The Albion LOST £140,000 a week in the last season at Withdean

[Brixtaan]

Reading through this has been an eye opener for me. I'm obviously completely naive to the cost of running things. I thought with 20,000 people coming through the gates and each spending a large amount of money COUPLED with the fact that we have no debilitating bank interest charges that we would be rich beyond our wildest dreams.
If THIS model struggles then what hope is there for every other club that has sub 35,000 capacities? (or us in the future on a less successful run).
If you're reading this Tony (and I'm convinced he is) then FFs don't over stretch or borrow. Financial security over trophies ANY DAY

 

[Minge]

If you're reading this Tony (and I'm convinced he is) then FFs don't over stretch or borrow. Financial security over trophies ANY DAY

What noncense, everyone knows you have to spekulate to akumulate, you clearly have no ambittion

 

[Brixtaan]

Fair point but have you learnt NOTHING from Leeds, Poompey etc?

 

[Mellotron]

I think it's absolutely hilarious that some people STILL don't think Tony Bloom is a billionaire.

 

[leigull]

I think it's absolutely hilarious that some people STILL don't think Tony Bloom is a billionaire.

"But he was only worth £50m in the last Rich List, therefore it's just a matter of time before the whole club implodes". Or something to that effect.....

 

[Westdene Seagull]

I thought the deal changed midway through our time at Withdean.

It did - Ecovert used to manage the stadium and stadium staff. When the council kicked them out the club saved around £30k per match by doing it themselves. The figure earlier of £20k per match from then on sounds about right from what Martin Perry said at the time.

 

[yxee]

Reading through this has been an eye opener for me. I'm obviously completely naive to the cost of running things. I thought with 20,000 people coming through the gates and each spending a large amount of money COUPLED with the fact that we have no debilitating bank interest charges that we would be rich beyond our wildest dreams.

The income must have risen substantially this season... what the figures indicate are what we already knew, that the club was loss-making for the entire time at Withdean, which is not surprising with attendances of ~6,000. I would be surprised if the club's income was not above wages this year. And I would not imagine TB has any intention of paying, in the long term, for transfer fees or wages. Pay for the stadium and training facilities is the equivalent of giving the club a fishing rod rather than a fish.

 

[leigull]

Pay for the stadium and training facilities is the equivalent of giving the club a fishing rod rather than a fish.

Very well put

 

[BigGully]

I doubt whether we will ever be an orthodox business model, balancing our books and showing a profit etc etc.

The increase revenue streams are likely to just plug the likely continued losses.

My view is that unless we actually make the Premiership and then succeed then we will continue to show losses, propped up by TB and associates.

Remember there is always a chance that finally TB becomes rather disillusioned with not progressing whilst spending shed-loads and after a few manager's have gratuitously wasting £millions of his money on misfiring striker's and midfield enforcer's when TB finally concede that there is no point continuing wasting his money without progression.

He then asks his accountants to get stuck into his footballing accounts, cutting wage bill's etc and finally making our team less competitive.

Its not meant to be a pessimistic view as the next few years are going to be exciting, but only time will tell if we get the success that will propel us to the big time and allow the business model to be sustainable.

But for now I look forward to continued progression and excitement, thanks to TB.

 

[OSRGull]

...

What, d'ya want a f***ing medal?

 

[Seagull73]

I doubt whether we will ever be an orthodox business model, balancing our books and showing a profit etc etc.

The increase revenue streams are likely to just plug the likely continued losses.

My view is that unless we actually make the Premiership and then succeed then we will continue to show losses, propped up by TB and associates.

Remember there is always a chance that finally TB becomes rather disillusioned with not progressing whilst spending shed-loads and after a few manager's have gratuitously wasting £millions of his money on misfiring striker's and midfield enforcer's when TB finally concede that there is no point continuing wasting his money without progression.

He then asks his accountants to get stuck into his footballing accounts, cutting wage bill's etc and finally making our team less competitive.

Its not meant to be a pessimistic view as the next few years are going to be exciting, but only time will tell if we get the success that will propel us to the big time and allow the business model to be sustainable.

But for now I look forward to continued progression and excitement, thanks to TB.

I bet you're fun at parties...

 

[S'hampton Seagull]

Reading through this has been an eye opener for me. I'm obviously completely naive to the cost of running things. I thought with 20,000 people coming through the gates and each spending a large amount of money COUPLED with the fact that we have no debilitating bank interest charges that we would be rich beyond our wildest dreams.
If THIS model struggles then what hope is there for every other club that has sub 35,000 capacities? (or us in the future on a less successful run).
If you're reading this Tony (and I'm convinced he is) then FFs don't over stretch or borrow. Financial security over trophies ANY DAY

Don't forget these results are for the period 1 July 2010 to 30 June 2011, i.e. before the club saw a majority of the income generated with the move to the Amex.

 

[BigGully]

I bet you're fun at parties...

I would think we will get promoted to the Premiership next year and with Gus and TB and the extra 8000 seats, Champions League season 2014/15.

Hows that !!!

 

[Aadam]

By the end of the expansion and training facilities the total investment into the club would have been £139,500,000. This doesn't include playing staff.

Don't forget a lot of the costs shown in the balance sheet are a reflection of the club increasing it's investment in the playing and admin staff as they were gearing up to the move to the Amex. The club knew already in the 2010/11 season that they needed to be in the Championship and needed the increased staff for the new, bigger stadium. A lot of this was done during this season.

The loses would have put Brighton in a precarious position, but Bloom was there from 2009 I think, so the 'plans' were in place to pull Brighton out of the position they were in. It amazes me how other clubs in the division can cope with the much higher staff costs and presumably lower match day incomes.

 

[Red'n'Blue]

What, d'ya want a f***ing medal?

I double posted you idiot.

 

[pork pie]

Tony is of the four by twoish persuasion , he will see a generous return on his investment in the long term , mark my words.

I hope he does. To do so would require success on the pitch that we can only dream of at this time. I don't think there is any chance of his going for the soft option of selling-out to some ruski or arab .

 

[Chicken Runner61]

unless he has some serious wonga like Abramovich I bet TB will want his money back at some stage. Don't forget in 2008/9 when backs were going bust all over the world putting £90M into a project like the amex was a shrewd move. I can't think of a better place or asset at that time to park your life savings into if there is a chance of savings disappearing into a toxic bank balance

 

[Aadam]

unless he has some serious wonga like Abramovich I bet TB will want his money back at some stage. Don't forget in 2008/9 when backs were going bust all over the world putting £90M into a project like the amex was a shrewd move. I can't think of a better place or asset at that time to park your life savings into if there is a chance of savings disappearing into a toxic bank balance

I think one of the worst places to put your life savings during a recession would be a football club.

 

[Chicken Runner61]

I think one of the worst places to put your life savings during a recession would be a football club.

Disagree completely, Amex Ground is an asset, was always going to be a success in the beginning. I bet the Ground is held separate from the club just in case.

 

[Aadam]

Disagree completely, Amex Ground is an asset, was always going to be a success in the beginning. I bet the Ground is held separate from the club just in case.

I'm saying is during a recession you'd want your money somewhere that's almost certainly going to be guaranteed, rather than a gamble. Would it be a success if Brighton were relegated to League 2. The gamble might have back fired. Fortunately it hasn't. But there have been plenty of people that have put money into football clubs, property and the like and the gamble hasn't paid off.