ANDY Posted November 14, 2017 Share Posted November 14, 2017 In part eight of our extensive Q&A, the chairman addresses the subject of corporate hospitality at Hillsborough. Would it be a sensible business decision to reduce the cost of corporate hospitality to increase revenue streams, rather than having fewer customers providing less income for the club? First of all, there is a misconception that our hospitality areas were full in the past. Before I arrived at the club, occupancy was only in the region of 60% capacity across 600 places. Following a necessary uplift in price, the occupancy across this season’s hospitality is lower than before – however, we will generate greater revenue which is crucial against the backdrop of Profitability and Sustainability. In the past, the club has significantly underestimated the value of the corporate pricing, to the point where losses were incurred after all related costs. In much the same way as regular tickets, seasonal corporate ticket prices offer the best value for supporters but the worst to the club. We would drive revenues far more aggressively if we sold match by match but we offer long term fans that have supported the club the chance to continue to do so at a price that represents excellent value, albeit representing only a small profit to the club. I have explained many times why there was a need to increase the prices, but I know it is human nature that everyone wants to pay a lower price. Unfortunately, this is not possible for the reasons I outlined last week. There is a misbelief that lower prices means more people and more money. The club has tried this strategy in the past without success. In the financial analysis overall, corporate hospitality contributes only a relatively small amount of overall revenue to football clubs and certainly not the millions perceived by many. Even at full occupancy, this arm of the business would generate less than £500,000 profit for Sheffield Wednesday - so the price rises were a necessity if the corporate areas were to make a real impact on our balance sheet. The bottom line is that current regulations deem that we need additional financial support, it is not possible for me to do it by myself, even when I am happy to do so. It is not about filling spaces at any price to increase occupancy, they need to be filled at the right price to help the club. I remember clearly during my first year, many corporate clients said that they were not happy to pay more as we had not proved anything on the pitch yet, but if we did they would be happy to increase. However, we reached the play-off final in 2016 and many still asked for a lower price. Since then, some have not renewed on a seasonal nor match by match basis and, of course, this is their choice. We will try our best within the constraints that we must work to attract everyone back to Hillsborough in the short and long term. In the meantime, I wish to thank all the corporate clients who have committed their ongoing support since I bought the club. It is a shame that some were only happy to support whilst receiving the benefits of low prices, discounts and even free places for small secondary spend. The club at that time accepted this because the attitude was one of something being better than nothing, even if this led to losses, as ambitions and performance on the pitch were not so high. Moving forward, the club has received major investment and with that has come price increases because, as I say, I am not allowed to spend unlimited amounts of money myself. I would like to think the door is not closed on either side for our former clients and it would be my pleasure to welcome them all back to Hillsborough. Our corporate strategies are under ongoing review and indeed we have introduced revised prices on certain match by match packages that have been well received to date. This process will continue as we seek to find the right balance between attracting as many corporate clients as possible whilst maximising revenues and profits. Link to comment Share on other sites More sharing options...
SiJ Posted November 14, 2017 Share Posted November 14, 2017 *Reads opening post* *awaits responses* 1 Link to comment Share on other sites More sharing options...
Inspector Lestrade Posted November 14, 2017 Share Posted November 14, 2017 Fair comment Link to comment Share on other sites More sharing options...
Eastleigh Owl Posted November 14, 2017 Share Posted November 14, 2017 Problem with this "Ask the Chairman" malarkey it's just going to destroy future topics, Neil must be gutted. 5 Link to comment Share on other sites More sharing options...
upperwinngardensowl Posted November 14, 2017 Share Posted November 14, 2017 (edited) He is a tad disrespectful to the former occupants suggesting they only wanted it when, in his view, it was dead cheap. we will never know the true situation as this was a chance to set the record straight, but instead there are few definitive facts, just generalisms Edited November 14, 2017 by upperwinngardensowl 1 Link to comment Share on other sites More sharing options...
clud17 Posted November 14, 2017 Share Posted November 14, 2017 So in summary the prices were too low, we put them up, not as many signed up so we are now reviewing it and reducing some packages. Link to comment Share on other sites More sharing options...
SiJ Posted November 14, 2017 Share Posted November 14, 2017 4 minutes ago, upperwinngardensowl said: He is a tad disrespectful to the former occupants suggesting they only wanted it when, in his view, it was dead cheap. That part is certainly going to put the cat among the pigeons. Or in the words of Paul Merson: the pigeon among the cats. Link to comment Share on other sites More sharing options...
darra Posted November 14, 2017 Share Posted November 14, 2017 5 minutes ago, upperwinngardensowl said: He is a tad disrespectful to the former occupants suggesting they only wanted it when, in his view, it was dead cheap. we will never know the true situation as this was a chance to set the record straight, but instead there are few definitive facts, just generalisms Maybe it's a fair assumption . as he says during my first year, many corporate clients said that they were not happy to pay more as we had not proved anything on the pitch yet, but if we did they would be happy to increase. However, we reached the play-off final in 2016 and many still asked for a lower price. They suggested they would pay more if the product improved then reneged on it. Link to comment Share on other sites More sharing options...
Road Runner Posted November 14, 2017 Share Posted November 14, 2017 4 minutes ago, upperwinngardensowl said: He is a tad disrespectful to the former occupants suggesting they only wanted it when, in his view, it was dead cheap. we will never know the true situation as this was a chance to set the record straight, but instead there are few definitive facts, just generalisms How do you know that wasn't the true situation? Unless you know different which you can give you're side? Link to comment Share on other sites More sharing options...
upperwinngardensowl Posted November 14, 2017 Share Posted November 14, 2017 5 minutes ago, Teflon Don said: How do you know that wasn't the true situation? Unless you know different which you can give you're side? I don’t, because we are no wiser after his statement Link to comment Share on other sites More sharing options...
Inspector Lestrade Posted November 14, 2017 Share Posted November 14, 2017 I can feel we are going to have another thread of how badly done to the better off are. Where's my violin? 1 Link to comment Share on other sites More sharing options...
marcx666 Posted November 14, 2017 Share Posted November 14, 2017 16 minutes ago, SiJ said: That part is certainly going to put the cat among the pigeons. Or in the words of Paul Merson: the pigeon among the cats. Salami? Link to comment Share on other sites More sharing options...
S36 OWL Posted November 14, 2017 Share Posted November 14, 2017 GIZ STRIPES BACK 3 Link to comment Share on other sites More sharing options...
robowl4life Posted November 14, 2017 Share Posted November 14, 2017 Boxes are bobar anyway. No atmosphere and no lovely phantom farter. No queuing at half time for a beer, no chanting or pointing fingers at other fans. Executive boxes aren’t for proper footy fans. Link to comment Share on other sites More sharing options...
HirstWhoScoredIt Posted November 14, 2017 Share Posted November 14, 2017 I would like to ask Mr Chansiri why at no point he has addressed why he reneged on signed contracts. I would suggest that this is THE major reason why box holders did not renew. Link to comment Share on other sites More sharing options...
Lord Snooty Posted November 14, 2017 Share Posted November 14, 2017 1 Link to comment Share on other sites More sharing options...
SiJ Posted November 14, 2017 Share Posted November 14, 2017 Well...this is going exactly as I expected. 1 Link to comment Share on other sites More sharing options...
flo Posted November 14, 2017 Share Posted November 14, 2017 26 minutes ago, robowl4life said: Boxes are bobar anyway. No atmosphere and no lovely phantom farter. No queuing at half time for a beer, no chanting or pointing fingers at other fans. Executive boxes aren’t for proper footy fans. Great atmosphere in the boxes. Its where the SWFC homies sit. 1 Link to comment Share on other sites More sharing options...
OWLERTON GHOST Posted November 14, 2017 Share Posted November 14, 2017 Reaches to TV remote turns off England v Brazil casts content of Tablet to TV "There that's better owlstalk tv " 1 Link to comment Share on other sites More sharing options...
Big Ron's Sovereign Posted November 14, 2017 Share Posted November 14, 2017 6 minutes ago, OWLERTON GHOST said: Reaches to TV remote turns off England v Brazil casts content of Tablet to TV "There that's better owlstalk tv " Forgot that was on, Ireland getting spanked by Spurs 3 Link to comment Share on other sites More sharing options...
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