[Archived] club finances

[AndyC]

Do you have any idea what the club wage bill has gone down to now? Compared with under Sam?

The sponsorship (shirt and stand) only amounted to about 3Mill per year.

Players like samba, nelson and jones must have been on about 150k per week combined. So that's already saved the club 8mill a year.

What are the best estimates with regards to where we are after parachute payments + league money +player sales - new wage bill - new player sales.

?

[Baz]

I'd wait until we get to the end of the transfer window first. I still think we may see the back of at least one of Olsson mk1 / Nzonzi / Dann / Goodwillie by then. What's so sad is they are now our prize assets.

[Pedro]

Add to that Salgado 50K, Diouf 40k, Andrews 35k, Hoilett 35k, Roberts 40-50k, Petrovic 30+k and god knows who else, you will be able to see that they have saved a lot of money and got very good money for Samba, Jones. Hopefully the majority of that money is what is being reinvested but that is obviously open to debate.

[PAFELL]

Add to that Salgado 50K, Diouf 40k, Andrews 35k, Hoilett 35k, Roberts 40-50k, Petrovic 30+k and god knows who else, you will be able to see that they have saved a lot of money and got very good money for Samba, Jones. Hopefully the majority of that money is what is being reinvested but that is obviously open to debate.

Do any of those fees cover the cost of relegation.

[J*B]

Do any of those fees cover the cost of relegation.

No, but the Parachute payments + An immediate promotion + losing lots of high earners could, in some sick way, see us BETTER off.

[Exiled in Toronto]

It had occured to me a while ago that a planned relegation followed hopefully by a promotion could be used to decimate the wage bill, getting rid of the ageing 40k/weekers we had on board. Look at the money Blackpool made and will make again if they go up this time.

[DE.]

Offset somewhat by Murphy 35k p/w, Etuhu circa 30k p/w, Rhodes 40k p/w + transfer fee, complete loss of TV money from the premier league, complete loss of money from sponsorship, embarrassingly low season ticket sales and plenty of high earners (Olsson, MGP, Dann, Robbo, Givet, N'Zonzi) still on the wage bill.

Going up straight away may mean we're slightly better off, I don't know. But it's surely going to be marginal considering all the other revenue streams being affected. And if we don't go up, I don't see how the above is sustainable.

[Pedro]

Do any of those fees cover the cost of relegation.

I've no idea to be honest, if we stayed up with such a reduced wage bill then I'd imagine that would have been a much better scenario. As it stands you'd imagine that these reductions have made the impact of relegation much less dangerous (than had we still had those players on the books) but the flip side of that is - would we even have been relegated with those players in the team?

By spending what they possibly saved, the owners are obviously gambling on promotion 1st time of asking - the confusing part is why they stick with Kean.

[TBTF]

I've no idea to be honest, if we stayed up with such a reduced wage bill then I'd imagine that would have been a much better scenario. As it stands you'd imagine that these reductions have made the impact of relegation much less dangerous (than had we still had those players on the books) but the flip side of that is - would we even have been relegated with those players in the team?

By spending what they possibly saved, the owners are obviously gambling on promotion 1st time of asking - the confusing part is why they stick with Kean.

A trawl through the matchday programme will show a squad of 35 players with more still coming(subject to who may leave by tomorrow night).Despite relegation clauses you would still have to think the wage bill for that lot is upwards of £30m per year versus income of £16m in parachute-and not much else.Add to that the fact that we have the costs of maintaining other parts of the Club we must be running at a big loss.

Whatever we got in player sales last year to go to pay off Barclays has been turned round because with Rhodes coming in we have probably also spent £12-15m on transfer/agents fees. So lets be kind and say the capital outlay is neutral then the running costs look to be seriously negative on a week by week basis.

[Mercer]

A trawl through the matchday programme will show a squad of 35 players with more still coming(subject to who may leave by tomorrow night).Despite relegation clauses you would still have to think the wage bill for that lot is upwards of £30m per year versus income of £16m in parachute-and not much else.Add to that the fact that we have the costs of maintaining other parts of the Club we must be running at a big loss.

Whatever we got in player sales last year to go to pay off Barclays has been turned round because with Rhodes coming in we have probably also spent £12-15m on transfer/agents fees. So lets be kind and say the capital outlay is neutral then the running costs look to be seriously negative on a week by week basis.

Good post.

I would think that income from normal trading activities in 2012/13 will be 9 to 10 million including TV, 'gate' & commercial. Add to that 16 million pound parachute payment, making 25 to 26 million.

Even though we've lost some 'big earners', I would estimate our 1st team squad wage bill (basic, bonus & social security costs) to be approaching 35 million with the 'big 5 signings' this summer accounting for up to 15 million of that.

Add to that football management / coaching staff, reserve team squad, Academy players (and most of them are on at least about twice the national average wage), Ewood & Brockhall maintenance and 'general Admin' (Shebby, Shaw, Agnew et al) and you might have another 15 million.

That's a 'normal working loss' of some 25 million.

Frightening.

[philipl]

Fair assessment. I think wages could be a touch lower as the playing staff wages were reduced to something like £30m before the summer contract nonsense unravelled the club wage structure. Non-Parachute income probably going to be even lower than you suggest

Assuming no major sales, the cash injection needed is not going to be less than £20m.

[AndyC]

Fair assessment. I think wages could be a touch lower as the playing staff wages were reduced to something like £30m before the summer contract nonsense unravelled the club wage structure. Non-Parachute income probably going to be even lower than you suggest

Assuming no major sales, the cash injection needed is not going to be less than £20m.

havent all the players that were given new contracts that stopped their wages been cut in event of relegation left the club now?

surely our wage bill will be way lower than that?

[den]

It had occured to me a while ago that a planned relegation followed hopefully by a promotion could be used to decimate the wage bill, getting rid of the ageing 40k/weekers we had on board. Look at the money Blackpool made and will make again if they go up this time.

Planning relegation is easy. Going back up again isn't so easy.

The suggestion that any club could do this at will is ridiculous.

[Exiled in Toronto]

Planning relegation is easy. Going back up again isn't so easy.

The suggestion that any club could do this at will is ridiculous.

I didn't say it was a good idea, but it is one that could have been sold to owners who know nothing about football

[den]

It could have been Exiled, but I doubt it. I'm no big believer in all these conspiracy theories.

[Kamy100]

havent all the players that were given new contracts that stopped their wages been cut in event of relegation left the club now?

surely our wage bill will be way lower than that?

Yup all the players had relegation wage drop clauses which ranged between 35%-45%. The ones that didn't have relegation clauses were I believe players whose contracts were renegotiated in January 2011 by you know who. All of those players have been moved on.

[perthblue02]

One thing I don't understand about the recent splashing of cash, We were told that it was a difficult and long process getting money out of India when the "owners" first took over and for a good deal of time afterwards. Now it seems all the banking as been moved to India the cash seems to be flowing. Appreciate that they have an overdraft facility a bank in India which means available money but still doesn't stack up.

[Athlete]

the 20mill to 25mill shortfall means the club is in s*** street if we don't go up this season

[thebigguy]

One thing I don't understand about the recent splashing of cash, We were told that it was a difficult and long process getting money out of India when the "owners" first took over and for a good deal of time afterwards. Now it seems all the banking as been moved to India the cash seems to be flowing. Appreciate that they have an overdraft facility a bank in India which means available money but still doesn't stack up.

No this is the money just coming through the system from when they first took over

[philipl]

One thing I don't understand about the recent splashing of cash, We were told that it was a difficult and long process getting money out of India when the "owners" first took over and for a good deal of time afterwards. Now it seems all the banking as been moved to India the cash seems to be flowing. Appreciate that they have an overdraft facility a bank in India which means available money but still doesn't stack up.

Very insightful comment.

Another explanation could be the money in 2010 went on an interesting journey involving an Asian restaurant and a laundry.

[braddock]

And another explanation was that it didn't.

[philipl]

And another explanation was that it didn't.

Tell you what, why don't you compile your own dossier?

[braddock]

Tell you what, why don't you compile your own dossier?

I'll leave you to waste your time and do the chasing around.

[philipl]

I'll leave you to waste your time and do the chasing around.

You're the one chasing me sweetheart

[braddock]

How bizarre, Harold.