Explanation of clubs losses due to lockdown

[Kettlebelly]

Firstly I understand that each division differs but I believe the basics are similar.
Vast majority of home support are season ticket holders therefore paid well up front. So Gate money losses are minimal even accounting for away support (btw not every club is Sunderland). Hospitality is also upfront so most likely already been paid for. Match day profits on pints n pies are lost but out goings on the purchase of them are savings as are kiosk staff, lighting and heating etc. No need for security or police, emergency service providers so more savings.
So what baffles me is the hue n cry over losses that clubs are going on about.
Another thing I’m struggling to comprehend is the so called ‘weakened squads’ in the Greedy League. I believe each club names squads of 25 players therefore 20 clubs equates to 500 players. Seemingly 57 are out of contract 30th June so roughly 10%. When you check these players vast majority haven’t kicked a ball or very participated in very few games so how does this create weakened sides.
Media really do need to report a bit deeper rather than go for untrue headlines ...... what’s new I hear

 

[seasideone]

Firstly I understand that each division differs but I believe the basics are similar.
Vast majority of home support are season ticket holders therefore paid well up front. So Gate money losses are minimal even accounting for away support (btw not every club is Sunderland). Hospitality is also upfront so most likely already been paid for. Match day profits on pints n pies are lost but out goings on the purchase of them are savings as are kiosk staff, lighting and heating etc. No need for security or police, emergency service providers so more savings.
So what baffles me is the hue n cry over losses that clubs are going on about.
Another thing I’m struggling to comprehend is the so called ‘weakened squads’ in the Greedy League. I believe each club names squads of 25 players therefore 20 clubs equates to 500 players. Seemingly 57 are out of contract 30th June so roughly 10%. When you check these players vast majority haven’t kicked a ball or very participated in very few games so how does this create weakened sides.
Media really do need to report a bit deeper rather than go for untrue headlines ...... what’s new I hear

I do not think it is that simple in the greed leage...

Most the clubs seem to have overspent massivley where the debt may well need servicing - probably more so in the Championship (relativley) than the Prem, although plenty in the Prem overspend!!!

Although in the prem you name 25 players; you can have as many local home grown younger talent as you like able to play, plus each club runs multiple teams at different age levels.

Are SKY / BT paying up at the moment - I honestly do not know?

Are UEFA still distributing the TV money from the Champions / Europa league?

The FA are getting much reduced income due to England not playing and will the TV companies stum up for Euro 2020 this year?

There will of course be savings, such as police etc but any game not covered by your season ticket will have massive revenue drop for the clubs, and they do budget to get so far in each competion.

Most transfers fees are paid on the drip over the length of a contract so that will still need paying (rarely is it a cash up front deal).

In the lower leagues (below the championship) it is a bit more straight forward as TV money is not everything, but it is very important.

The bloke from Accrington makes some very valid points about why the league should be finished now and then we can just get on with the new season when we can.

However with the number of Billionaires who own Prem clubs I am sure most will survive!!!!!

...in the leagues below - who knows?????

The real problem at the moment with any business is not profit and loss, it is how much cash (or open lines of credit) you have got - and if your budgeted cash is not coming in you are generally in the doo da at some point - and some will be in the doo da before others.

 

[Kettlebelly]

I do not think it is that simple in the greed leage...

Most the clubs seem to have overspent massivley where the debt may well need servicing - probably more so in the Championship (relativley) than the Prem, although plenty in the Prem overspend!!!

Although in the prem you name 25 players; you can have as many local home grown younger talent as you like able to play, plus each club runs multiple teams at different age levels.

Are SKY / BT paying up at the moment - I honestly do not know?

Are UEFA still distributing the TV money from the Champions / Europa league?

The FA are getting much reduced income due to England not playing and will the TV companies stum up for Euro 2020 this year?

There will of course be savings, such as police etc but any game not covered by your season ticket will have massive revenue drop for the clubs, and they do budget to get so far in each competion.

Most transfers fees are paid on the drip over the length of a contract so that will still need paying (rarely is it a cash up front deal).

In the lower leagues (below the championship) it is a bit more straight forward as TV money is not everything, but it is very important.

The bloke from Accrington makes some very valid points about why the league should be finished now and then we can just get on with the new season when we can.

However with the number of Billionaires who own Prem clubs I am sure most will survive!!!!!

...in the leagues below - who knows?????

The real problem at the moment with any business is not profit and loss, it is how much cash (or open lines of credit) you have got - and if your budgeted cash is not coming in you are generally in the doo da at some point - and some will be in the doo da before others.

I’ll try my best to go through your various points
Clubs overspending ....... just like Joe Public they should be working to a budget plus what income are they expecting on balance of games outstanding?
Squad size ..... so it sounds though that’s not an issue though media are stressing it is? Surely not more falsehoods
TV money ..... to hark back to 2010 I’m sure it was mentioned that the £40m due at that time was paid in August so I assume the current £90m is still paid then outstanding balance is paid whenever
FA/EUROs don’t see the relevance to original point and I hope EUROs are scrapped next June as it is a ridiculous decision to play it over 12 countries though FA see that differently due to amount of games at Wembley and profits they’ll make
Non S/T games are FA Cup .... maximum of 8 teams affected and less in European tournaments
Transfer fees ..... payments and incoming should be settled as normal and hard luck if you’re taking HP out to buy players that’s why you’re getting nigh on £100m at start of season to budget with, don’t just spunk it all at once.
Im unsure of what ‘budget cash’ you refer to as far as I see TV money, S/T money, Hospitality money etc is paid upfront and not much else can be budgeted for including FA Cup cash cause that’s not guaranteed.
Lower leagues is a totally different scenario I agree but their income is basically on tickets and hospitality which is upfront

 

[seasideone]

Champions League / FA Cup / Europa will be cash and not season tickets for games.

Sky's money is normally paid out in different ways....

The equal share and international TV money is split and paid accross the season.
The merit money is due in May after the season finishes
The facility fees are paid after a TV appearance and I do not know about the Central Commercial payments



Blackpool has about 5700 season tickets from memory and averages about 9000+ for league games.

Taking those figures at face value thats roughly 3300 x 20 quid missing per game which is 66k (yes there are costs) and then take into account the average spend per person which I do not know what is, but is probably 2 - 3 quid at a guess.

So average that to 2.50 and x by 9000 and you get 22.5k

Hospitality will not have been sold that much for the later games (some will obviously)

Add program sales and match day shop sales plus the half time draw and I bet BFC are losing circa 100k revenue in cash per game.

The prem clubs will also have a similar calcualtion and this will be a massive drop in cash flow.

Again this is about cash and not profit and loss, business budget to have money coming in - some at this point are normally flogging season tickets already (in normal times) to help cash flow now.

Players transfer money being paid is about cash flow and not buying them on HP, either way it has to be paid with reduced revenue - which is dificult for any business not just football.

PS UEFA get the money for the sales of EURO tickets and not the FA, although they will recieve a rental for the stadium.

I also appreciate this is an opinion, but as someone who follows England all over I actually like the idea of it being spread accross Europe and have tickets all over the place.

 

[Chunkylad]

I would guess a wage reduction of 20% for the playing staff would more than resolve most clubs financial burden in the top 2 leagues.

 

[Wizaard]

I do not think it is that simple in the greed leage...

Most the clubs seem to have overspent massivley where the debt may well need servicing - probably more so in the Championship (relativley) than the Prem, although plenty in the Prem overspend!!!

Although in the prem you name 25 players; you can have as many local home grown younger talent as you like able to play, plus each club runs multiple teams at different age levels.

Are SKY / BT paying up at the moment - I honestly do not know?

Are UEFA still distributing the TV money from the Champions / Europa league?

The FA are getting much reduced income due to England not playing and will the TV companies stum up for Euro 2020 this year?

There will of course be savings, such as police etc but any game not covered by your season ticket will have massive revenue drop for the clubs, and they do budget to get so far in each competion.

Most transfers fees are paid on the drip over the length of a contract so that will still need paying (rarely is it a cash up front deal).

In the lower leagues (below the championship) it is a bit more straight forward as TV money is not everything, but it is very important.

The bloke from Accrington makes some very valid points about why the league should be finished now and then we can just get on with the new season when we can.

However with the number of Billionaires who own Prem clubs I am sure most will survive!!!!!

...in the leagues below - who knows?????

The real problem at the moment with any business is not profit and loss, it is how much cash (or open lines of credit) you have got - and if your budgeted cash is not coming in you are generally in the doo da at some point - and some will be in the doo da before others.

Chelsea alone have 76 players out on loan across the world, and are paying an element of their salaries. Plus massive backroom staff. Fleetwood have 128 paid staff and many clubs will have lots more.

 

[Plumbs]

Its always important to factor in the consolidarity payments and prize money the clubs receive,because that is critical in the spending and finance.
That said football never saves for a rainy day and this has been proven by how quickly the ground has given up beneath it,where nearly everything is geared towards wages.

Far too much importance made about winning and very little on taking part,and that feeds the attitudes towards referees and match officials. Something you see less of in say Rugby League and Union where they have strict rules on financials,and for me would be an example of how to improve our game.

 

[seasideone]

Interesting article in Tuesdays Times (on the app anyway)

25% of ALL arsenals revenue come on the matchday.

...and some of the players will still not take a 12.5% cut!!

 

[seasideone]

Chelsea alone have 76 players out on loan across the world, and are paying an element of their salaries. Plus massive backroom staff. Fleetwood have 128 paid staff and many clubs will have lots more.

Does that 128 include match stewards and the like?

If not it seems a lot!!!!!!!!!

 

[Wizaard]

Does that 128 include match stewards and the like?

If not it seems a lot!!!!!!!!!

It was in the accounts. Does seem too many for a small club in League One.