Albion STILL losing money

[GoldWithFalmer]

I can't see how we could be possibly losing money, unless we are already repaying TB's loan.

For me it seems obvious that we are, and have been for some time. It's obvious from both the perspective of the club and TB, as we are a professional outfit now and as much as people like to believe TB doesn't have £125m sitting around to lose.

I suppose we will have to wait for next years accounts to know for sure.

In full agreement it must be factored into the equation

 

[Notters]

We'll have to agree to differ on the quality of the football. We are the lowest scoring side in the top half and have let in the fewest. This tells me that we are generally negative with our possession style of football. I am not saying that this isn't the way forward, it's just that we are trying to play it with players unsuited to that style. The excitement is only oming in mall and infrequent bursts.

So you use stats to decide whether you enjoy games? We do not play negative football, at least not this season. We've been getting loads of scoring chances, but, as is widely acknowledged, need someone to put them in the net. The only times we struggle are when teams park the bus and they do this to stop our attacking flair.

 

[kevtherev]

And then in the premiership you'll demand a champions league spot no doubt? Two facts to bear in mind:
- Continuous improvement isn't possible in the long term. There's only so far you can go, whether you're brighton or man city.
- All teams want the same thing. We can't all win / get promoted / win the cup every year. Football it's about competition and that's what makes out exciting. People who think we should walk every game clearly don't realise that there are other teams involved.

The key, therefore, is that the club continue to make the match day experience a pleasurable one. This it's more important than success on the pitch.

However idealistic you view is, I fear you are wrong. Football is about money these days and history will show you that people vote with there feet. If we level out as a mid table championship side, you can look forward to ten thousand empty seats at the Amex, week in week out and that is not an option. You right in what you say about you can't keep winning every game, although I would imagine Fulham/Stoke is the benchmark and a capacity crowd week in week out, which the prem would give us.

 

[Working class pride]

I have not studied the accounts and I'm not an accountant but does it not make sense to fail to make a profit? If they did they would have to pay tax on revenue. Therefore it makes complete sense to use the build cost of the stadium to show a loss.

 

[GoldWithFalmer]

Wages are not a problem.

New FD said we have one of the best in the league ratio of salaries / revenue. Around 50% he said.

So it's not wages,stewards,gates are double the predicted break even figure,pie sales are 4 x predicted what is causing the losses-we spent nothing in real terms on transfer fees this summer,agents fees are on the high side but what is it?

 

[El Turi]

No it doesn't, and I suspect it won't.

Well I suppose the financial fair play rules should act in lowering players wages but their salaries are completely out of control and its the fans who suffer by having to pay more.

 

[GoldWithFalmer]

However idealistic you view is, I fear you are wrong. Football is about money these days and history will show you that people vote with there feet. If we level out as a mid table championship side, you can look forward to ten thousand empty seats at the Amex, week in week out and that is not an option. You right in what you say about you can't keep winning every game, although I would imagine Fulham/Stoke is the benchmark and a capacity crowd week in week out, which the prem would give us.

Norwich city is a good bench mark for crowds the have held 25000 in all 3 divisions for a good few years now-best ask them

 

[HawkTheSeagull]

For the benefit of Hawk Seagull. Hope this explains the point I make:-

Ah fair enough then, on Tapatalk to I missed that.

Think they can't allow a part of a home stand to be given over to away ones, just no barriers or anything.

 

[Seasidesage]

If they are genuinely losing money on these gates and players wages are only 50% of turnover, it surely must mean they are repaying the loan to TB, what else could swallow up a significant portion of the other 50%?

 

[Rugrat]

If they are genuinely losing money on these gates and players wages are only 50% of turnover, it surely must mean they are repaying the loan to TB, what else could swallow up a significant portion of the other 50%?

I can only imagine the back office and other non playing costs are troublesome. There does seem like quite an army of suits at the club. Maybe also the cost of transport and subsidies are impacting? Equally a new "business" will take a while to settle in ... Revenues will catch up costs soon if they are being well managed

 

[GoldWithFalmer]

I'm amazed so many people doubt the possibility that we are actually repaying the loan!

Of course we are, but imagine the position the club will be in once it has been paid off... We have to be one of, if not the most, profitable clubs in the division at the moment.

The great unknown is the attendances-will gates fall? this is the only concern as we all know Brighton can get 30,000 all day long when the going is good-as a guide to what we can expect when we left the Goldstone the all time average crowd was just over 12000 that is the total attendance at the Goldstone divided by number of matches played in the 96 year history of the ground..

 

[doogie004]

Lll

 

[Titanic]

I would imagine, with a debt of £125m outstanding, that the club will not make a net profit at any time in the near future... why pay tax when you don't have to??

 

[GoldWithFalmer]

I remember reading that the initial projections for average gate for our first season at the Amex was around 12000, possibly for that reason, and possibly because we were in league one at the time.

We are absolutely smashing those projections in every department, our playing budget is not massive by any means, there is no way the club is making a loss [before the loan repayments]

It's all very strange-i have no doubts we are not being misled or such like but i find it strange

 

[deletebeepbeepbeep]

I remember reading that the initial projections for average gate for our first season at the Amex was around 12000, possibly for that reason, and possibly because we were in league one at the time.

We are absolutely smashing those projections in every department, our playing budget is not massive by any means, there is no way the club is making a loss [before the loan repayments]

You are like a broken record and I expect will be made to look a bit silly when last years accounts are published.

 

[Biscuit]

If all this is true I'm surprised Barber has made cracking down on boisterous teenagers in the north stand such a high priority.. Smokescreen methinks.

If we need to make more money out of the fans, don't treat them like customers - treat them with respect or they may stop turning up in such numbers. That would be devastating.

 

[Working class pride]

I would imagine, with a debt of £125m outstanding, that the club will not make a net profit at any time in the near future... why pay tax when you don't have to??

Ive not read the accounts but this seems right. If they didnt use the cost of the ground to set off profit then they would need new accountants!

 

[Triggaaar]

If we're losing money, that means that the biggest outgoing the club has is the loan repayments to TB

No it doesn't. Repaying a loan wouldn't show up in a profit and loss account anyway, it's not an expense.

Yes, I remember reading that the full amount of 123m was due around 2025, presumably it works like any other loan in that it is being repaid monthly. Really TB wants it back ASAP, as it is interest free he will be losing money on it as every month passes. I suspect it is the clubs biggest outgoing at this point.

Why are you making this shit up? TB isn't treating this chunk of money like the rest of his assets. What about the money he's spend on holidays, is he getting much interest on that? No, it's gone, he's spent it on having fun, and the money he's lent the club isn't supposed to be earning interest for him either, he's got the fun of seeing his club prosper.

I can't see how the loss can be down to playing staff as Gus is working to a budget and that budget would have been based around the income and the other outgoings surely

We're not doing as well as we'd like, Gus goes to TB 'look, we've got a real chance if we get these couple of players, they're quality', TB decides to over-spend on players wages a little. That wouldn't be such a surprise would it.

I suspect that the repayments began the month we moved into the Amex, perhaps sooner.

Total guesswork, and if your record is anything to go by, complete horse shit.

All this makes me think something is not quite adding up somewhere-were we not meant to be able to "Break even" with 12,000 gates upon moving to the Amex?

Maybe £12k with the players we had at the time. As soon as we sold the 18k STs, we'd have increased our budget for players, both wages and transfer fees.

 

[Fitzcarraldo]

One of my friends played in the same youth team as Craig Dawson, who was at Rochdale with Will Buckley. I got him to do a little digging and Dawson said that Buckley is on £10,000 a week with Craig Mackail-Smith on a WHOPPING £20,000 a week. That is all.

 

[Dave the OAP]

Why on earth would you think that, the club isn't run by idiots you know. I suspect that the repayments began the month we moved into the Amex, perhaps sooner. The earlier the repayments began, the less would have to be repaid periodically by the 2025 target deadline and the more money TB would save on his investment.

You "suspect"?

So basically you are talking complete bollocks as you actually don't know.

Any chance of posting something you actually know?