S.A.F.C. - the future

12,000 renewals at an average of say £70 per payment (taking that all have used the DD option, they wont have and making a bit of an allowance for kids tickets)= £840k. Two DDs taken so say £1.7 million.
There'll be sponsorship income and stream sales, but let's be realistic, we're in L1 and they wont amount to a huge amount.
Let's say £2 million in total.so far.

Based on two remaining DDs, so a similar amount still to come for the rest of the season.

McGeady, Grigg and the last year of Cattermole(?) will be taking circa £40k a week out of this, before anything else is accounted for.

If he's still got it, to whatever degree, the FPP monies will have to be used for cashflow, unless Madrox inject further funds, or take on additional borrowings.

Grim reading for Madrox.

 

The salary cap is £2.5m and we'll be lucky to get down to that so the income above won't even cover that never mind all the other expenses. When the lockdown occurred and football was curtailed last season he was able to furlough the players, he doesn't have that option if football continues. I can't see any hope for him in the current scenario.

 

The salary cap really only comes into consideration for SAFC / Madrox, in regard to new contracts. An allowance for existing contracts was made when the cap was brought in. We'll be way above £2.5 million, probably around £7.5 million as we've only got rid of Watmore who'd have been on high wages.

 

Fair enough, I thought it was for all contracts from this season, makes his position a lot worse then.

 

Can't see anything happening now this season tbh. Not even sure if this season will actually finish for a start. Who'd want to buy a football club in the current climate?

 

It does indeed, the calculation for the cap allowed for a maximum per player, regardless of actual salary. Let's say it is £3k per player per week. Grigg for example, on £10k actual, means the additional £7k is discounted from salary cap calculation, but this still has to be paid by SAFC. We'll have a number of players who fall into this.

 

There were recent posts, on here, claiming Donald would breeze through this crisis financially

 

Donald personally may well do so. Madrox / SAFC is a different matter.

 

IIRC the figure of £2,500 pw had been mentioned as the cap allowance on existing contracts

 

Not sure how accurate it is (because it says we've loaned money from MSD when obviously it's actually FPP) but the Athletic is suggesting the loan is costing Donald £1m a year in interest. If true that'll be pushing him even further towards needing to sell, if relying on streams all season that'll probably not be far off our total home stream revenue!

 

It's been at the back of mind for a little while that some of these recent meetings may have been Madrox hoping to restructure the loan (which FPP will be under no obligation to do so) in terms of interest / repayment.

 

The yanks played a blinder with that loan, Covid simply fast forwarded the inevitable.

It’s like a David Attenborough programme where a Venus fly trap slowly but surely closes around a fat little grub as it struggles like ****.

“Even in its final moments, it insists the loan was an investment in its management skills, not the club”.

 

I remember many recent posts, from a now departed poster, claiming there'd be no interest ...

... the same poster who claimed Donald would breeze through this crisis.

 

Our new feeder club

 

Not the virus, twas the supposed takeover I meant.

 

McGeady alone swallows most of the income.

For cap purposes he’s classed as £2.5k, in reality he’s close to 12 times that. Without a squad number.

Stu can’t survive this he has to sell now. He’d be better selling at a loss as this will ruin him.

 

It does look grim for him, not to say us, but you wonder if he actually, fully realises the position he is in if appearances and reasonable assumptions are correct.

Growing up with stuff being handed handed to you does not usually sharpen the grey matter.

 

There are also those who claim he doesn't need the loan or doesn't intend to use it
Really. You borrow £9m pay up to £1m a year interest. Why

 

At least we're in the playoffs and the precedent has been set. An early season finish might help!₩

 

And this is the important thing....He would lose money for sure, but it would be limited as most of the debt incurred and no doubt is racking up now will be against Madrox and SAFC not Donald, so depending on how much money he put in, against how much much money via creative accounting he has taken out will be the amount he will lose, I bet its not that much