[Phil V 72]

a kick in the balls, on 05 March 2015 - 07:31 PM, said:

Really? I`m glad your not running CFC!!!!!!!!!!!!




If a clubs model is reliant on selling players then its financial suicide. You may have an average squad that doesn't have very much re sale value - where are you then?




Selling players is fine, its part of the game, but it isn't a reliable income stream on which you can run a business. Its a windfall to reduce debts or re invest.




If you expect 7000 fans, then budget for 6800. if that gives you a £1,500,000 then allow £1,450,000 - build in some breathing space and cut your cloth accordingly. If things go better, then you have extra money to use on loan players, in Jan etc. Otherwise if things don't go so well, then you don't make a loss of £1,000,000 you make a small, manageable loss.




I would bet that last season some of the club staff didn't have a clue how much the club was losing, and where it was losing it.

I, like 99.9% of this board, wouldn't have the first clue about running a football club. They are unusual beasts to say the least. How many businesses see their cashflow fall of the edge of a cliff for 25% of the year.

I have no axe to grind here, you may well be right in all you say. I was just saying, I don't know because football clubs arent typical businesses.

The point originally was about whether we should have offered Johnson £3.5k a week and I thought there were wider implications than just what one players wage demands might be. If what you're saying is right, then there is no way we should have offered him, or anyone else, that sort of salary at the moment.

One more point, do you think that the investment we've made in the last year or so in the backroom/youth development indicates that we do see players as potential assets and hope/expect this investment to be realised in player sales?

This post has been edited by Phil V 72: 05 March 2015 - 08:15 PM

[Mac's Back]

Phil V 72, on 05 March 2015 - 08:10 PM, said:

I, like 99.9% of this board, wouldn't have the first clue about running a football club. They are unusual beasts to say the least. How many businesses see their cashflow fall of the edge of a cliff for 25% of the year.

I have no axe to grind here, you may well be right in all you say. I was just saying, I don't know because football clubs arent typical businesses.

The point originally was about whether we should have offered Johnson £3.5k a week and I thought there were wider implications than just what one players wage demands might be. If what you're saying is right, then there is no way we should have offered him, or anyone else, that sort of salary at the moment.

One more point, do you think that the investment we've made in the last year or so in the backroom/youth development indicates that we do see players as potential assets and hope/expect this investment to be realised in player sales?

There are a great many businesses whose turnover is seasonal.

Regardless of the size of the backroom budget, maintaining a conveyor belt of talent will take some doing.

[Guest_freelander2_*]

a kick in the balls, on 05 March 2015 - 05:02 PM, said:

We have lost money for 3 seasons running!!!

Incorrect.

[h again]

a kick in the balls, on 05 March 2015 - 07:31 PM, said:

Really? I`m glad your not running CFC!!!!!!!!!!!!




If a clubs model is reliant on selling players then its financial suicide. You may have an average squad that doesn't have very much re sale value - where are you then?




Selling players is fine, its part of the game, but it isn't a reliable income stream on which you can run a business. Its a windfall to reduce debts or re invest.




If you expect 7000 fans, then budget for 6800. if that gives you a £1,500,000 then allow £1,450,000 - build in some breathing space and cut your cloth accordingly. If things go better, then you have extra money to use on loan players, in Jan etc. Otherwise if things don't go so well, then you don't make a loss of £1,000,000 you make a small, manageable loss.




I would bet that last season some of the club staff didn't have a clue how much the club was losing, and where it was losing it.

Sounds like a sensible suggestion - until you find that your projected gates don't quite give you enough in the pot to get a game-changing player in who costs serious money. Gary Roberts springs to mind.
So do you adjust the projections accordingly, and risk a loss later, after the bloke has got you promoted? Or grit your teeth and watch somebody else sign him - and the crowds decline further? Or any one of a dozen other options?
Running a football club is a long, long way from the black-and-white affair that most of the posts on this thread seem to envisage.

[Wooden Spoon]

h again, on 07 March 2015 - 09:47 PM, said:

Sounds like a sensible suggestion - until you find that your projected gates don't quite give you enough in the pot to get a game-changing player in who costs serious money. Gary Roberts springs to mind.
So do you adjust the projections accordingly, and risk a loss later, after the bloke has got you promoted? Or grit your teeth and watch somebody else sign him - and the crowds decline further? Or any one of a dozen other options?
Running a football club is a long, long way from the black-and-white affair that most of the posts on this thread seem to envisage.

it is, but ultimately if you overspend and lose money you don't have a football club. Oh, and we signed Roberts before we were promoted

freelander2, on 06 March 2015 - 06:13 PM, said:

Incorrect.

You have a handle on these things, what's the P+L for the club each season since we moved to the Proact