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Football Finance and the Forthcoming Storm.

Discussion in 'Bristol City' started by wizered, Mar 14, 2020.

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  1. wizered

    wizered Ol' Mucker
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    Football finance expert discusses Bristol City and Bristol Rovers with season suspended
    Both clubs may be reliant on their owners to cover short-term losses.

    COVID-19 is having such an impact in Europe that this continent has now been declared the epicentre of the virus and football has been suspended until April 3, with suggestions that play may not resume then either.

    In times like these, safety is paramount with lives and jobs on the line and we await official news on when the season may be completed. If at all.

    Ahead of then we spoke to respected football finance expert Kieran Maguire to hear how EFL clubs could come out of the forthcoming storm.

    For Bristol City and Bristol Rovers, the clubs' respective owners could be hit financially by the pause in play - and would both be willing to bear that?

    "It would tip some clubs over the edge, I think," said Maguire, speaking on the effect that playing games behind closed doors would have - or simply not playing them if the season is ended prematurely.

    "In the Premier League, around 13 per cent of money comes from match day. In Leagues One and Two it's around a third.

    "You've only got to look to see what's happened with Southend and Macclesfield to date: they didn't pay their wages in February.

    "We've got four or five other clubs that have not paid wages this season as well. How on earth they could be expected to pay wages when they have no revenue being generated is difficult to say.

    "Unless they get a bailout from the Premier League - and the Premier League can certainly afford it - or perhaps the Football Association itself, which is supposed to be the guardian of the game, then I think that clubs would struggle.

    "Realistically I think most League One and League Two clubs will have four or five home games left if they were given £300-400,000 each, that would probably see them through," explained Maguire.

    The difference between Championship and League One sides, to skew it to a more Bristol problem? It might come down to the owners at both clubs and how deep their pockets are.

    Robins supporters are lucky that they have the Lansdown family behind the club.

    "The main issue we're seeing in the Championship is that most Championship clubs have a wealthy benefactor who is underwriting huge losses.

    "At Bristol, unless they sell a player, you're looking at losses of £500,000 a week.

    "They are in a better position to absorb the shock, simply because the owners have historically been able to fund losses. Clearly the owners wouldn't be happy to fund bigger losses but I think they've got the resources to deal with that particular concern," said Maguire.

    The current predicament - postponing matches - will lead to further problems down the line, such as the end of player contracts and the timing of replaying the games, given Euro 2020 and the beginning of the next campaign.

    Even if this summer's international tournament is postponed too, some commentators are predicting that games will not get going again for several months.

    "Postponement produces its own set of challenges," Maguire added.

    "First and foremost we have the Euro 2020 tournament that starts in the second week of June, so there's a relatively short window in which games could be postponed and delayed.

    "Secondly, there's the issue that players' contracts automatically expire on the 30 June if you're in the final year of a contract.

    "This is less of an issue for clubs in the Premier League and the Championship, because the majority of their players are on longer term contracts, so they won't necessarily have the same number of players out of contract on 30 June.

    "But if you go to League One and Two, it's unusual for players there to be on anything longer than a one or two-year contract. If the fixtures are pushed back in July you could have the crazy situation where a manger loses six or seven players who were part of his first-team squad and they go to other clubs.

    "That would make a mockery of any situations where promotion or relegation are concerned," added Maguire.
    https://www.bristolpost.co.uk/sport...ball-finance-expert-discusses-bristol-3944495
     
    #1
    wizered, Mar 14, 2020
  2. wizered

    wizered Ol' Mucker
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    Thank god for Steve Lansdown especially if we are going to lose £500k per week, that is horrendous.
     
    #2
    wizered, Mar 14, 2020
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  3. AshtonRed

    AshtonRed Well-Known Member

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    The financial implications to clubs especially at the lower level are horrendous and don’t bear thinking about. So many clubs will be affected, especially if the suspension goes on past April that something will have to be done or else the lower leagues will be decimated as clubs go under.
     
    #3
    AshtonRed, Mar 14, 2020
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  4. invermeremike

    invermeremike Well-Known Member

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    We are all well aware of the financial issues besetting some clubs but with this virus arriving on the scene the risks have escalated. I would hazard a guess that there may be 10 or more clubs sitting on the edge of a precipice and this could be their final tipping point. If the game as we have known it is to survive then surely there has to be a programme that will help some of the strugglers to get through this pandemic and come out the other side unscathed.

    There are so many things that we have taken for granted over the years and our future must surely be in doubt when you consider the loss of business on a mega scale that will undoubtedly mean that so many could lose their main support and jobs. We will get through this at some point but whether things can return to the same old sloppy way is a question that only time can answer. Keep safe everyone and currently Ann and I are in voluntary isolation after our short disastrous trip to Singapore.

    Special thoughts go out to ROD. Keep strong my friend.
     
    #4
    invermeremike, Mar 14, 2020
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  5. RedorDead

    RedorDead Well-Known Member

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    Wonder what will happen when clubs fail FFP due to unexpected losses. Do the league punish them when technically this is beyond anyone’s control.
     
    #5
    RedorDead, Mar 14, 2020
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  6. robin_unreliant

    robin_unreliant Active Member

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    Surely we all know by now that BCFC lose £25m per season if you exclude player sales. So this is nothing new. People moan about selling our best players but with FFP there is no other option. It's when/if we run out of sellable assets that it would become a worry.
     
    #6
    robin_unreliant, Mar 15, 2020
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  7. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    WELL WELL WELL the season has ENDED HOW PERVERSE IF THEY FREEZE IT NOW and we lose promotion due to being 7th …
    The reason I can see it ending is because this new or THE stratedgy is being or going to be based on months not weeks .. the initial comments ..leaked to blunt the spear tip is that "over 70's are being quarantined for 7 days or longer!"
    You have to ask the question and I will be working on an algorithm on how to redo the table in 2 parts top 12 bottom 12 based on results played so far [ as 2 separate divisions ].. probably take a couple of days!!!! ..so far identified 9 factors … probably more …..
     
    #7
    johngalleyfan2, Mar 15, 2020
  8. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    interesting factor so far is done Derby, Swansea & Blackburn DERBY plyd 16 games .. 14pts Swansea 18 games 16 pts Blackburn 15 games 18pts [ City have 7 pts from 12 from these 3 teams ] Fulham have 16pts from 18!!!!! early days as this is the first layer...… Cardiff next ...
     
    #8
    johngalleyfan2, Mar 15, 2020
  9. Cliftonville

    Cliftonville Well-Known Member

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    I was talking to a Manager of a Southern League team yesterday and he will have to release a significant number of his players. Without gate revenue they quickly will not able to pay the players. Non league players generally do not have FA contracts, this means they can be released more easily without compensation which is a protection at least for non league clubs.
     
    #9
    Cliftonville, Mar 15, 2020
  10. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    TEAM .…… PLYD …….. PTS … ave …… ?

    leeds ............ 8 ............... 14
    wba .............. 10 ........... 21
    Fulham ........ 11 ............ 22
    Brent .......... 11 ............... 21
    Florest ..........10 ............... 18
    PNE ............ 16 ............... 13 .. 18.675
    City ............ 16 ................ 18 ..... 25 .875
    millwall .......16.................. 15
    Cardiff .........15 ............... 16
    BBurn .......... 17 .............. 18
    Swans ……….18 ………….... 13
    Derby .……… 14 ……………. 14 ……...
    teams 8 to 12 completed .... PNE has not performed against the top 12 teams as well as most!!!!!!!!!!!
     
    #10
    Last edited: Mar 15, 2020
    johngalleyfan2, Mar 15, 2020

  11. wizered

    wizered Ol' Mucker
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    #11
    wizered, Mar 15, 2020
  12. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    Derby played least top clubs have 6 to play [ but think total should be 22 played ] so will have recheck input page city should have 6 but adds up to 21 so operator error needs checking..... but one thing is certain CITY HAVE FARED BETTER AGAINST PNE in points from top 12.

    the fairest way would be to take all the top 12 teams and only use the points from games where all top 12 have played the similar opposition, like all teams have played H & A against the same teams [ eg all have played against say WBA.... FULHAM ... CARDFF ... fLOREST etc etc it miht mean the "league table" is only 12 or 14 games worth .. but cant figure out a plan to do that yet without writing it all down!!!!!! [ all teams have played every team once but maybe only at h or a, but have had 14 games since where they could have played them a second time ]

    city have completed 6 …… so games would include Fulham,..wba,..milwall,...derby... leeds…. brentford
     
    #12
    Last edited: Mar 15, 2020
    johngalleyfan2, Mar 15, 2020
  13. wizered

    wizered Ol' Mucker
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    #13
    wizered, Mar 15, 2020
  14. Red Robin

    Red Robin Well-Known Member

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    #14
    Red Robin, Mar 15, 2020
  15. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    IT WOULD BE VERY DIFFICULT to say seasons end and a way around it! I have tried 3 different approach's all put City in top 6 except the fourth alternative the current table …. Fulham is coming out as top dog though...
     
    #15
    johngalleyfan2, Mar 15, 2020
  16. wizered

    wizered Ol' Mucker
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    #16
    wizered, Mar 15, 2020
  17. johngalleyfan2

    johngalleyfan2 Well-Known Member

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    just seen Rooneys comments.. gone down a peg hole in my book …. might be good at football but is crap at journalism and politics …. maybe ROD SHOULD SEND HIM THE LINK WITH THE WATER ….
    Also did anyone see Corbyn's interview.... he is so so far up his own a!! that if he keeps his glasses on he might spot the virus...! His bitterness toward anyone doing the best they can or being part of the opposition, that has totally destroyed his dream of being PM is tantamount to a cure for or vaccination against COVID 19 by weds!
     
    #17
    johngalleyfan2, Mar 15, 2020
  18. wizered

    wizered Ol' Mucker
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    #18
    wizered, Mar 15, 2020
  19. Red Alert

    Red Alert Well-Known Member

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    Hows your coaching job looking??
     
    #19
    Red Alert, Mar 16, 2020
  20. Cliftonville

    Cliftonville Well-Known Member

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    Somerset FA Council, Staff

    Please be advised that following the announcement by the Prime Minister at today’s press conference asking everyone to limit unnecessary social contact the Board of Directors have decided to suspend all football in Somerset with immediate effect. This will of course include SFA county cup competitions.

    At present this suspension is indefinite, we will advise you if and when there is a change to this situation.

    We do not make this decision lightly and are aware of the importance of sport and football in general to everyone, however it does not compare to the wider picture and everyone’s welfare, therefore this is we believe the correct course of action.

    All football also means training. No training = No money coming in = No job. For now.
     
    #20
    Cliftonville, Mar 16, 2020
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