How on earth can we be losing £8 million a year?

[Chicken Runner61]

I must admit I wasnt surprsied we lost money, but I was astounded at the amount.

If our average 1st 11 are on £10k a week then thats around £5.7m. Add another £2.8m on the rest of the squad then that takes you to around £8.5m. Then have 24,000 season ticket holders paying on average £350 then thats £8.4m. So the two basically net each other off.

I havent factored in stadium running costs, but surely we make a profit on food and drink and then there is advertising revenues etc.

Now I maybe out on wage costs, but £8m out? I'm hoping this loss is mainly due to exceptional one off costs. Cos if we cant at least break even with record crowds in these good times, then I really do worry if we go to say 20,000 to 18,000 punters.

You are 100% right so far but what about insurance ground staff electricity costs to put the advertising in organising it all printing costs cars, vans, food, paye vat depreciation water sewage repair works solicitors and accountants banking charges security etc etc etc etc

 

[Chicken Runner61]

I must admit I wasnt surprsied we lost money, but I was astounded at the amount.

If our average 1st 11 are on £10k a week then thats around £5.7m. Add another £2.8m on the rest of the squad then that takes you to around £8.5m. Then have 24,000 season ticket holders paying on average £350 then thats £8.4m. So the two basically net each other off.

I havent factored in stadium running costs, but surely we make a profit on food and drink and then there is advertising revenues etc.

Now I maybe out on wage costs, but £8m out? I'm hoping this loss is mainly due to exceptional one off costs. Cos if we cant at least break even with record crowds in these good times, then I really do worry if we go to say 20,000 to 18,000 punters.

Double post

 

[Aspinal's Body Double]

Then have 24,000 season ticket holders paying on average £350 then thats £8.4m.

£350 is the lowest adult ST price isn't it? So the average must be higher, and this will include the 1901 and Executive boxes.

 

[Chicken Runner61]

Not to mention 12,000 Pies Hove Albion Are Spoiling Their Fans - Sabotage Times on a good night, that sounds like healthy profit too.

Factor in shirt and merchandise sales, player sales, TV & prize money etc and it all doesn't add up

You have no idea have you - if the Albion make more than 30p on every pie sold by piglets I'd be surprised

 

[Aspinal's Body Double]

if we cant at least break even with record crowds in these good times, then I really do worry if we go to say 20,000 to 18,000 punters.

Yes, if this really is an operating loss this is the sad truth.

 

[Aspinal's Body Double]

Withdean was an athletics track with a pitch in the middle. The Amex is an enormous operation in comparison

Which should be generating bigger profits-otherwise it would never make financial sense to move to a bigger ground.

 

[PILTDOWN MAN]

You have no idea have you - if the Albion make more than 30p on every pie sold by piglets I'd be surprised

Please elaborate. Having owned a number of food led businesses I'm interested to know why such a small figure.

 

[somerset]

You have no idea have you - if the Albion make more than 30p on every pie sold by piglets I'd be surprised

There is a guess if ever I saw one, why slag someone off for having no idea, then you yourself thow around unsupported statistics that just happen to be floating around in your jelly like mass between the ears.

 

[Lord Bracknell]

Nobody knows how much the transport arrangements are costing the Club, even after allowing for the fact that a levy on tickets is being paid by everyone who attends a match. Don't forget the stewarding costs associated with the transport system (buses, parking and park & ride), rental of Bennetts Field, monitoring of use of all these services, etc. And stuff like the costs to the Club of developing, implementing and monitoring things like the Coldean / Moulsecoomb parking scheme.

 

[The Large One]

Point is - the accounts haven't been lodged at Companies House yet.

When they have, people can slaver over them to their hearts' content. Until then, the quizzical head-scratching will only ever lead to... more head-scratching.

I'm going to wait until the figures are out, then charge El Presidente on here to translate them into plain English.

 

[Aspinal's Body Double]

Nobody knows how much the transport arrangements are costing the Club.

I've always assumed the scheme pays for itself, and I think it should. Our return ticket to HH instead of Falmer costs £3 less for me and my son and therefore more or less equates to the transport levvy.

 

[somerset]

Nobody knows how much the transport arrangements are costing the Club, even after allowing for the fact that a levy on tickets is being paid by everyone who attends a match. Don't forget the stewarding costs associated with the transport system (buses, parking and park & ride), rental of Bennetts Field, monitoring of use of all these services, etc. And stuff like the costs to the Club of developing, implementing and monitoring things like the Coldean / Moulsecoomb parking scheme.

Did any of those quoted above as individuals who have chatted to Bloom or Barber actually asked what is the big drain on resources? Apart from players salaries, it would help us all understand if they said, "well, the bulk of it is transport and stewarding costs", or at least pointed the finger at something we can all relate to. So far all I have seen is speculation, though I suspect that the salaries of those new to the management team in the last year dont come cheap, would anyone be surprised if Barber was on more than a million per year?

 

[Aspinal's Body Double]

Point is - the accounts haven't been lodged at Companies House yet.

i've been wondering about this. I thought we chose to publish our accounts under DK, rather than having to do it because we are a PLC with shareholders?

Do we definitely still do it under TB?

 

[Meade's Ball]

I was reading this piece in the Independent yesterday that gives a tiny idea of what we are competing with if we want to look like a team in progress. Shocking figures really and horribly uneven in terms of income from those fallen and those attempting to rise. It seems a guaranteed money-loser to try and make a club bigger.

http://www.independent.co.uk/sport/football/premier-league/the-parachute-payments-to-clubs-relegated-from-the-premier-league-can-be-a-lifesaver--but-is-it-fair-to-all-the-other-teams-8448748.html

 

[Aspinal's Body Double]

it would help us all understand if they said, "well, the bulk of it is transport and stewarding costs", or at least pointed the finger at something we can all relate to.

I agree. That is all I want to know. I will try to email Paul Barber to ask him.

 

[supaseagull]

We currently make NO money on any food or drink...that's what happens when you contract out the catering for peanuts as the last Chief Exec did(and also one of the reasons he was probably shown the door).

I don't know the ins and outs of the catering contract, but the last CE gave Azure catering rights based upon 13,000 turning up to each match and spending money on food and drink. The club massively underestimated how much food and drink would be sold, hence the debacle at times of running out of pies or beer. This has led to a considerable loss in funds coming into the club.

To Barbers credit, Azure have now gone and a new contract is up for tender and one where we can base sales on 23k upwards crowds once the new seats have gone in and not 13k and so, I reckon either next year or the year after, you will see this £8mil figure decrease in line with new catering contracts.

 

[BRIGHT ON Q]

Mr Barber seemed to suggest it was pure operating loss when I spoke to him yesterday

I find it hard to believe this.

 

[drew]

Has anyone actually clarified over what period this loss is? It is unlikely to be for a season as that is only 9 months and I wonder is this actually relates to the financial year. According to company house the last accounts were were up to the 30th June 2011 so presumably the accounts being discussed are for 1st July 2011 to 30th June 2012. How many transfers fall within that period. It won't include the sale of Noone and may not even include the sale of Bennett. On the other hand it will probably include CMS, Hoskins, Lua Lua, Buckley which must account for about £5m. Unfortunately, we have got into a habit of running down some contracts and letting players leave rather than getting decent fees for them, eg, Elphick, Cook and obviously the championships leading scorer. Hopefully the academy will put a stop to that and we might earn something from it like Southampton have done with Walcott, Bale and Oxlade-Chamberlain.

 

[Aspinal's Body Double]

Has anyone actually clarified over what period this loss is? .

No, I don't think they have. I read the programme yesterday in the hope of more detail, but there really wasn't any. I don't know whether TB comments refer to last calendar year, last season or last financial year (although last seemed least likely from way he seemed to be talking exclusively about Amex).

 

[Steve.S]

You are 100% right so far but what about insurance ground staff electricity costs to put the advertising in organising it all printing costs cars, vans, food, paye vat depreciation water sewage repair works solicitors and accountants banking charges security etc etc etc etc

You need to add the travel costs and also we have to buy players. We have spent a lot more on players then we have sold