SWFC Finances - A major worry?

[unkastav]

10 hours ago, @owlstalk said:

 

 

£100k a day

 

A DAY

Even though I knew this, being reminded of it shows the kind of mindblowing figures being spent to run the club

£100k a day

 

That's more than Niall out of One Direction earns

Peanuts

[Steve Down South]

11 minutes ago, Hitcat said:

No different to dozens of other clubs out there. 

A number of whom may go bust over the next few months.  Just because others are in the same boat, I don’t get the complacency.

[ChapSmurf]

17 minutes ago, Mcguigan said:

Not sure why this is a surprise to the author of the tweet. It's all there in the last accounts.

 

Without the owners financial support we're done.

 

 

So, pretty much the same as every other football club in the world then.

 

This isn't even news. It's called running a football club in the modern game, chasing the multi-million pound pay-day called the PL.

[jonnyowl]

While ever he owns the club and has the personal finances to fund the club it's not an issue.

 

The problem will be the day he decides not to fund the club or sell it.

 

This, like alot of our problems comes down to poor recruitment. Players on high wages that haven't performed, been injured or have no re-sale value.

[dumboldowl]

10 hours ago, Grandad said:

Until I saw this I wasnt worried at all

 

Why should you worry ? It's his money.

 

Surely the more he puts in, the more his commitment to the cause.

 

[vulva]

4 minutes ago, dumboldowl said:

 

Why should you worry ? It's his money.

 

Surely the more he puts in, the more his commitment to the cause.

 

I think the worry is that at some point he might say balls to it, and not bother anymore. Leaving us owing an absolute fortune with a ground that we don’t own. 
 

That’s the worry. 

[pazowl55]

7 hours ago, Brommers said:

Err, no it doesn't. That would mean we were losing far more than £100K a day in previous years. £100K a day equates to £36.5M per season which is almost the 3 year loss allowance under p&s rules so if we'd been losing those levels each season for the past 5 years, I think we'd be in a far worse state than we are currently. 

Haven't they just added up the money Chansiri has spent dividend it by years he has been here and come up with the 100k a day figure. What I was saying is he is not putting that in now to run the football club. We cant possibly be running off a 100k a day loss as a club at the moment.

[NeonLeon]

The second part of the Tweet is abit misleading regarding us being ‘at the mercy of DC’ continuing to put in circa 100k a week.

 

The maths is obviously derived from the total amount spent since he walked through the door. The club isn’t spending anywhere near the levels it was between 2015-2018. Common sense says as time passes the ‘100k’ or whatever the amount truly is, will keep falling until it’s in-line with our current decrease in spending on players and wages. 
 

It’s unfair to bill it as some sort of unsustainable runaway train when huge attempts to cut costs have quite clearly been made year on year. 

[RUMBELOWS91]

10 hours ago, KivoOwl said:

He should be liable for when the poo hits the fan.

 

He has made the decisions, he has caused the problem.

 

Yet the fans will be the ones to suffer as usual.

I get the sentiment, but liable in what sense?

 

What possible repercussions can be added to the financial losses he will personally suffer?

 

[Guest Grandad]

6 minutes ago, NeonLeon said:

The second part of the Tweet is abit misleading regarding us being ‘at the mercy of DC’ continuing to put in circa 100k a week.

 

The maths is obviously derived from the total amount spent since he walked through the door. The club isn’t spending anywhere near the levels it was between 2015-2018. Common sense says as time passes the ‘100k’ or whatever the amount truly is, will keep falling until it’s in-line with our current decrease in spending on players and wages. 
 

It’s unfair to bill it as some sort of unsustainable runaway train when huge attempts to cut costs have quite clearly been made year on year. 

Let's see what the accounts say

[TrueOwl]

9 hours ago, billyblack said:

Aye, so the revenue needs sorting

We have a revenue problem not a spending problem. He was heading in the right direction buying up local businesses and presumably using SWFC as the holding company but taxis and fizzy drinks aren't going to pay these bills. He needs to think much bigger like buying up real estate and property development companies, financial services, etc that would do the job on the asset list.

 

Image if SWFC could be the new holding company for TUF Group and then our revenues illusory as they might be would look pretty pretty good.

Edited July 1, 2020 by TrueOwl

[RUMBELOWS91]

10 hours ago, matthefish2002 said:

 

A new owner will be hard to come by if we need £100k per day to keep going.

All that money spent and we are worse off then we were 5 years ago.

We don't need £100,000 a day to keep going (in normal times)

 

We need £30k a day (ie to maximise FFP threshold of £13m a year) and we need shrewd management in the transfer market.

 

eg....

Don't buy Jordan Rhodes

Sell FF at top of his value

Sell Adam Rrach at top of his value

Sell Tom Lees at top of his value

 

Sign Michael Hector rather than loan in the first place.

 

Take.the decisions above and we're probably £30m better off with a better squad.

 

Yes, I'm using a big bagful of hindsight to say this is what we should have done,. but I'm not a football professional and these are the kind of decisions people at Brentford, Soithampton and others get right year on year.

[edinburghowl]

Anyone that isn’t even the slightest bit worried needs to seriously reevaluate their views.
 

We have next to no saleable assets now that the ground has gone, huge debts, huge running costs and liabilities that are completely unsustainable, and in the middle of a global pandemic with no match day income from fans available to ease the pressure this would put us in admin in a matter of days/weeks if the regime were to walk. 
 

I’m not saying they are going to but we would be seriously fizzed if they did.

[ChinaOwl]

3 minutes ago, TrueOwl said:

We have a revenue problem not a spending problem. He was heading in the right direction buying up local businesses and presumably using SWFC as the holding company but taxis and fizzy drinks aren't going to pay these bills. He needs to think much bigger like buy Real Estate companies, Financial services, etc.

 

Image if SWFC could be the new holding company for TUF Group and then our revenues illusory as they might be would pretty pretty good.

 

I still see fans hanging onto this idea that Thai Union Group are going to become involved in some way. Forget it. It's a complete non starter. TUG is a publicly owned entity of which the Chansiri family collectively own less than 20%. Of the other 80%, the overwhelming majority have not even heard of Sheffield Wednesday and care even less about the club. They are global investors who only care about making a return on their own personal investments in TUG and would not be happy seeing the company's revenue spaffed up the wall on a foreign owned sporting entity making substantially annual losses.

[akbuk]

10 hours ago, DJMortimer said:

Last year, the stadium sale prevented a net loss of something like £35m.

 

The year before that is was £20m.

 

When this year's accounts are published in a few weeks, it will probably be something similar.

 

The league's P & S regulations permit a total deficit of £39m over a rolling three year period.

 

What's to worry about?

 

 

All to keep pace with other clubs trying to reach the land of milk and honey,it's stark and underlines the need for change in the finances of all football clubs.

Players cannot expect to be paid the ridiculous sums they are getting now.

A wage cap is needed   and if the finances in football can't be sorted out now then the never will be.

[sMacLean]

1 minute ago, edinburghowl said:

Anyone that isn’t even the slightest bit worried needs to seriously reevaluate their views.
 

We have next to no saleable assets now that the ground has gone, huge debts, huge running costs and liabilities that are completely unsustainable, and in the middle of a global pandemic with no match day income from fans available to ease the pressure this would put us in admin in a matter of days/weeks if the regime were to walk. 
 

I’m not saying they are going to but we would be seriously fizzed if they did.

Provided we stay up we have a chance to rebuild the side properly, debts are only to Chansiri, have posted a profit in the accounts. Think we could be in a very good position.

[Ever the pessimist]

3 minutes ago, edinburghowl said:

Anyone that isn’t even the slightest bit worried needs to seriously reevaluate their views.
 

We have next to no saleable assets now that the ground has gone, huge debts, huge running costs and liabilities that are completely unsustainable, and in the middle of a global pandemic with no match day income from fans available to ease the pressure this would put us in admin in a matter of days/weeks if the regime were to walk. 
 

I’m not saying they are going to but we would be seriously fizzed if they did.

But some on here confuse being concerned with actually wanting us to go to the wall. Weirdly enough.

[Ever the pessimist]

1 minute ago, sMacLean said:

Provided we stay up we have a chance to rebuild the side properly, debts are only to Chansiri, have posted a profit in the accounts. Think we could be in a very good position.

Just need to hope Paxio has a wealthy of raw gems to park with us. On previous evidence I suspect that’s unlikely.

[edinburghowl]

Just now, sMacLean said:

Provided we stay up we have a chance to rebuild the side properly, debts are only to Chansiri, have posted a profit in the accounts. Think we could be in a very good position.

Naturally staying in the division is imperative financially and yes we have a chance to rebuild. I agree that the debts for now are only to the regime but if they walk (and again I’m not saying that they will) then we would have serious cash flow problems almost instantly due to the huge disparity between our incomings and outgoings.
 

We would need to find a way to fund (or cut) our current outgoings almost immediately, or we would be facing non payment of football debts, and/or winding up petitions from HMRC.  

[TrueOwl]

16 minutes ago, ChinaOwl said:

 

I still see fans hanging onto this idea that Thai Union Group are going to become involved in some way. Forget it. It's a complete non starter. TUG is a publicly owned entity of which the Chansiri family collectively own less than 20%. Of the other 80%, the overwhelming majority have not even heard of Sheffield Wednesday and care even less about the club. They are global investors who only care about making a return on their own personal investments in TUG and would not be happy seeing the company's revenue spaffed up the wall on a foreign owned sporting entity making substantially annual losses.

All i'm saying is that he needs to supplement the income of the club with revenue from external sources (all options on the table) as he can't keep raiding his personal savings day in day out to keep up out of the brown stuff.

Edited July 1, 2020 by TrueOwl