An Evening with...

[brb]

Paul Scally, Steve Evans and Paul Raynor.

Very upbeat evening, sort of got off to a bit of a slow start, but once it got on to the topic of recent performances, the general strength of team and high hopes and expectations, it was all pretty positive.

I think the three main players to gain focus were Tucker, Ogilvie, interesting to note these are the top two players in our not606 star player ratings. Also the hard work and positive contribution put in by Max Ehmer.

Kids for a quid was mentioned to put bums on seats.

In terms of goals for the remainder of the season, it has to be focusing on achieving somewhere in the mid 70's on points, if we are to stand any realistic chance of play-offs.

Finances played a big part in the conversations, and none more so than the financial situation of Championship clubs and basically how big money over the last 15 years has seen it evolve into something, that can be best described as quite concerning. Clubs are chasing the dream and risking potential financial ruin, unless owners dig deep to pick up the multi million pound shortfalls.

Our own Chairman, coming up to 25 years at the club, probably hoping for a gold watch from Mr @alwaysright.

I'm glad I went along, there's probably not many evenings such as tonight, where the air was one of positivity for a change.

Up the Gills.

 

[itstimupnorth]

Cheers for that brb. I saw a tweet about the Chaiman's comments on Championship finances, but I'm still not sure whether he REALLY has the Championship as a goal under the present financial circumstances. To be competitive in the Championship you have to have an owner who's prepared to put his hands in his pockets, and probably pretty deep in his pockets. Whilst I believe that he has never actually put a penny of his own money into the club other than the £1 he paid for his shareholding (I stand to be corrected on that, but have never seen any evidence to the contrary) and has managed to earn a comfortable living out of the club, I actually don't object to him not chasing the Championship dream by loading the club up with debt. And let's be clear about that, it would be the club that would carry the debt, not the Chairman, of that we can be absolutely sure.

 

[brb]

While on the subject of finances, another one... https://www.oldham-chronicle.co.uk/...m-athletic-are-heading-towards-administration

 

[The Gills PegLeg]

Tim,

He was open and honest about the Championship. He said of course he would love for us to get there. We wouldn't be in football if we wanted to achieve the best we can but he was realistic at the same time and wasn't sure how we would do when we were there. Revenues would be expected to increase from about 7-8m per annum currently to 18-20m in the championship so of course a much bigger budget but the risk of higher outgoings. The combined debts of championship clubs is a real concern however and that's the thing that he said has given him actual nightmares about.

 

[itstimupnorth]

Tim,

He was open and honest about the Championship. He said of course he would love for us to get there. We wouldn't be in football if we wanted to achieve the best we can but he was realistic at the same time and wasn't sure how we would do when we were there. Revenues would be expected to increase from about 7-8m per annum currently to 18-20m in the championship so of course a much bigger budget but the risk of higher outgoings. The combined debts of championship clubs is a real concern however and that's the thing that he said has given him actual nightmares about.

Thanks for the further enlightenment. Interesting numbers, those, thought it would be interesting to know how much of the increase is estimated to be from gate money. Overall it's quite a bit more than I would have guessed.

I think that PS changed his attitude towards the financial security of the club after our spell in the Championship, or the First Division, or whatever it was then (tier 2...) as he borrowed money to carry out (admittedly greatly needed) renovations to the ground in anticipation of ongoing TV money, and when that went up the Swanee we were left with the debt, and it was probably only thanks to the financial crisis 10 or so years ago that he as able to negotiate his way into the loans being written off.

So I don't think he would again commit the club to long term debt, especially in pursuit of a dream. And in the absence of a fairy godmother that shares his dream it would take a bit of good fortune to climb much further up the ladder.

That said, IF Jack Tucker gets sold for serious money - and I actually think that £5m is not totally unrealistic - and if Bradley Dack does move on with a nice fat fee (which unfortunately is less likely in the immediate future following his injury) we could see a substantial one-off (or two-off) revenue increase, and it would be interesting to see how much of that might get sensibly invested in a squad that would be capable of getting promotion, on the understanding that if it it doesn't then we haven't committed to anything that would damage our longer term financial stability.

 

[WINDYROG]

Cheers for that brb. I saw a tweet about the Chaiman's comments on Championship finances, but I'm still not sure whether he REALLY has the Championship as a goal under the present financial circumstances. To be competitive in the Championship you have to have an owner who's prepared to put his hands in his pockets, and probably pretty deep in his pockets. Whilst I believe that he has never actually put a penny of his own money into the club other than the £1 he paid for his shareholding (I stand to be corrected on that, but have never seen any evidence to the contrary) and has managed to earn a comfortable living out of the club, I actually don't object to him not chasing the Championship dream by loading the club up with debt. And let's be clear about that, it would be the club that would carry the debt, not the Chairman, of that we can be absolutely sure.

Asaba, Taylor and Marlon King cost a pretty penny, I'm sure that PS did put his hands in his pockets unless they were 'crowd funded'...... ;-)

 

[itstimupnorth]

Asaba, Taylor and Marlon King cost a pretty penny, I'm sure that PS did put his hands in his pockets unless they were 'crowd funded'...... ;-)

I haven't been back into the accounts all the way back, but from what I can recall, there is no record in the accounts of any capital being provided to the club by PS.

In fact, the last available accounts (May 2018 - the 2019 accounts are overdue ... again) record that PS actually owed the club £90,457, that in addition to taking a nice fat salary increase to £311,273.

At the time those players were signed, the club still had access to bank funding.

I wouldn't dispute that, especially in recent years, PS has brought a sense of financial stability to the club, but from what I can understand to be his nature, he wouldn't put his own personal money into projects without ensuring that the investment is secured, and I stand by my original comment.

 

[grumpygit]

I haven't been back into the accounts all the way back, but from what I can recall, there is no record in the accounts of any capital being provided to the club by PS.

In fact, the last available accounts (May 2018 - the 2019 accounts are overdue ... again) record that PS actually owed the club £90,457, that in addition to taking a nice fat salary increase to £311,273.

At the time those players were signed, the club still had access to bank funding.

I wouldn't dispute that, especially in recent years, PS has brought a sense of financial stability to the club, but from what I can understand to be his nature, he wouldn't put his own personal money into projects without ensuring that the investment is secured, and I stand by my original comment.

I likewise haven't gone back through the accounts, but seem to remember a loan from 3 directors, one of those I believe was Scally.

 

[alwaysright]

I likewise haven't gone back through the accounts,

That's because you [and Tim ] have been too busy working out how you'll spend the 3.9% increase on your pension from April --- see - I can bring you ''Good News'' ..................
Don't spend it all at once - you're going to need it for higher energy prices - despite the winter heating allowance ( and the price freeze on your Gills season ticket ).................................. I'm not at all jealous - you old, grumpygit.

 

[itstimupnorth]

I likewise haven't gone back through the accounts, but seem to remember a loan from 3 directors, one of those I believe was Scally.

Yes, he's LOANED money (3 Directors Ltd. loaned GFC £1.8m to buy back the ground), but that's not the same as actually putting money into the club. That loan is secured on the ground.

 

[The Gills PegLeg]

Yes, he's LOANED money (3 Directors Ltd. loaned GFC £1.8m to buy back the ground), but that's not the same as actually putting money into the club. That loan is secured on the ground.

Doesn't all investments by owners have to be shown as loans? For example Chelsea's business structure sees them funded by Fordstam Ltd which pumps Abramovich's money into the club where it's required. Chelsea FC currently has debts of £1.17bn to Fordstam Ltd but as Abramovich owns Chelsea he probably has an agreement that the club makes a peppercorn payment (that is an assumption by myself) to Fordstam to ensure that Chelsea is seen to be making payments on its debt. In reality it will only ever increase unless they stop spending stupid amounts on players as Abramovich is in no rush for the money back.