The Albion LOST £140,000 a week in the last season at Withdean

[Chicken Runner61]

Unless you have sales across the globe on shirts, merchandise and media you will not make money out of football in the present climate and wage structure.

The Amex and pie sales help but won't ever make money against wages and running costs.

Thats why Manure and the rest are desperate to break into Asia and Africa - all those shirt and tv subscriptions thats where the profit is

 

[making plans for nigel]

You do realise being lectured by a Palace fan about the financial running of a club is like being called a sex case by Gary Glitter?

We speak from experience !
Anyway Blooms the new leader, im sure he'll just add it to the £100 mill he's already given you !
Come on, Come on, Come on !!!

 

[making plans for nigel]

This season, a massive boost of income will be merchandise and of course, match day consumables. E.g. I buy match by match tickets at the Amex at £30 a pop. But I spend about £30 at each match on Pints, Pies, Programs etc. At withdean I might have only spent £3 on chips.
Thats a massive, massive increase in matchday income. Its not just tickets. Also the amount of money fans are spending in the stadium has even shocked the club. They underetsimated the amount of money we would spend therefore the income per match is vastly higher than the club bugeted for.
The costs at the Amex must be much much less per head of fan than at Withdean. So Less costs per head and higher income per head will mean a huge profit on matchday income.
Then again expect the playing side of things to drain alot more money than previous seasons.

You carry on eating those pies,and you'll need 2 seats next season.

 

[Lord Bracknell]

So a £140,000 a week lose isn't shocking ? You can dress it anyway you like, but without Blooms millions, you are f**ked.
Of course your income as gone up this season, but so has your expenditure. Im sure like most Brighton fans you believe you have nothing financially to worry about,but lots of clubs have been there, so be carefull.

All the signs are that the Bloom millions were earmarked very early and that they were always known to be available to cover debts and investment costs. The fact that this wasn't made public doesn't mean anything.

The real question is: where did the Bloom millions come from? Are there public accounts available from earlier years (from other companies) that suggest big payouts to Tony Bloom? Or does the money come from non-UK sources?

 

[Chicken Runner61]

This season, a massive boost of income will be merchandise and of course, match day consumables. E.g. I buy match by match tickets at the Amex at £30 a pop. But I spend about £30 at each match on Pints, Pies, Programs etc. At withdean I might have only spent £3 on chips.
Thats a massive, massive increase in matchday income. Its not just tickets. Also the amount of money fans are spending in the stadium has even shocked the club. They underetsimated the amount of money we would spend therefore the income per match is vastly higher than the club bugeted for.
The costs at the Amex must be much much less per head of fan than at Withdean. So Less costs per head and higher income per head will mean a huge profit on matchday income.
Then again expect the playing side of things to drain alot more money than previous seasons.

The costs for the Amex will be a lot more than at Withdean per head - its just you now have a lot more heads each week. Get 6300 at the Withdean and we lost £140k per week, get 6300 at The Amex and we would lose 3 times that amount. I reckon we need 14-16k per game to start to break even as the infrastructure is so much more.

 

[Captain Sensible]

Excuse me if if I'm being stupid, but do we actually know the food and drink sales go to the club? I'd have thought they have signed a contract that involves them receiving a fee from Azure, who then keep whatever money they make on a matchday. But I could be very wrong.

I would have thought the club pay Azure to provide a service and then Azure take a cut of what is sold as well as companies like Harvey's and Piglets. The club must be taking 30-40% of the profits from in house sales. That was the whole idea as told by Martin Perry. Get the fans in early, and let them leave late and spend while they are there.

 

[Chicken Runner61]

Excuse me if if I'm being stupid, but do we actually know the food and drink sales go to the club? I'd have thought they have signed a contract that involves them receiving a fee from Azure, who then keep whatever money they make on a matchday. But I could be very wrong.

You are not being stupid, Azure are there to make a profit and pay a fee to sell the food. If the crowds are high our fee goes up but if they drop the fee will too.

 

[making plans for nigel]

Surely the worrying thing for Palace is that while we may have racked up a £6.7m loss while playing in front of 6,900 people and funding a new stadium, you managed to lose £5.3m with no prospect of things getting any better. In fact, if we look at crowds only, your income is surely decreasing, while ours will quite possibly quadruple this year. Isn't that a bit shocking?

£4 million of the figure was for honoured season tickets, so a loss of £1.4 mill approx.
Compared to the rest of the championship,thats good going in my books.

 

[Chicken Runner61]

I would have thought the club pay Azure to provide a service and then Azure take a cut of what is sold as well as companies like Harvey's and Piglets. The club must be taking 30-40% of the profits from in house sales. That was the whole idea as told by Martin Perry. Get the fans in early, and let them leave late and spend while they are there.

Its the other way round isn't it - Azure pay a fee to use the facilities,

 

[Vegas Seagull]

So a £140,000 a week lose isn't shocking ? You can dress it anyway you like, but without Blooms millions, you are f**ked.
Of course your income as gone up this season, but so has your expenditure. Im sure like most Brighton fans you believe you have nothing financially to worry about,but lots of clubs have been there, so be carefull.

He's got £600m in his other pocket if needs be.
The value of the whole club with, in a months time, 23k ST holders inc 3k corporate, with yet further expansion to come next year, to a potemtial buyer exceeds Blooms £125m outlay thus far.
With or without Bloom we'll be just fine

 

[Captain Sensible]

The costs for the Amex will be a lot more than at Withdean per head - its just you now have a lot more heads each week. Get 6300 at the Withdean and we lost £140k per week, get 6300 at The Amex and we would lose 3 times that amount. I reckon we need 14-16k per game to start to break even as the infrastructure is so much more.

You have to take into account the amount of fans. Yes if you reduce that amount, the costs per fan increase. Pretty much with 20k fans the club dont have to spend anymore than if the gate suddenly dropped to 6k again. so the more fans through the gates means less costs per head, but more profit per head as the amount of fans increases.

Don't forget our overheads at Withdean were huge. We needed 3k at withdean just to cover the matchday costs to use Withdean, We don't have to pay that money anymore at the Amex.

 

[sir albion]

We didn't, because the season tickets didn't even go on sale until three or four months before we got promoted. And you have to consider that everybody who bought a seat before we actually clinched promotion only had to look at the league table to realise they were almost certainly going to be watching Championship football. How many would we have sold if we hadn't raised our wage budget by 25%, didn't sign Greer, Painter, Ankergren, Barnes, Kazenga, Noone etc, and were plodding along in mid-table last January?

We might have got good crowds this season even in League One, but there would have been hardly any away fans, a lot more no-shows and it would have been harder to sell one-off tickets.

I think the decision to give Gus the budget that allowed him to get us promoted was one of the key factors that has put us where we are now. The other being the option to pay for a season ticket on a monthly basis. Forking out £500 in one go for another season of Leyton Orient and Hartlepool might not have been as appealing to the 18,000.

We had sold around 15k by march and we was 6 points clear of Peterborough in the middle of march,not that straight forward.

 

[brightonrock]

It hurts my brain looking at those accounts, means little to nothing to me - but then maths has never been a great forte.

To be honest though (from what I can make out!) I'm surprised it wasn't worse - the tilt we took at getting to the Championship was always likely to cause those figures to be a bit painful. I'd be fascinated to see what it's like next year though; our turnover is going to be an obscene amount given merchandising, matchday income, higher TV money etc. The biggest expenditure increase is surely going to be transfers rather than wages, even with promotion % increases, the vast majority of the squad are going to be on high end league 1/low end Championship wages.

I'd guess it'll all level out over the next few years - rather than comparing Withdean 2011 to Withdean 2010, or even Withdean 2011 .v. Amex 2012, I think the telling comparison will only really come when the expansion has been finished and the turnover can be expected to be relatively stable. Then we'll see whether we're really spending beyond our means. As much as I love where we are and what TB has done for the club, we must always learn our lessons from the past and not be complacent as fans over the club's expenditure; at face value those figures are horrendous but in the scheme of TB's investment over a longer scale it was inevitable, we're relying on 2012/13/14 to be big years to justify his outlay. Maybe everyone should get another pie each on a Saturday, and buy home and away kits next year?

 

[countryman]

Goes to show that if Tony Bloom hadnt stepped in we'd be toast now. A very close escape. To be honest you have to be concerned we were spending so much money. Maybe we shouldnt be ao quick to slag off Pompey fans!

They were spending ridiculous amounts of money on player's wages to get to the prem and they could not afford do this and if their season did not result in promotion it would clearly go tits up. But we had Tony Bloom investing in the stadium which we knew would be covering the wage bill when built.

 

[making plans for nigel]

He's got £600m in his other pocket if needs be.
The value of the whole club with, in a months time, 23k ST holders inc 3k corporate, with yet further expansion to come next year, to a potemtial buyer exceeds Blooms £125m outlay thus far.
With or without Bloom we'll be just fine

Im sure everything will be ok