Albion STILL losing money

[dejavuatbtn]

I suspect that the main reason for going over budget is the club bending over backwards to meet Poyet's demands in creating the sort of infrastructure he believes is required in the future. The problem is that most clubs try and have a long term strategy, whereas we appear to be wanting to do it tomorrow for fear of Poyet leaving.
The club is now in a position to recruit top management, and I, for one, wouldn't have a problem if Poyet packed his bags and allowed another guy in who opted for a different style of play.

 

[Mr Putdown]

Makes you wonder if its all worth it really. Sell out crowds, pies and pints sunk by the thousand, everyone buying the tat from the super store and the suits still can't turn a profit. What a pile of wank football finance is.

Ain't that the honest truth.

As things stand, Championship football is completely and utterly unsustainable.

 

[Ernest]

Worrying that with 26k crowds each game we can't make it pay so how the hell are teams like Middlesboro etc not going bust ?

 

[backson]

All this is very worrying. With the lack of entertainment offered by Poyet's brand of "football", the only way gates and revenues are going is downwards!

He says, on the day we had the highest Amex attendance ever

 

[cloud]

The club specifically called it an Operating Loss, so a loss based on day-to-day expenditure, rather than repayment of capital or the investment in stadium expansion.

Could be Barber's wages and bonus

 

[brighton rock]

Quite surprised , Brightons expenditure is not that high , better hope gate don't drop off a little or money would be tight

 

[Guy Fawkes]

If we're losing money, that means that the biggest outgoing the club has is the loan repayments to TB, so even if we are "losing money" I wouldn't read too much into it.

The club is (obviously) in an extremely healthy state indeed, with the highest revenue in the league and (apparently) only the 8th highest playing budget.

Which arn't due to him for another 20+ years??

What about all the other start up costs associated with the Amex? - from expansion to smaller things like buying Stewards uniforms and jackets?

But yet there are still people out there who think we should spend even more on a gamble to reach the top flight, (a lot of other clubs still get money from parachute payments, etc.. how can you compete with that?) Yet are the first to point and laugh at the stupidity of clubs like Pompey for doing the very thing they are advocating.

BTW, is TB financing the training ground or is the club having to fund this from its income? - I've never heard it said that the money is coming from TB's personal wealth (and why should it?)

 

[Guy Fawkes]

Worrying that with 26k crowds each game we can't make it pay so how the hell are teams like Middlesboro etc not going bust ?

They did and wrote off most of their stadium building costs decades ago.

 

[Guy Fawkes]

I suspect that the main reason for going over budget is the club bending over backwards to meet Poyet's demands in creating the sort of infrastructure he believes is required in the future. The problem is that most clubs try and have a long term strategy, whereas we appear to be wanting to do it tomorrow for fear of Poyet leaving.
The club is now in a position to recruit top management, and I, for one, wouldn't have a problem if Poyet packed his bags and allowed another guy in who opted for a different style of play.

Look at Pompey, they had the opportunity to invest in their infrastructure and chose not to and look at them now.

An investment at the very beginning of the stadiums life will benefit the club for far longer. Spending money on this is not about the here and now but the long term future of the club, if everything was all about now (as you imply in your keeping Poyet happy and here comment) do you really think Poyet would be wanting the money spent on new training facilities in Lancing or new players now which would directly benefit him?

We are building for a legacy that will serve the club long after Poyet has left and be in the clubs best interest in the long term.

 

[Thunder Bolt]

BTW, is TB financing the training ground or is the club having to fund this from its income? - I've never heard it said that the money is coming from TB's personal wealth (and why should it?)

See post 133 from El Presidente.

 

[BUTTERBALL]

All the back room staff they employed on the football side don't appear to be making a lot of impact. This must be costing them a fortune.

 

[El Presidente]

Worrying that with 26k crowds each game we can't make it pay so how the hell are teams like Middlesboro etc not going bust ?

Sugar daddy subsidises them just like our Tony does at the Albion.

 

[pork pie]

He says, on the day we had the highest Amex attendance ever

Yes, but nearly 2k were Forest, and loads have already bought season tickets locking them in to going this year. Next year and the future will be where it starts to change if the JCLs don't like what they see.

 

[Albion Dan]

Yes, but nearly 2k were Forest, and loads have already bought season tickets locking them in to going this year. Next year and the future will be where it starts to change if the JCLs don't like what they see.

What difference does it make if 2k were Forest?

 

[Guy Fawkes]

If we're losing money, that means that the biggest outgoing the club has is the loan repayments to TB, so even if we are "losing money" I wouldn't read too much into it.

The club is (obviously) in an extremely healthy state indeed, with the highest revenue in the league and (apparently) only the 8th highest playing budget.

You conveniently forget the relegated clubs from the top flight and their parachute payments (is it £40m, £20m, £20m) That is a massive chunk and we would need to sell 1,333,333 match-day tickets for the first season and then 666,666 for the other 2 at an average of £30 a ticket to match that income.

making a few assumptions here for us this season, if you say we get on average 25k at £30 for the average ticket price times 23 games = 17,250,000 which is still less that the parachute payments for the ex-top flight teams and we would need to shift a further 758,333 tickets a season or 32,971 tickets a game to match this income for the first season or an extra 91,666 tickets a season or 3985 a game for the other 2 seasons, and that's before you take into account the clubs that receive the parachute payments own match-day ticket sales.

 

[pork pie]

What difference does it make if 2k were Forest?

Der, they are all within the overall crown number?

 

[nwgull]

You conveniently forget the relegated clubs from the top flight and their parachute payments (is it £40m, £20m, £20m) That is a massive chunk and we would need to sell 1,333,333 match-day tickets for the first season and then 666,666 for the other 2 at an average of £30 a ticket to match that income.

But they have to continue to honour the players' huge premiership contracts; that's the reason the parachute payments exist isn't it?

 

[Mutts Nuts]

Do any clubs in the top 2 divisions actualy make a profit

 

[Guy Fawkes]

But they have to continue to honour the players' huge premiership contracts; that's the reason the parachute payments exist isn't it?

And why are they on huge wages? - because they are supposedly top flight quality players. These payments allow them to have a stronger squad as a result as they arn't forced to sell to try to balance the books and therefore they have a better chance of gaining promotion again following relegation, making this division that much harder to get out of if you are a team that doesn't have these.

It makes you wonder what would have happened to us if these payments had existed in 1983 when we were relegated, would we have avoided the financial problems that ultimately led to Archer and co and the loss of the Goldstone ground?

 

[deletebeepbeepbeep]

Do any clubs in the top 2 divisions actualy make a profit

Arsenal, Wigan, Wolves, Blackpool, Leeds off the top of my head. They're all teams that don't invest much in their team in recent years and/or have benefitted from PL payments.

There's a deloitte report online which you can find, I think only about 5 in the PL and fewer in the Championship most of which are relegated PL teams.