How on earth can we be losing £8 million a year?

[gripper stebson]

How would we all feel about ST costing the same as this year but with no travel added?

 

[WATFORD zero]

It's all guessing until the accounts are published but the fact that the last CE went so quickly may point to areas such as Catering, Transport, Stewarding, Advertising, Sponsorship, Corporate Hospitality, Functions etc. Certainly a good experienced Chief Exec could make a massive difference when negotiating large contracts.

*edit* In fact didn't TB say this when he appointed Barber ?

 

[PILTDOWN MAN]

We currently make NO money on any food or drink...that's what happens when you contract out the catering for peanuts as the last Chief Exec did(and also one of the reasons he was probably shown the door).

I don't know the ins and outs of the catering contract, but the last CE gave Azure catering rights based upon 13,000 turning up to each match and spending money on food and drink. The club massively underestimated how much food and drink would be sold, hence the debacle at times of running out of pies or beer. This has led to a considerable loss in funds coming into the club.

To Barbers credit, Azure have now gone and a new contract is up for tender and one where we can base sales on 23k upwards crowds once the new seats have gone in and not 13k and so, I reckon either next year or the year after, you will see this £8mil figure decrease in line with new catering contracts.

Sorry don't believe we make nothing or didn't until azure departed. We may not have maximised our profit but not to make anything is bollox

 

[vegster]

Nobody knows how much the transport arrangements are costing the Club, even after allowing for the fact that a levy on tickets is being paid by everyone who attends a match. Don't forget the stewarding costs associated with the transport system (buses, parking and park & ride), rental of Bennetts Field, monitoring of use of all these services, etc. And stuff like the costs to the Club of developing, implementing and monitoring things like the Coldean / Moulsecoomb parking scheme.

It must cost a fair bit to hire all those buses and drivers for a matchday plus stewarding and policing must cost one hell of a lot. I'm sure a bus and driver must cost a fair whack and how many do we hire ? 40-50 ? Throw in all the staff on the food outlets or are they paid for by the caterers ?

 

[Phat Baz 68]

I appreciate the sentiment, but for those of us who remember playing our home games 75 miles away, and 17 clubs voting to expel us from the FL- it's hard not to worry.

I understand i was one of them mate

 

[Chicken Runner61]

Please elaborate. Having owned a number of food led businesses I'm interested to know why such a small figure.

How much profit on a £3.50 pie do you think there is then ?
Tony bloom isn't making them at home during the week.

I guess that the Albion are on a 10% based on attendance.
I reckon piglets have a factory making them and them and by the time you add on transportation and distribution plus all the other costs of selling a pie it costs about £1.50-£2.00 I bet piglets want to make a quid or so on each pie don't forget they have to make money so by the time the Albion get their cut and take off the costs to administrate it its probably only 30p maybe 50p at a stretch

 

[Bigbelly]

How would we all feel about ST costing the same as this year but with no travel added?

I'd like to see an increase of £50 mainly for the travel. I was paying £220+ last season for bus and train, now I'm paying £30.

 

[PILTDOWN MAN]

How much profit on a £3.50 pie do you think there is then ?
Tony bloom isn't making them at home during the week.

I guess that the Albion are on a 10% based on attendance.
I reckon piglets have a factory making them and them and by the time you add on transportation and distribution plus all the other costs of selling a pie it costs about £1.50-£2.00 I bet piglets want to make a quid or so on each pie don't forget they have to make money so by the time the Albion get their cut and take off the costs to administrate it its probably only 30p maybe 50p at a stretch

Don't become a businessman.

 

[The Large One]

From the website of the Football Business Awards...

Azure, the caterer at the newly constructed American Express Community Stadium for Brighton & Hove Albion FC, have the unenviable task of catering for the needs of upto 22,000 fans – from 5 public concourses, 9 members lounges, 14 executive boxes, 2 exclusive lounges; and standalone beerstations. Throughout their dealings Azure emphasis quality and innovation. For example on top of the seasonal 174,816 pints of local Harveys sold, they also offer one guest beer from the away fans' locality. Intelligent research led to flexibility in the 1901 bars allowing members to bring their family in for a relaxed pie and drink one week and offer formal corporate entertainment the next.

Azure pride themselves on locally sourced products, such as their unique and hugely popular pie, and their reasonable pricing. With an enviable average retail and transaction rates less than a minute per customer Azure are achieving double the average stadium food and beverage purchase. Enabling them to boost the club revenue an unexpected additional £1 million – not bad for a first season!


Never mind that they were sacked a week later, this is the claim being made by Azure. I suppose that the Albion's accounts, when they're made public, would confirm this.

 

[Sam-]

Vicente's medical bill. Boooo.

 

[Chicken Runner61]

There is a guess if ever I saw one, why slag someone off for having no idea, then you yourself thow around unsupported statistics that just happen to be floating around in your jelly like mass between the ears.

What like you you mean?
I bet I have a miles better understanding of how this works than you from both the club and piglets point of view. Lots of people have tried to explain to mk that the club are not making profit but he just doesn't get it.

You need to realise that it's not easy for any business to make a profit and when you do the taxman comes along and want a cut!

 

[drew]

It must cost a fair bit to hire all those buses and drivers for a matchday plus stewarding and policing must cost one hell of a lot. I'm sure a bus and driver must cost a fair whack and how many do we hire ? 40-50 ? Throw in all the staff on the food outlets or are they paid for by the caterers ?

Are you including coaches rather than just park and ride? As for park and ride, there are probably no more than 6 buses used for Mill Road and maybe the same for Mithras House. Don't know about the racecourse as I have never used it but suspect it is less judging by the queues after the game.

 

[Chicken Runner61]

Don't become a businessman.

Don't judge a book by its cover

I've run my own business for over 20 years and seen thousands of businesses first hand - I've seen why they succeed and why most fail and for reasons I'm not going to disclose I know how it works. Nailing down a profit is hard work - you can make 600% profit on the food but when every thing is taken into account you aren't getting that in profit - and don't forget I'm talking about the cut the club get

 

[The Brighton Buzz]

I must admit I wasnt surprsied we lost money, but I was astounded at the amount.

If our average 1st 11 are on £10k a week then thats around £5.7m. Add another £2.8m on the rest of the squad then that takes you to around £8.5m. Then have 24,000 season ticket holders paying on average £350 then thats £8.4m. So the two basically net each other off.

I havent factored in stadium running costs, but surely we make a profit on food and drink and then there is advertising revenues etc.

Now I maybe out on wage costs, but £8m out? I'm hoping this loss is mainly due to exceptional one off costs. Cos if we cant at least break even with record crowds in these good times, then I really do worry if we go to say 20,000 to 18,000 punters.

We don't seem to be cutting wage costs at the moment. 29 players on the back of the program as first team squad not including Vincelot. Gus said he wanted two players for every position he has more like 2.5 and you can add Uolla to that if he signs and nobody goes. It looks like we could save money by trimming the squad without weakening it.

 

[Aspinal's Body Double]

then charge El Presidente on here to translate them into plain English.

Is that Paul Samrah? He's our accountancy expert isn't he? I'd really like to know what he thinks.

 

[somerset]

What like you you mean?
I bet I have a miles better understanding of how this works than you from both the club and piglets point of view.
You need to realise that it's not easy for any business to make a profit and when you do the taxman comes along and want a cut!

Another set of random unsupported statements...... Tax, never, who would have thought it eh?!?

 

[Thunder Bolt]

Because from Monday to Friday nothing happens at the stadium.

The drop in Health centre in the East stand is open every day, AITC is there every day, Dick's Bar is open every day except Sundays, the club shop is open 6 days a week, the East stand Brasserie is open every day and there are also conferences in the 1901 lounges. There are also trade and wedding fairs at weekends. I would think the club will try to maximise this type of business and also the party facilities, including Christmas parties.

 

[The Large One]

Is that Paul Samrah? He's our accountancy expert isn't he? I'd really like to know what he thinks.

No, it's not. But I've no doubt he will go through them to.

 

[PILTDOWN MAN]

Don't judge a book by its cover

OK

Right lets have a quick price workout. I'm basing this on straight forward commercially supplied pies very very similar to Piglets (Chefs Pantry who supplied my businesses based in Sussex)

Before discount for multiple orders

12 "hand-made" pies £18-95 this includes them being pre-cooked ready for re-heating. £2.25 per pie inc. delivery

The cost of reheating said pies and selling them (% of all catering costs per pie) can not possibly exceed 10p a pie. Therefore making, supplying, reheating and selling said pies is £2.35 per pie (perhaps vat included if the club decides to pay it, which is open to many a discussion!! THE PIE TAX), the rest is profit, well well over your 30 or even 50p.

 

[Superphil]

Yes, I think it does but as I say in my OP we haven't spent anywhere near that on net transfers to my knowledge.

Perhaps its been when transfer fees are undisclosed, perhaps those are a lot more than what some people think they are.