Ricoh Catering (3 Viewers)

[deanocity3]

On the Catering front
what is owned and managed by the ricoh and what is owned by Compass.
If it is all under one company say it's compass how much profit do they make on matchdays, as the stock as to be bought and staff need to be paid.
not everybody has a drink and a pie.
Just wondering because if someone takes over the catering compass will need to be paid off, which would be several million.
I can't see much profit in it.

 

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[oldskyblue58]

Its not set up like that any more

All stadium operations for matches, conferences, exhibitions are now run by IEC Experience Limited. That company is owned 77% by ACL and 23% Compass. Compass provide all staff to IEC (including office, marketing & sales staff). Compass are not likely to pull out. Matchday income does not provide most of IEC income either and because most staff needs are on agency basis costs can be matched to need.

The opportunity in this for a potential purchaser is that they do not need to buy the complex freehold to control all the site income streams. They just need to buy in to IEC

I agree though I do not see any great net profits from match day incomes

 

[covcity4life]

there is no benefit to having income streams

oh wait....

 

[skybluesam66]

i think most of the match day catering money is in the corporates
you may make 20k per match out of the corporates- mostly profit (this could be 300k per year and where most of the catering profits are- not the 1000 people who may buy a pie and a pint

from the snippets ive gathered, sisu currently purchase the catering on these from acl (or maybe the organisation mentioned above), and there is only room for a small amount of margin

 

[italiahorse]

there is no benefit to having income streams

oh wait....

Nobody said that.
They said they did not see any great net profits.

Also I believe fair play rules allow sales figures to be used rather than profit.

 

[hutch1972]

i think most of the match day catering money is in the corporates
you may make 20k per match out of the corporates- mostly profit (this could be 300k per year and where most of the catering profits are- not the 1000 people who may buy a pie and a pint

from the snippets ive gathered, sisu currently purchase the catering on these from acl (or maybe the organisation mentioned above), and there is only room for a small amount of margin

Got to be more than 1000 that buy on a matchday,i'd say nearer 2000, a pie and a pint each would be 3oo.ooo before tax.
Only my guess mind.

 

[kmj5000]

Nobody said that.
They said they did not see any great net profits.

Also I believe fair play rules allow sales figures to be used rather than profit.

No. It was explained at the fan's forum. Merchandise sales, hospitality etc are on a net profit basis, after the cost of goods, wage costs and a proportion of overheads.

 

[RFC]

FIFA Financial Fair Play is based in gross incomes, not profit!

 

[kmj5000]

Nobody said that.
They said they did not see any great net profits.

Also I believe fair play rules allow sales figures to be used rather than profit.

FIFA Financial Fair Play is based in gross incomes, not profit!

On sponsorship, gate receipts and TV money, yes.

Here is an extract from the FL rules on FFP


The Fair Play Result is based on the club's profit or loss before tax with the exception of:

• Investment in Youth Development (as defined in the Elite Player Performance Plan)
• The profit affecting element of the purchase, sale and depreciation of fixed assets excluding players (e.g. a club's stadium)
• Investment in a club's Community Scheme
• Promotion related bonus payment

Just google FFP rules.

 

[oldskyblue58]

Thats for the Championship kmj

the L1 rules are different

as per a replies from the FL

Income generated by a club that forms part of its football activities such as, commercial revenues, gate revenues, solidarity payments, Football League payments, donations, net transfer income (transfer fees paid) all make up the relevant income within the SCMP guidelines.

The relevant income figure for SCMP will be a portion of total turnover, but not necessarily agree to total turnover figure in the accounts.

SCMP splits turnover into ‘normal income’ and ‘football fortune’ income. For League 1 clubs both these forms of income go into determining how much money a club can spend in relation to wages. In League 1’s case, this is set at 65% of turnover. This is calculated on an on-going basis going forward.

All player wages are included in the calculation. This covers basic wage, bonuses, appearances and any other add-ons. The calculation also includes PAYE, medical costs, cars and travel and also agent payments. Basically the full cost of a player is included. Players included are all contract players (full contract, non-contract, multiplicity etc.) and loan players. Players loaned out are deducted for the period of the loan. Players not included are youth players on a professional contract (i.e. players that have been in the club’s YD scheme and have been given a pro contract. They must be 20 years of age or under at the start of the season to be discounted from the SCMP calculation.

SCMP relates to playing staff only

 

[skybluehugh]

Its not set up like that any more

All stadium operations for matches, conferences, exhibitions are now run by IEC Experience Limited. That company is owned 77% by ACL and 23% Compass. Compass provide all staff to IEC (including office, marketing & sales staff). Compass are not likely to pull out. Matchday income does not provide most of IEC income either and because most staff needs are on agency basis costs can be matched to need.

The opportunity in this for a potential purchaser is that they do not need to buy the complex freehold to control all the site income streams. They just need to buy in to IEC

I agree though I do not see any great net profits from match day incomes

OSB are you sure? It is/was so important to our owners that you must for once have gotten your math wrong.

 

[italiahorse]

If I read it right then.

On total sales of £1M where actual profit is 100K (Approx Figures)

You can use 650K (65%) of the sales rather than the 100K.

 

[kmj5000]

Nobody said that.
They said they did not see any great net profits.

Also I believe fair play rules allow sales figures to be used rather than profit.

Thats for the Championship kmj

the L1 rules are different

as per a replies from the FL

Income generated by a club that forms part of its football activities such as, commercial revenues, gate revenues, solidarity payments, Football League payments, donations, net transfer income (transfer fees paid) all make up the relevant income within the SCMP guidelines.

The relevant income figure for SCMP will be a portion of total turnover, but not necessarily agree to total turnover figure in the accounts.

SCMP splits turnover into ‘normal income’ and ‘football fortune’ income. For League 1 clubs both these forms of income go into determining how much money a club can spend in relation to wages. In League 1’s case, this is set at 65% of turnover. This is calculated on an on-going basis going forward.

All player wages are included in the calculation. This covers basic wage, bonuses, appearances and any other add-ons. The calculation also includes PAYE, medical costs, cars and travel and also agent payments. Basically the full cost of a player is included. Players included are all contract players (full contract, non-contract, multiplicity etc.) and loan players. Players loaned out are deducted for the period of the loan. Players not included are youth players on a professional contract (i.e. players that have been in the club’s YD scheme and have been given a pro contract. They must be 20 years of age or under at the start of the season to be discounted from the SCMP calculation.

SCMP relates to playing staff only

I stand to be corrected. Thank you for putting me right OSB.

 

[skybluesam66]

is that why we are going for a bunch of kids - under 20 at the start of the season - excluded from the calculation and therefore 87 season tickets is not an issue