The long game - CCFC financial strategy

[Divine Wright]

I’ve heard a lot of people talking about our budget this year in terms of the long term financial objectives. Basically that we are in the PL for the financial gains.

Are people saying that in three years our debt to Tan will be paid off?

Can someone do me a favour and explain how the parachutes are going to pay off our £115 million pound debt to Tan. Has the £200 million extra the club will make through being in the premier league this year been put towards paying off some of the debt?

The club ran at a £25 million loss a season when in the championship, and that was after cutting the wage bill to 20 million.

Does the club have to turn over a profit before spending on players?

If not , and Tan spends money on us despite the club running at a loss, do our debts with him increase?

These questions are not loaded. I genuinely have no idea how these things work. There are many here seem to understand it.

It genuinely boggles my brain..... if we run at a 25 million loss in the championship and have a 20 million wages bill, does that mean we have to get the players to pay the club 5 million a year in order to play?

[Delbert]

It’s unclear to me what the strategy of the club is. When we achieved promotion I assumed we would target Premier League survival as the first stage of attempting to establish us as a Premier League club. Its a credit to Warnock and the players we were promoted with the squad we had but truth is we were a mid-table club who over-performed.

The step up to the PL was always going to huge and required significant investment on the playing side. Why this did not happen is open to speculation. Did VT overestimate the probability of survival? Does he over-estimate the probability of bouncing back up after relegation? After having his fingers burnt last time out did he not trust Warnock to spend the cash wisely? Or is his priority to use the PL cash to get back as much of his investment as quickly as possible?

Its difficult to avoid the sense that the team has been sent out to try and compete this season with one hand tied behind their back. The aim must be to stay alive until the January transfer window and re-asses things from there. We have 2 points from 6 games and last week’s mauling was unpleasant, hopefully we can regain our confidence and give it a right good go against Burnley.

[Taunton Blue Genie]

Is the plan to minimise expenditure in a season where we have the greatest revenue and for Tan to recover part of his losses before selling up?

[Joe Gillis]

Don't worry about any of the debt, Vincent is going to pay it all off, he promised

[Wales-Bales]

Tan has also been losing money elsewhere, according to Forbes he is only worth $850m now, so it may be a case of battening down the hatches.

[Divine Wright]

The idea was to get answers ! Not more questions.

Seems like at least four of us are none the wiser.

Anyway, that shiny Greek fella said that we are in good hands so I suppose we should take his word for it. It’d be nice if they could clarify what exactly the financial plan is though, and the reasons for such a conservative budget.

[Divine Wright]

Tan has also been losing money elsewhere, according to Forbes he is only worth $850m now, so it may be a case of battening down the hatches.

I don’t care about Tan (sorry!), I’d like to know where we’ll stand after the premier league windfall and subsequent parachutes in terms of debt.

[Wales-Bales]

I don’t care about Tan (sorry!), I’d like to know where we’ll stand after the premier league windfall and subsequent parachutes in terms of debt.

He'll recoup some cash and then sell. If he was in it for the long run he would have speculated by investing in an attempt to try and keep us up. Obviously he has first hand experience of the risks involved in that option. The current situation has exit strategy written all over we it.

[blue matt]

but a team in the prem is worth more than in the championship

surely someone would have pointed out to Vinnie that a team established in the prem would be more desirable to any buyer

I just do not buy this " we shouldnt spend anything and just pocket the 1 seasons prem money " it just doesnt work

[Baloo]

but a team in the prem is worth more than in the championship

surely someone would have pointed out to Vinnie that a team established in the prem would be more desirable to any buyer

I just do not buy this " we shouldnt spend anything and just pocket the 1 seasons prem money " it just doesnt work

Makes sense, but I suppose it’s easier to be bold when it’s not your money. Guess it comes down to risk v reward and VT seems to have lost the appetite and as a result our plans are more conservative.

[Wales-Bales]

but a team in the prem is worth more than in the championship

If you stay there. He already tried and failed with that approach in 2014.

[Superdad]

If we spent another £50m, I still think we would probably go down.

[dml1954]

I’ve heard a lot of people talking about our budget this year in terms of the long term financial objectives. Basically that we are in the PL for the financial gains.

Are people saying that in three years our debt to Tan will be paid off?

Can someone do me a favour and explain how the parachutes are going to pay off our £115 million pound debt to Tan. Has the £200 million extra the club will make through being in the premier league this year been put towards paying off some of the debt?

The club ran at a £25 million loss a season when in the championship, and that was after cutting the wage bill to 20 million.

Does the club have to turn over a profit before spending on players?

If not , and Tan spends money on us despite the club running at a loss, do our debts with him increase?

These questions are not loaded. I genuinely have no idea how these things work. There are many here seem to understand it.

It genuinely boggles my brain..... if we run at a 25 million loss in the championship and have a 20 million wages bill, does that mean we have to get the players to pay the club 5 million a year in order to play?

Our 'reward' for being in the Prem this season will be around £100m, if we get relegated, not £200m as you stated. Also the parachute payments last for three years (assuming we dont get promoted again in this time) and comprise 55%, 45% and 20% of our latest earnings in the Prem League. Also, I dont know what the exact figure is but the clubs debt to Tan is being considerably reduced by the equity conversion and in a few years time should be totally cleared. I would believe that it is already well below £115m, bearing in mind the announcement in the summer that a further large slice had been converted.

[J R Hartley]

Tan has also been losing money elsewhere, according to Forbes he is only worth $850m now, so it may be a case of battening down the hatches.

Only worth 850m

[J R Hartley]

If we spent another £50m, I still think we would probably go down.

Especially if Warnock was the one spending it.

Picking up cheap signings in the championship and working his magic is where he’s at his best.

It’s not only the players who are out of their depth in the PL, I think Warnock is too.

[goats]

I’ve heard a lot of people talking about our budget this year in terms of the long term financial objectives. Basically that we are in the PL for the financial gains.

Are people saying that in three years our debt to Tan will be paid off?

Can someone do me a favour and explain how the parachutes are going to pay off our £115 million pound debt to Tan. Has the £200 million extra the club will make through being in the premier league this year been put towards paying off some of the debt?

The club ran at a £25 million loss a season when in the championship, and that was after cutting the wage bill to 20 million.

Does the club have to turn over a profit before spending on players?

If not , and Tan spends money on us despite the club running at a loss, do our debts with him increase?

These questions are not loaded. I genuinely have no idea how these things work. There are many here seem to understand it.

It genuinely boggles my brain..... if we run at a 25 million loss in the championship and have a 20 million wages bill, does that mean we have to get the players to pay the club 5 million a year in order to play?

Why do we have to pay him 125 million? I’d imagine that is exactly what the club is worth right now. He’d get his investment back, if he sold up, which is exactly what he did.

[goats]

but a team in the prem is worth more than in the championship

surely someone would have pointed out to Vinnie that a team established in the prem would be more desirable to any buyer

I just do not buy this " we shouldnt spend anything and just pocket the 1 seasons prem money " it just doesnt work

I reckon they are building a team, prob each season adding a bit more quality like our recent signings. We might go down, if so we should have a better team than before so theoretically come straight back up? Try to stay up again, if so all good, maybe sell up when stable and get his investment back. Else, repeat the same strategy again until we are stable and less debts.

[Nemo]

Our 'reward' for being in the Prem this season will be around £100m, if we get relegated, not £200m as you stated. Also the parachute payments last for three years (assuming we dont get promoted again in this time) and comprise 55%, 45% and 20% of our latest earnings in the Prem League. Also, I dont know what the exact figure is but the clubs debt to Tan is being considerably reduced by the equity conversion and in a few years time should be totally cleared. I would believe that it is already well below £115m, bearing in mind the announcement in the summer that a further large slice had been converted.

If you get relegated after only one year in the Premier League you now get parachute payments for only two years not three.t t