Black Cat Gypsy
Striker
Did anyone read Chris Whetherspoon's assessment of the statement? I can't post it on here. But it's a very good assessment and makes it very clear.
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New buyers put off by £20 million hole in accounts
- Thread starter Mr David
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Spartan
Striker
is that because were still paying players who aren't here ?
Grumpy Old Man
Striker
More the level of payments when Short left takes a long time to unwind. Salary contributions for players such as Catts and Oviedo don't help.
fyl2u
Striker
Your club's individual cap is based on (certain types of) club income, which include parachute payments iirc. Ours for this season would have been millions less than the previous season, so as a consequence our wage bill would have to be millions less too.
That said, there are other exemptions in SCMP to do with players that have been around for a certain amount of time and signed their contract a while ago but I forget how those work exactly. It's possible Catts and Oviedo actually didn't count towards our SCMP cap regardless of whether they went out on loan, so it could be nothing to do with this at all.
Coeus
Striker
Another good point although their contract ran out of the season didnt it?
Any idea of what it is at now and what it will need to be next season?
PTR
Striker
That's totally fine. Until a club we're competing with offers them most of the money as basic salary.
Its hard to do it your own way when there's 10 other clubs interested in the same player.
samaistonsrightfoot
Striker
If next season doesn't start with crowds then presumably every team in the league pretty much will be breaking the rules.
Billy Batts
Striker
Imagine thinking we're "awash with dosh".
The only fee we've payed for a player this season was Dobson at 100k ffs.
The only fee we've payed for a player this season was Dobson at 100k ffs.
Grumpy Old Man
Striker
Not clearly until I can see where we were at at the last year end. Going forward, out recurring revenues, pre-Covid and this loss of trust, would be around £18m at most. That means a playing wage bill of around £10.8m at most. In reality the ideal is lower than that, since the EFL will step in if it get even close to that. Obviously, if that income falls dramatically, the cap will fall with it. So, if revenue is around £15m, that comes down to £9m. To provide some context, the spend in the 2017/18 total wage bill was £41m, although obviously that covers all staff, not just players. I believe they said that when they came in the aggregate of player salaries was £26m. In May 2018, that was a credible number.
Red and white TID
Midfield
Takes a bit of working out but sure you will get there in the end Kimosabbie
Grumpy Old Man
Striker
That's why they're talking about this really tight limit for all clubs. It could be interesting times for players coming out of contract, and not in a good way. Either way, I think there will have to be some kind of temporary relaxation of the rules to avoid all clubs being in breach.
samaistonsrightfoot
Striker
Think that's the only thing they can do. It's going to have to more done than just relaxing the SCMP rules though. Multiple clubs will go bust before the year is out if crowds don't come back.
And to make matters worse prem teams are just going to pick off any half decent young player from lower league sides for next to nothing because they will be desperate.
Lower league teams will have no players because they can't renew contracts, no youth players and no funds to replace any of them.
What a mess.
SAFC 83
Midfield
Disagree with this like marra. The reason they lied about it in the first place imo is because they knew fans wouldn't have taken it well that our parachute payments were being used to buy the club rather than being invested in the club. It would have shown either they definitely couldn't afford the club or they were going to flip the club using the parachute payments to make a massive profit and the pressure would have been on them straight away.
They were expecting to be gone with a profit before the truth came out. Unfortunately for them and us they've fucked up pretty much every appointment on and off the pitch and are destroying the future of the club by making short term decision after short term decision. Now they are having to deal with their lies being exposed while there is no sale of the club in sight and we are being turned into a middling league one side.
I am Boss
Winger
Is this not why there is talk of a proper salary cap rather than a percentage based one?
Kieran Maguire made a wonderful point. When someone acquires an asset, how often do you hear them reiterating in public how much they paid for it?
These two made sure we all knew (or believed) that they paid £40m for the club. The suggestion that they did it to make it appear they were, as he put it, high rollers to generate confidence rather than appear in the beginning that they were financially punching above their weight
Just received this off a mate it’s a good listen and a fascinating interview with Kieran Maguire, who is an independent football finance expert and has his own highly-rated Price Of Football Podcast. Listen to his honest and frank views on the Sunderland AFC owners and the way they have financially managed the football club.
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seggaman
Winger
So, let me see if I have understood this properly. Donald borrowed money from the club to help him buy the club and now doesn't have to pay it back?
What weird sorcery is this? No wonder noone will touch the club.
Grumpy Old Man
Striker
It is, but it's misguided. Hard salary caps only really work where there's broad equality of income across the league implementing it. That's very much not the case in football at any level, and in any league, with the possible exception of MLS. Individual salary caps will rise and fall with fluctuating revenues in a percentage system, although it will result in shorter term contracts if an individual club's isn't relatively stable. It's noticeable that the clubs pushing for the hard cap are the smaller ones; the cynic in me believes that it's actually a ploy to eliminate a perceived advantage of the larger clubs with more revenues.
You really think people would have been upset about the club using it's own money to pay off its own debt? Obviously we all wish some sugar daddy would have come in, cleared the debt and given us a load of money to spend but realistically did anyone expect that to happen? If they had flipped it quickly they would have had to find someone willing to pay for arguments sake £40m but nobody would pay that on the basis that's what Donald claimed they had paid.
Lewberry pie
Striker
Wouldn't trust him with anything Donald and co related, he's not an objective observer he absolutely hates them and has done since Donald pulled him up on something a while back, he's also had articles pulled due to Donald's threatening to take legal action.
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