How are we doing on the financial front?

[Blue Valkyrie]

If we are not breaking even on the operational cost and paying a fair amount back then we have few options;
Increase Ticket Prices (ST)
Slash the wage Bill (poorer quality football)
Gain more Tv money by gambling on getting into the premiership
Increase non match day turnover (recession not helping)

I think there will be a lot of loan activity as this does not burden us past the summer in a push for the prem

Barber will sort it out.

Firstly, these grim accounts are for year 1, pre-Barber, and will include the travel voucher fiasco. We now have a 30 pound levy to offset this, so perhaps 600K of the loss has been clawed back.

Secondly, it's been indicated that other spending ( non-playing budgets ) was like the wild west. It's inconceivable that Paul Barber hasn't significantly addressed this.

Thirdly, there is a lot of revenue raising potential in sponsorships and partnerships. Indications that we are maybe getting a new main shirt sponsor with a higher profile than Brighton and Hove Jobs.

I really can see that year 2 and particularly year 3 accounts will be MUCH better.

 

[JTR938]

£11.50 Pie & Pint combo coming.....

 

[Not Andy Naylor]

Barber will sort it out.

Firstly, these grim accounts are for year 1, pre-Barber, and will include the travel voucher fiasco. We now have a 30 pound levy to offset this, so perhaps 600K of the loss has been clawed back.

Secondly, it's been indicated that other spending ( non-playing budgets ) was like the wild west. It's inconceivable that Paul Barber hasn't significantly addressed this.

Thirdly, there is a lot of revenue raising potential in sponsorships and partnerships. Indications that we are maybe getting a new main shirt sponsor with a higher profile than Brighton and Hove Jobs.

I really can see that year 2 and particularly year 3 accounts will be MUCH better.

This is pretty close to the truth as I understand it. People got a little carried away in the first year at the Amex, particularly in staffing levels, and Barber will be tightening everything up. That said, the legal and technical expenses of the new training ground and the Amex expansion will be considerable, but, once sorted, will benefit the club for years to come. And it's not as if TB is itching to get his money back in a hurry ... and if we end up breaking Financial Fair Play rules and miss out on a Champions League place as a result, that's a cross we'll have to bear.

 

[SeagullSongs]

In Barber we trust!

 

[Lethargic]

Leaving aside our current slump to an appalling 10th in the Championship these are the 'good times', and given that almost every game since we've been at the Amex has been sold out (or as near as dammit) we should be making a substantial operating profit. If we're not then something is VERY badly wrong and does not bode at all well for when the bad times come and the ground is only three-quarters or half full.

If we are making an operating loss then I guess some of it is due to costs spiralling out of control pre-Barber, and some of it is just due to the crazy world of football economics where it is not unheard of for the wage bill to exceed turnover.

This with bells on.

 

[8ace]

This is hardly news is it? El Pres told us about it six months but most of the twats on here buried their heads in the sand with replies like "we are selling lots of pie so we must be raking it in"

 

[seagullsovergrimsby]

We were losing money as spending had run away out of control. Hopefully Barber has started to put things right, but the accounts to be published in March are rumoured to be a grim read.

I reckon the club lost close to a £1M from unintentionally providing free forms of travel last season.

 

[Mutts Nuts]

We're absolutely awash with money. Should have kept Noone and Murray and brought in several premier league players. The stadium must cost next to nothing to run because it's bringing in wheelbarrow loads of dosh - far more than all those parachute payments the other clubs are getting. It'll be a doddle to pay off Poyet because we really ought to have Guardiola in charge. After all, we all pay an absolute fortune - more than £20 a match and most of us eat a whole pie every game, so the accounts will surely reveal that we're turning over something close to the GDP of Brazil. It's just a shame Tony Bloom is so tight - letting us all pay through the nose for a couple of things in the club shop each year to keep the place solvent.

That's what I've managed to work out from reading NSC anyway, so the accounts had better not let me down...

As i have already said on here it will be interesting to see what we can afford in wages next season once fair play rules kick in

 

[Albion Dan]

What the books show for last season is still totally irrelevant. Even if we lost 10mil. Costs are now understood, were far too highand that is why Baber has been brought in, to get them under control. Getting the revenue in is the supreme foundation for tuning all the other aspects of the operation to acheive a profit.

I really fail to get even slightly worried by the doommongers on here when they fret about profit. Especially when no-one has a clue what the currebt situation is. We have quality commercial management now. We are well positioned to have by far the healthiest books of any league club parachute payments aside AS LONG as the product on the pitch is entertaining and supporters are treated with respect.

 

[seagullsovergrimsby]

£11.50 Pie & Pint combo coming.....

50p too much , should be pitched at £11 with a marketing emphasis that the pie & pint deal is less than a tenner for those using a smartcard.

 

[salty seagull]

I was told at my season ticket presentation that they were expecting crowds of 15k, so things can`t be too bad!

 

[Return of the Rev]

Is this the cup final cash all over again?

Crowds and season tickets higher than expected,huge amount of people spending on catering,but we are losing money,what went wrong and is a major hike in prices going to come in?
Assuming we are not paying interest on the 100 million what will happen when we do?

 

[Arkwright]

I don't know (or pretend to) but surely our finances depend heavily on the terms set by Bloom and him under writing the clubs debts (Am I right in that Bloom has under written the clubs debts).

Are we paying Bloom interest only or interest and capital?

 

[Springal]

Crowds and season tickets higher than expected,huge amount of people spending on catering,but we are losing money,what went wrong and is a major hike in prices going to come in?
Assuming we are not paying interest on the 100 million what will happen when we do?

Do you have a source for the "when we do" start paying interest?
Also most of this is covered elsewhere in numerous threads. Huge overspend on OPEX in first season at the Amex, hence Barber being brought in to balance the books.

 

[Return of the Rev]

I don't know (or pretend to) but surely our finances depend heavily on the terms set by Bloom and him under writing the clubs debts (Am I right in that Bloom has under written the clubs debts).

Are we paying Bloom interest only or interest and capital?

interest free i thought and still losing money

 

[hans kraay fan club]

Are we paying Bloom interest only or interest and capital?

Neither.

Its interest free, and no capital repayments commence until 2023 (if at all - there is the option to turn the loan into shares).

 

[Commander]

Is this the cup final cash all over again?

Crowds and season tickets higher than expected,huge amount of people spending on catering,but we are losing money,what went wrong and is a major hike in prices going to come in?
Assuming we are not paying interest on the 100 million what will happen when we do?

Do you seriously have nothing going on with your life apart from moaning about potential price hikes? Seriously. Every single thread is the same.

 

[hans kraay fan club]

Do you seriously have nothing going on with your life apart from moaning about potential price hikes? Seriously. Every single thread is the same.

Indeed. And as usual, he HAS to have his opinion seen, by starting a new thread, rather than adding to the existing one on the same subject. Tedious bore.

(In fact I'll merge them).

 

[Albion Dan]

Do you seriously have nothing going on with your life apart from moaning about potential price hikes? Seriously. Every single thread is the same.

Dont even waste your breath. The bloke cant even touch his keyboard without the lamest attempt to fish appearing on here.

 

[Albion Dan]

As i have already said on here it will be interesting to see what we can afford in wages next season once fair play rules kick in

As they are based entirely on a proprtion of revenue received we could afford to outspend almost every team not on parachute payments.