Just wondered what peoples thoughts are on this? All clubs to live within their means... Do you think we will be able to compete in the future? Or, do you think Mr Allem is one step ahead with Ground expansion and sports village to generate more revenue to make the tigers succeed. I haven't got a clue but I'm guesing there is alot of clubs out there that have much more income than ours which means it may prove difficult in the future to compete?
There's no reason why not, I think the rule as well is regarding football revenue being spent on the football team (fees, wages, etc). Any revenue from the sports village would be excluded, but could be used say to fund developments elsewhere which then benefit the club, like training grounds and stadium development where clubs elsewhere would need to either reduce spending on the team or wait longer to make these changes. So long as we can address the inequality of TV match coverage the revenue will end up coming down to which clubs have the most fans, and with average gates over 20k we should be up there. Obviously ticket prices are a way for smaller clubs to boost their revenue from fans directly, but all the sponsorship and advertising revenue will be based on ability to reach fans, so the bigger clubs should be able to get the bigger deals, however marginally. I'm curious as to how it's going to work though. Assume up to this summer we were within the rules. Start of August we go out and spend £100M and piss the division. In February we submit our accounts for up to this summer and everything is fine so in the summer we're promoted. The February after when we're in the PL and we publish the accounts for this season it'll show we were outside the rule. How will they punish clubs in that situation?
At this level before we got promoted our turnover was only £10M. A cup run makes an awful lot of difference to the finances at this level, so the smaller clubs can target those to boost their spending power to match the biggerclubs wth no cup runs. The better team then allows them to improve in the league the following season and that generated increased football revenue because of increased prize and TV money as well as reducing the revenue of all the bigger clubs they've leap frogged. Increased success increases their gates and drops the ones of the big clubs not doing well. Essentially it maintains the situation in place now, except it ensures that clubs don't jeopardise their existance with silly spending. We'll worry about trying to make it so every club has the same chance at some point in future, but it's not like they're having that level playing field taken away from them, Scunthorpe were never going to walk this division being a small club were they? Although you get the odd club like Blackpool that perform way above where their finances would put them if it was down to how much you spent rather than how you spent it. NB: One change it would have had is it would have denied QPR promotion as if memory serves their last 3 sets of accounts show a combined loss of around £50M (£35M loss of business value since the takeover plus £15M of debt turned into shares for the Mittals in the middles set of accounts)
Does it? I seem to recall a discussion saying that unless you get one of the really big clubs or are non-league, clubs barely break even on cup runs. I think the discussion was about the risk of injury to key players, and the conclusion (IIRC) was that it was barely worth it?
If you're in a promotion/relegation battle then the financial differences between the divisions are much bigger so playing a strong team in the cups and risking injuries/suspensions that cost you a promotion/cause you a relegation is stupid. Sides in the midtable should go for cup runs if they can get them. Obviously it depends on who they play and who the TV pick, but for a club like Donny who have far fewer fans, 2 or 3 wins in the Cup with TV money thrown in is not a small amount of money to bring them up towards our previous £10M target. Prize money •Third Round Proper winners - £67,500 (32) •Fourth Round Proper winners - £90,000 (16) •Fifth Round Proper winners - £180,000 (8) TV Money - Live match - Live Replay * Third Round Proper – £144,000 – £72,000 * Fourth Round Proper – £144,000 – £72,000 * Fifth Round Proper – £247,500 – £123,750 * Sixth Round Proper – £247,500 – £123,750 Man U at home in the 3rd Round - tie gets televised = Sold out ground and £144k in TV money. Full kids team put out and bullied off the ball for a 1-0 win another £67k = 1 sold out crowd and £210k Next round Swansea at home. Again televised because you beat Man U last round and now you're up against a newly promoted side. Another £144k TV money. They're concentrating on not getting relegated so put out a weakened side and you can get the win because it's effectively the side they had this season minus 3 or 4 players. A reasonable crowd and another £90k prize money. Your total so far for the Cup is 1 sold out crowd, 1 reasonable crowd, and £440k. 5th Round having knocked out 2 PL sides you'd be unlucky not to get televised so there's another £250k regardless of result. You're looking at about £750k plus your gate receipts. It cannot cost a club like Barnsley more to stage a game than they get in gate receipts (it's not split until after costs have been paid) so they make a marginal amount of money there. £750k to a club like Donny is worth at least 2 players' wages for the following season, or the difference between signing 5 reasonable players to signing 5 good players by being able to offer 10k/w instead of 7k/w for their signings. PL clubs make that same money by finishing 1 place higher so it's a low priority unless they're trying to make the Final to get into Europe, top end Championship want to make £60M+ by winning promotion, and bottom end Championship clubs want to avoid their revenue halving by getting relegated (Huddersfield expected their's to double if they got promoted).
So as was said before, one or two make a relatively modest amount out of which comes win bonuses hotels etc, most make nothing or possibly lose.
