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Sorry to post something sensible on Owlstalk but ...


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For all those “Milan get the cheque book out”, “we need a Chinese/Arab/Japanese/Martian billionaire” posters, please consider the following FACTS before you write:

 

Wages

·         Our wage budget is currently running at 80% of turnover, which is considered dangerously unsustainable by most business experts*.  For this reason, and to protect smaller clubs from over-extending themselves in L1 and L2, FFP in these divisions is set at 60% of turnover.

·         So far from being “tight” and unwilling to spend money, the club is actually spending all it possibly can on wages for a competitive playing squad.  In fact you could argue its spending too much.

·         If we were suddenly to invest in a few more players our wage budget would go well over what we can sustainably afford and risk the future of the club.

 

Losses

·         We are currently making losses of £5million a season, which Milan is currently covering.  So far from being “tight” and unwilling to spend money he is keeping us going.

·         Under FFP rules in the Championship no club is allowed to make losses of more than £8million per season without incurring a fine or points deduction.  Leicester have a very rich board who have openly said they want to spend more money on players but can’t because of these rules, only those with parachute payments have really spent millions of players this season.

·         So people should really consider how we don’t have a lot of leeway when you consider a transfer fee, signing on fee and salary to sign the kind of player we would all like to see without going over this £8million figure.

 

Investment is no guarantee

·         Spending lots of money on one or two players is a highly risky strategy, they could get injured or not settle in the area and they we wouldn’t be able to recoup the money. 

·         If money guaranteed success Wolves would not have gone down last season and Leicester would have gone up.  We would also have gone up in 2010/11 when Irvine bought Madine and a whole new back four in January for a fair whack.

·         A study by Simon Kuper and Stefan Szymanski has demonstrated how wage budget is the biggest determining factor on how well a club does, not money spent on transfer fees and as noted there isn’t much leeway to safely increase our wage budget.

 

And most importantly ...

 

We’ve tried this before

·         Our fans were quite board and frustrated with lower-midtable Premiership finishes, so Dave Richards loosened the purse strings.  We picked up two big bosmans from Celtic on lucrative long term contracts and bought a deadly Belgian/Dutch strike duo as well as a Dutch playmaker who had appeared in the World Cup.

·         Not sure if you remember but it went spectacularly well we got into Europe and stayed there, it certainly didn’t lead to ten years of terminal decline, misery and debt, debt, debt.

 

 

* Before people ask how do I know this.  We’re a Ltd company so all of the info is in the public domain. An accountant friend of mine who assesses businesses’ books for a living went through Wednesday accounts the other week and came away quite scared.

 What a load of poo , all you need is a sponsor , for shirt , ground, academy, for lets say Â£340 million quid, job done tailface. SEE MAN CITY ETIHAD.

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Guest Big Guns

Most football clubs would be shut down if they were run like a normal business you don't have to be heinstein to know that

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Guest dave jones n.1

I'd like to closely inspect Wednesday's books and see why they are losing 5m per year.

2nd best supported club- and we must have taken some TV money too, last season. How come we never seem to get any big-name shirt sponsors?

I'd like to closely inspect Michelle keegans beaver
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 What a load of poo , all you need is a sponsor , for shirt , ground, academy, for lets say Â£340 million quid, job done tailface. SEE MAN CITY ETIHAD.

 

Show me the Football Leagues rules that state what can and can't be classed as Shareholder Equity Investment for the Football Leagues FFP Test. Until you can, your post means jack all.

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Where is the evidence we "lost" 5 million? debt free, 2nd highest average attendance, very little expenditure on transfers, one of the lowest wage budgets. Sorry but it doesnt add up. Yes the club is being careful but dont pull the wool over our eyes.

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Where is the evidence we "lost" 5 million? debt free, 2nd highest average attendance, very little expenditure on transfers, one of the lowest wage budgets. Sorry but it doesnt add up. Yes the club is being careful but dont pull the wool over our eyes.

again its a puzzle we have a lowish budget for this division and yet we are the 2nd best supported and we spend 80% of it on wages ...if its not being used on the players where is it going ?....
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Where is the evidence we "lost" 5 million? debt free, 2nd highest average attendance, very little expenditure on transfers, one of the lowest wage budgets. Sorry but it doesnt add up. Yes the club is being careful but dont pull the wool over our eyes.

 

in the accounts

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again its a puzzle we have a lowish budget for this division and yet we are the 2nd best supported and we spend 80% of it on wages ...if its not being used on the players where is it going ?....

 

The figures are something like turnover £10.9m wages £8.2m and other operating costs £7.4m giving a loss of £4.7m. Don't know what the other costs are but there lies the pronlem imho.

 

One could go to the trouble of getting the full published account to see what they were

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Guest Big Guns

nah...it's Milan's fault he should throw a few billion at it

Exactly I mean wot is 2 million to a billionaire it's like you spending 20 quid on real ales in the barrack
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Good bit off business

It is when you add it players like Grant Holt, Perch, McManaman, McArthur, Watson, Scott Carson, James McCarthy, Shaun Maloney and Fortne. Intact, having just listed that lot, I'm off to put some money on them. They'll pis s it.

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