Generic clubs in financial crisis Thread

[South Coast Royal]

I think that a few of us mug punters on here indirectly help Stoke financially.

[Winston Biscuit]

https://www.swindonadvertiser.co.uk/news/20023431.winding-petition-affects-swindon-town-fcs-ability-take-card-payments-season-tickets/

[Mr Angry]

Hasnt Covid saved alot of them?

One to watch would be Bournemouth but they look nailed on for automatic now. If they stayed down they would be in real trouble with parachute payments at an end and £100k a week players on their books.

https://www.bournemouthecho.co.uk/sport ... unts-2021/

"CHERRIES recorded a profit for the 2020-21 season, according to the club’s annual reports.

The club’s first season back in England’s second tier saw revenue streams limited due to COVID, but despite having no matchday revenue, the club recorded an operating profit of £23.6 million.

Before tax, the club recorded profits of £17m, and after posting losses of £60.1m in 2020, the directors now “consider the financial position of the club to be satisfactory at 30 June 2021".

That figure was largely facilitated by the club selling players, with Cherries recording £55.8m from player sales. That number is over double the amount raised from player sales the previous year, with the club receiving £22.9m in transfer fees."

So, apparently not in financial difficulties at all.

Also, their parachute payments wouldn't end at the completion of this season; they reduce but don't end entirely until after 3 seasons away from the Premier League.

[Weymouth Royal]

Yeovil have just had a consortium pull out of buying the club. Not sure what impact that has on the club.

Everton lose more than £100 million for the third successive year but still avoid sanctions - how???

[Franchise FC]

Yeovil have just had a consortium pull out of buying the club. Not sure what impact that has on the club.

Everton lose more than £100 million for the third successive year but still avoid sanctions - how???

PL innit

[YorkshireRoyal99]

Yeovil have just had a consortium pull out of buying the club. Not sure what impact that has on the club.

Everton lose more than £100 million for the third successive year but still avoid sanctions - how???

It depends where they've made the losses from as well. If part of that £100m has been spent on facilities, for example, this is discounted from the losses by FFP. Although they appear to be running closer and closer to the fine line, even with being in the PL.

[Sanguine]

Apparently relegation at Everton could be a total financial disaster. They have lost £340m in three seasons. FFP limit is £105m, although crucially that is 'after adjustments', and any adjudication against Everton would no doubt include a significant allowance for COVID on ticket revenues.

It also said that a lot of their players don't have mandatory wage decrease written into their contracts covering relegation, they'd be absolutely fcuked in the Championship, squad would be decimated.

[Hendo]

Apparently relegation at Everton could be a total financial disaster. They have lost £340m in three seasons. FFP limit is £105m, although crucially that is 'after adjustments', and any adjudication against Everton would no doubt include a significant allowance for COVID on ticket revenues.

It also said that a lot of their players don't have mandatory wage decrease written into their contracts covering relegation, they'd be absolutely fcuked in the Championship, squad would be decimated.

Would actually quite like to see it, just for the popcorn.gif value.

[ReadingGlasses]

It also said that a lot of their players don't have mandatory wage decrease written into their contracts covering relegation

It seems a no-brainer for me to make these kinds of clauses mandatory for all clubs. If all teams had clauses in contracts which would reduce wages on relegation to a suitable level for their new division then there might not be a need for parachute payments and all the problems they can bring.

[Winston Biscuit]

It also said that a lot of their players don't have mandatory wage decrease written into their contracts covering relegation

It seems a no-brainer for me to make these kinds of clauses mandatory for all clubs. If all teams had clauses in contracts which would reduce wages on relegation to a suitable level for their new division then there might not be a need for parachute payments and all the problems they can bring.

players at a certain level would likely just refuse to accept an employment contract with that in it.

[From Despair To Where?]

Hasnt Covid saved alot of them?

One to watch would be Bournemouth but they look nailed on for automatic now. If they stayed down they would be in real trouble with parachute payments at an end and £100k a week players on their books.

https://www.bournemouthecho.co.uk/sport ... unts-2021/

"CHERRIES recorded a profit for the 2020-21 season, according to the club’s annual reports.

The club’s first season back in England’s second tier saw revenue streams limited due to COVID, but despite having no matchday revenue, the club recorded an operating profit of £23.6 million.

Before tax, the club recorded profits of £17m, and after posting losses of £60.1m in 2020, the directors now “consider the financial position of the club to be satisfactory at 30 June 2021".

That figure was largely facilitated by the club selling players, with Cherries recording £55.8m from player sales. That number is over double the amount raised from player sales the previous year, with the club receiving £22.9m in transfer fees."

So, apparently not in financial difficulties at all.

Also, their parachute payments wouldn't end at the completion of this season; they reduce but don't end entirely until after 3 seasons away from the Premier League.

Also, Bournemouth don't have any £100,000/wk players on their books.

[Franchise FC]

It also said that a lot of their players don't have mandatory wage decrease written into their contracts covering relegation

It seems a no-brainer for me to make these kinds of clauses mandatory for all clubs. If all teams had clauses in contracts which would reduce wages on relegation to a suitable level for their new division then there might not be a need for parachute payments and all the problems they can bring.

players at a certain level would likely just refuse to accept an employment contract with that in it.

Absolutely
Would likely lead to players picking higher rated clubs even more than they do now (and that’s already a lot)

[YorkshireRoyal99]

It seems a no-brainer for me to make these kinds of clauses mandatory for all clubs. If all teams had clauses in contracts which would reduce wages on relegation to a suitable level for their new division then there might not be a need for parachute payments and all the problems they can bring.

players at a certain level would likely just refuse to accept an employment contract with that in it.

Absolutely
Would likely lead to players picking higher rated clubs even more than they do now (and that’s already a lot)

Not necessarily as some players wouldn't be good enough to sign for higher rated clubs anyway and besides, even if they suffered a 20-30% drop in wages due to relegation from the PL, for arguments sake, that would probably still be significantly more than what they would have been earning at the club they signed from, particularly from abroad.

I think it's something that possibly should happen, or at least mandatory release clauses as well.

[Winston Biscuit]

Scunthorpe, on their way down to the Conference, sound like they are in a mess

https://twitter.com/KieranMaguire/status/1509518281861910537?t=DDrLv2m66_lKeO1Uo1TLPQ&s=19

[YorkshireRoyal99]

Scunthorpe, on their way down to the Conference, sound like they are in a mess

https://twitter.com/KieranMaguire/status/1509518281861910537?t=DDrLv2m66_lKeO1Uo1TLPQ&s=19

Strange to think they were somewhat of a yo-yo team between the Championship and League One about a decade ago and now they are likely to fall into Non-League football. The last I read on them they had about £11m worth of debt, haven't checked the link there yet but can't imagine it's got much better.

Strange how the likes of themselves, Yeovil, Southend, Stockport, Wrexham, Notts County etc all just fell off a cliff completely and have ended up in Non-League. Even going back further and looking at the likes of Hereford, Darlington (both reformed), Kidderminster and Boston who used to Football League clubs but are now just hanging about in the Non-League ladder.

[Sanguine]

Based on the numbers, specifically the 50% wage growth, looks like they gambled on promotion to the Championship around 17-18. But then what can clubs like this do except accept a yo-yo existence in the bottom two leagues? It's Scunthorpe. They aren't going to pinch fans from Hull or Leeds, and there is little reason or justification to extending their 9,000 capacity ground.

[YorkshireRoyal99]

Based on the numbers, specifically the 50% wage growth, looks like they gambled on promotion to the Championship around 17-18. But then what can clubs like this do except accept a yo-yo existence in the bottom two leagues? It's Scunthorpe. They aren't going to pinch fans from Hull or Leeds, and there is little reason or justification to extending their 9,000 capacity ground.

Agree really, just a town club where the 95% of their fanbase will be local fans based in Scunthorpe and Cleethorpes.

Southend did similar, they gambled around 16-18 time and now they've ended up struggling in the National League. As you say, I'm not sure what clubs like these honestly expect to happen. You need your recruitment and academy to be really good and to be able to spend within your means and then most clubs could be able to pull together a team that can compete at the top of League One in hopes of reaching the Championship and then looking to establish themselves there.

[RFCMod]

Based on the numbers, specifically the 50% wage growth, looks like they gambled on promotion to the Championship around 17-18. But then what can clubs like this do except accept a yo-yo existence in the bottom two leagues? It's Scunthorpe. They aren't going to pinch fans from Hull or Leeds, and there is little reason or justification to extending their 9,000 capacity ground.

Agree really, just a town club where the 95% of their fanbase will be local fans based in Scunthorpe and Cleethorpes.

Southend did similar, they gambled around 16-18 time and now they've ended up struggling in the National League. As you say, I'm not sure what clubs like these honestly expect to happen. You need your recruitment and academy to be really good and to be able to spend within your means and then most clubs could be able to pull together a team that can compete at the top of League One in hopes of reaching the Championship and then looking to establish themselves there.

The thing with Southend is they never really made great strides after success in the 80's & 90's
I use to work for Hi-Tec who were based in Southend and who were always major investors with Frank Van Wezel the owner being on the board of directors at Roots Hall
They always seemed to be mismanaged financially and relied on selling players to keep going

Coming up to Reading at the weekends use to see you swamped at Southend train station with wall to wall West Ham fans as its such an easy journey to get to the East End that a bit like with us there was plenty of top flight football available to travel too easily

[Sanguine]

There are just too many professional clubs. It does all - as these discussions tend to - provide more justification for chopping League Two into an even larger regional structure (and to be fair the FA have done a lot recently in terms of structuring non-league in a sensible way).

[Winston Biscuit]

I see a journalist saying that the council are in discussions to buy Pride Park and lease it to whoever buys Derby.

Should be an effective way of helping save the club from disappearing. Not sure spending the public's tax money on a football stadium when council budgets are being cut will go down well with everyone.