The budget

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judge

judge

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Keep seeing how clough apparently blew the generous budget provided by the prince

As far as i can see the only monies spent in the transfer market have been earned from player sales and cup runs with the prince seemingly filling a 5m pound a year shortfall in the clubs finances

So when mccabe wiped out the clubs debts who did we end up owing 5m a year to ?

Is it because a club with gates of over 20k is spending 5m a year too much on wages ?
Surely fppp rules dont allow this

So in short
What the fuck is going on ?
 

We're allowed to spend 60% of our turnover on player wages, but the owners ARE allowed to donate cash into the turnover total. That's my understanding. Therefore if we'd been really ambitious we'd have cancelled a few of these contracts in the last window, meaning that in this one, or the last one, we were able to bring in the two or three we wanted. That said, Adkins needed time to determine who he wanted which is valid, so this window just gone, you would expect some signings in my view. Instead we're not prepared to move players on in this admittedly expensive way, other than Higdon, Khan and Dimaio, so we're stuck with it till the summer. We're still playing the wages to these guys anyway till the summer but there not making a difference because in many cases they're not good enough.
 
judge said:
I understand how ffp works

Im just puzzled as to why a supposedly debt free club needs an investor to plug a 5m a year gap in its finances

How are we losing 5m a year ?
And where is it going ?
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That I don't know is the answer! If we are adhering to FFP then we should, in theory, be not losing £5m a year. I don't think we are debt free though. Hasn't McCabe said in the past that he has plugged the gap for years and therefore United owe McCabe millions etc.
 
judge said:
I understand how ffp works

Im just puzzled as to why a supposedly debt free club needs an investor to plug a 5m a year gap in its finances

How are we losing 5m a year ?
And where is it going ?
Click to expand...

Its not just wages though is it that we're spending money on. Transfer fees, agents fees, the ground maintenance like the new pitch, etc. I would also guess that clubs can be clever in how they submit their data re FFP to comply with the restrictions but in reality are still losing money.
 
Booker4 said:
That I don't know is the answer! If we are adhering to FFP then we should, in theory, be not losing £5m a year. I don't think we are debt free though. Hasn't McCabe said in the past that he has plugged the gap for years and therefore United owe McCabe millions etc.
Click to expand...

McCabe has transferred his debt owed to him by the FC into shares. The last accounts show all loans were cleared.

The simple answer is we are spending more than we get in. It doesn't. " go" anywhere. Adhering to FFP rules doesn't guarantee we don't lose money. Being within FFP limits doesn't mean we are getting value either, we clearly aren't.

And no McCabe is no longer being paid 10% interest by the football club.
 
Booker4 said:
Its not just wages though is it that we're spending money on. Transfer fees, agents fees, the ground maintenance like the new pitch, etc. I would also guess that clubs can be clever in how they submit their data re FFP to comply with the restrictions but in reality are still losing money.
Click to expand...

Transfer fees and agent fees yes but we dont own the ground anymore so no maintenance costs and no cost for the new pitch only the rent we pay on it which may or not be extortionate
 
Sean Thornton said:
McCabe has transferred his debt owed to him by the FC into shares. The last accounts show all loans were cleared.

The simple answer is we are spending more than we get in. It doesn't. " go" anywhere. Adhering to FFP rules doesn't guarantee we don't lose money. Being within FFP limits doesn't mean we are getting value either, we clearly aren't.

And no McCabe is no longer being paid 10% interest by the football club.
Click to expand...
So how do the club lose 5m a year then
 
Booker4 said:
Its not just wages though is it that we're spending money on. Transfer fees, agents fees, the ground maintenance like the new pitch, etc. I would also guess that clubs can be clever in how they submit their data re FFP to comply with the restrictions but in reality are still losing money.
Click to expand...

FFP rules in L1 (SCMP) aren't about losses, it's, as you say, keeping within 60% of turnover and/or equity investment by the owners. It's a relatively simple calculation that the clubs first forecast to the FL and then amend to actual figures at regular intervals.
 
Ted Danson said:
Transfer fees and agent fees yes but we dont own the ground anymore so no maintenance costs and no cost for the new pitch only the rent we pay on it which may or not be extortionate
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As McCabe is the owner of the ground, I guess the rent goes to him right? Or have I got that wrong?
 
Booker4 said:
As McCabe is the owner of the ground, I guess the rent goes to him right? Or have I got that wrong?
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Thats my understanding, but is he charging a fair rent or is he getting his 10% loan interest in other ways
 

Ted Danson said:
Transfer fees and agent fees yes but we dont own the ground anymore so no maintenance costs and no cost for the new pitch only the rent we pay on it which may or not be extortionate
Click to expand...

The FC pays for the maintenance costs and pitch. The rent is just that, rent. Year to June 15 £310,000
 
Ted Danson said:
really? Why have we bought a new pitch for an asset we dont even own then, thats madness. I wouldn't pay to have a new garden laid in my rented house.
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Presumably because the maintenance costs of grass pitches are greater over the life of a Desso.
 
Ted Danson said:
really? Why have we bought a new pitch for an asset we dont even own then, thats madness. I wouldn't pay to have a new garden laid in my rented house.
Click to expand...

Seems strange I agree, if I rent a 5 a side pitch at Concord park I don't have to pay for the maintenance as well do I?
 
Ted Danson said:
really? Why have we bought a new pitch for an asset we dont even own then, thats madness. I wouldn't pay to have a new garden laid in my rented house.
Click to expand...

Although we don't own the pitch, McCabe does and he's the current chairman with millions invested in the club in shares so in effect we do own the ground. Its not like the Lane is owned by the council etc. It is McCabe who owns the ground right?!

We need a decent pitch for the football side of it to function well, although that said it seems to benefit the opposition more than us!?
 
derryblade said:
Seems strange I agree, if I rent a 5 a side pitch at Concord park I don't have to pay for the maintenance as well do I?
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Well you do because the price charged will include a maintenance element so people can carry on using it.
 
Will someone enlighten me, because I just want to get my facts right. McCabe is the owner of the ground?
 
As far as I understand it we are not losing £5M a year. We had one year where we lost £5M when, I believe, significant one off expenses were incurred.

We are losing money however year on year simply because we are carrying the overheads of a top end champ or even bottom end prem club on third tier income levels.

The club has still to adjust to the fact, even after five years, that we are a third tier club and this must be addressed, not least within the non football overheads which are totally innapropriate for a club at our level.
 
The Academy is a major cost above and beyond the fact that our overheads are substantially larger than our rivals.
 
Isiah said:
As far as I understand it we are not losing £5M a year. We had one year where we lost £5M when, I believe, significant one off expenses were incurred.

We are losing money however year on year simply because we are carrying the overheads of a top end champ or even bottom end prem club on third tier income levels.

The club has still to adjust to the fact, even after five years, that we are a third tier club and this must be addressed, not least within the non football overheads which are totally innapropriate for a club at our level.
Click to expand...

BL/ the FC lost, from memory £4.4 million last year. Around five the year before.
 

Booker4 said:
Will someone enlighten me, because I just want to get my facts right. McCabe is the owner of the ground?
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Effectively McCabe/Scarborough are. The ground/ academy is on the balance sheet of Sheffield United Ltd,.

Even when the ground was on the football club balance sheet, McCabe etc owned it. Nothing has really changed ownership wise.
 
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