How could the club ever break even?

Marty___Mcfly · Oct 27, 2014

Based on these figures from 2012/13, the club took in £23.4 million, and spent £17.2 in non-player wage outgoings (operational costs). This leaves £6.2 million to spend on player wages if the club was going to break even. The club spent £21 million!

I would think operational costs could reduce, I can't see income rising significantly unless the club ends up in the Prem, and income this year is probably lower than previous years, as more empty seats mean less match day tickets sold and less money spent in concessions and at the store.

How could this £15 million gap ever be closed?

deletebeepbeepbeep · Oct 27, 2014

It wont unless we get in the Premier League and don't spend out a fortune on contracts.

Tom Hark Preston Park · Oct 27, 2014

How can ANY major club ever hope to break even? Football is the biggest economic BUBBLE in the Western world. Just needs SKY to pull the plug and the whole head-mental edifice would come crashing down overnight. None of it is sustainable.

Surf's Up · Oct 27, 2014

I was reprimanded (fair enough) by a steward for having a puff on an e-cigarette at half time on Saturday. A debate ensued about what the club policy was on e-cigarettes and I insisted on seeing the stewards supervisor, then their supervisor and then the Stand Manager to get a clear position statement from the club on the issue. My point is that there were THREE levels of steward supervision on matchday duty in that one area. This struck me as being profligate in the extreme and a good place to start if the club us serious about reducing the defecit.

GT49er · Oct 27, 2014

Tom Hark said:
How can ANY major club ever hope to break even? Football is the biggest economic BUBBLE in the Western world. Just needs SKY to pull the plug and the whole head-mental edifice would come crashing down overnight. None of it is sustainable.

Exactly.

The only way I can see of a club like us breaking even is to:
1). Get to the Premier League (yes, I know - not heading that way at the moment!);
2). Don't strengthen or improve player contracts, just enjoy the bumpy ride;
3). Return to the Championship with massive parachute payments;
4). Buy some slightly better players and get promoted again;
5). Don't strengthen or improve player contracts, just enjoy the (slightly less) bumpy ride;
6). Repeat steps 3 to 5 ad inf.

Bozza · Oct 27, 2014

gibseagull said:
I was reprimanded (fair enough) by a steward for having a puff on an e-cigarette at half time on Saturday. A debate ensued about what the club policy was on e-cigarettes and I insisted on seeing the stewards supervisor, then their supervisor and then the Stand Manager to get a clear position statement from the club on the issue. My point is that there were THREE levels of steward supervision on matchday duty in that one area. This struck me as being profligate in the extreme and a good place to start if the club us serious about reducing the defecit.

[MENTION=31]El Presidente[/MENTION] has made a very good point re: stewarding costs before - it really is just a drop in the ocean.

Say you got rid of 100 stewards (you probably couldn't) for 23 games a season and they earn £20 an hour (it will average much less) and work 8 hours per match (it will be less) - you're still only saving c£360,000.

Yoda · Oct 27, 2014

GT49er said:
Exactly.

The only way I can see of a club like us breaking even is to:
1). Get to the Premier League (yes, I know - not heading that way at the moment!);
2). Don't strengthen or improve player contracts, just enjoy the bumpy ride;
3). Return to the Championship with massive parachute payments;
4). Buy some slightly better players and get promoted again;
5). Don't strengthen or improve player contracts, just enjoy the (slightly less) bumpy ride;
6). Repeat steps 3 to 5 ad inf.

The West Brom method for the first time they went up you mean?

Bold Seagull · Oct 27, 2014

GT49er said:
Exactly.

The only way I can see of a club like us breaking even is to:
1). Get to the Premier League (yes, I know - not heading that way at the moment!);
2). Don't strengthen or improve player contracts, just enjoy the bumpy ride;
3). Return to the Championship with massive parachute payments;
4). Buy some slightly better players and get promoted again;
5). Don't strengthen or improve player contracts, just enjoy the (slightly less) bumpy ride;
6). Repeat steps 3 to 5 ad inf.

7). Build a first class Academy that starts churning out players that attract top clubs and top transfer fees.
8). Build a scouting network that replaces sold players with better ones that slot in perfectly.
9). Repeat step 7 & 8.

glasfryn · Oct 27, 2014

Professional Gambler ......eh!
people keep telling me he is in property
so what exactly is it then?

nwgull · Oct 27, 2014

Plooks said:
How about they pay £6.2m a year on player wages. Would break even then.
For a squad of 30 that is still around the £200k a year mark. Not exactly poor is it? The problem is player wages.

Nail on head. Player wages have spiralled out of control. And it's worth noting that that 200k a year salary is an average over 30 squad players, which will include many younger players that will play more DS games than 1st team.

Weststander · Oct 27, 2014

The PL could be years away, especially with the 4 year financial advantage of parachute monied clubs, having grown even greater. In addition, there are at least 15+ other FL clubs who would consider themselves PL size and ready, most of which have spent far more time in the top flight compared to the Albion (Wolves, Sheff Utd, Sheff Weds, Leeds, Norwich, Ipswich, Forest).

So we look unlikely to get to the PL anytime soon and have no god given right to get there.

So the budget for now should be based on Championship income.

Costs - assuming we have to pay competitive wages to get decent players, that only leaves all the other costs to be addressed to try and get to a low level losses or break-even. So the payroll paid to the army of non-playing employees from the MD all the way down to stewards, catering costs/our share of profit, stadium running costs, rent paid to neighbouring landowners and park n ride site owners. I assume PB has been tackling all of these.

clippedgull · Oct 27, 2014

Tom Hark said:
How can ANY major club ever hope to break even? Football is the biggest economic BUBBLE in the Western world. Just needs SKY to pull the plug and the whole head-mental edifice would come crashing down overnight. None of it is sustainable.

SKY pulling the plug would lead to their own demise.

Even if they did BT would step in and carry on.

TheJasperCo · Oct 27, 2014

Tom Hark said:
How can ANY major club ever hope to break even? Football is the biggest economic BUBBLE in the Western world. Just needs SKY to pull the plug and the whole head-mental edifice would come crashing down overnight. None of it is sustainable.

No it's not, as long as there's the consumer-driven demand, the money will keep rolling into the top clubs' coffers. Besides, it's not just Sky, but all the sponsors that put their names to the League and the clubs that drive profits.

sir albion · Oct 27, 2014

Stop buying dud players on silly wages would be a big help....probably waste £5 million minimum a season on crap...problem solved and may aswell get rid of barber and save another 500k a year.

Ali_rrr · Oct 27, 2014

How the hell are we paying over 400k a week on wages?

sir albion · Oct 27, 2014

Ali_rrr said:
How the hell are we paying over 400k a week on wages?

Guess that includes management and staff...Think we lose around £1 million on the stupid free travel bollo*ls...Time to scrap that.

seagullsovergrimsby · Oct 27, 2014

The only way to break even outside the Premier League is to have a conveyor belt of young academy players that can be sold for millions of £££s every season.

BrianWade4 · Oct 27, 2014

There is one other point - sell a couple of players every season for seven-figure profits to make up the shortfall

Eg
Bridcutt, Buckley, Ulloa

RexCathedra · Oct 27, 2014

BrianWade4 said:
There is one other point - sell a couple of players every season for seven-figure profits to make up the shortfall.

E.g. Bridcutt, Buckley, Ulloa

Which course of action, however reasonable from an accountancy point of view, is guaranteed to get you slated on NSC.... tinpot, selling club, etc. etc.

Dunk · Oct 27, 2014

With the inflated wages needed to secure a decent squad, I think the academy is the best hope for finding players that we can afford/sell at a good profit.

Other ideas are:
* Buy a player from China
* Buy a player from India
* Buy some players who can sing and release a number of successful albums
* Get a player to save some children from a burning orphanage and hope for sponsorship
* Start a successful film franchise

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