Sell Out New'ish Stadium, yet no money in the club?

Gazz15 · May 13, 2014

Hi,

Just to make it clear, I have had to re-register today, after losing my previous registration log in /password details. Have been going to the Albion since living here from 1970.

I was amazed to see that Oscar Garcia has left the club following the Play Off defeat! I note the speculation behind the reasons for him doing so, seem to be mainly financial related and the ignoring of his 'player - in' transfer list.

My question is, HOW CAN A CLUB WITH A STADIUM SOLD OUT EVERY HOME GAME - BE IN SUCH A PREDICAMENT?

I know we have some cash to pay back presumably, but other than that surely - We've NEVER had it so good?

I was also VERY shocked to see us rack up a £14M loss last season - how? Where is all the money going, other Championship clubs don't get anywhere near the attendances seen at The Amex!?

While I don't see us as a full time Premiership club, but one that is top half Championship with perhaps the odd yo-yo season, how on earth failing recruitment of a Super-rich Director will Brighton ever bridge the gap?

Sorry, I just feel the financial model must be wrong here!

Hillian1 · May 13, 2014

22 million quid wage bill.

MattBackHome · May 13, 2014

Very full discussion of such matters here:

http://www.northstandchat.com/showthread.php?294971-The-Albion-posts-losses-of-%A314-7m

Gazz15 · May 13, 2014

£22 million on wages?

Wow, if so who are the large earners, I'm not aware we have any Superstars?

I was under the impression, we don't pay great wages at Brighton, how do other clubs manage, bearing in mind our sold out stadium every other week?

Gazz15 · May 13, 2014

Thanks Matt, I'll take a look at that link.

WhingForPresident · May 13, 2014

Gazz15 said:
£22 million on wages?

Wow, if so who are the large earners, I'm not aware we have any Superstars?

I was under the impression, we don't pay great wages at Brighton, how do other clubs manage, bearing in mind our sold out stadium every other week?

I'd say CMS, Upson, Ulloa, Kuszczak, Andrews, Ward, Crofts and possibly Kemy are all on at least 10k.

wardy wonder land · May 13, 2014

quick maths

£20 ticket (average accounts for juniors & admin costs etc)

25000 seats (ave plus admin costs)

20 home games (ave cup games can be seen as bonus payments)

equals £10M ticket revenue

so wage bill alone accounts for £12M debet

The Wizard · May 13, 2014

93 million stadium
30 million training ground

I'm sure this accounts for some of it. You'd be surprised how expensive it is, is there any club in the championship that's making money?

Gazz15 · May 13, 2014

Yes thanks wardy, I can see that, but how do the likes of Derby, QPR & Wigan (parachute payments of course), Leicester, Reading, Blackburn, Palace (last year), Leeds etc etc manage?

I think there's something not quite right somewhere?

hans kraay fan club · May 13, 2014

Gazz15 said:
£22 million on wages?

Wow, if so who are the large earners, I'm not aware we have any Superstars?

I was under the impression, we don't pay great wages at Brighton, how do other clubs manage, bearing in mind our sold out stadium every other week?

They don't. they all run at a loss.

Even the ones getting £14m hand-outs for failing in the Premier League.

Gazz15 · May 13, 2014

Wizard,

I guess that's my point, if Brighton with a sell out new ground & a reasonably successful side managed to lose £14M, how on earth do all these Championship clubs go on surviving?

hans kraay fan club · May 13, 2014

Gazz15 said:
Wizard,

I guess that's my point, if Brighton with a sell out new ground managed to lose £14M, how on earth do all these Championship clubs go on surviving?

Mostly, by racking up massive, and unsustainable levels of debt.

Notters · May 13, 2014

I think this has been covered once or twice! To some it up briefly: players are paid too much!

Gritt23 · May 13, 2014

wardy wonder land said:
quick maths

£20 ticket (average accounts for juniors & admin costs etc)

25000 seats (ave plus admin costs)

20 home games (ave cup games can be seen as bonus payments)

equals £10M ticket revenue

so wage bill alone accounts for £12M debet

Indeed. Or put another way.

£14m of debt, divide by 25 games (incl a couple of Cup games), is £560k per game.
Divide that by 25,000 tickets sold for each of those 25 games, and that is £22.40 per game EXTRA that we would need to cover that amount of debt.

Who is up for sticking £22.40 on top of the ticket price per game? Even if they did, of course, we would not be selling the 25,000 of tickets.

However you cut it, the spending levels of football clubs goes way beyond what 25,000 fans in the stands can pay for. We are where we are thanks to Tonys investment, and not the investment made by the likes of us.

Alex Alex Dawson oo! oo! · May 13, 2014

The Wizard said:
93 million stadium
30 million training ground

I'm sure this accounts for some of it. You'd be surprised how expensive it is, is there any club in the championship that's making money?

Last year's £14.8m loss relates only to the Football Club operation (ie BHA FC Ltd); the costs of the stadium and training ground development do not appear in the Football Club accounts because the club doesn't own either. Both are (or will be in the case of the TG when it's completed) owned but a different company (Community Stadium Ltd); the Football Club pays an annual rent of £1m to CSL for the use of the stadium.

PILTDOWN MAN · May 13, 2014

Gazz15 said:
Hi,

Just to make it clear, I have had to re-register today, after losing my previous registration log in /password details. Have been going to the Albion since living here from 1970.

I was amazed to see that Oscar Garcia has left the club following the Play Off defeat! I note the speculation behind the reasons for him doing so, seem to be mainly financial related and the ignoring of his 'player - in' transfer list.

My question is, HOW CAN A CLUB WITH A STADIUM SOLD OUT EVERY HOME GAME - BE IN SUCH A PREDICAMENT?

I know we have some cash to pay back presumably, but other than that surely - We've NEVER had it so good?

I was also VERY shocked to see us rack up a £14M loss last season - how? Where is all the money going, other Championship clubs don't get anywhere near the attendances seen at The Amex!?

While I don't see us as a full time Premiership club, but one that is top half Championship with perhaps the odd yo-yo season, how on earth failing recruitment of a Super-rich Director will Brighton ever bridge the gap?

Sorry, I just feel the financial model must be wrong here!

All that said have you led a sheltered existence?

Other clubs in this league are braking the rules, got parachute payments, running lower budgets, have larger deficits.

We have the super-rich director (chairman/owner GOD). But his hands are tied by FFP.

Hamilton · May 13, 2014

hans kraay fan club said:
Mostly, by racking up massive, and unsustainable levels of debt.

You've just described the football model in general in a nutshell there.

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