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  1. #1
    Members Mustafa's Avatar
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    Financial cost of relegation


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    Assuming we finish 18th and get relegated, instead of 17th and stay up... approximately how much worse off will we be financially?

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      Quote Originally Posted by Mustafa View Post
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      Assuming we finish 18th and get relegated, instead of 17th and stay up... approximately how much worse off will we be financially?
      In 16/17 we had 30m income; last season income was £140m. We will however get approx £42m as parachute payment in the first season (based on this season's payments to Stoke, WBA and Swansea).
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      Barber will have a field day im sure.

      Although hopefully will be off
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      Quote Originally Posted by Napper View Post
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      Barber will have a field day im sure.

      Although hopefully will be off
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      Members father_and_son's Avatar
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      Would cost around £100m in lost earnings in the first season... but about 70% of that was probably ear-marked for new player spend - much of which covers the inflated prices because we were PL.

      Realistically, I think we lose about £30m in year 1. Then it depends on how long we stay down and how we handle the team/wages. Assuming we don't bounce back for a couple of years, I imagine uncle Tony is looking at around £100m of further contributions to the club before we get back in the black. If we dropped further than I imagine we are stuck with a PL cost base (Amex & Lancing) but a Div1 income - that would mean a firesale of players and academy talent just to pay the bills.
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      The ONLY Gay in Brighton El Presidente's Avatar
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      Using ‘Boro as a benchmark about £60 million in the first season.

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    • #7
      Members Peter Grummit's Avatar
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      Quote Originally Posted by El Presidente View Post
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      Using ‘Boro as a benchmark about £60 million in the first season.

      Click image for larger version. 

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      Given that we've sold out STs with an ongoing waiting list for next season, presumably the gate receipt loss will be confined to away fan reductions and slower sales for individual tickets?

      Also, do we have any clue what the contract relegation clauses will do to wage costs?

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    • #8
      The ONLY Gay in Brighton El Presidente's Avatar
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      Quote Originally Posted by Peter Grummit View Post
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      Given that we've sold out STs with an ongoing waiting list for next season, presumably the gate receipt loss will be confined to away fan reductions and slower sales for individual tickets?

      Also, do we have any clue what the contract relegation clauses will do to wage costs?

      PG
      Having heard a talk from a CEO of another PL club with a bottom six budget they were committed to paying wages of £31 million if relegated to the Championship (with substantial incentives if came straight back up) . The Albion wage bill was £77m last season.


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    • #9
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      It's essential that if we did go down, we bounce straight back up, otherwise that starts eating in to our money, messing around in the Championship for 2-3 seasons means we would have to start selling our players, then finding someone who is prepared to put some more money in, if Tony says he has had enough. I'm sure the business plan has accounted for this.
    • #10
      Members Herr Tubthumper's Avatar
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      Quote Originally Posted by bashlsdir View Post
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      It's essential that if we did go down, we bounce straight back up, otherwise that starts eating in to our money, messing around in the Championship for 2-3 seasons means we would have to start selling our players, then finding someone who is prepared to put some more money in, if Tony says he has had enough. I'm sure the business plan has accounted for this.
      It’s not that easy to bounce straight back up. In fact more teams get relegated further at some stage.
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