Club must save £4 million

[Wycombe Royal]

its in the budget for this season though RL

so we arent losing 15 million a year currently

Are you saying we have budgeted and spent the £11 million already - THIS season?

That is exactly what is being said.

At the start of the season they will produce budgets and forecasts based on what they know will be coming in and going out. This £11m is for the 2009/10 season but is being paid at the END of the season, so therefore it is included in the 2009/10 budgets and forecasts.

[Royal Rother]

To be honest I didn't know it came at the end of the season so RL's point now makes a lot more sense.

Thing is, (simplistically) if the club budgeted for break even with the £11m coming in, presumably it would have needed an overdraft facility of (perhaps) £11m before season's end. I can't see that being given so that makes the whole issue of how it was funded and which year it really belongs to a little less clear.

[Wycombe Royal]

To be honest I didn't know it came at the end of the season so RL's point now makes a lot more sense.

Thing is, if the club budgeted for break even with the £11m coming in, presumably it would have needed an overdraft facility of £11m before season's end. I can't see that being given so that makes the whole issue of how it was funded and which year it really belongs to a little less clear.

The bank would be happy to allow an overdraft facility for the season if it had guarantees that funds would be coming to clear it at the end of the season. The £11m parachute payment is about as guaranteed as you can get so I do not see the overdraft being an issue.

[Royal Rother]

Hmm, you're probably right.

They sure as hell won't lend to small / medium sized businesses where there isn't either a rock solid personal guarantee in place or assets worth about 20 times the borrowing.

[Wycombe Royal]

I would also guess that we probably get on quite well with our bank as we have paid back our debts to them in the past when they have requested it. For a football club we are probably quite a low risk........although they probably won't be as accomodating going forward as we don't have the parachute payments anymore......

[Dirk Gently]

Read this slowly - in a few weeks time we get approx £11 million as our final parachute payment. This will be used for NEXT season, will it not? Yet the club are saying we need to save £4million for the coming season (or NEXT season if you will). My point is, if we were saying this at the end of NEXT season, I could understand - as we won't be getting a parachute payment - so if we are having to trim £4million in the next season, despite having £11 million as a parachute payment also, then the following season will be very worrying with regard to cost-cutting, will it not?

i am saying, if it gets payed in a week or so it will go down in this years budget.
if so i see no problem. its guaranteed payment, so "spending" it before it arrives seems sensible enough.
tbf i have no idea though


wheres dirk when you need him

You called?

Yes, you can budget against guaranteed payments, and the bank will allow that quite happily - as long as they can see that the club is run responsibly. Never forget that the football "year" ends 30th June, so as long as it gets paid before then (which it will) it counts in this season's income.

For those who are surprised at this £4m "black hole" I believe that it's been on the cards all season, and I'm certainly not surprised by it. It's actually smaller than it might have been (thank the FA cup for that!) but earlier in the season I did hear £6M talked about.

[Row Z Royal]

Read this slowly - in a few weeks time we get approx £11 million as our final parachute payment. This will be used for NEXT season, will it not? Yet the club are saying we need to save £4million for the coming season (or NEXT season if you will). My point is, if we were saying this at the end of NEXT season, I could understand - as we won't be getting a parachute payment - so if we are having to trim £4million in the next season, despite having £11 million as a parachute payment also, then the following season will be very worrying with regard to cost-cutting, will it not?

i am saying, if it gets payed in a week or so it will go down in this years budget.
if so i see no problem. its guaranteed payment, so "spending" it before it arrives seems sensible enough.
tbf i have no idea though


wheres dirk when you need him

You called?

Yes, you can budget against guaranteed payments, and the bank will allow that quite happily - as long as they can see that the club is run responsibly. Never forget that the football "year" ends 30th June, so as long as it gets paid before then (which it will) it counts in this season's income.

For those who are surprised at this £4m "black hole" I believe that it's been on the cards all season, and I'm certainly not surprised by it. It's actually smaller than it might have been (thank the FA cup for that!) but earlier in the season I did hear £6M talked about.

How much operating profit was made in the first Prem season?

[Hoop Blah]

About £6.3m I believe.

[Wycombe Royal]

How much operating profit was made in the first Prem season?

[brendywendy]

but that profit only offset the loss from the previous year when we went up

[No Hoops]

Do we know for sure that it is £4mil.

It is the Eve Post

[SpaceCruiser]

Do we know for sure that it is £4mil.

It is the Eve Post

Interesting that you should ask that. I had a quick look back at the story quoted in the first post of this thread. Nowhere in that report does Hammond mention any figure and it does look like the Post has plucked that figure out of thin air.

[loyalroyaldaz]

If Bmac drives a huge BMW with the reg of *** BRY, then he is still at the board meeting. I just came back from the Stadium and this car was parked next to Howes.
Dont know what time the meeting started but i would love to be a fly on the wall.

[Royal Lady]

McD did indicate to Dellor on Radio Berks that he was going to put forward the case that RFC deserved a good squad or something like that - I don't think he'll lie down and just accept massive cuts/selling best players.

[Wycombe Royal]

If Bmac drives a huge BMW with the reg of *** BRY, then he is still at the board meeting. I just came back from the Stadium and this car was parked next to Howes.
Dont know what time the meeting started but i would love to be a fly on the wall.

His car always seems to be parked up there............

[wolsey]

If Bmac drives a huge BMW with the reg of *** BRY, then he is still at the board meeting. I just came back from the Stadium and this car was parked next to Howes.
Dont know what time the meeting started but i would love to be a fly on the wall.

His car always seems to be parked up there............

Is that not Bryan Stabler's car? (Finance Director/ Chief Beancounter)

[loyalroyaldaz]

That would follow. the BMW was enormous, a 645ci i think. Dont think Bmac could see over the steering wheel bless him !
There was a silver peugeot 206 or something in the Managers parking spot.

[Royal Lady]

That would follow. the BMW was enormous, a 645ci i think. Dont think Bmac could see over the steering wheel bless him !
There was a silver peugeot 206 or something in the Managers parking spot.

Bless McD, always under-stated.

[The Surgeon of Crowthorne]

Tbf, up 'til this season, I don't suppose he's had the salary to afford anything bigger.

[loyalroyaldaz]

You would think a decent company car would come with the Job, especially with the Jaguar dealer just up the road, or what about a lamborghini ! Could just see Bmacs little baldy head sticking above the steering wheel of a clonking great Murcielago.