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I’m trying to look into what our current situation is regarding our debt and our revenue for next season.
Is there anyone in here with a good grasp of the figures etc ?
With the wages being paid , and the transfer fees by clubs like Everton etc. I just can’t see if it’s better to be in the premiership with higher wages and transfer fees , or to be in the championship on parachute payments with lower costs etc.
I’ve seen that Huddersfield revenue from the premier league last season was £105 million. Now they spent approx £50 million on transfers. Their wages to revenue ratio was 50% so I’m struggling to see where you can actually make a profit in the premier league ?
Assuming we get around £100 million , and we have spent £30 million on transfers. After wages etc how much of a profit are we likely to see ?
Apologies if I haven’t put that in the most eloquent of ways.
Good grief. Imagine worrying about that after the ride we've been on since Tan took over. Think you should just enjoy this season for what it is, and not worry about the clubs finances, which I'm sure at some point will come out as being utterly shambolic. Just enjoy the football mate, much easier!
You might be right. Ignorance is bliss I guess.Originally Posted by Der Kaiser
I completely understand it, but I just think it's better to just put our heads in the sand for the foreseeable. At least if we come down we should be financially sound for the next few seasons after that. However, knowing Cardiff City, there will be something eventually to give us a fright.
Transfers £24m
Wages £40m
Bonus from last season to squad £5m
= £79m.
Increased commercial/ticket sales £9m
Leaves £30m profit.
Just a guess of course.
There are about 8 Championship clubs with a bigger wage bill than ours next season.
Makes you wonder how clubs can afford £30 million transfer fees etc.
There's a mysterious £10M missing in your sums (£24M + £40M +£5M = £69M not £79M). However I can see a further £10M+ going easily on wages on top of your £40M. I think the minimum Wages bill in the prem last year was mid £50M's.
Then there's ground costs, developments, etc on top.
The big clubs have the additional spending from their merchandising sales, dodgy ground naming inputs from their owners and increased advertising and sponsorship income. We can never compete with that unless we somehow become a very fashionable Club and I cannot see that happening in my lifetime (thankfully!).
Enjoy this coming season for what it is - a bit of nonsense in a made-up world that can't last forever.
Do fellow fans think we concentrate too much on finances? Its not as if we're shareholders. We also don't know the true figures
The club have stated we aren't going over the top with transfers etc
NW has stated he's involved from top to bottom within the club. If we struggle this season, we've a lot to thank him for.
Apparently our wage bill is by far the smallest, so I’d expect us to be making a reasonable profit this season.
The transfer fees are ‘investments ‘, probably to be paid in stages, but in terms of the books will be written off over the term of the contract, which was 4 years in most cases, so only about £6m will be attributed to this season.
There will also be amortisation of transfers from previous seasons to add in... mainly Madine, which will account for £2m, so with the others being another £1-£2m you are looking at a total of about £10m of transfer fee amortisation this season.
Surely the over riding factor here is that it is much easier to make a profit in the Premier League than it is in the Championship if the will to do so is there?
That’s a good point regarding the transfers being spread over a few seasons.
I think the profit is to be made in the Championship is dependent on at least one big player transfer sale per season as per Barnsley.
Premier League profit is T.V money really. Not sure what has happened at Swansea as they have received millions in player sales over the last 7 years, yet appear skint ?
Players wages, its always players wages.
If you look at Swansea they only made profit when they had large players sales, all tv money, and other matchday revenue went on players wages.
They hope in the Premier league is that you sign someone for £10m they have a great season and you sell for £50.
Thats the only way to make a profit in football at the moment.
The year Sunderland got relegated, they were the only side not to turn a profit. If we don't make a profit, I'd be absolutely amazed.
These figures show that the warning bells should have been ringing for Swansea at the end of the 16/17 season. Not sure if the TV income that season was the same as in 17/18, but, if it was, then around 95% of TV revenue was being spent on wages. The jacks were in the top ten of the Premier League wage bill league and that should never be the case for a club of their size (or ours) - Swansea weren't the first club to suffer after they started behaving as if the Premier League was their "natural" level and they won't be the last.
https://talksport.com/football/23997...-170602241640/
I read somewhere that the wages to revenue ratio in premier league is around 55% and in the championship it’s almost 99%.
I understand that big clubs like United and Liverpool etc have other revenue from sponsors and worldwide shirt sales etc. I just don’t see how clubs like Fulham and wolves are spending what they are. It seems a high risk strategy for very little reward.
I’m quite happy for us to make a profit and pay off some of the debt we have. Make the club more stable and self sufficient. I would love us to concentrate on youth more and bring players through.
A profit may be made for the coming season but relegation would be a blow when players have been contracted on higher wages.
Well Wolves is a strange one as they're basically getting players way above their station due to their manager's relationship with Jorge Mendes and their owners' willingness to line his pockets.
Where's "Since" when you need him
you sign someone for £10m they have a great season and you sell for £50.
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I’d buy him for Bridgend St out of my own pocket if that was the case 😜
I imagine transfer fees are amortised over the life of the contract eg if we spend 10m on a player on a 4 year contract, I would expect the p&l recognises a cost of 2.5m per annum for 4 years. So it’s not as simple as just deducting this season’s transfer fees from turnover as a starting point.
That is right.
There’s also the value/ transfer fees of existing players to take into account as they will get amortised too.
Although at our club, as I mentioned above, that’s not much !
It gets even more complicated as players can sometimes be revalued on the books, which will affect things again.
There’s also a lot of other technical things which will affect profit.
A few years ago there was a big write down if the Upper Ninian.
Now it is back in full use I would guess that has to be reversed, at least in part , which will add to the profit. Possibly this will affect the accounts to May 2018
I'm saying nothing given the mess that Gonzo Jenkins has presided over.
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