Blackburn report £36.5m loss

[El Presidente]

I am not sure how the transfer embargo will work but they can still be fined.

Transfer embargo cannot work if the club is promoted, as it is no longer a member of the FL.

Because the club agreed to FFP whilst a member of the FL, in theory it can be fined for breaching the rules, but would be interesting to see what would happen if an appeal went to court.

 

[GolfingGull]

I am not sure how the transfer embargo will work but they can still be fined.

Probably a poultry amount though

 

[TopCat]

Probably a poultry amount though

Cluck all probably

 

[Winker]

Cluck all probably

In boxing terms the fine will be bantam weight.

 

[El Presidente]

In boxing terms the fine will be bantam weight.

Some clubs are getting round NI contributions by paying them in gold instead, nuggets I suspect.

 

[tinycowboy]

Some clubs are getting round NI contributions by paying them in gold instead, nuggets I suspect.

It's the employees I feel sorry for - they're on a wing and a prayer. Probably laid off, sure as eggs is eggs.

 

[El Presidente]

It's the employees I feel sorry for - they're on a wing and a prayer. Probably laid off, sure as eggs is eggs.

If the FA apply the rules appropriately then other clubs should be able to pluck the best players from the offending clubs.

 

[tinycowboy]

If the FA apply the rules appropriately then other clubs should be able to pluck the best players from the offending clubs.

Certainly can't keep them cooped up. With some of the money coming from the Far East though, the best ones will probably be targets for The Foxes.

 

[El Presidente]

Certainly can't keep them cooped up. With some of the money coming from the Far East though, the best ones will probably be targets for The Foxes.

Indeed, the yolk will then be on the miscreants.

 

[KZNSeagull]

Getting promoted with a loss of 36.5 million, results in a fine of +- 27m quid. That's quite a fowl.

 

[Bevendean Hillbilly]

Getting promoted with a loss of 36.5 million, results in a fine of +- 27m quid. That's quite a fowl.

Hmm. So you start £63mill in the red. That only leaves you with £57mill profit for getting promoted. I'd take that.

 

[AZ Gull]

Hmm. So you start £63mill in the red. That only leaves you with £57mill profit for getting promoted. I'd take that.

It isn't £57mill profit though, is it? It is revenue over 5 years (assuming you get relegated in the first year and then receive parachute payments for the next 4 years). But unless you are willing to lose 38 games, you then have to start spending big money on transfer fees and wages, probably ensuring you will make further losses.

Why do so many football fans seem incapable of understanding that Premier League clubs have expenses, as well as revenues?

 

[KZNSeagull]

It isn't £57mill profit though, is it? It is revenue over 5 years (assuming you get relegated in the first year and then receive parachute payments for the next 4 years). But unless you are willing to lose 38 games, you then have to start spending big money on transfer fees and wages, probably ensuring you will make further losses.

Why do so many football fans seem incapable of understanding that Premier League clubs have expenses, as well as revenues?

Indeed. You get 60m for coming last, the rest is parachute payments. So you have 33m to play with. Should cover the increase in wages for the squad/agents fees, not a lot else. And if we are one of only a handful of clubs to adhere to FFP, that's a nice windfall for us.

 

[Notters]

It isn't £57mill profit though, is it? It is revenue over 5 years (assuming you get relegated in the first year and then receive parachute payments for the next 4 years). But unless you are willing to lose 38 games, you then have to start spending big money on transfer fees and wages, probably ensuring you will make further losses.

Why do so many football fans seem incapable of understanding that Premier League clubs have expenses, as well as revenues?

vast expenses at that.

 

[El Presidente]

Average wage bill in the PL is £83 million compared to £17 million in the Championship.

 

[KZNSeagull]

Average wage bill in the PL is £83 million compared to £17 million in the Championship.

'kin 'ell!! Any idea what the average per player is?

 

[father_and_son]

I am not too sure with all this condemnation and current smugness in respect of Blackburn.

I am sure the FFP is for all things good etc, but personally if someone wishes to use part of or all of their wealth to fund a footy team then please go ahead, more fool you.

Of course administration can be a problem, but shouldn't this be already covered by current financial law.

Ultimately depending where your starting point is will dictate your likely future success or failure, so for many of those that adhere to the FFP they may not go into administration but they will tumble down the leagues and become bed fellows of Portsmouth anyhow, ironic really.

Jeez! How wrong can one person be?! If Tony were to plug unlimited sum of money into the club, just for fun, at what point does he start to asset strip to get his money back? How many clubs have to lose their ground before you wake up and realise that clubs must be run on a solid financial basis for them to be continually viable. The owners are not making gifts to the clubs, they are making loans and people that rich didn't get there by giving money away. It's an investment.

Much as he is our own personal Jesus Christ, TB is a shrewd enough businessman to know that, in the end, he needs his money back. Personally I believe he sees us a long term asset which is growing in value and when he finally sells, all the £M's he's plowed in come back to him with interest. This is why I would rather have him in charge than some rich foreigner who uses us as a plaything then gets bored and takes the Amex as payment for the loans he's pumped in.

We've been homeless. Coventry are suffering the same fate. I wouldn't wish owners like that on any club. The whole game needs to be regulated to protect the fans!

 

[El Presidente]

'kin 'ell!! Any idea what the average per player is?

Difficult to say with confidence, and the wage bill ranges from Swansea (£35 million) to Citeh (£202 million).

But if we say that 80% of the wage bill goes on first team squad players, and assuming a first team squad of 25, this would work out at £2.66 million per player per year, or £51,000 a week.

 

[El Presidente]

Jeez! How wrong can one person be?! If Tony were to plug unlimited sum of money into the club, just for fun, at what point does he start to asset strip to get his money back? How many clubs have to lose their ground before you wake up and realise that clubs must be run on a solid financial basis for them to be continually viable. The owners are not making gifts to the clubs, they are making loans and people that rich didn't get there by giving money away. It's an investment.

Much as he is our own personal Jesus Christ, TB is a shrewd enough businessman to know that, in the end, he needs his money back. Personally I believe he sees us a long term asset which is growing in value and when he finally sells, all the £M's he's plowed in come back to him with interest. This is why I would rather have him in charge than some rich foreigner who uses us as a plaything then gets bored and takes the Amex as payment for the loans he's pumped in.

We've been homeless. Coventry are suffering the same fate. I wouldn't wish owners like that on any club. The whole game needs to be regulated to protect the fans!

I don't want to be rude, but you are talking nonsense.

Let's look at the Albion dispassionately and purely as a financial opportunity.

The business has only made a profit once in 40 years.

The owner has invested £150 million into the business and has not taken anything out.

There is a one in eight chance that the business could increase its revenues from £22 million to about £80 million a year. If revenues do rise, then operating costs are likely to rise from £31.5 million to at least £70 million.

Total losses in the industry in which the business operate were last year £98 million.

There is a one in three chance that the increase in revenue might only last one year. A one in two chance that the increase will last only two years.

 

[Creaky]

I don't want to be rude, but you are talking nonsense.

Let's look at the Albion dispassionately and purely as a financial opportunity.

The business has only made a profit once in 40 years.

The owner has invested £150 million into the business and has not taken anything out.

There is a one in eight chance that the business could increase its revenues from £22 million to about £80 million a year. If revenues do rise, then operating costs are likely to rise from £31.5 million to at least £70 million.

Total losses in the industry in which the business operate were last year £98 million.

There is a one in three chance that the increase in revenue might only last one year. A one in two chance that the increase will last only two years.

All very well but all that ignores further development of Falmer.

Without the club there would have been zero chance of any property development in that area - as it is we already see outline plans being prepared for commercial development in the form of a hotel.

TB's money is in property and that is where I see the future for him with the club which has been kept as a separate company from the stadium and any other development.