Finances

Millsy
Hob Nob Super-Addict
Posts: 10022
Joined: 16 Jul 2004 18:36
Location: Running from The Left

Re: Finances

by Millsy » 15 Apr 2021 11:46

Why don't they just sell some T-shirts with "I love Reading FC" on, or perhaps "We've got Meite".

I'd buy some maybe.

Getthebeerens
Member
Posts: 103
Joined: 29 Jul 2018 22:44

Re: Finances

by Getthebeerens » 15 Apr 2021 12:32

What is the actual punishment for breaking FFP ?

From the soft transfer embargo we have had, it sounds like we have at least been working with the EFL to improve our situation.

FFP clearly not fit for purpose we no longer own our stadium and training ground. I can’t believe that in this COVID world things have not been put in place to control spending in football overall.

I suppose moving forward it’s about getting this wage bill under control and bringing through academy players and selling them. As well as some smart recruitment from lower leagues and abroad. I wonder if that’s why we went down the Pauno route for manger now.

User avatar
tidus_mi2
Hob Nob Addict
Posts: 7278
Joined: 15 Jun 2012 15:24

Re: Finances

by tidus_mi2 » 15 Apr 2021 12:39

Getthebeerens What is the actual punishment for breaking FFP ?

From the soft transfer embargo we have had, it sounds like we have at least been working with the EFL to improve our situation.

FFP clearly not fit for purpose we no longer own our stadium and training ground. I can’t believe that in this COVID world things have not been put in place to control spending in football overall.

I suppose moving forward it’s about getting this wage bill under control and bringing through academy players and selling them. As well as some smart recruitment from lower leagues and abroad. I wonder if that’s why we went down the Pauno route for manger now.

Points deduction if you go over £39m over 3 seasons which we seem to have absolutely smashed. I think previously they have done it as 1 point per million lost over the £39m limit, don't know if that is still the case.

Elm Park Kid
Hob Nob Regular
Posts: 2053
Joined: 05 Feb 2013 10:45

Re: Finances

by Elm Park Kid » 15 Apr 2021 13:13

This is why both the government and PL were so reluctant to give any money in terms of covid bailout to the Championship. Teams continued to spend, spend, spend, regardless of their income.

User avatar
Snowflake Royal
Hob Nob Legend
Posts: 39401
Joined: 20 Jun 2017 17:51

Re: Finances

by Snowflake Royal » 15 Apr 2021 13:16

Elm Park Kid This is why both the government and PL were so reluctant to give any money in terms of covid bailout to the Championship. Teams continued to spend, spend, spend, regardless of their income.

What could the majority do?

Take us for example, we made about 1 perm signing from L1.

The clubs are contractually obligated to pay the wages they've already agreed to. They can't just say to the players, "sorry everyone, 50% wage cut because we're in lockdown"


User avatar
tidus_mi2
Hob Nob Addict
Posts: 7278
Joined: 15 Jun 2012 15:24

Re: Finances

by tidus_mi2 » 15 Apr 2021 14:10

It would be a bit mean of the EFL to give us a points deduction on our 150th season.

User avatar
From Despair To Where?
Hob Nob Legend
Posts: 22954
Joined: 19 Apr 2004 08:37
Location: See me in m'pants and ting

Re: Finances

by From Despair To Where? » 15 Apr 2021 14:47

I can't help but feel that the way forward is to operate with a first team squad of 18-20 players, supplemented by the academy. Proper squads with q out, I in policy. It would be great to be able to heavily incentivise the contracts. I think that would require enforcement by the EFL. Wouldn't necessarily go as far as a salary cap.


I also dont how enforceable it would be to have contracts where, for example, a 3 year, £3m contract would pay £750,000 in the first year, £1m in the second and £1.25m and the incremental increase being dependant on the player playing in 75% of the games for which he is available. Or maybe signing on fees spread across the length of the contract as a loyalty payment.

I just think radical rethink of pay structures is essential across the league

Greatwesternline
Hob Nob Addict
Posts: 6239
Joined: 09 Apr 2008 14:36

Re: Finances

by Greatwesternline » 15 Apr 2021 15:54

The whole point of FFP is the league says this is how much money you can lose, its up to you how you spend it.

At the end of the day, we have been told you much we can spend, and not only have we broken it, we've smashed through it, while selling our stadium and training ground. We are a complete joke. And if other teams who finish below us in the league are annoyed i wouldnt blame them.

i remember when we played Rotherham, and their fans were like, oh look they are bringing a loanee from Porto off the bench.

That isnt a great look for a club claiming poverty.

User avatar
Maneki Neko
Hob Nob Legend
Posts: 30200
Joined: 06 Jul 2015 00:19
Location: JAPAN! fcuk you all.

Re: Finances

by Maneki Neko » 15 Apr 2021 16:16

Getthebeerens What is the actual punishment for breaking FFP ?

From the soft transfer embargo we have had, it sounds like we have at least been working with the EFL to improve our situation.

FFP clearly not fit for purpose we no longer own our stadium and training ground. I can’t believe that in this COVID world things have not been put in place to control spending in football overall.

I suppose moving forward it’s about getting this wage bill under control and bringing through academy players and selling them. As well as some smart recruitment from lower leagues and abroad. I wonder if that’s why we went down the Pauno route for manger now.


we must have one of the best records at this level for that as it is


User avatar
CountryRoyal
Hob Nob Super-Addict
Posts: 10697
Joined: 12 Aug 2011 13:44

Re: Finances

by CountryRoyal » 15 Apr 2021 17:05

Snowflake Royal The thing that's important to remember, is that none of this should be a surprise to the club or authorities.

And a club who sack their CEO and cooperated with soft embargos should not be punished for the effects of the sacked CEO's tenure 2 years after he was sacked.

There's very little we could have done differently. Sold a couple of players, not signed a couple. That's literally it. In two years. Once the damage was done under Gourlay.


One thing I think is apparent though. We should do absolutely everything, including accepting bids of £0, to move Moore off the wages. He's the last of the crazy deals, and arguably the craziest.


Would happily get rid of Moore off the wage book. Must be one of our if not THE highest earner and he seldom comes close to warranting that these days.

The best defensive spell we’ve had was with him out of the team.

User avatar
CountryRoyal
Hob Nob Super-Addict
Posts: 10697
Joined: 12 Aug 2011 13:44

Re: Finances

by CountryRoyal » 15 Apr 2021 17:10

Greatwesternline i remember when we played Rotherham, and their fans were like, oh look they are bringing a loanee from Porto off the bench.

That isnt a great look for a club claiming poverty.


That sounds exotic but without knowledge of the deal is an almost entirely pointless statement.

For a start the average salary of the Portuguese league is considerably lower than the championship, and that’s not even considering an 18 year old. Porto or not.

Plus who know, they might be paying some of his wages, either way I doubt he’s costing us a lot (of money, points is a different story :wink: )

Getthebeerens
Member
Posts: 103
Joined: 29 Jul 2018 22:44

Re: Finances

by Getthebeerens » 15 Apr 2021 18:04

Maneki Neko
Getthebeerens What is the actual punishment for breaking FFP ?

From the soft transfer embargo we have had, it sounds like we have at least been working with the EFL to improve our situation.

FFP clearly not fit for purpose we no longer own our stadium and training ground. I can’t believe that in this COVID world things have not been put in place to control spending in football overall.

I suppose moving forward it’s about getting this wage bill under control and bringing through academy players and selling them. As well as some smart recruitment from lower leagues and abroad. I wonder if that’s why we went down the Pauno route for manger now.


we must have one of the best records at this level for that as it is


Good at the bringing them through part but not so good at the selling them part. I hope our owners cash in on Olise before he runs his contract down. Can’t afford to keep having the likes of Richards and Loader leave for nothing. I read somewhere we are one of the worst clubs in terms of generating revenue through player sales in the Championship.

User avatar
Zip
Hob Nob Legend
Posts: 22408
Joined: 30 Dec 2017 16:39

Re: Finances

by Zip » 15 Apr 2021 18:23

Maneki Neko
Zip
Snowflake Royal If we're genuinely in trouble the FL need to take a long hard look at themselves.

We were in a soft transfer embargo two summers ago and came out of it with permission to sign Puscas and Joao for big money.

They allowed us to turn down big money offers for Swift and Loader.

We were in a soft embargo last summer and only really signed Laurent for this season.

We've also moved on McCleary and Gunter. And Baldock and Aluko go at the end of this season. Plus lots more TV money in.

The wages are an absolute disgrace, but they have to have come down this season and again next.

The lack of signings and whole approach has given no signs of desperation for promotion or bust, maybe Bowen's sacking, but replacing him with an unknown with no local experience is hardly promotion or bust.

We now know that our transfer embargo just announced was at least partly down to the filing of accounts, as they've just been published, and could therefore just be the same sort of Admin thing as other clubs.

Not concerned at this point.


Yep. There was something not quite right when we went from being in a soft embargo signing freebies to suddenly paying big money for Joao and Puscas two years ago. The FL sanctioned all of this so I fail to see how they can now hit us hard with a points deduction. Having said that our losses are so bad that we must be in breach of FFP so a points deduction wouldn’t surprise me.


hard to disentangle what is terrible financial management and what is as a result of playing a season and a half without crowds.
surely every club will be financially oxf*rd due to covid and it seems a bit daft to carry on as normal with FFP


Without doubt. I guess it’s going to be the degree of financial loss that will be looked into. Ours is going to be one of the worst I fear.


User avatar
Zip
Hob Nob Legend
Posts: 22408
Joined: 30 Dec 2017 16:39

Re: Finances

by Zip » 15 Apr 2021 18:34

Vision
Zip
Snowflake Royal If we're genuinely in trouble the FL need to take a long hard look at themselves.

We were in a soft transfer embargo two summers ago and came out of it with permission to sign Puscas and Joao for big money.

They allowed us to turn down big money offers for Swift and Loader.

We were in a soft embargo last summer and only really signed Laurent for this season.

We've also moved on McCleary and Gunter. And Baldock and Aluko go at the end of this season. Plus lots more TV money in.

The wages are an absolute disgrace, but they have to have come down this season and again next.

The lack of signings and whole approach has given no signs of desperation for promotion or bust, maybe Bowen's sacking, but replacing him with an unknown with no local experience is hardly promotion or bust.

We now know that our transfer embargo just announced was at least partly down to the filing of accounts, as they've just been published, and could therefore just be the same sort of Admin thing as other clubs.

Not concerned at this point.


Yep. There was something not quite right when we went from being in a soft embargo signing freebies to suddenly paying big money for Joao and Puscas two years ago. The FL sanctioned all of this so I fail to see how they can now hit us hard with a points deduction. Having said that our losses are so bad that we must be in breach of FFP so a points deduction wouldn’t surprise me.


That was the Stadium deal wasn't it?

I'm not sure it's for the EFL to mollycoddle us once we've convinced them we've got this new hefty revenue stream.

The fact we then went out and got Joao, Puscas, Rafael, Boye, Miazga, Ejaria etc with that money rather than use it to help with FFP (assuming it counts towards FFP) was entirely our decision. That's absolutely how it should be of course but we can't then blame anyone else if that gamble fails.

Of course as Elm Park Kid rightly points out , it would have been a gamble of a different kind to have continued that season with the squad we started it with. We threw the dice and there's still a small possibility it may work (RTGs fully on ) but if doesn't then as a club we have to accept what comes with that failure.


You may be right. I suppose buying those players boosted a poor and struggling squad. We may have gone down otherwise. Difficult to see how we can escape a points deduction next season.
If we do go up why would a points deduction not be applied? I have never understood this aspect. Surely if we are guilty the points deduction would apply irrespective of whether we were a PL club.

User avatar
Snowflake Royal
Hob Nob Legend
Posts: 39401
Joined: 20 Jun 2017 17:51

Re: Finances

by Snowflake Royal » 15 Apr 2021 18:34

Getthebeerens
Maneki Neko
Getthebeerens What is the actual punishment for breaking FFP ?

From the soft transfer embargo we have had, it sounds like we have at least been working with the EFL to improve our situation.

FFP clearly not fit for purpose we no longer own our stadium and training ground. I can’t believe that in this COVID world things have not been put in place to control spending in football overall.

I suppose moving forward it’s about getting this wage bill under control and bringing through academy players and selling them. As well as some smart recruitment from lower leagues and abroad. I wonder if that’s why we went down the Pauno route for manger now.


we must have one of the best records at this level for that as it is


Good at the bringing them through part but not so good at the selling them part. I hope our owners cash in on Olise before he runs his contract down. Can’t afford to keep having the likes of Richards and Loader leave for nothing. I read somewhere we are one of the worst clubs in terms of generating revenue through player sales in the Championship.

We've had a weaker period recently, but Tish and Hector brought in a big wedge not that long ago. Think we got some for the likes of Stacey, perhaps on resale?

We had a period where there was little route through which meant little chance to put in the shop window and go higher. But that's much better. And if Olise goes for multi millions as expected that's right back on track.

Obviously if we refuse £8m for Moore, £5m for Swift and £5m for Loader then yeah, we're going to be low on resal value because we're just not selling.

User avatar
From Despair To Where?
Hob Nob Legend
Posts: 22954
Joined: 19 Apr 2004 08:37
Location: See me in m'pants and ting

Re: Finances

by From Despair To Where? » 15 Apr 2021 19:12

CountryRoyal
Greatwesternline i remember when we played Rotherham, and their fans were like, oh look they are bringing a loanee from Porto off the bench.

That isnt a great look for a club claiming poverty.


That sounds exotic but without knowledge of the deal is an almost entirely pointless statement.

For a start the average salary of the Portuguese league is considerably lower than the championship, and that’s not even considering an 18 year old. Porto or not.

Plus who know, they might be paying some of his wages, either way I doubt he’s costing us a lot (of money, points is a different story :wink: )


A quick trawl of the internet suggests the average wage for a Porto U21 player is between £500 and £1500 a week.

The Royal Forester
Hob Nob Regular
Posts: 1465
Joined: 25 Dec 2015 13:53

Re: Finances

by The Royal Forester » 15 Apr 2021 19:37

Zip
Vision
Zip
Yep. There was something not quite right when we went from being in a soft embargo signing freebies to suddenly paying big money for Joao and Puscas two years ago. The FL sanctioned all of this so I fail to see how they can now hit us hard with a points deduction. Having said that our losses are so bad that we must be in breach of FFP so a points deduction wouldn’t surprise me.


That was the Stadium deal wasn't it?

I'm not sure it's for the EFL to mollycoddle us once we've convinced them we've got this new hefty revenue stream.

The fact we then went out and got Joao, Puscas, Rafael, Boye, Miazga, Ejaria etc with that money rather than use it to help with FFP (assuming it counts towards FFP) was entirely our decision. That's absolutely how it should be of course but we can't then blame anyone else if that gamble fails.

Of course as Elm Park Kid rightly points out , it would have been a gamble of a different kind to have continued that season with the squad we started it with. We threw the dice and there's still a small possibility it may work (RTGs fully on ) but if doesn't then as a club we have to accept what comes with that failure.


You may be right. I suppose buying those players boosted a poor and struggling squad. We may have gone down otherwise. Difficult to see how we can escape a points deduction next season.
If we do go up why would a points deduction not be applied? I have never understood this aspect. Surely if we are guilty the points deduction would apply irrespective of whether we were a PL club.

The deduction will not be applied because the Premier League and the English Football League are run by two different authorities. Although both come under the FA, when the PL broke away from the Football League, they made their own rules. The breakaway was, of course, instigated by the "bigger and richer" clubs to make more money from TV rights etc.

User avatar
Zip
Hob Nob Legend
Posts: 22408
Joined: 30 Dec 2017 16:39

Re: Finances

by Zip » 15 Apr 2021 19:41

The Royal Forester
Zip
Vision
That was the Stadium deal wasn't it?

I'm not sure it's for the EFL to mollycoddle us once we've convinced them we've got this new hefty revenue stream.

The fact we then went out and got Joao, Puscas, Rafael, Boye, Miazga, Ejaria etc with that money rather than use it to help with FFP (assuming it counts towards FFP) was entirely our decision. That's absolutely how it should be of course but we can't then blame anyone else if that gamble fails.

Of course as Elm Park Kid rightly points out , it would have been a gamble of a different kind to have continued that season with the squad we started it with. We threw the dice and there's still a small possibility it may work (RTGs fully on ) but if doesn't then as a club we have to accept what comes with that failure.


You may be right. I suppose buying those players boosted a poor and struggling squad. We may have gone down otherwise. Difficult to see how we can escape a points deduction next season.
If we do go up why would a points deduction not be applied? I have never understood this aspect. Surely if we are guilty the points deduction would apply irrespective of whether we were a PL club.

The deduction will not be applied because the Premier League and the English Football League are run by two different authorities. Although both come under the FA, when the PL broke away from the Football League, they made their own rules. The breakaway was, of course, instigated by the "bigger and richer" clubs to make more money from TV rights etc.


Thanks for the clarity.

Nameless
Hob Nob Addict
Posts: 8851
Joined: 23 Aug 2013 12:25

Re: Finance

by Nameless » 15 Apr 2021 20:17

But of course if you incur a punishment it will be waiting for you when you get relegated back into the hand so of the EFL. Unless you are QPR of course in which case they’ll let you throw them a fiver and forget the rest....

The Royal Forester
Hob Nob Regular
Posts: 1465
Joined: 25 Dec 2015 13:53

Re: Finances

by The Royal Forester » 15 Apr 2021 21:23

But at least you will have the Parachute Payments as well as the extra income from TV money etc. Should go quite a way to helping out.

Who is online

Users browsing this forum: East Grinstead Royal, Jammy Dodger, Royality creeps In, WestYorksRoyal and 415 guests

It is currently 28 Mar 2024 19:56