Financial Sustainability

[Glevum_Hoop]

Given that we have clearly massively over spent in over the past few years have any posters any idea what annual budget a club our size should be working towards to achieve Financial Sustainability in the future? £20 million £30 Million £40 Million? per annum?

[brightonr]

Given that we have clearly massively over spent in over the past few years have any posters any idea what annual budget a club our size should be working towards to achieve Financial Sustainability in the future? £20 million £30 Million £40 Million? per annum?

£1 less than our income would be a start.

[Glevum_Hoop]

£1 less than our income would be a start.

Cheers Brighton -

[dsqpr]

From previous years (prior to winning the Football League) I think our turnover (total income) was around £8.5m per year.

If you do a quick "back of the envelope" calculation on ticket revenue today you get something like this:
Tickets sold per match: 15,000
Average price per ticket: £28
Total ticket revenue per match: £420,000
Total ticket revenue for 25 matches (includes 2 cup): £10.5m

I'm not sure what sponsorship revenue looks like, or TV revenue in the Championship (perhaps takes us up to around £15m per year?), but it is pretty clear that once the parachute payments end, we will be looking at a massive reduction in revenue.

Edit: A good rule of thumb for spending on players' wages for Football League clubs is 60% of turnover, which would be £9m for us based on the numbers above. Divided by 25 players that is an average player wage of £360,000 per year, which is approximately £7k per week.

[coneysboots]

From previous years (prior to winning the Football League) I think our turnover (total income) was around £8.5m per year.

If you do a quick "back of the envelope" calculation on ticket revenue today you get something like this:
Tickets sold per match: 15,000
Average price per ticket: £28
Total ticket revenue per match: £420,000
Total ticket revenue for 25 matches (includes 2 cup): £10.5m

I'm not sure what sponsorship revenue looks like, or TV revenue in the Championship (perhaps takes us up to around £15m per year?), but it is pretty clear that once the parachute payments end, we will be looking at a massive reduction in revenue.

Which is why we need to spend like it's going out of fashion to get back up ASAP

[dsqpr]

Which is why we need to spend like it's going out of fashion to get back up ASAP

I'm not sure if you are saying it is crazy that we should or should not spend like crazy to go back up!

In any case, with TV revenue that is to shortly be around £100m per year per club in the Premier League, you can see why rich foreign owners are desperate for promotion. The trouble is, they risk the existence of their clubs by overspending as they strive for it. Gravy if you make it, oblivion if you fail. It is a tough game.

[Glevum_Hoop]

From previous years (prior to winning the Football League) I think our turnover (total income) was around £8.5m per year.

If you do a quick "back of the envelope" calculation on ticket revenue today you get something like this:
Tickets sold per match: 15,000
Average price per ticket: £28
Total ticket revenue per match: £420,000
Total ticket revenue for 25 matches (includes 2 cup): £10.5m

I'm not sure what sponsorship revenue looks like, or TV revenue in the Championship (perhaps takes us up to around £15m per year?), but it is pretty clear that once the parachute payments end, we will be looking at a massive reduction in revenue.

Cheers - to put in context Rob Green annual salary is £2.6 million

[dsqpr]

Cheers - to put in context Rob Green annual salary is £2.6 million

Exactly!

And our total cost for SWP over the 4 years of his contract was approximately £12.5m.

But it all adds up if we are in the Premier League!

[californiahoop]

Plus next few years parachute payments.

[QPRNY]

Plus next few years parachute payments.

That's £15 million per year, I believe. But we need to get rid of the high earners such as Sandro, Hoilett, Green and Fer in order to be sustainable.

[brightonr]

Plus next few years parachute payments.

You'd like to think so wouldn't you?

History tells us though, along with the balance sheet, that our owners seem to have misplaced the decimal point.

It can only have been possible to get into the mess they got into, by using it twice. Once for the continuing contractual commitments and again to indulge in the next squad overhaul.

[Glevum_Hoop]

You'd like to think so wouldn't you?

History tells us though, along with the balance sheet, that our owners seem to have misplaced the decimal point.

It can only have been possible to get into the mess they got into, by using it twice. Once for the continuing contractual commitments and again to indulge in the next squad overhaul.

Spot on - we are a club in transition and we need to take that into account over the coming weeks. Until the new players have bedded in, I cant see any point in all this Ramsey out malarkey after every so called bad result. Now don't get me wrong I have some serious reservations about Ramsey's ability but I am willing to give him a chance taking into account the poisoned chalice that the owners have given him. Its never dull with Rangers!!!

[coneysboots]

I'm not sure if you are saying it is crazy that we should or should not spend like crazy to go back up!

In any case, with TV revenue that is to shortly be around £100m per year per club in the Premier League, you can see why rich foreign owners are desperate for promotion. The trouble is, they risk the existence of their clubs by overspending as they strive for it. Gravy if you make it, oblivion if you fail. It is a tough game.

Was tongue in cheek, but as mentioned it is a tempting gamble, but it is getting an all or nothing one. Given we have already proved that you need the proper people in place before you put all your chips on red, we certainly shouldn't be doing that again until we do.