Palace's profits

[El Presidente]

Sadly they are have done depressingly well off the pitch last season

http://swissramble.blogspot.co.uk/

 

[Bozza]

I read it a few days ago when it was first published and is, as ever, a wonderfully detailed read.

This bit was something I didn't know about and gave me small crumbs of comfort: "Parish is aware of this problem: “There are regulations, cost control measures and targets we have to hit. And we were close with ‘issues’ in that respect.” My guess is that they have just about managed to stay within this de facto salary cap in 2014/15, though this could be a real headache in future years..."

 

[Red'n'Blue]

I read it a few days ago when it was first published and is, as ever, a wonderfully detailed read.

This bit was something I didn't know about and gave me small crumbs of comfort: "Parish is aware of this problem: “There are regulations, cost control measures and targets we have to hit. And we were close with ‘issues’ in that respect.” My guess is that they have just about managed to stay within this de facto salary cap in 2014/15, though this could be a real headache in future years..."

Big thread on our forum about it. Basically we can't afford to sign any more players until we get a few off our books. Luckily for us a few of our big earners are out of contract in the summer.

 

[Quinney]

Surely Palace can't ..... Can they? This thread is bound to disintegrate in to the usual boring twats talking shite.

 

[Mackenzie]

Right lets make a start then.

They've been really clever with their windfall too, by using it to upgrade Selhurst and their training ground rather than spunking it all on 'here today, gone tomorrow' footballers.

 

[Blue Valkyrie]

Everything is rosy, rosy, rosy at Palace.

until they get relegated

 

[WonderingSoton]

Everything is rosy, rosy, rosy at Palace.

until they get relegated

Like pretty much any and every PL club then, when the financial gulf between the two leagues is such then any relegated club is automatically in trouble. Even with reward for failure parachute payments.
But for now they're making profits which if they use it wisely can act as a safety net in future. Although there's every chance they'll splash it up the wall as so many PL clubs do, and relegation becomes a slippery slope.
Glass houses and stones, we're £150m-200m in debt and losing money hand over fist every year, all be it a generous TB's money. We need a couple of PL years sooner or later to stabilise our books.
Let's hope it comes soon...!

 

[papajaff]

**** me, Duggie will be up to 4k posts on this thread alone.

 

[Bozza]

Big thread on our forum about it. Basically we can't afford to sign any more players until we get a few off our books. Luckily for us a few of our big earners are out of contract in the summer.

I'd be interested to know more about this if you can surmise and/or copy&paste.

I'd have thought that, relatively speaking, you didn't have many big earners but you'd only just started taking them on and, as such, your wage bill is likely to be only heading one direction from here.

 

[Postman Pat]

I'd be interested to know more about this if you can surmise and/or copy&paste.

I'd have thought that, relatively speaking, you didn't have many big earners but you'd only just started taking them on and, as such, your wage bill is likely to be only heading one direction from here.

Yeah, lucky they haven't just signed some striker on big wages who has a history of throwing tantrums if things don't go his way!

 

[KZNSeagull]

They should be doing well with their windfall, but if they are potentially coming up against "issues" surrounding the TV money wage cap already, then that has to cause for concern, especially now that they have taken on another high-earner.

 

[El Presidente]

I'd be interested to know more about this if you can surmise and/or copy&paste.

I'd have thought that, relatively speaking, you didn't have many big earners but you'd only just started taking them on and, as such, your wage bill is likely to be only heading one direction from here.

It's certainly gone in one direction to date

2012 £11.7 million
2013 £18.8 million
2014 £45.7 million
2015 £68.0 million

Cabaye is a superb player, and Palace are paying him £80-£100,000 a week. Add to that Bolassie, Delaney and Puncheon signing new contracts, and that will add a lot to the 2015 wage bill.

 

[eaglejez]

I'd be interested to know more about this if you can surmise and/or copy&paste.

I'd have thought that, relatively speaking, you didn't have many big earners but you'd only just started taking them on and, as such, your wage bill is likely to be only heading one direction from here.

Only just realised the impact of the so called STCC part of the Premier League rules a week or so ago ! Basically in summary:

The Premier League don't have FPP per se but they have two rules that work over 3 year cycles (which seem to coincide with the TV deals !) - 2015/16 is year 3 so a new cycle starts from next season

Rule 1 - the bit that everyone seems to focus on ! you can only make 15m aggregate loss over the 3 years unless the owner funds the excess loss with equity (aka their actual money aka no 'debt' !). If they do this then their club can make losses over the 3 years up to 105m

Rule 2 - Short term cost control (STCC) that has suddenly come into the football media since it potentially could hit all clubs ! The rule says you can only increase your (player) wage bill 4m pa from the previous year. Any excess has to be funded (IN THAT YEAR) by either player trading profits or increases in non TV money ie tickets / commercial etc. So eg if Spurs player wage costs was 90m last season and if its 100m this season they need to show they can pay for this from player transfer profits (as per the P&L) or increases in non TV revenue. You can exclude contracts entered into before 2013 (I'm guessing that would mean you could exclude bonuses agreed in old contracts etc) and also if your player wage bill is 52/56/60 for the three years then you are exempt (in order to allow the promoted clubs to increase their wage bill).

Well as with all these things you can sort of see the logic (ie clubs shouldn't 'leverage' themselves on the big TV money since they went down they would struggle etc etc) but as ever the people coming up with these things and agreeing them very rarerly understand what they are doing nad never do the maths !! (why wouldn't they use the parachute payments if they went down and sold players etc ?)

The trouble with STCC is that it restricts smaller clubs from increasing their wage bill to catch up with the 'big' clubs ie the latter can afford to pay the high wages but the smaller clubs will take time to catch up.

In our case for YE June 15 our total wage bill was 68m so even with big bonuses to pardew et al I'm sure our player wages were near or over the 56m and if so then the STCC rule applied. Looking at the bare accounts our player wages would have jumped up over 4m from 2013/14. Our player transfers profit was 0.5m and the non TV revenue increase c7m. So all the moving parts that we don't know about (previous contracts, how much of the wages were non player costs, what was non central distribution revenuie etc) I'm assuming meant we just managed to comply but I'm sure it was close ! We made a profit and banked over 20m cash over the last 2 season yet were in danger of violating FPP. That can't be what the rules were intending to do ! For the next cycle the 52/56/60 will be increased but if these don't go up that much then its going to be pretty restrictive ie getting Cabaye in on his own would be an increase of 4m pa and we will make an accounting player transfer loss for YE16. You can see why we couldn't get Austin !

The other elephant in the room that everyone is just discovering is that STCC implies that tickets need to keep going up !! In theory under the new TV deal everyone could be let in for free for every match and the clubs would still have more money than this season but it would massively hit them under STCC ! again this is all counteproductive.

For clubs coming up they will initially be exempt but once they breach the barrier they are going to struggle to catch up the wage bills that they new TV deal will make worse and that the big clubs can afford.

Now that clubs like Liverpool are waking up to the fact that the could be hit not to mention the fact that STCC suggests ticket prices need to go up then perhaps the rule will change ?

 

[Se20]

Happy with this report, we are heading in the right direction.
With gate receipts up 10%, commercial revenue up an impressive 82%, and TV income looking to go through the roof! it's looking rosy, rosy, rosy.
With the turnover to wages level at 66%, it's one of the lowest in the league, and st prices frozen again for next season ( under £500 for me) I'm comfortable with the increases in wages.

 

[SAC]

I only skim read the article and looked at the charts but it does seem that the PL are trying get their act together and ensure clubs are financially stable. Unless there is a burst bubble, like the effect ITV Digital going bust had on Championship clubs, then there is no reason for PL clubs to lose money.

Certainly seems to reinforce what everyone knew, that now is the time to be in the PL.

Has a similar report been done for Leicester and B'fluff? Would make interesting reading.

 

[Triggaaar]

Rule 2 - Short term cost control (STCC) that has suddenly come into the football media since it potentially could hit all clubs ! The rule says you can only increase your (player) wage bill 4m pa from the previous year.

That, on the face of it, seems totally unfair. If your club is well funded and not at risk, why should you not be able to spend what the big teams are spending?

 

[Sweeney Todd]

Never mind FFP and all the other rules, clubs should be allowed to run their finances however they see fit. The punishment for entering administration should be a points deduction of twenty-five points. That would serve as a proper and meaningful deterrent.

Sky is the root cause of the gross distortions in football and it should take steps to ensure a more equitable distribution of money.

The Football Association connived in the destabilisation of the English game by facilitating the creation of a Sky-enriched super league.

 

[CPFC G]

Sadly they are have done depressingly well off the pitch last season

http://swissramble.blogspot.co.uk/

Always a good read the SwissRamble. God knows how he holds down a job and produces such clear and interesting reports on clubs finances.

I'm happy with the way our club is being run, The board seem to be doing a great job. Investing on the pitch at sensible levels whilst improving revenues in all areas.

Things are looking good, Some might say Rosy

 

[Swillis]

That, on the face of it, seems totally unfair. If your club is well funded and not at risk, why should you not be able to spend what the big teams are spending?

Agreed, the only thing it seems to do is ensure that the money teams who were already spending obscene amounts on wages will continue to have the upper hand. Though that won't always work out such as this year.

 

[eaglejez]

I only skim read the article and looked at the charts but it does seem that the PL are trying get their act together and ensure clubs are financially stable. Unless there is a burst bubble, like the effect ITV Digital going bust had on Championship clubs, then there is no reason for PL clubs to lose money.

Certainly seems to reinforce what everyone knew, that now is the time to be in the PL.

Has a similar report been done for Leicester and B'fluff? Would make interesting reading.

B'mouth will prob be ok since their wage bill is under the limit this time ? also they are well under the 105m loss limit due their owners funding.