Structured Dialogue Meeting – Friday 3 March 2023
Supporters Group attendees:
- David Ragozzino - Armfield Club
- Karen McGuinness - BASIL
- Fiona Martin - BSA
- Christine Seddon - BST
- Graham Moon - Disabled Supporters
- John Rigby - Leyland & Chorley
- Ant Summers - Manchester
- Paul Grimshaw - Muckers
- Kevin Quirke - TKS
- Aston Jones – Tangerine Seasiders
- Kevin Garton - Volunteers
- Harry Wake – Yorkshire Seasiders
Independent attendees:
- Kelly Anderson
- Mark Cowburn
- Michael Hague
- Daniel Hogg
- Phil Norman
- Barry Parsons
- Ryan Powell
- Paul Robinson
- Angelo Saponieri
- Steve Sharp
- Colin Smith
- Leanne Smith
- Max Smith
- Clayton Short
- Henry Stelfox
- Helen Summers
- Stephen Widdowson
- Tim Wright
In attendance from Blackpool FC:
- Simon Sadler (Owner - SS)
- Ben Mansford (CEO - BM)
- Brett Gerrity (Director - BG)
- Mark McGhee (Head of Finance - MM)
- Jonty Castle (Chief Revenue Officer - JC)
BG opens the structured dialogue by welcoming everyone and explaining the format of the evening.
Thanks to everyone for attending and to the SLO for organising the event and introductions of BFC staff in attendance.
Group financial statement
MM introduces presentation outlining upcoming Group financial statement and financial projections of SS funding over ten year period, starting from the purchase of the Club in 2019.
MM: This is a four-year profit and loss as we prepare to announce the June 2022 accounts. We’ve also provided a forecast for June 2023. For the year ending June 2022 we have achieved a small profit of £400,000. More significantly, to achieve that, we have required a £3.3m cash injection from our owner. Furthermore, as part of the Seaside group, we received £400,000 related to tax that we would not have got otherwise. This also outlines our player trading which shows that for every pound earned we have spent the equivalent. We have also outlined the total amount received as a Club from our owner to the end of June 2023 - that sum stands at £25.57m. Over a ten year period that SS owns this Club, over current cashflow forecasts, he will be required to inject another £25m of his own money. Under the current infrastructure development plan, we will require an additional £40.8m. This means over a ten year period of owning the Club, under current forecasts and plans, SS would be required to put in £91.5m of his own money.
Player trading
What is the process with medicals when signing players and decision making on who is deemed an acceptable risk and who isn’t, Colby Bishop as a highlighted example?
BM: We can’t talk about players medical history. However, Colby Bishop did some media work when he signed for Portsmouth and outlined he has an issue from when he was 16. We run a rigorous medical process, particularly when having to pay a significant fee for a player and offer a three-year deal. We made a decision, based on the information we had, that was right for the Club given the finances involved.
SS: It’s different when bringing in a player on a free transfer on a 12 month contract, for example, than it is to pay a fee for somebody and put them on a three-year deal – there is a significant amount of risk that comes with that. From a financial perspective they’re completely different.
SS outlines playing budget increase and costs related to player wages for 2022 and 2023
SS: Over the four years of my ownership, player trading nets out at an income of £138,000. On top of that we have a further £2m to come in related to players who have left the Club. Our administrative costs are £18.55m for 2022 and £21.7m for 2023. Nearly all of that increase is made up from player wages. When we talk about a playing budget increase, that’s where the player budget has gone up - we’ve paid more in wages.
The Strategy
In terms of the strategy, you came in and made a conscious effort to bring in young coaches and players, do you feel that strategy has been knocked off course and how do you think we can get back to the original vision?
SS: Let’s go back to the early days of my ownership. Terry McPhillips left the day after my introduction fans forum in July 2019. We didn’t have a manager, we didn’t have anything. There wasn’t really anybody here with any knowledge of how to run a League One football club, we had one coach and that was it. Simon Grayson was available, he had four promotions, and he knew Blackpool so it made perfect sense to appoint him. Then BM and others arrive and we start to think about what we want to look like and we let Grayson go, giving us chance to bring in the type of manager we felt could bring us forwards – that was Neil Critchley. That worked well for two-and-a- half years, he got us promoted and we recruited well, then he left not long after signing a four-and- a-half-year contract. One thing I regret is we didn’t have a plan for him leaving, we didn’t see it coming. Critchley leaving set us back, Michael Appleton was the best of the bunch we interviewed. If we had realised the response to him was going to be quite as visceral as it was, I don’t think we would have hired him. There were other people on our list who we couldn’t see for various reasons. We need to get things back on track. Appleton was entrusted with Premier League loanees, he is a developer of kids, we relied on loans this time because they were the best that were available to us. The year we gained promotion we moved quickly. We thought the salary cap was coming and we were taking players when no one else was taking players. Last season, our first in the Championship, there was a COVID hangover. There was less aggression from other Clubs, so we managed to pick up good players on frees or relatively small transfer fees. This year, the market was tighter, we brought in Appleton fairly late in the window so we brought in loans to take stock and then build later – it’s a lot less of a risk to bring in a loan opposed to someone on a four-year deal. The loan market is viable, however, part of our strategy is to bring in players, develop them and move them on, so we didn’t do anywhere near as well this year as we have in the previous two years.
Was Michael Appleton appointed because Ben Mansford used to be his agent?
SS: Of course he wasn’t – it didn’t make any difference. Four of us made the decision - me, BM, BG and John Stephenson. Michael was the best candidate for the job out of those we saw. I didn’t realise there would be as much of a backlash as there was, because there wasn’t that much of a backlash against Simon Grayson.
Are we in the process of identifying a new manager and is that dependent on the division we are in?
SS: Yes, that’s ongoing. To an extent it is division-dependent but not as much as you would think. Chris Badlan, our Sporting Director, is going through a list of targets. We intend to get back to where we were with Critchley.
BG: We brought in Chris with John Stephenson moving on, having admired him from afar at Coventry City. We see that as a different way of moving forwards. It will be a different approach and hopefully we succeed.
If we are relegated to League One does anything change in terms of the amount of money Simon Sadler will put into the Club?
SS: We’re looking at £5m I have to invest if we’re in League One and £2.5m in the Championship. That’s all assuming no transfer fees. It’s difficult to forecast football finances over six years, so the Group financial statement is a middle-ground. It assumes some time in League One, some time in the Championship and there’s an assumption we would be able to pay top eight League One wages and bottom four Championship wages.
What does the pathway from the Development Squad to the first-team look like?
BM: We’re a Category Three Academy and we were the worst performing academy when we inherited what was left behind. The Under 18 and Development Squads are competitive and towards the top end of the Category Three divisions which is good after nearly three years of Ciaran Donnelly being here as Academy Director. Last year we created the Development Squad. This summer we invested with a group of players and Stephen Dobbie came in. They’ve also now got their own sports scientist, physio, analyst and training base at Preston Grasshoppers. We entered the Central League to get a set fixture schedule and now it is down to individual training plans for players. Some will stay with Dobbie, some like Rob Apter can go on a loan journey and then be part of the first-team group.
Infrastructure projects