Donald on our January budget

[kildaremackem]

January is a long way off in seasonal terms, we may get to January and realise we don't need any new incomings.

If we're doing well then focus on shifting Djili, Ndong and potentially McGeady and tie the young lads down.

With the emergence of Hume then we may even be able to sell Oviedo without requiring a replacement too.

hadnt thought of that..we should be able to get some money for oviedo and hume should be ok to play there so no replacement..lot of wages saved to be used on other areas..

It shoudn't be....

We can't afford to spend more than one season in this league if our income is poor....We are missing out on extra tv money etc, so we are desperate for a center half to get us out of this league.

we continue to average less than i goal per game conceded...I dont think thats where the problem is..we have a centre half..flanagan who has won this league...

 

[Deleted member 6830]

What Losses? Shorty wiped the slate.......

It shoudn't be....

We can't afford to spend more than one season in this league if our income is poor....We are missing out on extra tv money etc, so we are desperate for a center half to get us out of this league.

It shouldn't be ???
Well, look at the money squandered by various managers under the Drumaville consortium and Short for that.
Donald and Methven are not oligarchs or sheikhs and the 40 million to buy the club from Short is a hefty sum.
Then, there's the19m still owed on transfers negotiated by the previous regime.
The club was losing money hand over fist and the cutbacks in staff on and off the pitch recently have staunched the flow, but we still won't be profitable this season.
Almost 180k per week is going out to 5 players ffs.
You and others can bang on all you want about lashing out more dough on more players, but it ain't going to happen until we shed the likes of Ndong.
We are still financially brittle and the sooner the dreamers realise it the better.

 

[Chop Buster]

I think it makes perfect financial sense not to spend more than we need to getting out of this league, realistically if you look at our squad/wages then we should have more than enough to be winning it. One point that did slightly concern me was the contract renewals for Maja, Gooch etc. I can't imagine it would take a massive increase for them both to sign new contracts let's say £10k a week (which is a massive increase for league one so could be less) that's costing half a million a year which is a very small loss compared to if we were to lose both those players and then had to replace them (probably looking at something between £3-5mil). Just seems a stupid decision to me.

 

[kildaremackem]

I think it makes perfect financial sense not to spend more than we need to getting out of this league, realistically if you look at our squad/wages then we should have more than enough to be winning it. One point that did slightly concern me was the contract renewals for Maja, Gooch etc. I can't imagine it would take a massive increase for them both to sign new contracts let's say £10k a week (which is a massive increase for league one so could be less) that's costing half a million a year which is a very small loss compared to if we were to lose both those players and then had to replace them (probably looking at something between £3-5mil). Just seems a stupid decision to me.

I basically agree-though I think the money for that is there if we we get ris of just one of the big four-ideally two of the big four earners...thats cattas oviedo ndong or papay..one of them not being there would free the wages up..

 

[Mary Hinge]

It shouldn't be ???
Well, look at the money squandered by various managers under the Drumaville consortium and Short for that.
Donald and Methven are not oligarchs or sheikhs and the 40 million to buy the club from Short is a hefty sum.
Then, there's the19m still owed on transfers negotiated by the previous regime.
The club was losing money hand over fist and the cutbacks in staff on and off the pitch recently have staunched the flow, but we still won't be profitable this season.
Almost 180k per week is going out to 5 players ffs.
You and others can bang on all you want about lashing out more dough on more players, but it ain't going to happen until we shed the likes of Ndong.
We are still financially brittle and the sooner the dreamers realise it the better.

Nee ones banging on ye Fanny and if we need a few players in Jan I'm sure we'll get them....but if we can't financially outmuscle league one teams with nee debt and 30k gates, we may as well give up.....

 

[Mayflower]

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

 

[Nuneaton Youth]

Even with the 30k attendances we are probs only covering the 5 high earners wages.

Most likely making a loss.

 

[Secret Visage]

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

No.

 

[Super Colin Todd]

It shouldn't be ???
Well, look at the money squandered by various managers under the Drumaville consortium and Short for that.
Donald and Methven are not oligarchs or sheikhs and the 40 million to buy the club from Short is a hefty sum.
Then, there's the19m still owed on transfers negotiated by the previous regime.
The club was losing money hand over fist and the cutbacks in staff on and off the pitch recently have staunched the flow, but we still won't be profitable this season.
Almost 180k per week is going out to 5 players ffs.
You and others can bang on all you want about lashing out more dough on more players, but it ain't going to happen until we shed the likes of Ndong.
We are still financially brittle and the sooner the dreamers realise it the better.

We are talking about now.....The club can't afford to stay in this division, it's a simple business equation.

hadnt thought of that..we should be able to get some money for oviedo and hume should be ok to play there so no replacement..lot of wages saved to be used on other areas..


we continue to average less than i goal per game conceded...I dont think thats where the problem is..we have a centre half..flanagan who has won this league...

So leaking goals early is not a problem? Erm......

 

[Deleted member 39436]

@Grumpy Old Man has said for months this is exactly what he would aim to do.

Whilst Ndong and especially Dildo are at the club the wage bill calculation is all over the place, they never expected them to still be here mid Sept nearly.The latter has been getting paid all the time it's only since he returned last week or so unfit has his wages stopped , Ndong I'm not sure about!

 

[Botchie]

Whilst Ndong and especially Dildo are at the club the wage bill calculation is all over the place, they never expected them to still be here mid Sept nearly.The latter has been getting paid all the time it's only since he returned last week or so unfit has his wages stopped , Ndong I'm not sure about!

Donald said in the podcast that Djillibogi had agreed not to be paid in July.

 

[kildaremackem]

Donald said in the podcast that Djillibogi had agreed not to be paid in July.

yes..but its september now and he wants paying...

and when doing the buudget have to prepare on assumption they will both have to be paid..then if thats not the case..do something else..

 

[Botchie]

yes..but its september now and he wants paying...

and when doing the buudget have to prepare on assumption they will both have to be paid..then if thats not the case..do something else..

See post 258 marra. I'm sure their is plenty of desire from Donald to get everything right, it's in his own interest. I've not seen anything yet that makes me distrust him. I will get on with my job for now, turning up and supporting the team.

 

[Deleted member 39436]

Donald said in the podcast that Djillibogi had agreed not to be paid in July.

Well I thought that his wages were stopped for longer than they have actually been, I'm told it has only been implemented in the last week or two, him and his agent are objecting to it as apparently they think he's done nothing wrong, incredible!

 

[viccarlton]

I didn’t realise that the financial state was still as precarious until reading that article.
I’d love us to invest more but wouldn’t want another financial mess by trying to push the boat out.
Will be a very interesting January.

Personally I think it was pretty obvious that the wages of Cattermole, Oviedo plus the two absentees etc was unsustainable in League One this despite all of the sword rattling by Stewart Donald.

 

[Grumpy Old Man]

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

No. The parachute payments have not been used in calculating a sustainable budget, and will not be used until they need to be. Some will be legacy payments, and more will be used to fund ongoing deficits until the cost base is fully under control. The rest will be spent when needed. You don't need 10% of this year's parachute to get out of this division, and any player costing that much would be chasing wages which are unaffordable once the parachute payments stop. Far better to hang on to the cash till when its really needed - when we're in the Championship.

The purpose of parachute payments is to give a relegated club time to adjust its finances to its new division - not to help it to sustain a PL lifestyle.

 

[kildaremackem]

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

they certainly havent used the parachute money to buy the club...not sure its legal or in compliance with FA rules..but certainly not what they have done..because they have put the parachute paymkents up as security against tghem paying..Ellis wouldnt accept as security the thing they are using to pay him..as for ability to sustain it...they care planning to run at a loss this year..and next..regardless of division...

 

[andymcnish]

£20m of it went on paying transfer fees for players signed before the new owners got here...some of it went on buying the club out of contracts..and some of it will go to fund the multi million pound losses..

Actually SD said buying out the contracts cost nowt.

Some of it's gone or is earmarked for payments on Alvarez, Ndong, Papy, Kone, Khazri and Gibson.

But to be fair we are getting payments in for Kone and Khazri that will more than cover their remaining instalments and Ellis had agreed to go split the cost of the Alvarez debacle.

Let's for the sake of argument say that we just sack Papy and Ndong but don't get a penny back for them (and I think SD thinks he can do better than that for sure).

So I think that's about £12m capital payments we need to cover.

On the income/expenditure side, SD said we were running at £28m, but that assumes full wages for all of Ndong, Papy, Catts and Oviedo. Assuming they are each now on around £40k a week getting them off the books would save £8m a year off the wage bill. And hopefully generate a few million in feed at the same time.

Let's assume though that we keep Catts and Oviedo all year. That takes expenditure down to £24m. SD said he is sure he can squeeze another £2m off so that's £22m.
He reckons he can get income up to £18m or so this year (excluding parachutes) and be very close to break even next year.

So let's assume a deficit for this year of £6m and next year £3m, again to be funded out of the parachute payments.

So that leaves about £21m of things we know about that the £63m parachute payments (this year and next) have to cover. That's one hell of a contingency/warchest left over for league 1 or the Champo if we get up.

We certainly aren't that tight for cash unless we are missing some huge numbers.

That is of course assuming none of it is being used to fund the £40m share price.

 

[johnnyat87]

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

No mate we've got owners that want to do things properly and build from a more solid foundation. I'm sure we will manage to sign what we need in January but either way the owners are going about things the right way.

 

[Deleted member 6830]

We are talking about now.....The club can't afford to stay in this division, it's a simple business


So you think they have money to burn eh ?.
I give up.

So let’s recap, the parachute payments to help sustain the club has been used to buy the club and now we find that we have to find £millions to cover wages for players who no longer play for us. The new owners don’t have the financial strength to sustain this so debt will no doubt grow again. Have we owners that talk the talk but will struggle to walk the walk?

The parachute payment has been used to help them buy the club ?? Where did u get that load of baloney from, or are you just saying owt that comes in to your head ?
They have already admitted they aren't minted and that the Uruguayan guy will be needed to help us get out of the Chship if and when we get there.
But carry on denigrating the job they are doing on trying to turn this basket case of a football club round.

Nee ones banging on ye Fanny and if we need a few players in Jan I'm sure we'll get them....but if we can't financially outmuscle league one teams with nee debt and 30k gates, we may as well give up.....

Theres plenty banging on about signing more players if you care to read the various threads.
Their 'starting position' has been and still is, a tough one, and imo, they are making a decent fist of it so far.
Nee debt oh aye, but 40 plus million of their own money to buy the club, 20 million to pay the various fees owed, a good amount needed to cover weekly outgoings (club still losing money)...and probably a few other 'nasties' we don't know about.
Oh and as for the light abuse, leave it out, this is supposed to be a rational debate where views should be expressed in a manner without the need to stoop to that level.