The Albion posts losses of £14.7m

[Twinkle Toes]

Crivens! Only just got in & seen this & I'm somewhat gobsmacked. I thought the club would be struggling to keep their losses close to the FFP limit: but 15 million quid?! No wonder the transfer kitty hasn't been increased recently.

 

[Jim in the West]

Can we knock £3 million off that from the sale of Bridders?

Well, Paul Barber has said we're on course to meet the permitted max loss of £8m in 2013/14, so something has gone right!

 

[Creaky]

Players are partly to blame for all footballs clubs in debt
£20,000 a week absolute joke, there should be a cap on players wages

Why blame the players - they don't pay the wages - it's the clubs' 'fault' that wages are so hgh

 

[El Presidente]

I'm not sure that this is the perfect performance indicator.

If we halved our attendances, we'd double the ratio of TV money to gate receipts. If Bolton could attract crowds the size of ours, their figure would drop to something like £3 of TV money for every £1 of gate receipts.

I agree Lord B, just showing the impact of parachute payments, which themselves skew revenue

 

[Creaky]

You're mistaken. I bought a business last year. My accounts show a loss, a drastic loss I add, but in reality it's just accountants doing their number crunching. Not being an accountant some of it goes over my head but I understand enough to know I am not in debt and the business is healthy and my tax liability is zero, at the moment!

That's the difference between the cash flow statement and the P&L

In general it's cash flow that causes companies problems, not losses.

 

[Twinkle Toes]

Well, Paul Barber has said we're on course to meet the permitted max loss of £8m in 2013/14, so something has gone right!

Thanks for that timely reminder James. I was starting to go rather wobbly.

 

[Jim in the West]

It's interesting that (a) Poyet received a massive increase in playing budget for the 2012/13 season (football costs increased from £14.8m to £20.9m - 41% increase; (b) we are led to believe that Oscar's budget this year is slightly higher. Yet, at the same time, we are on course to reduce the loss from £14.7m to less than £8m this year [which is great news, by the way].

Although I'm an accountant, I'm not quite sure how this financial turnaround is being achieved...but I imagine not paying Vicente, and getting good money for Barnes and Bridcutt, will be important contributors.

One thing is very clear, though - Poyet can't claim we lacked ambition with a 41% increase in football costs!

 

[Prince Monolulu]

Pies up, more scratchcards and shorter pints. Eeeesssss not difficult.

 

[sagaman]

Players are paid too much= Simple fact of life

Footbal finances are quite mad and bear no relation to normal life. Very lucky we have TB.

 

[Barrel of Fun]

Can we just stop this madness and return football to an easily affordable past time when anyone could catch a lot of games and a player (not all of them, granted) didn't have the option of retiring from all forms of work by the age of 35?

 

[WeTheSouthStand]

Thanks for clearing it up

 

[El Presidente]

the biggest most important throbbing question for Brighton fans will relate to the 'other costs' that no one could answer what they were last year. If they really are annual costs related to the new stadium then there are going to be real problems.

As others have said (i) P&L is weird with regard to football finance since eg players contracts are amortised etc which skews the results. Cashflow is the key (ii) proves that even with that level of income football is just not sustainable outside of the Premiership due to the ridiculous wages that have filtered down and hence why every club has to rely on some rich sugar daddy to underwrite them. Luckily for Brighton and Palace they both have true fans for Owners which means heart ultimately has to rule the head (iii) shows how bad football finance is that these figures will include the income from the stadium but not all of the costs ie the interest cost is effectively gifted by TB

in summary as others have mentioned football is screwed financially and its generally a case of fire fighting to keep going. We have had a massive cash injection but if we stay up then the pressure will be on for a big chunk of that to go on wages.Madness

You have two choices. One is to follow the Blackpool model, pay players a salary that is less than the average in the PL (£10,000 a week compared to £30,000 a week) and accept there's a fair chance of being relegated. The chairman then trousers £11 million as a result of the one season in the top flight.

The alternative is to invest heavily in the squad and hope you pick up a Michu or equivalent who will score enough goals to keep you up. Palace have struggled to score (15 in 24 games), but TP has made your defence a lot better, and that (along with the return of Murray), might just be enough.

 

[PILTDOWN MAN]

It's interesting that (a) Poyet received a massive increase in playing budget for the 2012/13 season (football costs increased from £14.8m to £20.9m - 41% increase; (b) we are led to believe that Oscar's budget this year is slightly higher. Yet, at the same time, we are on course to reduce the loss from £14.7m to less than £8m this year [which is great news, by the way].

Although I'm an accountant, I'm not quite sure how this financial turnaround is being achieved...but I imagine not paying Vicente, and getting good money for Barnes and Bridcutt, will be important contributors.

One thing is very clear, though - Poyet can't claim we lacked ambition with a 41% increase in football costs!

Because the 15 million figure is not the FFP figure. This has been mentioned in many posts now and by far far better placed people than me. The FFP figure discounts all manner of things.

 

[AZ Gull]

One thing is very clear, though - Poyet can't claim we lacked ambition with a 41% increase in football costs!

He can, and he did.

 

[El Presidente]

Can we just stop this madness and return football to an easily affordable past time when anyone could catch a lot of games and a player (not all of them, granted) didn't have the option of retiring from all forms of work by the age of 35?

Yup. Support Peterborough, Leyton Orient or similar.

 

[Jim in the West]

Because the 15 million figure is not the FFP figure. This has been mentioned in many posts now and by far far better placed people than me. The FFP figure discounts all manner of things.

Ah ha...that will explain things. Thanks

 

[Giraffe]

Wow! Front-loading costs I hope so that we meet FFP when it matters.

To avoid a £10 fine a very severe telling off by no one.

 

[seagullsovergrimsby]

Don't blame the council, blame national planning policy. Without agreeing to the transport costs inherent in running the club from a brand new stadium at Falmer, the Club would never have escaped from Withdean.

Didn't the council impose restrictions when we moved back to Withdean which resulted in a transport levy on ticket prices ? Will other clubs who have built new stadiums still be making ongoing payments to transport costs after initial contributions to infrastructure (e.g more roundabouts at stadium:mk) ?

 

[PILTDOWN MAN]

Didn't the council impose restrictions when we moved back to Withdean which resulted in a transport levy on ticket prices ? Will other clubs who have built new stadiums still be making ongoing payments to transport costs after initial contributions to infrastructure (e.g more roundabouts at stadium:mk) ?

Derby had to pay for the link road , which is now part of the whole development. Basically all the other businesses got it for free. Not sure but Reading may have been the same


Edit didn't see the ongoing bit

 

[Don Quixote]

This means we must get to the cup final then