Club finances

[Fetch Fletch]

Well if anyone knows and is impartial, it's Mucky Gray

 

[Keith S30S]

I think I've misunderstood your post mate. I know the parachute money remains regardless. When you said we get the same amount from TV revenue anyway, we don't surely if we remain in this league?

Last season we earned £7.5m from TV revenue in the championship, this season it's expected to be around £1.5m.

Relegated teams with parachute payments definitely didn't used to get anything from the EFL TV deal and I believe this is still the case.

I too have found quotes saying we (and others) earned £7M last season but I believe that to be incorrect. I think the newspapers are just adding up the money a team (without parachute money) gets per game, £100K per home game, £10K per away game and coming up with a figure. Of the £7M per season a championship club gets, £4M comes from the Premier league TV deal as a 'solidarity payment' which is the 30% mentioned below. It clearly states on the EFL website we wouldn't get the £4M so how would we get £7M?

'Under the agreement, parachute payments to relegated Premier League clubs will be reduced from the current four season to three seasons, with Championship clubs (that are not in receipt of parachute payments) being awarded a solidarity payment equivalent to 30% of a third-year parachute payment'.

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[123SunTan]

Very impressed w our owner.

Currently in a staring contest w Boro and Wigan to see who blinks first.

My money is on them (blinking first)

The piss take of Sunderland is truly over.

 

[Teed]

I was told that we could really do with getting him and Cattermole off the wage bill

That's not going to happen though is it, no club would stupid enough to sign him, only SAFC are that gullible and we seems to be about to repeat the same mistake by signing Leadbitter, all be it on a smaller wage. we never seem to learn.

 

[BiddickHallBootBoy]

Never again must be the club's mantra, never again must our great club go through the self inflicted public humiliation again, never again being known within the football world, as a soft touch by chairman, players, agents, and plastic plant rental companies!

 

[Buchans Boots]

Whichever way you look at it, we are still in the clarts financially and fans should get real. The new board have worked wonders and are doing a great job.

The new board has no money and it’s an ever decreasing circle.

Although what you say is true what I’m also saying is true. We have no money for many signings that much is obvious and I’ve always been open for safc at any point to open the board up to people who have money

The problem we always arrive at at safc is that once people get to be in control of the club they are very loathe to open it up to anyone else

If Donald was smart he would be looking around for a major investor and attracting him or her onto the board

The current board don’t have any money and ultimately that will lead us to a situation we don’t like. in fact we are here now as you can see with the frustration at the minute due to lack of signings

Micky gray reckons if you dont go up this season there won't be any money next season

He’s right and if people can open their eyes they can surely see this

It will be a financial disaster for safc if we don’t go up. Even if we do we will need new signings because this current squad isn’t good enough to make any impression on the division above

Crowds will be down next season if we don’t go up and that feel good factor will be lost

First things first though is that Donald needs 3 new signings in the next few days to push us over the line this season. He dare not fail.

 

[Motor City Cobra]

Micky gray reckons if you dont go up this season there won't be any money next season

How does that work then....

 

[123SunTan]

The new board has no money and it’s an ever decreasing circle.

Although what you say is true what I’m also saying is true. We have no money for many signings that much is obvious and I’ve always been open for safc at any point to open the board up to people who have money

The problem we always arrive at at safc is that once people get to be in control of the club they are very loathe to open it up to anyone else

If Donald was smart he would be looking around for a major investor and attracting him or her onto the board

The current board don’t have any money and ultimately that will lead us to a situation we don’t like. in fact we are here now as you can see with the frustration at the minute due to lack of signings

Looks like his plan is to attract new investors/investments only after promotion to the 2nd tier. Thus the fine line for the right level of investment ... like an “insurance premium” on promotion.

So it’s not just about revenues in the 2nd vs 3rd tier but being a step closer to the Premier League.

 

[Keith S30S]

The new board has no money and it’s an ever decreasing circle.

Although what you say is true what I’m also saying is true. We have no money for many signings that much is obvious and I’ve always been open for safc at any point to open the board up to people who have money

The problem we always arrive at at safc is that once people get to be in control of the club they are very loathe to open it up to anyone else

If Donald was smart he would be looking around for a major investor and attracting him or her onto the board

The current board don’t have any money and ultimately that will lead us to a situation we don’t like. in fact we are here now as you can see with the frustration at the minute due to lack of signings

The way I see it is this. As soon as Ellis cleared the debt a huge burden was lifted off the club. This made the club a very attractive prospect for investors.

If the new owners made a complete balls up, ran up £20M of debt the club would still be a very good investment compared to being £150M in debt.

However, with the new owners actively reducing staffing levels, getting rid of dead wood players the club is losing a less money and is becoming a professionally ran business going forward.

As player contracts run down and more wages are removed from the books and small investment in players are allowed the club is in a very healthy position for long term investment.

If the current frugal approach doesn't work on the pitch at least the club will be in a very good place off it. Absolutely ripe for a takeover by someone with more financial clout.

 

[Buchans Boots]

Looks like his plan is to attract new investors/investments only after promotion to the 2nd tier. Thus the fine line for the right level of investment ... like an “insurance premium” on promotion.

So it’s not just about revenues in the 2nd vs 3rd tier but being a step closer to the Premier League.

In theory and as it stands we can still make the premier league before the parachute money runs out but that means we simply have to get promotion this season.

 

[madmonk]

Methven said losses were likely to be “at least £10-12m, excluding exceptional items.” Those exceptional items would include, amongst other things, the further liability that may arise from the ongoing Ricky Alvarez court case.

Reports have proliferated that the club expects to reduce its operating losses to £5m this season, but he pointed out that is instead the ‘annualised’ loss position they expect to find themselves in at the end of this season. In layman’s terms, they expect to get monthly operating losses (i.e. before player trading) down to around £400k, which will then translate to an annual loss of £5m.

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When will people finally take the hint that we aren’t going to be splashing millions of pounds we don’t have on players we can’t afford?

Any excuse for a cheap transfer window & promotion failure in advance.

 

[gipetto]

Relegated teams with parachute payments definitely didn't used to get anything from the EFL TV deal and I believe this is still the case.

I too have found quotes saying we (and others) earned £7M last season but I believe that to be incorrect. I think the newspapers are just adding up the money a team (without parachute money) gets per game, £100K per home game, £10K per away game and coming up with a figure. Of the £7M per season a championship club gets, £4M comes from the Premier league TV deal as a 'solidarity payment' which is the 30% mentioned below. It clearly states on the EFL website we wouldn't get the £4M so how would we get £7M?

'Under the agreement, parachute payments to relegated Premier League clubs will be reduced from the current four season to three seasons, with Championship clubs (that are not in receipt of parachute payments) being awarded a solidarity payment equivalent to 30% of a third-year parachute payment'.

You must be logged on to see external links

Possibly because you also get a one off payment if you a selected to appear on TV? Therefore the teams that appear on TV more, earn more money. I didn't know we didn't get a split because we're getting parachute payments.

 

[Mackemed]

Methven said losses were likely to be “at least £10-12m, excluding exceptional items.” Those exceptional items would include, amongst other things, the further liability that may arise from the ongoing Ricky Alvarez court case.

Reports have proliferated that the club expects to reduce its operating losses to £5m this season, but he pointed out that is instead the ‘annualised’ loss position they expect to find themselves in at the end of this season. In layman’s terms, they expect to get monthly operating losses (i.e. before player trading) down to around £400k, which will then translate to an annual loss of £5m.

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When will people finally take the hint that we aren’t going to be splashing millions of pounds we don’t have on players we can’t afford?

To impress people we don't like.

 

[joop]

The new board has no money and it’s an ever decreasing circle.

Although what you say is true what I’m also saying is true. We have no money for many signings that much is obvious and I’ve always been open for safc at any point to open the board up to people who have money

The problem we always arrive at at safc is that once people get to be in control of the club they are very loathe to open it up to anyone else

If Donald was smart he would be looking around for a major investor and attracting him or her onto the board

The current board don’t have any money and ultimately that will lead us to a situation we don’t like. in fact we are here now as you can see with the frustration at the minute due to lack of signings


He’s right and if people can open their eyes they can surely see this

It will be a financial disaster for safc if we don’t go up. Even if we do we will need new signings because this current squad isn’t good enough to make any impression on the division above

Crowds will be down next season if we don’t go up and that feel good factor will be lost

First things first though is that Donald needs 3 new signings in the next few days to push us over the line this season. He dare not fail.

Sartori was the investor they wanted from the start, that much is clear. Do they need more than him right now? It’s unlikely.
From the ALS interview released this morning, with SD and CM flying to Uruguay, I’m guessing here, but it seems Sartori has been asked to support investment now rather than in the Championship.
Maybe this meeting should have been done prior to January as the player investment they would have been preparing for prior to this would have been much lower.

 

[123SunTan]

In theory and as it stands we can still make the premier league before the parachute money runs out but that means we simply have to get promotion this season.

We are good enough and should get it (promotion) but not guaranteed... hence the insurance analogy. Helps that our owner hails from that industry.

 

[gipetto]

Looks like his plan is to attract new investors/investments only after promotion to the 2nd tier. Thus the fine line for the right level of investment ... like an “insurance premium” on promotion.

So it’s not just about revenues in the 2nd vs 3rd tier but being a step closer to the Premier League.

I think it's becoming clear that we will need investors, or perhaps they would think about cashing in and selling the club.

 

[Buchans Boots]

The way I see it is this. As soon as Ellis cleared the debt a huge burden was lifted off the club. This made the club a very attractive prospect for investors.

If the new owners made a complete balls up, ran up £20M of debt the club would still be a very good investment compared to being £150M in debt.

However, with the new owners actively reducing staffing levels, getting rid of dead wood players the club is losing a less money and is becoming a professionally ran business going forward.

As player contracts run down and more wages are removed from the books and small investment in players are allowed the club is in a very healthy position for long term investment.

If the current frugal approach doesn't work on the pitch at least the club will be in a very good place off it. Absolutely ripe for a takeover by someone with more financial clout.

I totally agree with your last sentence and the balance has to be struck between financial prudence and not enough being done to get us out of this terrible division

We clearly don’t need to spend £20m in the next few days to give us the chance to really push on but we do need say £2m to £3m and that will have to be found.

We dare not fail this season.

 

[Reiver]

Very impressed w our owner.

Currently in a staring contest w Boro and Wigan to see who blinks first.

My money is on them (blinking first)

The piss take of Sunderland is truly over.

Good post and I wholeheartedly agree, couldn't bear to go back to the old ways of being taken for a ride.

The days of paying over the odds, and bribing players to come, have to end now.

 

[123SunTan]

I think it's becoming clear that we will need investors, or perhaps they would think about cashing in and selling the club.

This is ultimately what will happen ... he will sell us after massive improvements and reinvest his gains in building Oxford. A win-win for both clubs over the next five years.

 

[Buchans Boots]

Sartori was the investor they wanted from the start, that much is clear. Do they need more than him right now? It’s unlikely.
From the ALS interview released this morning, with SD and CM flying to Uruguay, I’m guessing here, but it seems Sartori has been asked to support investment now rather than in the Championship.
Maybe this meeting should have been done prior to January as the player investment they would have been preparing for prior to this would have been much lower.

Yes it seemed evident that sartori was here to invest at some later point, conjecture but that’s the way I saw it. However we need £2m off him now if that’s the case.