How skint are we?

kyle's left foot said:
Thing is thats pretty much the state of every professional club below the championship, we are no different now
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Totally agree but not many clubs will have the outgoings we have and if fans can't return when the season restarts and the club have to find wages when furlough reduces or stops we are doomed
 


Do you know when you go through the turnstile and there's kids with buckets collecting cash. That's how skint we are.
 
gavrocks said:
No money coming in no money going out players on 80% of their wages a squad that is threadbare what players are we going to sign when we can't pay them their full wages and with furlough money dropping to 50% in October how many of our current squad will we have left because these owners can't pay 20% never mind 50% unless the government or should I say f.a give the go ahead for fans to return to the grounds when new season kicks off i will give us 6 weeks before we go under.
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The players are on 100% of their wages.

The club is claiming £2500 per month for each player.
 
fredthefan said:
Yanks don't appear to have a great appetite for us. If their security is over the ground and training ground could they just sell the land and build houses and we get naff all left?

These clowns in charge are a disgrace. How did they get through the fit and proper.....oh, hold on.
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Personally think they watched a Netflix documentary and were swayed. If there is no promotion next year with the operating costs etc face it its a bad investment.
 
Never understood his logic of being the "better placed club" to survive the "Behind Closed Doors" era that is about to hit us. Surely we take a bigger hit than anyone in Leagues One and Two right from day one. The fact that they have tried to hold on to the refunds for 3 matches shows how much shit we are in. Smaller clubs are losing a lot less than we are
 
mackembulldog said:
Ive seen the 'not paying the top up on staff being furloughed' on various threads... not the only people to do this by the away.. I know of loads.. our lass being one of them and that's a private school where you think they'd have the money...
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no income coming in at all, it’s common business sense especially if people are sitting at home on furlough. It’s actually called job retention and designed to keep people employed by stopping companies going to the wall.
Not a chance the RTG Manic depressive masses will have that though
 
Just been told by a good friend, that he knows an electrician who has recently done work at the academy. When payment was due, they contacted him and, I kid you not, offered him a ride-on lawnmower from the academy instead of money.
Hahaha.
He said no to their wonderful offer.
 
vote quimby said:
Just been told by a good friend, that he knows an electrician who has recently done work at the academy. When payment was due, they contacted him and, I kid you not, offered him a ride-on lawnmower from the academy instead of money.
Hahaha.
He said no to their wonderful offer.
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Bloody hell, that isn't good....they could have at least offered him something relevant to his job!
 
vote quimby said:
Just been told by a good friend, that he knows an electrician who has recently done work at the academy. When payment was due, they contacted him and, I kid you not, offered him a ride-on lawnmower from the academy instead of money.
Hahaha.
He said no to their wonderful offer.
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I read that as offered him a ride on a lawn mower, which wouldn't even surprise me :lol:
 
Every club is in the same position - outgoings that have to be paid, virtually no incomings.

When the money runs out to pay the outgoings you either get a loan to carry on trading, pare the outgoings down to a level that can be paid or you shut up shop.

I’d imagine your payroll would be around £1m per month. These are times when the shysters sniff a bargain. I can only glean from STID that your present owners have very little personal money invested in the club - unlikely to have loans secured on their houses, for example, so they have little to lose if they run the club into the ground - apart from their personal health and security I’d guess!

Our little old club is in exactly the same position, but people’s personal money has been put in which, I presume, they’d be loathe to lose.

If the worst happens, I can see some clubs tearing up existing contracts and deal with any legals later on - club in hibernation with very minimal outgoings. Hopefully, later today the EFL meeting regarding salary caps, new season starting and fans returning may show a bit of light. Apparently, when the PL season is completed they may throw a few scraps down the leagues.
 
I was going to make a little joke about how skint we are but I mentioned we offered min wage to Craig Gordon the other day and it really upset one of our resident princesses
 
fredthefan said:
Refunds delayed, players not getting paid full whack.

Think we really could go under?
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I may be wrong here but aren't most clubs "skint"? If you look at cash in the bank, I doubt there are many sitting on big piles of cash. Clubs seems to spend based on their foretasted income (tv rights, sponsorship deals, matchday and merchandise revenue) and either borrow against it or buy on the never never (loads of transfer deals are done in instalments these days)

So in terms of SAFC we have lost all of our matchday revenue, we are refunding part of the guaranteed revenue (Season Cards) and there is no TV money or sponsorship to be had. There is uncertainty around when (or even IF) the new season will start so I'd imagine the coffers are pretty empty right now.

The thing we have in our favour (and feel free to correct me @Grumpy Old Man ) is that we don't have masses of debt to be serviced and we can (and have) furloughed non-essential staff to save on those costs. There might be nowt in the bank, but there's nowt (or very little) going back out either
 
TopCat said:
I may be wrong here but aren't most clubs "skint"? If you look at cash in the bank, I doubt there are many sitting on big piles of cash. Clubs seems to spend based on their foretasted income (tv rights, sponsorship deals, matchday and merchandise revenue) and either borrow against it or buy on the never never (loads of transfer deals are done in instalments these days)

So in terms of SAFC we have lost all of our matchday revenue, we are refunding part of the guaranteed revenue (Season Cards) and there is no TV money or sponsorship to be had. There is uncertainty around when (or even IF) the new season will start so I'd imagine the coffers are pretty empty right now.

The thing we have in our favour (and feel free to correct me @Grumpy Old Man ) is that we don't have masses of debt to be serviced and we can (and have) furloughed non-essential staff to save on those costs. There might be nowt in the bank, but there's nowt (or very little) going back out either
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The uncertainty is the future cash flow. As you say, most companies don't sit on large cash reserves. For one thing, it's a bloody inefficient use of resources. Standard corporate finance theory is that it's actually desirable to have a certain amount of borrowing, and make other people's cash work for you. Anything up to around 25% of net assets is usually thought of as fine. What's going to bring clubs down is costs that keep on coming even though there's no income. We'll be better off than many, but that doesn't make us comfortable. Being debt-free works in our favour in that there is ample scope for covering the gap with borrowings.
 
Grumpy Old Man said:
The uncertainty is the future cash flow. As you say, most companies don't sit on large cash reserves. For one thing, it's a bloody inefficient use of resources. Standard corporate finance theory is that it's actually desirable to have a certain amount of borrowing, and make other people's cash work for you. Anything up to around 25% of net assets is usually thought of as fine. What's going to bring clubs down is costs that keep on coming even though there's no income. We'll be better off than many, but that doesn't make us comfortable. Being debt-free works in our favour in that there is ample scope for covering the gap with borrowings.
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safctommie said:
Donald was skint then ......
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SMB summed up right there! An informed, measured answered followed by nonsense
 

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