RFC vs The Rest Of The Championship: Accounts

[Cureton's Volley]

A detailed summary and comparison of the Championship clubs' finances for the last full set of published accounts (Season 11/12)

Thursday, August 1, 2013
"Championship Finances 2011/12 - Numbers"

http://swissramble.blogspot.co.uk/2013/08/championship-finances-201112-numbers.html


Two main points which stuck out for me were:
- The huge difference made by the parachute payments which we will now be benefiting from.
- Our wages to turnover ratio was 135% even before the Pog... I can only imagine what we are looking like now

[Alexander Litvinenko]

I think the two points partly cancel each other out - the PL money, and the parachute payments massively increase the income, so the wages to turnover ratio has probably gone down from that extreme and unsustainable figure.

[P!ssed Off]

A loss of £1.7 million when winning the league is very respectable.
It's possible to imagine that player bonuses for promotion/winning the league may have totalled £1.7 million plus, therefore if not for promotion we would have broken even.

[PieEater]

It pretty well backs up that wages are the most effective way of getting promotion, except is Leicester's case

[Alexander Litvinenko]

It pretty well backs up that wages are the most effective way of getting promotion, except is Leicester's case

Or more that you've highly unlikely to get promotion unless you have a high wage bill.

But it doesn't work the other way - and plenty of other clubs have pissed it up against the wall, financially, and not got promotion.

[Ian Royal]

It pretty well backs up that wages are the most effective way of getting promotion, except is Leicester's case

Or more that you've highly unlikely to get promotion unless you have a high wage bill.

But it doesn't work the other way - and plenty of other clubs have pissed it up against the wall, financially, and not got promotion.

It says to me that if you spend the wages carefully building a good squad you'll do well, but if you spend the wages chasing big names and instant success, you're probably not spending it that wisely so there's less chance of it working. But maybe that's because I just wasn't impressed with Leicester's spending in the first place.

[ZacNaloen]

presumably that all includes bonuses paid on promotion?

Are we sure it isn't just an anomaly that promoted clubs look like they have huge wage bills, because of the promotion payout situation?

[Ian Royal]

presumably that all includes bonuses paid on promotion?

Are we sure it isn't just an anomaly that promoted clubs look like they have huge wage bills, because of the promotion payout situation?

It's got to be a factor, but it's virtually impossible to tell by how much I'd have thought. I guess the only way you could compare would be to our previous season wage bill. But then we lost the parachute payments, but gained significant investment from the new owner which adds loads of uncertainty.

[Hoop Blah]

presumably that all includes bonuses paid on promotion?

Are we sure it isn't just an anomaly that promoted clubs look like they have huge wage bills, because of the promotion payout situation?

Certainly a factor I'd agree, but you still have to offer up those bonuses and make the performance related pay commitments in line or above your competition to secure the players so I don't think it's easy to ignor.

When we went up in 2006 the players had a big moan about their measly bonus, despite them signing it off at the start of the season, and so I'm guessing it wasn't much then but these days out squad have still probably learnt a lesson from that history.

I doubt bonus payments jump a mid-tier paying team into the top 2 or 3, so how big the effect it its hard to say.

[melonhead]

we were usually in the top 6 payers, but not at the top.
its clear antons arrival, and the promise of bonus' would have bumped it right up.

got to be at least 2 million between the whole squad, shirley

[Hoop Blah]

As a guide for you brendy

2009 - highest wage bill, finished 4th (wages were £1m higher than Birmingham, £9m higher than Wolves, £5.5m higher than Sheff U)
2010 - 3rd highest wage bill, finished 9th (you'd assume we were light in the way of bonuses, only team that might've pushed us to 4th would be 'Boro)
2011 - finished 5th with 5th highest wage bill behind the 3 relegated teams with their parachute payments and QPR who won the league. Norwich paid out only £100k more than us when finishing 2nd in the league

It's pretty clear to me we do pay top whack in this division and even without the added bonus payments for success.

[Ian Royal]

As a guide for you brendy

2009 - highest wage bill, finished 4th (wages were £1m higher than Birmingham, £9m higher than Wolves, £5.5m higher than Sheff U)
2010 - 3rd highest wage bill, finished 9th (you'd assume we were light in the way of bonuses, only team that might've pushed us to 4th would be 'Boro)
2011 - finished 5th with 5th highest wage bill behind the 3 relegated teams with their parachute payments and QPR who won the league. Norwich paid out only £100k more than us when finishing 2nd in the league

It's pretty clear to me we do pay top whack in this division and even without the added bonus payments for success.

Of course we don't. Everyone knows McDermott got in the play offs and won the league on a shoestring and that Rodgers had a weak, low paid squad because he wasn't backed financially and that's why he struggled. Don't bring facts into it, they're totally irrelevant.

[sandman]

Got a problem with wages being paid take it up with the owner and the dof. As they say oop North, It's got nout to do wid manager.

[ZacNaloen]

As a guide for you brendy

2009 - highest wage bill, finished 4th (wages were £1m higher than Birmingham, £9m higher than Wolves, £5.5m higher than Sheff U)
2010 - 3rd highest wage bill, finished 9th (you'd assume we were light in the way of bonuses, only team that might've pushed us to 4th would be 'Boro)
2011 - finished 5th with 5th highest wage bill behind the 3 relegated teams with their parachute payments and QPR who won the league. Norwich paid out only £100k more than us when finishing 2nd in the league

It's pretty clear to me we do pay top whack in this division and even without the added bonus payments for success.

2009 paid for with parachute payments and was basically out prem squad so an outlier.

2010, this surprises how much were we paying rasiak etc after the way we gutted the team that summer??

2011, this doesbt surprise me and I think if not for promotion we'd have been in a similar ball park in 2012.

[Ian Royal]

As a guide for you brendy

2009 - highest wage bill, finished 4th (wages were £1m higher than Birmingham, £9m higher than Wolves, £5.5m higher than Sheff U)
2010 - 3rd highest wage bill, finished 9th (you'd assume we were light in the way of bonuses, only team that might've pushed us to 4th would be 'Boro)
2011 - finished 5th with 5th highest wage bill behind the 3 relegated teams with their parachute payments and QPR who won the league. Norwich paid out only £100k more than us when finishing 2nd in the league

It's pretty clear to me we do pay top whack in this division and even without the added bonus payments for success.

2009 paid for with parachute payments and was basically out prem squad so an outlier.

2010, this surprises how much were we paying rasiak etc after the way we gutted the team that summer??

2011, this doesbt surprise me and I think if not for promotion we'd have been in a similar ball park in 2012.

McAnuff, Howard, Bertrand, Mills, Rasiak. Even Cummings came from Chelsea. All pretty established players or fairly hot prospects coming into a team aspiring to promotion. I'm not at all surprised if they were signed on good money. Particularly Mills.

[Avon Royal]

Got a problem with wages being paid take it up with the owner and the dof. As they say oop North, It's got nout to do wid manager.

Sandman in "missing the point" shocker..........

[Hoop Blah]

As a guide for you brendy

2009 - highest wage bill, finished 4th (wages were £1m higher than Birmingham, £9m higher than Wolves, £5.5m higher than Sheff U)
2010 - 3rd highest wage bill, finished 9th (you'd assume we were light in the way of bonuses, only team that might've pushed us to 4th would be 'Boro)
2011 - finished 5th with 5th highest wage bill behind the 3 relegated teams with their parachute payments and QPR who won the league. Norwich paid out only £100k more than us when finishing 2nd in the league

It's pretty clear to me we do pay top whack in this division and even without the added bonus payments for success.

2009 paid for with parachute payments and was basically out prem squad so an outlier.

2010, this surprises how much were we paying rasiak etc after the way we gutted the team that summer??

2011, this doesbt surprise me and I think if not for promotion we'd have been in a similar ball park in 2012.

I'm not sure 2009 is a real outlier though Zac. The biggest difference that year was that none of the teams coming down were 'big clubs' who were continuing to pay really big wages (like a West Ham or Newcastle) and we out spent the other relegated sides (Birmingham and Derby). Yes we gambled on keeping some high earners but that's what parachute payments are for.

The point being though, that since we went up in 2006, we have consistently been one of the top payers in the league, regardless of league position and the associated performance related bonus payments.

Just to repeat, the year we finished 9th, we were the 3rd highest payers. I don't think bonus payments made that much difference to our wage ranking last season.