Wednesday seem to be up the creek... | Vital Football

Wednesday seem to be up the creek...

Silent over on BM reckons we're gunna mek a formal for Jaoa,from a impeccable source also.I hope we can ger him but LST dunt know whether he wants it or not cos it'd help the oinkers out but i reckon it'd help us more.UTCB
 
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As FFP comes into play at £39m and their recent level of losses are £20m a year, my professional opinion is, they're boned...

BfL, if I get a spare hour I'll gladly pull the same data together for SUFC, but it might take me a few days.
 
Gone back over some of the numbers. By simplifying it, the poster has also cut a few corners, but its generally a good summary.

Essentially, until Chansiri, both clubs were jogging along with revenues of £10-15m, losing £4-8m a year, which although a lot of cash, it was within the range of the pockets of the respective Chairmen.

After Chansiri, their revenue has increased by 50% in two years, but it is essentially the price increases squeezing more cash out of the same number of customers. This was done so they said to provide funds for better players. The only problem being that they needed to increase revenue by 150% for the amount of cash they were spending, as they added £1m a month to their losses.

The mystery is the long list of players that arrived at the club, who never or rarely played, yet were paid big wages. Its classic' champagne lifestyle, brown ale income'. Its just profligate spending of the type urged by many footy fans who just don't get the important concept of making sure you always have the money for the leccie bill.

Essentially they have no hope of 'beating FFP'. Their three year rolling loss is actually going to get worse before it gets better, they have at least fifteen players (most of their senior players) out of contract in the summer, and under embargo rules they can't renew any of them. Chansiri himself seems reluctant to grasp the nettle and sell players like mad, as he still sees an unlikely promotion as the magic bullet to his problem. Its as bizarre as it is crazy.

Conclusion: They're fecked, really, really fecked, and thats before we get to what HMRC are going to do with them over money going through 'shell' businesses. Its so sad.

:lol:
 
Gone back over some of the numbers. By simplifying it, the poster has also cut a few corners, but its generally a good summary.

Essentially, until Chansiri, both clubs were jogging along with revenues of £10-15m, losing £4-8m a year, which although a lot of cash, it was within the range of the pockets of the respective Chairmen.

After Chansiri, their revenue has increased by 50% in two years, but it is essentially the price increases squeezing more cash out of the same number of customers. This was done so they said to provide funds for better players. The only problem being that they needed to increase revenue by 150% for the amount of cash they were spending, as they added £1m a month to their losses.

The mystery is the long list of players that arrived at the club, who never or rarely played, yet were paid big wages. Its classic' champagne lifestyle, brown ale income'. Its just profligate spending of the type urged by many footy fans who just don't get the important concept of making sure you always have the money for the leccie bill.

Essentially they have no hope of 'beating FFP'. Their three year rolling loss is actually going to get worse before it gets better, they have at least fifteen players (most of their senior players) out of contract in the summer, and under embargo rules they can't renew any of them. Chansiri himself seems reluctant to grasp the nettle and sell players like mad, as he still sees an unlikely promotion as the magic bullet to his problem. Its as bizarre as it is crazy.

Conclusion: They're fecked, really, really fecked, and thats before we get to what HMRC are going to do with them over money going through 'shell' businesses. Its so sad.

:lol:
Blades 58 over on BM reckons the oinkers will not let Joao go cos they'll be clear of their embargo within days,how's that work then Pops? UTCB
 
Blades 58 over on BM reckons the oinkers will not let Joao go cos they'll be clear of their embargo within days,how's that work then Pops? UTCB

Rumours and counter rumours Rod, and no-one but Tunaboy will know for sure how high the 'shit-o-meter' is. I'm not an expert in FFP by any means, but they have to keep their losses under £39m for a rolling three year period (last two years, and next year). So with losses in the last two years of £29m (£9m then £20m) they would have to satisfy the League that they're losing a maximum of £10m (all round numbers) in this current year. Next year they would have to do the same or better, but thats assuming they can reduce their losses this dramatically. As most of their losses seem to be paying wages for duffers, how will they reduce their £20m loss from last year, this year.

When the Chairman is saying at fans forums that they have to get promotion or they're in big trouble, then I'd take any positive news for them with a pinch of salt. The NKT Booster team is in full flow trying to keep everyones spirits up, and theres a lot of disinformation floating about.
 
From what I can gather (and I'm even less of an expert than FKB) their fans are under the impression that a lot of the big spending was before a certain date 3 yrs ago so when we pass that date they think it will get dropped giving them some lee way,I'm not saying it's true but the fans believing it is