Financial restrictions at the Albion hampering the playing budget?

El Presidente · Jun 11, 2012

As some of you will know, NSC obtained a set of the annual accounts which revealed the Albion lost £140,000 a week in the last season at 'The' Withdean

http://www.northstandchat.com/showthread.php?240689-The-Albion-LOST-%A3140-000-a-week-in-the-last-season-at-Withdean/page6&highlight=Albion+accounts

I appreciate I am a bit of a finance bore, but I have heard from more than one source that the Albion's accounts for the first year at Amex, in spite of the amazing season ticket and pie sales, have been very disappointing.

The reason for this is that expenditure has spiralled out of control, as budget holders assumed that Tony Bloom would write out a cheque to cover every spend and TB is VERY unhappy with what has happened.

As a consequence budgets have been slashed for 2012/13, with the exception of the infrastructure projects (increased stadium capacity and training facilities), and these budgetary constraints MAY have impacted upon the playing budget given to Gus, restricting the club's ability to offer competitive salaries to players, and we have lost out on the signings of Mattocks and others.

Alternatively I may have put two and two together to make five, which is something I regret to have seen too often marking exams this summer to date.

deletebeepbeepbeep · Jun 11, 2012

We are doomed, dooooooomeeed.

Papa Lazarou · Jun 11, 2012

Seems unlikely to me, but I'm not an accountant.

Surrey_Albion · Jun 11, 2012

That would be a shame if true, I am hopeing you just are'nt any good at sums and your wrong lol

deletebeepbeepbeep · Jun 11, 2012

Whoever left the grow lights on everynight is getting sacked in the morning.

mikeyjh · Jun 11, 2012

El Presidente said:
Alternatively I may have put two and two together to make five, which is something I regret to have seen too often marking exams this summer to date.

No, you're entirely correct - I was told similar by a very good source - That the club have been losing relatively big numbers each week. haven't mentioned it as I couldn't be arsed with the flaming....

pork pie · Jun 11, 2012

El Presidente said:
As some of you will know, NSC obtained a set of the annual accounts which revealed the Albion lost £140,000 a week in the last season at 'The' Withdean

http://www.northstandchat.com/showthread.php?240689-The-Albion-LOST-%A3140-000-a-week-in-the-last-season-at-Withdean/page6&highlight=Albion+accounts

I appreciate I am a bit of a finance bore, but I have heard from more than one source that the Albion's accounts for the first year at Amex, in spite of the amazing season ticket and pie sales, have been very disappointing.

The reason for this is that expenditure has spiralled out of control, as budget holders assumed that Tony Bloom would write out a cheque to cover every spend and TB is VERY unhappy with what has happened.

As a consequence budgets have been slashed for 2012/13, with the exception of the infrastructure projects (increased stadium capacity and training facilities), and these budgetary constraints MAY have impacted upon the playing budget given to Gus, restricting the club's ability to offer competitive salaries to players, and we have lost out on the signings of Mattocks and others.

Alternatively I may have put two and two together to make five, which is something I regret to have seen too often marking exams this summer to date.

Do you have any information to base that statement on (other than Withdean accounts)? I certainly hope that you are wrong. I would imagine that there were a lot of inefficiencies at first, as things take time to get up to speed. However, if we were not making good money after a few weeks, heads should roll.

El Presidente · Jun 11, 2012

pork pie said:
Do you have any information to base that statement on (other than Withdean accounts)? I certainly hope that you are wrong. I would imagine that there were a lot of inefficiencies at first, as things take time to get up to speed. However, if we were not making good money after a few weeks, heads should roll.

Nothing concrete, and the club will not publish the 2011/12 accounts until next March/April. It was notable that they did not mention them on the official site this year, and the Argus did not pick up on them either.

Simster · Jun 11, 2012

The sooner the club becomes financially sustainable, the better, as far as I can see. It's good to see that most of our fans are being equally realistic and reasonable about this situtation - most on here seem merely disappointed at losing out on the signing of Joe Mattock (a player hardly anyone had even heard of before he arrived), as opposed to bleating about not being able to compete. Honestly, if Gus can persuade KooSchak and ViNcente to sign, I think I'd be quite happy.

Brian Fantana · Jun 11, 2012

Any chance this is the real reason for Ken Brown's departure?

rool · Jun 11, 2012

You'd think they would have regular monthly meetings with TB to review spending/budgets No?

Deleted member 22389 · Jun 11, 2012

Its happening to every single club apart from Chelsea, Man City who's owners seem to have an endless supply of money.

To show you how crazy football has become, I read somewhere that Norwich turned over something like 9 million in season ticket sales but there wage bill last season was 21 million. You can't run clubs like this. The sooner players wage demands are bought in line the better it will be for everyone.

Billy the Fish · Jun 11, 2012

Would explain the need for a new MD as ultimately the buck would stop with Ken Brown, although I find it hard to believe that TB and his financial mates who sit on the board would allow spending and budgets to get out of control in the first place - that's what lets the theory down.

Surely they're having weekly/monthly board meetings to discuss the figures, to do it all at the end of the year and then act pissed off when things didn't go your way is NOT the behaviour of a person worth £100s of millions.

Common as Mook · Jun 11, 2012

I'd take a lower a budget if it meant we were balancing the books.

Luckily we have one of the best up and coming managers out there who can spot talent.

HantsSeagull · Jun 11, 2012

pork pie said:
Do you have any information to base that statement on (other than Withdean accounts)? I certainly hope that you are wrong. I would imagine that there were a lot of inefficiencies at first, as things take time to get up to speed. However, if we were not making good money after a few weeks, heads should roll.

all seems very odd. and implies a complete lack of financial control by club directors and a lack of ongoing oversight by TB, IF its true. i wonder if this is behind the recent changes of personnel at the top of the food chain?

BigGully · Jun 11, 2012

El Presidente said:
As some of you will know, NSC obtained a set of the annual accounts which revealed the Albion lost £140,000 a week in the last season at 'The' Withdean

http://www.northstandchat.com/showthread.php?240689-The-Albion-LOST-%A3140-000-a-week-in-the-last-season-at-Withdean/page6&highlight=Albion+accounts

I appreciate I am a bit of a finance bore, but I have heard from more than one source that the Albion's accounts for the first year at Amex, in spite of the amazing season ticket and pie sales, have been very disappointing.

The reason for this is that expenditure has spiralled out of control, as budget holders assumed that Tony Bloom would write out a cheque to cover every spend and TB is VERY unhappy with what has happened.

As a consequence budgets have been slashed for 2012/13, with the exception of the infrastructure projects (increased stadium capacity and training facilities), and these budgetary constraints MAY have impacted upon the playing budget given to Gus, restricting the club's ability to offer competitive salaries to players, and we have lost out on the signings of Mattocks and others.

Alternatively I may have put two and two together to make five, which is something I regret to have seen too often marking exams this summer to date.

The conundrum is that cutting playing budgets would impact on team competitiveness.

Then the healthy income flows would be in jeopardy too.

I think it is too early to suspect that TB has reigned in front-line spending in already, but who knows ??

rool · Jun 11, 2012

Brian Fantana said:
Any chance this is the real reason for Ken Brown's departure?

I may have dreamt about this but weren't they also after a new finance manager at the same time or was that Azure ?

beorhthelm · Jun 11, 2012

other than infrastructure and players, what other meaningful "budgets" are there? or rather, why would they become so large as to affect the general accounts significantly? so, excepting infrastructure, what you seem to suggest is that Gus (i presume the player budget holder) has overspent? if so, on what?

Papa Lazarou · Jun 11, 2012

pork pie said:
Do you have any information to base that statement on (other than Withdean accounts)? I certainly hope that you are wrong. I would imagine that there were a lot of inefficiencies at first, as things take time to get up to speed. However, if we were not making good money after a few weeks, heads should roll.

They have a large and predictable income from the DDs; I'd be amazed if they messed up that badly.

Silverhatch · Jun 11, 2012

mikeyjh said:
No, you're entirely correct - I was told similar by a very good source - That the club have been losing relatively big numbers each week. haven't mentioned it as I couldn't be arsed with the flaming....

This is why threads go to 60 pages... I heard from a source close to the club that they were astounded by how much revenue they had generated and that the money-making potential at the new stadium far exceeded their original forecasts. The club undoubtedly haemorrhaged cash at Withdean but banking 18,000 season ticket sales and all the ancillary revenue at The Amex (including two decent cup runs and a few televised appearances) had put the club in rude health despite start up costs.

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Financial restrictions at the Albion hampering the playing budget?

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