[Archived] Rovers Finances

[andy82]

John Williams' commentary on the annual report.

I think what he has written is very fair and points to a healthy future. He is right to highlight that Rovers have done well to increase turn over after outsourcing the catering and shop businesses- now the club just takes fees without commercial risk whereas before all sales from those outlets went into the club's top line.

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Which as i see it is great from an immediate economic point of view, crap for the long term marketing. Its quite clear that the external companies brought into do these jobs (remembering selling offical merchandise and products within the ground is a monopoly) are making their profits by reducing levels of service, especially staff and product range. Fairplay to them, they are businesses looking for oppotunity and downsizing and strategic portfolio management are simple procedures for them.

The question on my mind, is how does this affect Rovers core product of the football(or tickets, if you rather)? Are people going to think they may as well go to the pub anyway, as they find themselves missing large parts of the match due to being in the concourse trying to get a drink or snack? Are people finding they have less of a range of merchandise to purchase and display, therefore cementing the floating/nuetral/rival fans views that Rovers are badly supported? If attendance keeps going down, are these companies going to back out as their profits go down year on year, leaving Rovers to have to restructure again in a few years?

Sorry if my questions are explained in Williams notes - ive forgotton my damn username for the official site

[Exiled in Toronto]

Chairman's commentary's in annual reports can hardly be categorized as "fair" - they are usually the epitomy of positive spin - unless of course the chairman has just come in from the outside and wishes to paint a bleak picture to make his subsequent achievements look all the greater.

The decline in fanbase seems to have plenty of causes and not many solutions in the commentary. "We must try harder and we will" needs to be backed up by concrete plans with targets and consequences for failure. That's what executives get paid for.

I didn't realize Bancroft had been turfed from his honorary position.

[philipl]

I agree that Chairmen's reports are typically a work of spin which is why l called this one fair.

With regards to out-sourcing, the key is the levels of service/customer satisfaction specified in the contract.

Perhaps BRISA could ask how the club is monitoring the contractors' performance and whether the supporters' could have a direct line of feed back to the contractors.

I think the decision to outsource those two activities given that the catering in particular is in reality a twenty or so days a year operation was very sensible.

[andy82]

With regards to out-sourcing, the key is the levels of service/customer satisfaction specified in the contract.

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This is my point - i don't think they are providing the same level of customer service as they were pre - outsource, and this is rubbing off.

[FourLaneBlue]

moved to more appropriate thread.

Edited February 7, 2006 by FourLaneBlue

[Hughesy]

I cannot believe that Rovers recieved £1.5 million compensation money for Souness and his monkey backroom team!! ha ha that makes me happy!

[philipl]

John Williams in the LET

[joey_big_nose]

John Williams in the LET

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Wow, I didn't realise our wages were such a large amount of our turnover.

Hopefully next year things should improve with big earners like Thommo, Amoruso (at least for half the financial year), Jansen and Flitcroft off the bill.

At the moment I would guess our big earners are:

Bellamy,

Savage,

Emerton,

Tugay (although I think he signed a reduced contract...)

Nelsen (Signed a new contract within three months of joining)

Niell

Amoruso

Matteo

Friedel

Also I would imagine Ped and Reid are in line for big pay rises, Bentley too if he keeps up his form, while if we want Dickov to continue next season we need to give him some more cash.

Still hard, as Phillipl once said, to see how we spend over 30 millin a year on wages.

We have about 24. Even assuming that some of the money goes on the chairmen, manager, ticket staff, youth squad, Lee (!) etc. I would guess the average is still well over 1 million a first team player. 1 million a year translates to just under 20k a week! Crazy money...

[Florida Rover]

What about Gresko and Enkelman?Think they are on more than 20k per week?

Florida Rover

[philipl]

About 20 players are taking $40m between them. The entire Board of Directors was costing less than $600K.

Edited February 11, 2006 by philipl

[LeChuck]

What about Gresko and Enkelman?Think they are on more than 20k per week?

Florida Rover

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Enckelman on £20,000 a week? What makes you think that?

[Florida Rover]

Just pulling numbers out of the air but apparently alot of our players are on higher wages than we could begin to imagine to make the numbers work for our wage compensation to the players.

Florida Rover

[joey_big_nose]

About 20 players are taking $40m between them. The entire Board of Directors was costing less than $600K.

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Is there another industy outside the world of sport where the employees earn several times more than the chairman?

Oh, just thought of films. And music. And the arts generally. But apart from that...

By the way Phillipl wouldn't the wages of the 100+ non playing staff and coaching staff (including our Sparkster) come out of the $40 mill? Fair enough they would all be on a lot less but it adds up...

[philipl]

No Joey- I've guessed a generous £6m ($10m) out of the £31m ($50m) total wage bill for everybody else.

[Exiled_Rover]

Just pulling numbers out of the air but apparently alot of our players are on higher wages than we could begin to imagine to make the numbers work for our wage compensation to the players.

Florida Rover

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Well if Football Manager is anything to go by we're in serious financial trouble - Savage on £48k a week, Bellamy on £50k a week, Mokoena on £25k a week etc etc. Scary figures.

[G Somerset Rover]

I also looked at them figures with some discomfort Exiled Rover. Surely they aren't accurate? Mokoena and Nelsen (the latter would deserve it though) on 25k a week, Sav 48k, Bellers 50k. flitcroft always used to be in the early 20's as did Freidel.

[philipl]

About 20 players get through £500K a week- ish. Divi it up how you want to.

[G Somerset Rover]

Maybe football manager is right then

[Exiled_Rover]

About 20 players get through £500K a week- ish. Divi it up how you want to.

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Yet they're not worth it - Souness at his finest.

[philipl]

Frightening to say but that ranks Rovers only about half way up or down the Premiership's pay league.

[Florida Rover]

When the summer clearout ocurs,how much off that 500k pound per week will we cut?With Gresko,Amo,possibly Jon Douglas,possibly Gally,possiblt Gray,possibly Dickov and possibly Tugay that would represent close to 100k per week wouldn't you think?Could we replace those with say two 40k per week players and have the same team at a reduced cost?

[joey_big_nose]

When the summer clearout ocurs,how much off that 500k pound per week will we cut?With Gresko,Amo,possibly Jon Douglas,possibly Gally,possiblt Gray,possibly Dickov and possibly Tugay that would represent close to 100k per week wouldn't you think?Could we replace those with say two 40k per week players and have the same team at a reduced cost?

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If we lost Gray, Dickov and Tugay we would need three players at least. Plus we are still a striker short when Pongo leaves.

And remember that the likes of Ped and Reid must be in line for large pay rises.

ps. thanks Phillipl.

[philipl]

Anyone who wants the Deloitte report on football revenues, just register at this site.

No mention of the Rovers.

Just out of interest, has anyone seen anyone wearing a Real Madrid shirt? I haven't.

[92er]

If we lost Gray, Dickov and Tugay we would need three players at least. Plus we are still a striker short when Pongo leaves.

And remember that the likes of Ped and Reid must be in line for large pay rises.

ps. thanks Phillipl.

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In last night's LET, Hughes is quoted as saying he wants to open contract talks with Gray in the next few weeks to keep him with us next season.

[philipl]

Flybe to be floated

I would imagine that the liquidity this will generate for the Walker Trust would come too late for the summer transfer market. Expect the Trustees to be relatively parsimonious as the Trust probably remains asset rich but cash limited.