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We can't afford to be a Championship club? (1 Viewer)

  • Thread starter skybluebeduff
  • Start date Aug 12, 2015
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Astute

Well-Known Member
  • Aug 12, 2015
  • #106
hill83 said:
I'll read that later. Didn't realise we were thread hopping.
Click to expand...

Not thread hopping. Same subject more or less on two threads at the same time. Gets a bit confusing
 

Grendel

Well-Known Member
  • Aug 12, 2015
  • #107
Astute said:
Not thread hopping. Same subject more or less on two threads at the same time. Gets a bit confusing
Click to expand...

As I've said i am stupid. I want you to explain OSB's post only on this thread and how it reconciles with your view on Bournemouth I will truly find it enlightening.
 

letsallsingtogether

Well-Known Member
  • Aug 12, 2015
  • #108
Astute said:
Not thread hopping. Same subject more or less on two threads at the same time. Gets a bit confusing
Click to expand...
Never only on 2 threads don't believe it must be a first on here for a long time
 

letsallsingtogether

Well-Known Member
  • Aug 12, 2015
  • #109
stupot07 said:
1) the club won't be killed.
2) only 4 teams can play in the champions league, only 20 in the PL if mediocrity kills clubs why are there 72 football league clubs and a massive none league scene?

To say it will kill the club is pretty odd comment.


Sent from my iPhone using Tapatalk - so please excuse any spelling or grammar errors
Click to expand...

Sorry I was wrong it will make it stronger
 

Astute

Well-Known Member
  • Aug 13, 2015
  • #110
Grendel said:
As I've said i am stupid. I want you to explain OSB's post only on this thread and how it reconciles with your view on Bournemouth I will truly find it enlightening.
Click to expand...

So you fully agree with something you don't understand
 

stupot07

Well-Known Member
  • Aug 13, 2015
  • #111
letsallsingtogether said:
Sorry I was wrong it will make it stronger
Click to expand...

Don't be facetious. I never said it would make the club stronger, I said it wouldn't 'kill' the club.



Sent from my iPhone using Tapatalk - so please excuse any spelling or grammar errors
 

MalcSB

Well-Known Member
  • Aug 13, 2015
  • #112
Astute said:
Our problem when we were in the Championship was that we were paying top wages for poor players. If we got promoted this season we would have much higher attendances than we have now. And we would have a manager in TM that would spend wisely. I am not saying it would be easy. But it isn't all doom and gloom as some say. It isn't how much money you have. It is how wisely it is spent. We would be up against clubs burning through money not being earned. But a successful season should see us somewhere near the over 20k per game we had before SISU took over.
Click to expand...

And we were paying quite a lot of rent
 

Astute

Well-Known Member
  • Aug 13, 2015
  • #113
MalcSB said:
And we were paying quite a lot of rent
Click to expand...

We were. And we might have to again. We are in the last year of the deal that brought us back. And we don't have a clue what we would be charged next season. And would it have been more for getting promoted?

Bournemouth rent their ground. It only holds 11.5k but they get charged 450k. They can afford it now. But it puts it into perspective what rent deals cost. We could bring up the clubs that don't pay much rent and pretend that they pay what is the norm. Just like we could bring up the most expensive rents and say that is.

Or how about the 175k we paid Northampton? People on here moan about only getting 23 days a year for 100k at the Ricoh. But it is just over half of what we paid Northampton for a much inferior ground.
 

MalcSB

Well-Known Member
  • Aug 13, 2015
  • #114
You are absolutely right that the current deal is, financially, a bargain - although football takes second place to computer gamers. The Bournemouth deal sounds expensive for League 1 but cheap for the prem. Will we ever have a proper home for a decent price, who knows. It's all very sad.
 

torchomatic

Well-Known Member
  • Aug 13, 2015
  • #115
They're not making excuses why we can't succeed. On the flip side this thread is full of comments suggesting that the Club DOESN'T need any of this extra income. Funny, how all the other clubs throughout the leagues need it, just us who doesn't apparently. if it didn't matter then FFP wouldn't exist.

It's like all the hysterical girls last week wetting themselves over Waggot's season tickets comments. What? Clubs get more money when fans buy season tickets shocker.


No one is happy in League One and no one is "willing to put up with it".

letsallsingtogether said:
Torch read the replies in this thread.
All we get are excusses for why we can't succeed.
People need to stop making excuses for our awful none committed owners.
We need to own our own ground
We need pie money
We need fans to turn up
We need 52 weeks a year income

We need We need!!
Well there is only one party involved in this sorry state of affairs who can do anything about it?


I know I hate these owners but I will give them credit when it is due.
Up to now they have done little to make me do that.
Click to expand...
 
Last edited: Aug 13, 2015

Astute

Well-Known Member
  • Aug 13, 2015
  • #116
torchomatic said:
They're not making excuses while we can't succeed. On the flip side this thread is full of comments suggesting that the Club DOESN'T need any of this extra income. Funny, how all the other clubs throughout the leagues need it, just us who doesn't apparently. if it didn't matter then FFP wouldn't exist.

It's like all the hysterical girls last week wetting themselves over Waggot's season tickets comments. What? Clubs get more money when fans buy season tickets shocker.


No one is happy in League One and one is willing to put up with it.
Click to expand...

To me it isn't that we don't need as much income as we can get as we do. It is those that try to make out that all clubs get the revenue that we are now missing out on. Or make out that all the revenues for all other clubs is a massive amount and don't take the expenses into account.
 

Grendel

Well-Known Member
  • Aug 13, 2015
  • #117
Astute said:
To me it isn't that we don't need as much income as we can get as we do. It is those that try to make out that all clubs get the revenue that we are now missing out on. Or make out that all the revenues for all other clubs is a massive amount and don't take the expenses into account.
Click to expand...

By your own admission Howe is a good manager. The wage bill is an expense. That expense was £17 million in the championship. Southampton secured promotion with a £29 million wage bill.

We also know that even when we had 20,000 people through the door a week the revenue generated was only £10 per customer.

Given that our actual genuine revenue is very limited. Under no circumstances would we be able to match clubs like Bournemouth. We would be a club that has far more in common with the likes of Rotherham.
 

skybluetony176

Well-Known Member
  • Aug 13, 2015
  • #118
Grendel said:
By your own admission Howe is a good manager. The wage bill is an expense. That expense was £17 million in the championship. Southampton secured promotion with a £29 million wage bill.

We also know that even when we had 20,000 people through the door a week the revenue generated was only £10 per customer.

Given that our actual genuine revenue is very limited. Under no circumstances would we be able to match clubs like Bournemouth. We would be a club that has far more in common with the likes of Rotherham.
Click to expand...

You keep using club's like Bournemouth and Southampton as examples and saying that we can't compete with them like someone is disagreeing with you which they aren't. We don't have multimillionaire owners who are willing to pump the difference in to be a Bournemouth of Southampton. How about a Charlton or a Huddersfield? Plant ourselves in mid table mediocrity in the championship rather than mid table mediocrity in league one because we can't be a Bournemouth or Southampton in championship? We don't have to be a Southampton or Bournemouth if we go up. What would it take to survive the league? Not win the league?
 

Nick

Administrator
  • Aug 13, 2015
  • #119
Don't Huddersfield have somebody throwing money in too?
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #120
Nick said:
Don't Huddersfield have somebody throwing money in too?
Click to expand...

Found an article from Feb that says their owner has put in nearly £40m
 

skybluetony176

Well-Known Member
  • Aug 13, 2015
  • #121
Nick said:
Don't Huddersfield have somebody throwing money in too?
Click to expand...

Not sure that's why I asked the question. How much are they throwing in? What gates and ticket revenue do they average per home game?

Doesn't necessarily have to be Huddersfield as the example either. Which other teams have enjoyed mid table mediocrity in the championship for a number of years? Let's be honest, currently that's the best we can hope for as a club for numerous reasons (without going into them) what does that cost to achieve? Can we achieve that without extra funding from our owners? That's what I'm interested in knowing.

I would say the reason we came down wasn't what we spent it was what we squandered. TM has control of the purse strings now and I have more confidence that he can spend it wiser than all who have gone before him. Both on the pitch and behind the scenes.
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #122
skybluetony176 said:
What would it take to survive the league? Not win the league?
Click to expand...

We know from our previous time in the Championship that despite having decent crowds we were down in the bottom clubs in terms of revenue. So we'd be starting at a disadvantage. Of course not impossible as spend doesn't directly equate to success but I think it would be foolish to think there's not a link.

Of the 24 teams in the Championship up to 9 will be receiving parachute payments of over £20m a year. You then have to factor in the owners who will take a gamble and spend big. So realistically at least half the teams will have budgets that absolutely dwarf ours making it unlikely we will compete with them. Would the fans settle for season after season of hoping not to be relegated from the Championship?
 

skybluetony176

Well-Known Member
  • Aug 13, 2015
  • #123
chiefdave said:
Found an article from Feb that says their owner has put in nearly £40m
Click to expand...

Over how long a period? What is their actual debt?
 

skybluetony176

Well-Known Member
  • Aug 13, 2015
  • #124
chiefdave said:
We know from our previous time in the Championship that despite having decent crowds we were down in the bottom clubs in terms of revenue. So we'd be starting at a disadvantage. Of course not impossible as spend doesn't directly equate to success but I think it would be foolish to think there's not a link.

Of the 24 teams in the Championship up to 9 will be receiving parachute payments of over £20m a year. You then have to factor in the owners who will take a gamble and spend big. So realistically at least half the teams will have budgets that absolutely dwarf ours making it unlikely we will compete with them. Would the fans settle for season after season of hoping not to be relegated from the Championship?
Click to expand...

Over season after season sitting in league one hoping not to get relegated I would and I would say so would the majority.
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #125
skybluetony176 said:
Not sure that's why I asked the question. How much are they throwing in? What gates and ticket revenue do they average per home game?
Click to expand...

Just did a quick google of Charlton, Sheff Wed and Forest, who were mid table last season, and it looks like they've all had owners put in investments in the tens of millions.

Also saw reference to a football finance expert saying at least a £25m budget was needed to compete at that level.
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #126
skybluetony176 said:
Over how long a period? What is their actual debt?
Click to expand...

Dean Hoyle has pumped £37.2m into Huddersfield Town over the last six year.

Club lose £6.8m last year and expected to lose another £6m this season.

The Championship club lost £6.8m last year compared with £4m in the previous 12 months and the spending on football costs was £12.6m compared with £13m the year before.

turnover of £10.8m included matchday revenue of £3.379m, TV and League income of £4.227m and commercial and advertising income of £1.276m.

Town would be in a sorry state were it not for the financial commitment of owner-chairman Hoyle, and Town are expected to lose another £6m this year (2014-15).

There were 9,258 season-card holders last season

After the year end, Hoyle converted £3.5m of his existing loans to share capital.

During the year, he gave £6m of loans and also repaid £2m of loans to previous chairman Ken Davy, in connection with the purchase of the 40% share.
Click to expand...
 

oldskyblue58

CCFC Finance Director
  • Aug 13, 2015
  • #127
I think it might be an idea to ask the club what the additional "match day" costs they actually pay to ACL/Wasps are. Perhaps a question at the next SCG meeting? Or even do they pay any?

What I would expect if they do pay is it would be made up of the things like following
- cost of staff supplied (excluding kiosk staff because that gets deducted from F&B income I would think before the % split is made)
- Cost of power & utilities (it is possible this is included in the rent)
- a contribution to Pitch preparation and maintenance (could be in the rent but doubt it)
- health & safety/ policing costs
- stewarding costs (not supplied by CCFC itself) - with part of the stadium closed then these can be minimised
- the cost of hospitality packages & parking - I would think this varies depending on number of packages sold
- Board room costs

The rent is a reflection of the quality and upkeep of the stadium bowl or would be if it hadn't been set at an artificially low level. So contribution to the stadium fabric/capital should be reflected in cost of rent

The point I am going to come back to is that despite the public proclamations that turnover is vital, the club is focussed by the directors on cost control and not necessarily income development.

- ST prices lowered considerably (welcome for the fans certainly) but reduced income by probably 245K if they don't climb above current levels (SCG minutes indicated 4700+ last year)
- matchday tickets dropped £2 (welcome for the fans certainly) but if crowds do not improve over last year could cost the £450k in turnover
- Shop sales say turnover £400k and after direct costs was £250K last year we now get a commission lets guess at 15% to count in SCMP - a drop of £200k ish
- Match day hospitality - those prices dropped by the club also say that reduces turnover by £100k (pure guess)
- programme sales say we sell 2000 per game at £3net that's 200K previously. Now we get a commission say what 20% £40k - a drop of £160k
- Cost of advertising reduced
- cost of executive boxes reduced

That's a reduction in Turnover decided by the club of over £1m or put another way a reduction in SCMP of £600k+ Highlights the real need to get more people going to games doesn't it. All guess work yes but you get the idea. What new sources of Turnover are being added or attempted? There are ways and partnerships by which it could be done

On the other side of that.
- Player budget down - although you could argue it is being better spent. Focus is on youth which is cheaper. Per SCG minutes approx. £2m SCMP budget previous year over £3m
- Non football staff wages reduced - only something like 5 staff & directors now employed. Significant savings
- No shop run by CCFC and all CCFC administrative functions now at Ryton so major savings there (may be additional cost of stadium outlet on match days)
- They haven't made use of third party finance to do scheme to spread ST costs
- The lounges have not been block booked. Cost only when used and the number of lounges (or space in them ) restricted to suit
- Travel costs reduced
- etc All made to fit the budget they have. But also the people they have in the offices etc.

all pretty much decisions made by the club

Now don't read the above wrongly it is not meant as a criticism of CCFC more a pointing out what now is. Lowering prices to encourage more customers is a recognised tactic of many businesses, being prudent about cost and only paying for what is absolutely necessary is not a bad thing either. It is a cost risk averse approach. But I think what it points out is that self sufficiency CCFC style is not necessarily about Turnover. It looks like they are prepared to reduce turnover to reduce costs
 
Last edited: Aug 13, 2015

SkyBlue_Bear83

Well-Known Member
  • Aug 13, 2015
  • #128
chiefdave said:
Just did a quick google of Charlton, Sheff Wed and Forest, who were mid table last season, and it looks like they've all had owners put in investments in the tens of millions.

Also saw reference to a football finance expert saying at least a £25m budget was needed to compete at that level.
Click to expand...

Its an interesting point as I heard Steve Parish on radio the other week (Crystal Palace chairman) and he reckons a 9 million budget should see you mid table in the championship.
 
4

4waspsting

Active Member
  • Aug 13, 2015
  • #129
it doesnt really matter we are nothing as a club its just a day out for most supporters
 

skybluetony176

Well-Known Member
  • Aug 13, 2015
  • #130
chiefdave said:
Just did a quick google of Charlton, Sheff Wed and Forest, who were mid table last season, and it looks like they've all had owners put in investments in the tens of millions.

Also saw reference to a football finance expert saying at least a £25m budget was needed to compete at that level.
Click to expand...

Again over how long? Sheffield Wednesday and Forest aren't exactly what you'd call stable clubs either. Jump from manager to manager as if that's the answer which must cost them a few quid on it's own spanking loads on players that don't deliver. Not so different from our failed game plan when we we're last there. That's a money pit all on it's own.

There's that word compete again. What do you actually mean by compete? Compete for automatic promotion? Compete for a playoff place? Compete for mid table mediocrity? Compete for successfully missing out on relegation?
 
D

Deleted member 5849

Guest
  • Aug 13, 2015
  • #131
skybluetony176 said:
Doesn't necessarily have to be Huddersfield as the example either. Which other teams have enjoyed mid table mediocrity in the championship for a number of years? Let's be honest, currently that's the best we can hope for as a club for numerous reasons (without going into them) what does that cost to achieve? Can we achieve that without extra funding from our owners? That's what I'm interested in knowing.
Click to expand...

If we don;t get into ownership questions, if we have little in the way of benefactors, we'd probably have to depend on either growing from youth saleable assets, or finding players cheap in the lower divisions, and selling them on for a profit.

That also becomes harder in the modern day however... as we've certainly shown. Curbishley at Charlton's the best example, where they'd sell a player, re-invest some of the cash on 2-3 players, and keep a surplus for club running costs. With a global player market and freedom of movement, though, it's tricky to get right.
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #132
skybluetony176 said:
Again over how long? Sheffield Wednesday and Forest aren't exactly what you'd call stable clubs either. Jump from manager to manager as if that's the answer which must cost them a few quid on it's own spanking loads on players that don't deliver. Not so different from our failed game plan when we we're last there. That's a money pit all on it's own.

There's that word compete again. What do you actually mean by compete? Compete for automatic promotion? Compete for a playoff place? Compete for mid table mediocrity? Compete for successfully missing out on relegation?
Click to expand...

I'm not going to pick through every clubs accounts but its pretty clear we're at a big disadvantage.

We are being run as self sufficient - hard to argue that shouldn't be the case. We know for a fact that the teams receiving parachute payments, which can be up to nine teams in the Championship in any one season, will have an additional £20m plus on top of their regular budget. We know that several clubs will have owners who are prepared to 'have a punt' and we know, from figures shown on the forum several times, that when previously in the Championship while getting decent crowds and a fully running commercial side of the club our revenue was the fourth lowest in the division.

I would conclude from that we will have one of the lowest player budgets in the division and therefore, although spend is not directly linked to performance, will struggle to compete. To be competitive in my mind we'd be talking about at least mid-table if not challenging higher up. The reality for us is that it will be regular relegation battles unless we punch above our weight.

The saddest part is that the sale of ACL to Wasps means that even when we do finally see the back of SISU things are unlikely to improve. Our only real options for a brighter future are:
1) Wasps fail and sell ACL at a reasonable price;
2) Someone funds a new ground, they would essentially need to gift the cost of the land and build;
3) A billionaire owner who doesn't mind losing money;
4) Significant changes in regulation and revenue sharing to level the playing field - we would still be behind others but the difference might be smaller.
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #133
Deleted member 5849 said:
With a global player market and freedom of movement, though, it's tricky to get right.
Click to expand...

And the amount developing clubs are entitled to for younger players has been reduced, don't think anyone would be surprised if it was reduced again in the future as obviously all the PL clubs are short on cash to pay a decent amount for them.
 

letsallsingtogether

Well-Known Member
  • Aug 13, 2015
  • #134
chiefdave said:
I'm not going to pick through every clubs accounts but its pretty clear we're at a big disadvantage.

We are being run as self sufficient - hard to argue that shouldn't be the case. We know for a fact that the teams receiving parachute payments, which can be up to nine teams in the Championship in any one season, will have an additional £20m plus on top of their regular budget. We know that several clubs will have owners who are prepared to 'have a punt' and we know, from figures shown on the forum several times, that when previously in the Championship while getting decent crowds and a fully running commercial side of the club our revenue was the fourth lowest in the division.

I would conclude from that we will have one of the lowest player budgets in the division and therefore, although spend is not directly linked to performance, will struggle to compete. To be competitive in my mind we'd be talking about at least mid-table if not challenging higher up. The reality for us is that it will be regular relegation battles unless we punch above our weight.

The saddest part is that the sale of ACL to Wasps means that even when we do finally see the back of SISU things are unlikely to improve. Our only real options for a brighter future are:
1) Wasps fail and sell ACL at a reasonable price;
2) Someone funds a new ground, they would essentially need to gift the cost of the land and build;
3) A billionaire owner who doesn't mind losing money;
4) Significant changes in regulation and revenue sharing to level the playing field - we would still be behind others but the difference might be smaller.
Click to expand...

Just sort out a good rent deal look at West Ham they are now getting a ground for vertualy nothing if the figures coming out are correct so therefore they are in a better situation then all the ground owning clubs.
 

SkyBlue_Bear83

Well-Known Member
  • Aug 13, 2015
  • #135
chiefdave said:
I'm not going to pick through every clubs accounts but its pretty clear we're at a big disadvantage.

We are being run as self sufficient - hard to argue that shouldn't be the case. We know for a fact that the teams receiving parachute payments, which can be up to nine teams in the Championship in any one season, will have an additional £20m plus on top of their regular budget. We know that several clubs will have owners who are prepared to 'have a punt' and we know, from figures shown on the forum several times, that when previously in the Championship while getting decent crowds and a fully running commercial side of the club our revenue was the fourth lowest in the division.

I would conclude from that we will have one of the lowest player budgets in the division and therefore, although spend is not directly linked to performance, will struggle to compete. To be competitive in my mind we'd be talking about at least mid-table if not challenging higher up. The reality for us is that it will be regular relegation battles unless we punch above our weight.

The saddest part is that the sale of ACL to Wasps means that even when we do finally see the back of SISU things are unlikely to improve. Our only real options for a brighter future are:
1) Wasps fail and sell ACL at a reasonable price;
2) Someone funds a new ground, they would essentially need to gift the cost of the land and build;
3) A billionaire owner who doesn't mind losing money;
4) Significant changes in regulation and revenue sharing to level the playing field - we would still be behind others but the difference might be smaller.
Click to expand...
Watford are a club who have done well whilst not spending too much cash, they have there special arrangement with Udinese as well through the owners which helps.
 

Grendel

Well-Known Member
  • Aug 13, 2015
  • #136
letsallsingtogether said:
Just sort out a good rent deal look at West Ham they are now getting a ground for vertualy nothing if the figures coming out are correct so therefore they are in a better situation then all the ground owning clubs.
Click to expand...

I think they have a Local Authority that sees benefits of local sport in the community. Unlike some I could mention.

http://www.bbc.co.uk/sport/0/football/33780720
 
W

wingy

Well-Known Member
  • Aug 13, 2015
  • #137
Grendel said:
I think they have a Local Authority that sees benefits of local sport in the community. Unlike some I could mention.

http://www.bbc.co.uk/sport/0/football/33780720
Click to expand...

Is It not more like a beneficial situation through the Taxpayer /Olympic Authority thats seems to have been benign to them?
I'm not absolutely sure on the figures but I think they're liable to pay around £3M per season much like Man City.
 

Grendel

Well-Known Member
  • Aug 13, 2015
  • #138
CCFC said:
Watford are a club who have done well whilst not spending too much cash, they have there special arrangement with Udinese as well through the owners which helps.
Click to expand...

http://www.watfordobserver.co.uk/sp...ve_invested_around___20_million_into_Watford/
 

lifeskyblue

Well-Known Member
  • Aug 13, 2015
  • #139
We will never know until we get there! Until then speculation. If/when we are on the up some consortia/individual may come in for us. Wasps if they stay at Ricoh may do us a good deal. Sisu may build another stadia etc etc


Sent from my iPhone using Tapatalk
 

chiefdave

Well-Known Member
  • Aug 13, 2015
  • #140
wingy said:
I'm not absolutely sure on the figures but I think they're liable to pay around £3M per season much like Man City.
Click to expand...

It's believed to be £2m - £2.5m however with the way the stadium costs are being funded it is said to be effectively rent free.

http://www.bbc.co.uk/sport/0/football/33780720
 
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