oldskyblue58
CCFC Finance Director
So what would you set a budget on for CCFC?
Why did Waggot leave City ? (1 Viewer)
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So what would you set a budget on for CCFC?
oldskyblue58
CCFC Finance Director
He played a part in it Nick but left at the start of the season. I suspect he left because he had very little to do and what was needed to be done could be done at a much lower pay grade.
The thing about budgets though is that they dont have to be set in stone. They can be flexed or adjusted weekly even daily if necessary. A lot of the extra costs were added after Brookfield left. Therefore the managers and more importantly the directors and owner should have been very aware and at an early time of any budget over run or even a need to change base assumptions.
But of course it is always easy to blame someone no longer there
jimmyhillsfanclub
Well-Known Member
Edit:
My shit joke....removed as it was embarrassingly shit....even for me....even for Otis...
My shit joke....removed as it was embarrassingly shit....even for me....even for Otis...
Nick
Administrator
So there wouldn't be anything strange about the break even figure changing?
chiefdave
Well-Known Member
Does the average ticket price vary much from season to season?
I guess the thing that could have impacted this year was the introduction of the match packages, if they were more popular than expected the average ticket price would drop.
Sky Blue Kid
Well-Known Member
In other words, all this needing 11k-14k figures are a load of BS?
oldskyblue58
CCFC Finance Director
no not as such but the changes would be minor. To be out by a factor of 25% is not what I was saying is normal. It means they under budgeted the costs of the business despite all the staffing and operational cuts in cost...... it is not about under budgeting turnover
The budget sets the pot to be operated within and you spend accordingly. We actually exceeded budget in terms of income. The income as explained by SW in the SCG minutes was based on 6000 STH sales and 5000 walk up. I dont think we were too short on the STH and the walk up exceeded the budget and brings in more per person than STH. It is not a difficult calculation and there are no great assumptions to be made. Othere incomes are relatively fixed or as in terms of F&B known to be relatively small.
Our current crowd average is around 12800. Of that 6000 STH are set and known
To then turn round and say we were 3000 people short per match (or say at least £20k per match ) implies to me that they lost control of the costs. Now costs should in our position be monitored weekly by comparing to budget and therefore any expenditure above budget should be quickly identified and action taken to rectify.
That implies mis management at club level but to think that the owners do not keep a keen eye on things I think would be naiive. So that implies mis management higher up or an approval of overspend. However overspend has consequences with the FL and may well have influenced the sale of Maddison both restoring things to budget and in repaying short term finance from the owner
Just my take on things, it may of course be wrong
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Grendel
Well-Known Member
No they are assumptions behind which will be percentage assumptions on the type of purchasers we have.
People fixate on budgets too much as a guide anyway. It's clear we have overspent now in some areas and other clubs could have a larger budget but not spend it all.
oldskyblue58
CCFC Finance Director
Yes it would affect it but this is not a new business and these are not inexperienced financial people. There is plenty of historical data that would help model the budget and allow it to be flexed
NorthernWisdom
Well-Known Member
It's not just CCFC of course, but I do wish those higher up would take responsibility. They choose who to employ, after all. They set the terms of employment, and they sign off if things are to be done or not.
It's easy to blame someone lower down the chain, when they're basically carrying out orders.
Grendel
Well-Known Member
Budget setting is a difficult and complex process as is forecasting.
It requires much talent, skill and experience and even then things can go rather awry.
jimmyhillsfanclub
Well-Known Member
hmmmm.....I don't think its rocket science to be fair.......if it was a brand new venture with a product straight off the CAD machine & an untested market it would be far more tricky.....but a big chunk of CCFCs costs & revenues are known & fixed....
SkyBlueZack
Well-Known Member
Reda's medical bill? 
singers_pore
Well-Known Member
The club should have been able to accurately estimate the break even figure as it has historical data on the composition of discounted vs full price tickets and it should have budgeted for ticket giveaways and special offers. To be off by such a large margin is gross incompetence.
On the other hand SISU and CA would find it difficult to justify another budget cut next year if we had exceeded our budgeted break even figure. I think the new figure of 14,000 is bollocks and the true break even figure is still 11,000. Bear in mind that they came up with that 11,000 estimate at a time when it looked unlikely we could get average crowds over 11,000.
If we ever look like exceeding the new "break even" figure of 14,000 they will probably revert back to McGinnity's old breakeven estimate which was 21,000. Basically they have to come up with a breakeven that exceeds our crowds otherwise the fans will realize that the excuses for selling our best players are bullshit.
On the other hand SISU and CA would find it difficult to justify another budget cut next year if we had exceeded our budgeted break even figure. I think the new figure of 14,000 is bollocks and the true break even figure is still 11,000. Bear in mind that they came up with that 11,000 estimate at a time when it looked unlikely we could get average crowds over 11,000.
If we ever look like exceeding the new "break even" figure of 14,000 they will probably revert back to McGinnity's old breakeven estimate which was 21,000. Basically they have to come up with a breakeven that exceeds our crowds otherwise the fans will realize that the excuses for selling our best players are bullshit.
SkyBlueZack
Well-Known Member
Why did we sell Maddison then? I thought it was because he was the next big thing and was destined for the premiership? Or am I way off? And really it has paid for Joy's end of January holiday?
Captain Dart
Well-Known Member
Estimated facts.
NorthernWisdom
Well-Known Member
Hmm, I've got no problem seeing it as anything other than a massive cockup tbh. 11,000 doesn#'t seem entirely stupid to put your budget at. It's attainable, and possible to go over, and if we were way down we had a bunch of loans we didn't need to extend.
My only thought is someone worked out the budget at 11,000 based on 'normal' ticket prices, forgetting we were reducing them for this season...
skybluetony176
Well-Known Member
Of course there's always the possibilty that some of the interest on the "not real" debt has been called in and this has risen the break even a few 1000?
Captain Dart
Well-Known Member
Sky Blue Kid
Well-Known Member
More like half the scrotes in Cov try and get away with pensioner, disabled/carer or kids tickets...................same just happened at Brandon at the Bees, they offered a student rate and suddenly half of their crowd are full time students. The clubs can't win sometimes !
NorthernWisdom
Well-Known Member
Reminded me I must go there more this season. Given I can hear it from my house, I may as well watch it, too!
Skyblueweeman
Well-Known Member
Catherine Zeta-Jones?
Colin Steins Smile
Well-Known Member
I would be very interested to see the management accounts for the club and see in the "fees" to SISU or "Consultants" have recently been adjusted upwards. That could account for a steep rise in the financial targets for the club.
shmmeee
Well-Known Member
oucho
Well-Known Member
It could be that they suddenly attracted a load of students with the introduction of the promotion, which had a knock on effect of putting off half the regulars....
Grendel
Well-Known Member
oucho
Well-Known Member
Well I think in previous sets accounts there have been. I'm not going to look back and find it, but I recall that being reported at the time they were issued. Oh well!
Grendel
Well-Known Member
oucho
Well-Known Member
Oooh, venom and bile alert!!
SkyblueBazza
Well-Known Member
Once he'd resigned I guess he had no reason to in the City anymore?
...onwards & upwards PUSB
...onwards & upwards PUSB
letsallsingtogether
Well-Known Member
Do they all do for the love of City then?
If anyone from the owners is getting paid I assume it will be related to getting the club's running costs down. Which if this is the case they will be happy with what has been done. For the fans it has sadly brought a decline in the standard of squads over the last 5 or so years. If the running costs are cut again, although good for the owners the fear should be at what level will be the 1St team squad be when the next accounts are submitted.
ccfcway
Well-Known Member
failure.
