Somebody please help me understand!

Discussion in 'Coventry City General Chat' started by skybluelee, Jul 9, 2013.

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  1. skybluelee

    skybluelee Well-Known Member

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    I have stayed well clear of the financial debate so far, as a) I don't understand a lot of it and b) it strikes me that most people on here don't understand a lot of it but post regardless which just makes it all even more confusing.

    But in REALLY simplistic terms, doesn't it stake up like this;

    £400K rent at Ricoh over 5 years = £2M
    Gate receipts, say 10,000 x say £15 x say 27 games over 5 years = £20.25M
    Net £18.25M

    versus

    Say £100K rent at Northampton over 5 years = £500K
    Gate receipts, say 3,000 x £15 x 27 games over 5 years = £6.075M
    Net £5.575M

    Not to mention the generation of fans lost, the reduced sponsorship, the reduced merchandise etc.

    And not to mention the FFP rules that will hamstring us meaning we will almost certainly be a Div 4 club in the next year or 2 leading to even smaller crowds, sponsorship, merchandise...

    What am I not getting?...
     
  2. blueflint

    blueflint Well-Known Member

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    you are getting it m8
     
  3. The Penguin

    The Penguin Active Member

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    It stacks up like that if you use the alleged final offer made to SISU by ACL for the use of the Ricoh. If you use the currently existing lease terms, it increases the amount of rent we would pay significantly.

    However, the most important part - the turnover from gate receipts - is the big kicker, and the major reason why this decision is insane. Not saying the rent doesn't matter (it does and we should not be paying a million quid plus per season for rent, especially with no access to revenue) but that is a massive drop in estimated gate receipt revenue.
     
  4. chiefdave

    chiefdave Well-Known Member

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    Even if you use the current rent we're still £10m better off staying here!
     
  5. The Penguin

    The Penguin Active Member

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    Absolutely.

    On the basis of this admittedly simple analysis, it's a nonsensical decision made by a few stubborn people who are living in a dreamland.
     
  6. dongonzalos

    dongonzalos Well-Known Member

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    Kidnap and blackmail is the bit you are not getting.
    The ransom ACL for about 5 million or less.
     
  7. wingy

    wingy Well-Known Member

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    Only the bit that SISU are going to fund the losses ,but that won't be a lot as players will be sold to cover It and secondly the losses will be negligible as we slide through the Pyramid .we can never aspire to compete at the highest levels ,expect the opposite or worse.
     
  8. RegTheDonk

    RegTheDonk Well-Known Member

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    Yes Penguin, its insane. To make up the difference in gate receipts SISU need some seriously fat, alcoholics to make their way to Northampton and eat and drink their way through about £50 each.
     
  9. simple_simon

    simple_simon New Member

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    Welcome to our frustrations.
     
  10. italiahorse

    italiahorse Well-Known Member

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    Can you show TF the figures.
    It's obvious to everybody.

    Add on the mortgage for a £30M stadium and surrounding land.
    FL were the only way of vetting SISU plan and stopping it but they did not do their job.
     
  11. Gary.j

    Gary.j Member

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    And say, a supporter owned enterprise could only bring in 1/3 of that amount, couldn't a large chunk of that be used as part of a stadium purchase plan?
     

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