Exclusive interview with Paul Barber.

[Vankleek Hill Seagull]

I'm not sure the club can do that from a financial point of view. I believe there was some ruling from HMRC about VAT on each ticket sold. Therefore they have to report tickets sold, not bums on seats. Or something like that.

 

[Brighton Breezy]

I should be able to finish a piece on actual attendance levels in the near future...

 

[Herr Tubthumper]

I'm not sure the club can do that from a financial point of view. I believe there was some ruling from HMRC about VAT on each ticket sold. Therefore they have to report tickets sold, not bums on seats. Or something like that.

Nonsense. The club obviously tell HMRC how many tickets have been sold just like any business has to declare revenue, but they're free to tell anyone how many actually turned up. As an I understand the police have to be kept informed of actual bums on seats for their needs so the figures are out there.

 

[Creaky]

That interview made a good if somewhat depressing read!

I think Barber needs to be commended for his honesty in many of the replies but the overall impression I get is that no matter what the club does nor how many fans it attracts the huge losses will continue whilst we remain in the Championship.

Once the full affects of FFP kicks in during the season after next then if we are still in the Championship essentially we will be very limited in the quality of players we will be able to attract which could easily put us in a downward spiral both financially and in terms of league position.

This coming season could well be one of the most important ones for a long time.

 

[Herr Tubthumper]

That interview made a good if somewhat depressing read!

I think Barber needs to be commended for his honesty in many of the replies but the overall impression I get is that no matter what the club does nor how many fans it attracts the huge losses will continue whilst we remain in the Championship.

Once the full affects of FFP kicks in during the season after next then if we are still in the Championship essentially we will be very limited in the quality of players we will be able to attract which could easily put us in a downward spiral both financially and in terms of league position.

This coming season could well be one of the most important ones for a long time.

I don't agree with at all. We have the biggest gates, most expensive tickets, highest sales of everything going and no significant debts to service....so when FFP comes in surely this will put us ahead of a lot of other clubs?

 

[Creaky]

I don't agree with at all. We have the biggest gates, most expensive tickets, highest sales of everything going and no significant debts to service....so when FFP comes in surely this will put us ahead of a lot of other clubs?

There are two sides to a profit and loss statement, the income, which you rightly say is one of the highest in the Championship, BUT the other side are the costs - which as Barber points out are also one of the highest, resulting in a huge loss.

If we don't gain promotion this season, or even worse suffer a drop in performance, then revenues will likely fall which would mean that under FFP rules we woul be forced to reduce costs the biggest part of which are player related.

 

[Herr Tubthumper]

There are two sides to a profit and loss statement, the income, which you rightly say is one of the highest in the Championship, BUT the other side are the costs - which as Barber points out are also one of the highest, resulting in a huge loss.

If we don't gain promotion this season, or even worse suffer a drop in performance, then revenues will likely fall which would mean that under FFP rules we woul be forced to reduce costs the biggest part of which are player related.

I do understand profit and loss thank you. Are all of our costs higher than everyone elses? I didn't think they were. Our player budget certainly isn't and that must account for a hefty chunk of our outgoings. And our 8m loss isn't huge compared to a number of other clubs. A quick search shows Blackburn lost 40m. Hull 20m then 9m in the past two seasons. Forest 12m. Leicester 30m. FFP will put clubs like Brighton at an advantage.

 

[Creaky]

I do understand profit and loss thank you. Are all of our costs higher than everyone elses? I didn't think they were. Our player budget certainly isn't and that must account for a hefty chunk of our outgoings. And our 8m loss isn't huge compared to a number of other clubs. A quick search shows Blackburn lost 40m. Hull 20m then 9m in the past two seasons. Forest 12m. Leicester 30m. FFP will put clubs like Brighton at an advantage.

My apologies - I wasn't suggesting you didn't understand a P&L statement but was just reinforcing much of what PB was stating in his email interview.

It really doesn't matter how many other clubs may breach the FFP rules by more than we do, (if we do), because the sanctions are still the same - a transfer embargo.

There are very few ways in which income can be increased, in fact it is more likely to decrease than increase whilst we remain in the Championship, which means that costs will have to be cut to comply with the FFS rules. Many of our overheads are fixed which leaves player costs as the most obvious area for any future economies.

 

[The Merry Prankster]

TB
...... but that will be bad news for the whingers, who will have to get used to a squad with less stars. It's the new rules of the game, but no doubt irrational characters will blame Barber.

So who will these "stars" who are no longer playing for us be playing for? And how will they afford them?

 

[Not Andy Naylor]

We have transport subsidy and car park rental costs that other clubs don't, for a start.

 

[Not Andy Naylor]

So who will these "stars" who are no longer playing for us be playing for? And how will they afford them?

Wayne Bridge will be playing for Reading, funded by Premier League parachute payments ...

 

[seagullsovergrimsby]

TB and Barber have already revealed on more than one occasion that the 2012/13 losses will be at least £8m.

This includes the era of paying/acquiring quality players, in Gus's big push for promotion, which failed. Now that those losses being met by a benefactor are outlawed, it will be in 2013/14 that we will see the necessary cost cutting to comply, and those accounts won't be published until say March 2015 ..... so it will be a long wait to see if Barber gets there.

Get there he / TB will, but that will be bad news for the whingers, who will have to get used to a squad with less stars. It's the new rules of the game, but no doubt irrational characters will blame Barber.

The new rules under FFP mean that the accounts have to be published in the December for the season that has finished at the end of June , 3 months earlier than it used to be.

 

[Herr Tubthumper]

We have transport subsidy and car park rental costs that other clubs don't, for a start.

I thought the transport (trains, buses, car park hire etc) was now fully paid for via the increase?

 

[seagullsovergrimsby]

I thought the transport (trains, buses, car park hire etc) was now fully paid for via the increase?

There will be a further increase (possibly 2) before the club isn't subsidising the transportation costs.

 

[seagullsovergrimsby]

Quoting PB - "Also, our club’s general running costs are also higher than I would expect. And we will be taking tough decisions to reduce our costs as quickly as possible. Again, there are many reasons for this, but the most relevant one is probably the nature of the transition between Withdean and the Amex. We simply didn’t know, for example, the specific staffing levels that might be required to run a stadium of the Amex’s size (and while other clubs with similar-sized stadiums can provide a guide, every club operates differently) or, by way of other examples, what our overheads might look like when staging non-football events of varying sizes or the levels of stewarding and security that might be required on match days and non-match days."

In the pursuit of reducing costs at The Amex will we see a reduction in staff numbers ? Did the previous CEO get the staffing figures so wrong that now after 2 complete seasons at The Amex there will be a cull ?

 

[Dick Knights Mumm]

In the pursuit of reducing costs at The Amex will we see a reduction in staff numbers ? Did the previous CEO get the staffing figures so wrong that now after 2 complete seasons at The Amex there will be a cull ?

Some of the staffing was dictated by the University.

 

[Thunder Bolt]

I thought the transport (trains, buses, car park hire etc) was now fully paid for via the increase?

It's 50% of the cost at the moment further complicated by having to pay for a parking permit scheme in Moulsecoomb & Coldean due to selfish car owners leaving their cars parked everywhere.