking place currently at a weekend could do so if we were playing our home games there. The hotel can't use the corporate boxes, the number of function rooms is reduced etc. Also whether these events are generating more or less revenue than when we were there.
 
Last edited: Aug 8, 2014

chiefdave

Well-Known Member
  • Aug 8, 2014
  • #45
shmmeee said:
Depends what else the time and resources can be used for.
Click to expand...

Good point. What generates more revenue, 10K turning up for a couple of hours on a Saturday for one of our home games or 10K turning up for Insomnia which runs for 3 days, all day and into the evening?

I think the answer will be obvious so the question then becomes could ACL have booked Insomnia if we were playing there. Chances are they couldn't, we would need first call on the stadium (and the stadium bowl is being used for that event) and the fixtures come out relatively late to be booking events in around them.

We all want the club back at the Ricoh but there has to be some level of realism about what ACL will give up for the short term benefit of the club when they will have to continue operating the Ricoh as a profitable business when the club leaves again, supposedly in three years. If we're talking about the club doing back permanently that's a different matter.
 

ccfcway

Well-Known Member
  • Aug 8, 2014
  • #46
Grendal, who cares, its a short term loss that SISU are happy to cover, until we build the new stadium where they get access to all of the revenues.

We are now a year into a 3 or possibly 5 year project, so all will come good in the next 2-4 years.

Rejoice !
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #47
chiefdave said:
Good point. What generates more revenue, 10K turning up for a couple of hours on a Saturday for one of our home games or 10K turning up for Insomnia which runs for 3 days, all day and into the evening?

I think the answer will be obvious so the question then becomes could ACL have booked Insomnia if we were playing there. Chances are they couldn't, we would need first call on the stadium (and the stadium bowl is being used for that event) and the fixtures come out relatively late to be booking events in around them.

We all want the club back at the Ricoh but there has to be some level of realism about what ACL will give up for the short term benefit of the club when they will have to continue operating the Ricoh as a profitable business when the club leaves again, supposedly in three years. If we're talking about the club doing back permanently that's a different matter.
Click to expand...

How many Insomnia events are there in a year and how many have there been since the club left?

The notion that such events are more profitable than a football club in permanent residence is absurd. We now know the sponsors are likely to jump ship -- with the club back a new deal there is far more likely.

Also if ACL operate the F and B catering at such events. the profit is 10% of revenue at best -- a negligible return
 

James Smith

Well-Known Member
  • Aug 8, 2014
  • #48
Grendel said:
How many Insomnia events are there in a year and how many have there been since the club left?
Click to expand...
We don't know how busy they actually are though do we. What appears on their website isn't likely to be everything they are hosting. They don't seem to list weddings or corporate conferences etc. So we have no idea what facilities they are using at the weekends or the hotel numbers which may be using the corporate boxes.
Grendel said:
The notion that such events are more profitable than a football club in permanent residence is absurd. We now know the sponsors are likely to jump ship -- with the club back a new deal there is far more likely.
Click to expand...
Which you can back up with figures I expect.

Grendel said:
Also if ACL operate the F and B catering at such events. the profit is 10% of revenue at best -- a negligible return
Click to expand...
ACL don't operate the F&B IEC do.
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #49
James Smith said:
We don't know how busy they actually are though do we. What appears on their website isn't likely to be everything they are hosting. They don't seem to list weddings or corporate conferences etc. So we have no idea what facilities they are using at the weekends or the hotel numbers which may be using the corporate boxes.
Which you can back up with figures I expect.


ACL don't operate the F&B IEC do.
Click to expand...

This is actually absurd. Your comment regarding weddings and hospitality would make a conclusion that owners of a football stadium would be better suited to booting the clubs out and running weddings and conferences. Have you been to a conference at the Ricoh? I have and its an average experience. The hotel confuses me -- I thought ACL did not own it - I thought it was De Vere. 19 rooms available one night this week when I looked.

Your premise suggests;

Build a football ground

Use it for weddings -- it makes more money

Sorry - your logic is absurd. If it is not absurd many football clubs would be homeless.

If this is the case why lease it at all to non league under 21's and womens football teams.

I fear for Swansea -- I suspect they will be homeless next season as some people will want to get married at the ground.

Idiotic.
 
Last edited: Aug 8, 2014

Grendel

Well-Known Member
  • Aug 8, 2014
  • #50
Oh and James I've been to many many conferences and none have been on a Saturday.
 

chiefdave

Well-Known Member
  • Aug 8, 2014
  • #51
Grendel said:
How many Insomnia events are there in a year and how many have there been since the club left?

The notion that such events are more profitable than a football club in permanent residence is absurd. We now know the sponsors are likely to jump ship -- with the club back a new deal there is far more likely.

Also if ACL operate the F and B catering at such events. the profit is 10% of revenue at best -- a negligible return
Click to expand...

Your argument is very strange. You're saying it is essential for us to get F&B revenues if we return but you then suggest they should be sold to us at a low price as they aren't worth much. You then dismiss other events that will most likely bring in more revenue than our matches as irrelevant. So which is it, is the F&B worth having or is it not?

A quick google tells me this is the second Insomnia event this year, both at weekends so the booking may well not have been made if we were still playing there. The events last for 3 days, and nights, and attract more people than our home games. I would not be at all surprised if those 2 events alone generate more revenue than all our home games over a season. Who is likely to spend more, somewhere who is there for a couple of hours for a football match or someone who is there all day?

The Ricoh is not just a football stadium, if it was we may not have all theses problems. Whilst industry events will most likely take place in the week anything open to the pubic is more likely to be held on a weekend. Should ACL continue growing that side of the business they could be financially better off than with us there. It might also be more attractive to some types of sponsors, its an unknown so you can't assert as fact that the value of sponsorship drops with the club not there. For example if there is the same number of people in attendance over the course of a year would Ricoh prefer them to be football supporters or business people who might actually buy their products?
 

Como

Well-Known Member
  • Aug 8, 2014
  • #52
F&B is a red herring, small beer.

Part of the issue is that the Club is only looking at a short term rental, for a few years and for the days home games are played.

Sponsorship deals etc do not really come into it. Not like the mega bucks Man U get for example, these are long term contracts with guaranteed exposure.

If you represent Ricoh for example, having the Club back for a few years would be nice, but you signed up originally for a committed Premiership Club, very different deal.
 

Como

Well-Known Member
  • Aug 8, 2014
  • #53
chiefdave said:
For example if there is the same number of people in attendance over the course of a year would Ricoh prefer them to be football supporters or business people who might actually buy their products?
Click to expand...

Interesting question, I had assumed media exposure was a major factor, and that is what Ricoh were buying in the Premiership.
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #54
chiefdave said:
Your argument is very strange. You're saying it is essential for us to get F&B revenues if we return but you then suggest they should be sold to us at a low price as they aren't worth much. You then dismiss other events that will most likely bring in more revenue than our matches as irrelevant. So which is it, is the F&B worth having or is it not?

A quick google tells me this is the second Insomnia event this year, both at weekends so the booking may well not have been made if we were still playing there. The events last for 3 days, and nights, and attract more people than our home games. I would not be at all surprised if those 2 events alone generate more revenue than all our home games over a season. Who is likely to spend more, somewhere who is there for a couple of hours for a football match or someone who is there all day?

The Ricoh is not just a football stadium, if it was we may not have all theses problems. Whilst industry events will most likely take place in the week anything open to the pubic is more likely to be held on a weekend. Should ACL continue growing that side of the business they could be financially better off than with us there. It might also be more attractive to some types of sponsors, its an unknown so you can't assert as fact that the value of sponsorship drops with the club not there. For example if there is the same number of people in attendance over the course of a year would Ricoh prefer them to be football supporters or business people who might actually buy their products?
Click to expand...

Why have Ricoh not renewed their sponsorship deal?
 
N

Noggin

New Member
  • Aug 8, 2014
  • #55
Grendel said:
For the club its worth £1.85 million in player budgets over 3 years. To ACL and compass its worth zero unless we play there.
Click to expand...

Fisher saying it doesn't make it true, if we were at the Ricoh without revenue from f&b we would not be constrained by ffp (scmp actually) considerations, the talk of ffp is and has always been a lie. Not to mention that acl offered to run the money through the books so that it would be available under scmp (though it wouldn't be needed anyway).

The only reason the club needs the food and beverage income is just like everyother club if you have say 200k more profit coming in you have 200k more money than you would do otherwise and that makes it easier to do well because as much as you like to make sarcy comments otherwise wages and transfer value does have a strong positive correlation with the quality of the player (this does not mean and it's sad I have to spell it out over and over again like I'm talking to a child, that all frees are shit)
 

chiefdave

Well-Known Member
  • Aug 8, 2014
  • #56
Grendel said:
Why have Ricoh not renewed their sponsorship deal?
Click to expand...

I wasn't aware it had expired, what is it called now if it's not the Ricoh Arena?
 

Como

Well-Known Member
  • Aug 8, 2014
  • #57
Grendel said:
Why have Ricoh not renewed their sponsorship deal?
Click to expand...

They were not prepared to pay what ACL want or decided to focus advertising monies elsewhere.
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #58
Como said:
Interesting question, I had assumed media exposure was a major factor, and that is what Ricoh were buying in the Premiership.
Click to expand...

Despite Dave'd obsession Ricoh will not offer the same sponsorship deal with no football club. He has far far higher aspirations of the Ricoh as a venue for major non-related football events than anyone will seriously consider.

His pro ACL obsession is disturbing - has he ever made a football related post?
 

italiahorse

Well-Known Member
  • Aug 8, 2014
  • #59
Grendel said:
Why have Ricoh not renewed their sponsorship deal?
Click to expand...

Its a year too early :facepalm:
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #60
chiefdave said:
I wasn't aware it had expired, what is it called now if it's not the Ricoh Arena?
Click to expand...

It expires next year and has not been renewed. Why if more buyers of its products are there for the taking?
 

Como

Well-Known Member
  • Aug 8, 2014
  • #61
Noggin said:
Fisher saying it doesn't make it true, if we were at the Ricoh without revenue from f&b we would not be constrained by ffp (scmp actually) considerations, the talk of ffp is and has always been a lie. Not to mention that acl offered to run the money through the books so that it would be available under scmp (though it wouldn't be needed anyway).

The only reason the club needs the food and beverage income is just like everyother club if you have say 200k more profit coming in you have 200k more money than you would do otherwise and that makes it easier to do well because as much as you like to make sarcy comments otherwise wages and transfer value does have a strong positive correlation with the quality of the player (this does not mean and it's sad I have to spell it out over and over again like I'm talking to a child, that all frees are shit)
Click to expand...

That would be ten grand a game, very difficult to believe. On a 10,000 gate and 10% margin that would mean the average spend would be a tenner.
 

italiahorse

Well-Known Member
  • Aug 8, 2014
  • #62
Grendel said:
Despite Dave'd obsession Ricoh will not offer the same sponsorship deal with no football club. He has far far higher aspirations of the Ricoh as a venue for major non-related football events than anyone will seriously consider.

His pro ACL obsession is disturbing - has he ever made a football related post?
Click to expand...

You have no way of knowing that but you state it again as fact.
 

chiefdave

Well-Known Member
  • Aug 8, 2014
  • #63
Grendel said:
It expires next year and has not been renewed. Why if more buyers of its products are there for the taking?
Click to expand...

So basically you have no idea if Ricoh are intending to renew or not.
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #64
chiefdave said:
So basically you have no idea if Ricoh are intending to renew or not.
Click to expand...

They haven't renewed yet despite a misleading article in a local paper suggesting otherwise.

Do you know what the main motivation for sponsorship is?
 

Como

Well-Known Member
  • Aug 8, 2014
  • #65
Grendel said:
Despite Dave'd obsession Ricoh will not offer the same sponsorship deal with no football club. He has far far higher aspirations of the Ricoh as a venue for major non-related football events than anyone will seriously consider.

His pro ACL obsession is disturbing - has he ever made a football related post?
Click to expand...

If I was Ricoh then a successful club is definitely a plus and I would pay more for sponsorship.

Unfortunately that is not something likely to be available. On the basis of public pronouncements having a League 1 team for a couple of seasons does not sound that attractive.
 

chiefdave

Well-Known Member
  • Aug 8, 2014
  • #66
Grendel said:
Do you know what the main motivation for sponsorship is?
Click to expand...

Your main aim is to get a good ROI but there can be many paths to that. You may just want brand awareness, you may want to target a certain demographic who are likely to purchase your products. It could be numerous other things.
 

ccfcway

Well-Known Member
  • Aug 8, 2014
  • #67
ccfcway said:
Grendal, who cares, its a short term loss that SISU are happy to cover, until we build the new stadium where they get access to all of the revenues.

We are now a year into a 3 or possibly 5 year project, so all will come good in the next 2-4 years.

Rejoice !
Click to expand...

no response grendal ?
 

Grendel

Well-Known Member
  • Aug 8, 2014
  • #68
Como said:
If I was Ricoh then a successful club is definitely a plus and I would pay more for sponsorship.

Unfortunately that is not something likely to be available. On the basis of public pronouncements having a League 1 team for a couple of seasons does not sound that attractive.
Click to expand...

Dave thinks it's better with no club so they can sell more of their products to people attending events their. Apparently Arsenal are closing down and a runway is being constructed on the pitch -- target audience you see.
 
N

Noggin

New Member
  • Aug 8, 2014
  • #69
Como said:
That would be ten grand a game, very difficult to believe. On a 10,000 gate and 10% margin that would mean the average spend would be a tenner.
Click to expand...

Thanks but I think you misunderstand, I wasn't suggesting they were the numbers, That was a random example of why any football club would want the food and beverage revenue. The point of the post was to say that Grendel is wrong and Fisher is lieing when he says we need the revenue for ffp (scmp) calculations, we don't.
 

Mary_Mungo_Midge

Well-Known Member
  • Aug 8, 2014
  • #70
Grendel said:
Can you name 1 other football in the league that doesn't have match day revenues?
Click to expand...

Can you name me another one that sold their rights to match day revenues? The club doesn't have them because the club sold them. To complain about their absence thereafter is farcical to the point of being amusing
 
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