We're losing £1.5m a month – the club’s latest accounts explained

[cbirks]

1 minute ago, WalthamOwl said:

Time to sell up then Chansiri 

 

As long as he owns 'Sheffield 3', even after selling SWFC he'll still be the entity calling the shots financially. And if he no longer has a vested interest in SWFC, I predict those shots will be short, abrupt, and fatal. 

[WalthamOwl]

Just now, cbirks said:

 

As long as he owns 'Sheffield 3', even after selling SWFC he'll still be the entity calling the shots financially. And if he no longer has a vested interest in SWFC, I predict those shots will be short, abrupt, and fatal. 

because he owns the ground? 

[vulva]

2 hours ago, @owlstalk said:

 

Not if we shed wages, recruit some exciting new talent we can sell later, get promoted back to the Championship, improve our revenue off the pitch by overhauling the products sold in the megastore, in the ground etc and attract back exec box holders, advertisers and sponsors 

It’s gone way beyond that. Miles past. The only solution here is a crackpot riding over the hill with a shed load money. Nothing else will rectify the situation. 

[The only way is S6]

One main difference between us and Wigan; potential.

 

Give DM 2 seasons and we're in the PL anyway.................

[cbirks]

Just now, WalthamOwl said:

because he owns the ground? 

 

Exactly.

 

And unless he's Sheffield Wednesday through and through, what a man in his position might do is sell his loss making, unreliable acquisitions (SWFC) and maximise return on his most stable (a large stadium on sought after real estate in S6). 

 

Without somebody or something that IS Sheffield Wednesday through and through taking Hillsborough off 'Sheffield 3', I can't see anything else happening. 

[nethertonowl]

2 hours ago, edwinowl said:

Crikey. Very worrying indeed. 

Doesn’t point out that the. wage bill will be much reduced in the next set of accounts, further reduced this year and almost certainly the next year if we are in league one, nor does it include the income from selling Joao. I am not saying it isn’t a mess, but the cloth is being cut it’s no longer spiralling upwards 

[victorturner]

2 hours ago, S36 OWL said:

Basically, we're screwed. 

No excuse for a sensible owner not to sell

[onslow]

16 minutes ago, cbirks said:

 

As long as he owns 'Sheffield 3', even after selling SWFC he'll still be the entity calling the shots financially. And if he no longer has a vested interest in SWFC, I predict those shots will be short, abrupt, and fatal. 

It’s could be though that he passes that over to his son Att, as he’s stated the family are committed, and he could well be our long term “family” owner

[Taximark]

2 hours ago, vulva said:

Absolutely this. And this is the bit those on here trying to drive him out of town just don’t get. 
 

A couple of lads in Crookes Club eating pork scratchings won’t help us. 

Chansiri has put us in this position though hasn't he? No one is driving him out we just want him to sell up to an owner that knows how to run a football club a bit better then a megalomaniac does...chances of that now is even more slim then when Milan was here.

 

But if he was to just up and go then absolutely yes like @lanzaroteowlsaid we would be screwed big time - all of this is on him, totally.

[Nero]

52 minutes ago, alanharper said:

160% wages to turnover is an absolutely ridiculous way to run a business - and there's only one man to blame for that.

 

 

 

Well not really one man - one of many men prepared to do it. Sometimes it works too.

 

Daily Mail 2020

 

The Championship was operating on borrowed time long before Covid-19 threatened the financial future of English football. The latest review of football finance by Deloitte calculates that Championship clubs spend 107 per cent of their entire revenue on wages. If that may be slightly mitigated by a new broadcasting deal that is worth 35 per cent more than the last, it barely scratches the surface. Championship clubs deliberately activate a financial time bomb and then spend the next 46-49 matches trying to sprint away from it.

 

Financial experts reason that a wage-turnover ratio of 60 per cent is sensible, with anything over 90 per cent unsustainable. To reiterate, 107 per cent wage-turnover ratio is only the Championship’s average – Reading’s was 226 per cent. Aston Villa and Sheffield United gained promotion with ratios of 181 and 190 per cent respectively.

[cbirks]

4 minutes ago, onslow said:

It’s could be though that he passes that over to his son Att, as he’s stated the family are committed, and he could well be our long term “family” owner

 

I think the very fact that he stripped SWFC of its only concrete asset and passed it over to himself shows that this family do not have Sheffield Wednesday's long term best interest at heart. 

[@owlstalk]

Just now, Nero said:

 

Well not really one man - one of many men prepared to do it. Sometimes it works too.

 

Daily Mail 2020

 

The Championship was operating on borrowed time long before Covid-19 threatened the financial future of English football. The latest review of football finance by Deloitte calculates that Championship clubs spend 107 per cent of their entire revenue on wages. If that may be slightly mitigated by a new broadcasting deal that is worth 35 per cent more than the last, it barely scratches the surface. Championship clubs deliberately activate a financial time bomb and then spend the next 46-49 matches trying to sprint away from it.

 

Financial experts reason that a wage-turnover ratio of 60 per cent is sensible, with anything over 90 per cent unsustainable. To reiterate, 107 per cent wage-turnover ratio is only the Championship’s average – Reading’s was 226 per cent. Aston Villa and Sheffield United gained promotion with ratios of 181 and 190 per cent respectively.

 

 

Interesting stuff - thank you for posting that mate
 

[Tommy Crawshaw]

9 minutes ago, cbirks said:

 

Exactly.

 

And unless he's Sheffield Wednesday through and through, what a man in his position might do is sell his loss making, unreliable acquisitions (SWFC) and maximise return on his most stable (a large stadium on sought after real estate in S6). 

 

Without somebody or something that IS Sheffield Wednesday through and through taking Hillsborough off 'Sheffield 3', I can't see anything else happening. 

 

If he had any sense he would cut his losses and sell the club. To do that though he would have to include Hillsborough in the deal and pitch it at a price that would appeal to prospective buyers, not on some fantasy figure in his head based on what he has put in so far.

 

Surely it would be better for him to take £30 million now and 'get out of Dodge' than continue to rack up losses of £18 million a year.

 

If he winds the club up he will end up with sod all.

[Taximark]

2 minutes ago, Nero said:

 

Well not really one man - one of many men prepared to do it. Sometimes it works too.

 

Daily Mail 2020

 

The Championship was operating on borrowed time long before Covid-19 threatened the financial future of English football. The latest review of football finance by Deloitte calculates that Championship clubs spend 107 per cent of their entire revenue on wages. If that may be slightly mitigated by a new broadcasting deal that is worth 35 per cent more than the last, it barely scratches the surface. Championship clubs deliberately activate a financial time bomb and then spend the next 46-49 matches trying to sprint away from it.

 

Financial experts reason that a wage-turnover ratio of 60 per cent is sensible, with anything over 90 per cent unsustainable. To reiterate, 107 per cent wage-turnover ratio is only the Championship’s average – Reading’s was 226 per cent. Aston Villa and Sheffield United gained promotion with ratios of 181 and 190 per cent respectively.

Remember seeing that and then thinking this bubble has to burst soon, but then I've been saying that for 10 yrs and probably say it for another 10.

Wages are mainly the crippling factor along with agent fees and ridiculous Transfers prices.

How long can it continue for everyone?

[Guest Mcguigan]

2 hours ago, wellbeaten-the-owl said:

I really don't get this.

 

Birmingham were punished for the 3 year reporting period ending 2018 (same as us).  

 

So what happened with them for the 3 years ending 2019?

 

They posted losses of £14m in 2017, £37m in 2018 and £8m in 2019 this is a total of £59 milion over 3 years but DIDN'T get charged with breaching FFP in 3 years to 2019!

 

So don't think they are correct in the article.

Basically, after the points deduction, they were given two options.

 

Carry on as you are and incur another points deduction due to breaking P&S limits again or agree and adhere to a strict business plan and a number of financial objectives which would display to the EFL that they were actively reducing their losses. This meant player sales, stadium sale and restrictions on who they could sign and what they could pay in wages. Basically they were under soft sanctions.

 

As you point out, 2019 was down to only £8m down from £37m the season before, so they stuck to the plan but they were also instructed to keep reducing losses the season after (19/20) which they also did. The 2020 accounts will more than likely show a profit due to the Jude Bellingham sale. 

[mildatheart67]

Looks like relative sanity has arrived.

In 18/19 despite record income of £749 million the Championship clubs lost over £500 million.

 

 

[The Wall]

11 minutes ago, cbirks said:

 

I think the very fact that he stripped SWFC of its only concrete asset and passed it over to himself shows that this family do not have Sheffield Wednesday's long term best interest at heart. 

 

In fairness, he's spent and lost more on the club than the grounds is worth.

 

[Guest Mcguigan]

12 minutes ago, Nero said:

 

Well not really one man - one of many men prepared to do it. Sometimes it works too.

 

Daily Mail 2020

 

The Championship was operating on borrowed time long before Covid-19 threatened the financial future of English football. The latest review of football finance by Deloitte calculates that Championship clubs spend 107 per cent of their entire revenue on wages. If that may be slightly mitigated by a new broadcasting deal that is worth 35 per cent more than the last, it barely scratches the surface. Championship clubs deliberately activate a financial time bomb and then spend the next 46-49 matches trying to sprint away from it.

 

Financial experts reason that a wage-turnover ratio of 60 per cent is sensible, with anything over 90 per cent unsustainable. To reiterate, 107 per cent wage-turnover ratio is only the Championship’s average – Reading’s was 226 per cent. Aston Villa and Sheffield United gained promotion with ratios of 181 and 190 per cent respectively.

To be fair the Aston Villa and Blunts ratio's were heavily increased by promotion bonus payments. Whilst they would still have been high, they weren't what was reported in the Daily Mail (shock,horror).

[Nero]

8 minutes ago, TaxiMark said:

Remember seeing that and then thinking this bubble has to burst soon, but then I've been saying that for 10 yrs and probably say it for another 10.

Wages are mainly the crippling factor along with agent fees and ridiculous Transfers prices.

How long can it continue for everyone?

Agree - its unsustainable.

At least with transfer fees though it used to move from club to club. Now our money and the club owners goes into players wages and into Gucci, Aston Martin and Betting companies

[cbirks]

9 minutes ago, Tommy Crawshaw said:

 

If he had any sense he would cut his losses and sell the club. To do that though he would have to include Hillsborough in the deal and pitch it at a price that would appeal to prospective buyers, not on some fantasy figure in his head based on what he has put in so far.

 

Surely it would be better for him to take £30 million now and 'get out of Dodge' than continue to rack up losses of £18 million a year.

 

If he winds the club up he will end up with sod all.

 

Unfortunately I'm trying to point out exactly the opposite. 

 

There is absolutely no reason any sale would have to have Hillsborough included. Hillsborough is no longer the property of SWFC - SWFC are even paying rent on it. There is no link between SWFC and Hillsborough amymore other than DC being a part of the two entirely legally separate owning bodies, which is legally a coincidence at best. 

 

Do Sheffield Wednesday also own DC's share in his dad's tuna empire, because DC owns both? No they don't, and I'm afraid the connection SWFC has to Hillsborough is now akin to its connection to Chansiri tunam