[Albion] Albion announce £67 million losses for 2019/20

[Blue3]

That's a huge unsatainable loss especially if the pandemic keeps the doors closed to football for another season, teams will go bankrupt even top flight teams

 

[Tom Hark Preston Park]

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[MENTION=31]El Presidente[/MENTION] - Could you shed some light on how Wolves and Newcastle managed to turn a tidy profit in the same period. Is it down to player sales? Ta

 

[Cpt. Spavil]

I think covid has highlighted the cost of modern football is out of control and out of touch with us . Sure playing football is a short career but when players are getting x 3 a week what most people get in a year it is disgusting .
during our second season at withdean I worked as a club steward- it was the only way to see the games , one of the guys I worked with earned £11grand a year driving hospital cars and his wife £9 grand a year as a part time nurse .
Berbetov was on £130 grand a week at man u - it is a ridiculous comparison and highlights that the fact that couple are worth 10 each of berbetov but he gets the cash ----- a problem of society as well I suppose .
I hope it ends the obscene amount of cash the clubs/agents/players get .

I am a bit confused by this statement as the second season at withdean would have been 2000-2001. Berbetov would have still been playing in Bulgaria.

 

[blue-shifted]

[MENTION=31]El Presidente[/MENTION] - Could you shed some light on how Wolves and Newcastle managed to turn a tidy profit in the same period. Is it down to player sales? Ta

Just from memory, Wolves have sold one or two for good money ... but that will be this year. I don't remember any major sales in the previous year

Newcastle haven't had anyone worth good money for a long time

 

[Dick Swiveller]

Given we are getting new TVs in 1901, I don't think we are on the bones of our arse. Although I might be when I get the renewal cost in March.

 

[RandyWanger]

Will Barbs give us our bottle tops and flasks back as an apology? Or will he treat us with the same level of disdain even without his 30,000 strong waiting list?

 

[nwgull]

[MENTION=31]El Presidente[/MENTION] - Could you shed some light on how Wolves and Newcastle managed to turn a tidy profit in the same period. Is it down to player sales? Ta

Wolves and Newcastle figures haven't been released for 19/20 yet. Those are for the previous season.

 

[amexer]

Have no sympathy with football .That is apart from Tony Bloom who along with family have are lifelong supporters. It is immoral a football club even in PL cant get by on an income of £130m. Gravy train for Players and senior staff. Wages are out of control Not comfortable reading seeing huge wages including Barber up from 500k to over £2m in 4 years. Suppose Ashton not far behind.
Why are PL having to refund proportion of TV money when I keep reading about record TV audiences during lockdown.

 

[RossyG]

Get some perspective fella, Barbs is still gonna pick up his £2m salary, Lallana is still going to pick up his ridiculous salary for being a sick note and your asking people to buy tat from the club shop .

But if we make use of the shop then that might help a couple of staff members there to keep their jobs. That’s something, isn’t it?

 

[Tom Hark Preston Park]

Wolves and Newcastle figures haven't been released for 19/20 yet. Those are for the previous season.

Ah right cheers, failed to notice the '2020' in brackets. Doh!

 

[Sarisbury Seagull]

I know all of the Premier League wages are eye watering but Liverpool and City's AVERAGE weekly wages - £144,000 and £146,000!! Absolutely frightening. Top level football will surely combust one day soon, how is that sustainable even at the biggest clubs in the world?

 

[Couldn't Be Hyypia]

Agree with this.

There will be fewer clubs with the ability to spend big.

However, clubs in the Champions League and those owned by people with almost unlimited money will still be spending.

I agree with that, but there will be fewer clubs competing with them, which should supress prices. Just our luck to be unleashing young potential at a time when prices look likely to stall a little! Will we ever see £75m again for a donkey like Harry Maguire?

 

[El Presidente]

Is there any way to run a PL club profitably on a consistent basis? Even without Covid everyone seems to make losses every year.

Yes, it's called Burnley.

 

[Couldn't Be Hyypia]

Before complaining about the disconnect between football and the rest of us, have a think about where the funding comes from.

I've said it before. Almost all the money in the Prem comes from TV. We pay for the subscriptions. We are the ones that enable Sky et al to pay such huge sums. If we accepted that we don't get to see every game on TV (wasn't a big deal not very long ago), live without our 24/7 Prem feeds, the money will go from football instantly. Players wages will correct and many people will feel more comfortable with the costs associated with running clubs.

The only fly in this ointment is clubs that are funded by states our UHNW individuals. But other clubs can't compete with them now.

 

[MJsGhost]

Its no disaster. Its not like Barcelona's one billion debt and needing to tell their players "sorry... we pay you... later". But still numbers that explain a lot about why the club is not investing in all those fancy schmancy players and all the decisions in recent years (like not doing batshit transfers from the Eredivisie, getting a coach actually willing to use the academy and change to a style of football that sponsors, rich buying clubs and others want to put their money in) trying to create a more sustainable football club. Unlike some, TB both seem to understand and need to care about the football financial bubble. The next Premier League TV deal is widely expected to be lower than the current one and one ITV Digital scenario away from hell breaking loose.

Yep, see the Ligue 1 / Mediapro deal going tits-up for example

 

[MJsGhost]

Before complaining about the disconnect between football and the rest of us, have a think about where the funding comes from.

I've said it before. Almost all the money in the Prem comes from TV. We pay for the subscriptions. We are the ones that enable Sky et al to pay such huge sums. If we accepted that we don't get to see every game on TV (wasn't a big deal not very long ago), live without our 24/7 Prem feeds, the money will go from football instantly. Players wages will correct and many people will feel more comfortable with the costs associated with running clubs.

The only fly in this ointment is clubs that are funded by states our UHNW individuals. But other clubs can't compete with them now.

I'd be interested to know the breakdown of the media companies' revenue streams gained by buying the rights. Is it mostly subscription revenue, or advertising revenue?

We consumers still end up paying in the end of course, whether it's through TV subs, or a more expensive pints / car tyres / razors etc, or through being convinced to gamble (and lose) more...

 

[keaton]

Great write up as always.
2 things
"Making money from player sales is important for cash flow purposes, but Brighton have had a policy of keeping theirs since arriving in the premier League" seems quite a generous representation.

And I still don't understand why clibs are paying that much money back to broadcasters. I get fromarch-june they would have lost subscribers but they're getting more games now, with people being left with very little to do than watch football

 

[nwgull]

Ah right cheers, failed to notice the '2020' in brackets. Doh!

Still racking my brains to try and remember any significant player sales from either of these two clubs in 18/19 mind. I suppose it was Wolves first PL season, so maybe they still had a load of players on Championship level wages.

 

[Neville's Breakfast]

I’m not sure the fans saved our club in the 90s for it to rack up a 67 million loss just 25 years later. Many people say we need to be in the PL for financial security but I’m wondering if that’s just like a junkie justifying their next fix. For me the worrying thing is where we go from here. If the current model is unsustainable it will likely be replaced by a different ownership structure that may not be palatable with the fans.

 

[Tim Over Whelmed]

Hi @ElPres great work. Is there also the case this accounting year to pile in all the exceptionals and carried forward losses / over valuations etc, i.e. get it all out in one hit, blame COVID and allow for healthy P & L for a couple of years?