£40,000,000

Discussion in 'Leeds United' started by JonnyLosAngeles, Mar 18, 2020.

  1. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    That’s the amount calculated by Danny Mills that will be needed by all EFL clubs to continue in business (for the next 30 days) [edit added for clarification] on Sky Sports earlier today.

    He believes that football should be able to cover this within its own community, specifically naming the EFL, the Prem and PFA as having adequate resources for “rainy days and this is a huge storm!”
     
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    Last edited: Mar 19, 2020
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  2. Whitejock

    Whitejock Well-Known Member

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    I think he's talking absolute bollocks. Based on 2018 numbers, that the average club wage bill is £34m a year. Based on the fact that March - June (inc) covers a third of the year, each club will need £11m+ for wages alone. Multiply that by 24, & you get £264m. Now that's before the various bonus payments to players, business rates, utilites, etc. etc.

    Given the £40m he suggests, that works out as £1.6m per club. WTF costs is that going to cover?


    2018 source: https://financialfootballnews.com/championship-2018-finances-wages/ (No idea how accurate this is, but can't be that far out).
     
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  3. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    A few points WJ:

    1) His calculation is based on season ticket revenue comprising 60% - 70% of each match day’s revenue,

    2) the lower the league, the lower the average cost of each team in the lower league,

    3) the forecast anticipates a resumption in one month.

    Want to recheck your calculations?
     
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  4. lifecheshirewhite

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    No 3 tells you it rubbish, not a hope in hell of resuming in one month.
     
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  5. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    It was a discussion on what it would take to get through the next 30 days.

    Next missile?
     
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  6. Whitejock

    Whitejock Well-Known Member

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    Ah, but you never said that, did you?

    Let's see then.

    Championship clubs, based on the 2018 link above have an average wage bill of £34p.a. So each will need approx £3m pm for their wage bill, (24x £3 = £72m).

    That alone blows his reckoning & is based on Championship club wages alone. I have no idea what the season ticket reference is, other than him perhaps assuming that there is some left in the kitty. Which would be an error of judgement, given that clubs are desperate for next year's season ticket monies for this year's cash flow struggles.

    Calculations re-checked. Acceptable now, teach? :D
     
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  7. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    Keep at it grasshopper but not to worry one of the Irish lads will be along to explain it to you shortly. ;-)

    However, for a start, you are looking at Championship clubs only. League Two will be significantly less.

    Also, those annual amounts include match day wages which will not need to be paid during this hiatus.

    Perhaps if you search Sky Sports online you might be able to find a recording in which he explains it in detail.
     
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    Last edited: Mar 19, 2020
  8. Whitejock

    Whitejock Well-Known Member

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    Can't find it online. Got a link?

    I chose only Championship as it seemed to be enough to blow out his figure, so no need to include the others, no matter their contribution.

    I take your point about 'match day wages', by which I presume you mean the variable aspect of wages, such as appearance fees, bonuses etc. However, I believe that the fixed wage costs normally form the bulk of the wages.
     
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  9. Eireleeds1

    Eireleeds1 Well-Known Member

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    Can’t get my old head around the figures being bandied about for various industries and sports at the moment. One strange thing though is for years we’ve been told there’s no money to improve so many things needed now multiples of billions are readily available everywhere, I’m sure football will be safe. I wonder though will this disaster finally see a realigning of players salaries transfer fees when next transfer window opens
     
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  10. ristac

    ristac Well-Known Member
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    I’m sure the Peterborough owner said they’re losing £300k a week because of this, I know it was £300k but it might have been a month not weekly.

    The problem is, some clubs were losing money anyway and were/are being propped up by owners. If there is a hardship fund style payout how do you pay what a club is losing due to the Coronavirus and not what is overspend?
     
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  11. Eireleeds1

    Eireleeds1 Well-Known Member

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    I think it’s fair to say the efl can take their financial fair play rules and stick them where sun don’t shine. That’s derby wendies saved and villa if they go down
     
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  12. Eric Le Merde

    Eric Le Merde Well-Known Member

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    Just imagine how much we would be losing a week, if we had a big squad!? thank goodness we have been prudent with our recruiting.
     
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  13. Eireleeds1

    Eireleeds1 Well-Known Member

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    And I’m sure the players are so grateful they signed those shiny new five year contracts. I’d say that Arab guy could be getting a few phone calls from Rads shortly <whistle>
     
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  14. Eric Le Merde

    Eric Le Merde Well-Known Member

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    Now I thought we had agreed that those shiny 5 year contracts were fiction
     
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  15. Irishshako

    Irishshako Well-Known Member

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    I thought you were bragging about your bank balance Jonny...<laugh>
     
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  16. Emu

    Emu Well-Known Member

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    I know one League 1 club that are very close to the family that the owner has basically got to look after his main income and if the club has to go in to administration then so be it. His main business pays for everything else and its touch and go wether it will survive the year!
     
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  17. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    Interesting amount, eh?

    Coronavirus: EFL offers £50m to help clubs as Trophy final postponed

    The English Football League is to release a £50m short-term relief fund to help clubs with cash-flow issues because of the coronavirus outbreak.

    The fund includes the early release of award payments, and an interest-free loan facility.

    The announcement was made after an EFL board meeting called to discuss the impact of the outbreak on clubs.

    The Leasing.com Trophy final between Portsmouth and Salford City, scheduled for 5 April, has also been postponed.

    Under the terms of the relief fund, Championship clubs will receive their remaining £800,000 award payment from the Premier League on Thursday. In addition, they will be able to apply for a £584,000 interest-free loan.

    For League One clubs the figures are £250,000 and £183,000, and for League Two sides they are £164,000 and £120,000.

    An additional £1m from the EFL Futures pot, a scheme which rewards clubs for giving opportunities to home-grown young players, will be allocated now on a pro-rata basis.

    On Friday, all EFL matches were postponed until 3 April at the earliest because of the outbreak. [JLA Note - now pushed to April 30]

    The EFL has stressed its commitment to finishing the 2019-20 season "in order to protect competition integrity."

    The 47 League One and League Two clubs told the EFL on Tuesday that they face an estimated combined loss of £50m if the campaign cannot restart before the summer.

    Championship clubs are also unanimously behind trying to complete the season after all 24 second-tier sides held a video conference on Tuesday.

    "As part of the League's continued contingency planning, the board heard the comments and observations from EFL clubs, before discussing a number of issues including the current financial position and implications, insurance, regulatory matters and broadcasting arrangements," an EFL statement read.

    "Discussions centred on financial relief for clubs in the short term and while there is no one single solution, measures are to be put in place to immediately assist with cash flow via a £50m short-term relief package."

    Kelvin Thomas, chairman of League Two side Northampton Town, told BBC Sport: "The EFL decisions today are very useful short-term measures for clubs and it seems like there are more conversations being had, and to be had, in the background with other stakeholders.

    "I think when the EFL and clubs have a better idea of what the future holds, we will be able to make more informed decisions."

    The EFL has set up a dedicated task force that will continue to review the threat posed by the coronavirus pandemic and the impact on its clubs and competitions.
     
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  18. Ringo Lion

    Ringo Lion Pumpkin

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    Clubs are not losing money as players and staff are payed weekly 52 times a year, players get bonuses for appearing,scoring,drawing and winning.
    The clubs money they get through the turnstiles has just been deferred until this virus is no longer a threat.
    If the season is okay to continue at the end of April the season should be finished by mid June and the new season will start in September with a couple more midweek games throughout the season and no mid winter break for the premiership.
    One blessing will be as soon as the final play off game is completed we will only have to wait a week or so for next season’s fixtures <cheers>
     
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  19. JonnyLosAngeles

    JonnyLosAngeles Well-Known Member

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    It’s a timing of cash flows challenge.

    During the season, clubs have a steady flow of match day revenues:
    - non season ticket gate money,
    - programmes and merchandise,
    - drinks and food,
    - etc.

    During this pause, there is nothing coming in but wages have to be paid every week.
     
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  20. Eireleeds1

    Eireleeds1 Well-Known Member

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    Clubs like Millwall will be laughing. Never have crowds or merchandise. Get an unfair slice of tv revenue for audience they attract and pay minimum trades Man’s wage to players. They might be only club to survive to finish the season
     
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