This extra £6m burning a hole in our pocket ........

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BushBlade said:
Any player we sign is likely to be on a three year contract so we're adding to the wage bill for three years, not just one. If we sign a player for £2m and pay him £500k a year, we've committed £3.5m.
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seen this type of quote a few times, and it's bollox.
if I buy a new car I don't say it cost me £20 grand, but it's actually £30 grand cos I'm keeping it 5 years, and it'll cost me £2k per year to run. No, it cost me £20k to buy, then monthly expenses such as petrol, tax, insurance (players wages) come out of my monthly wages (gate receipts, TV, sponsorship etc)
this is a way the clubs make a deal seem more costly than they are if spread over 36 months, unless we pay him his 36monthly wages in advance on day 1 ??
 
BusheyBlade said:
I'd rather steer clear of comparisons with the way Bournemouth "spend in ways that are relative to where they're having to compete" if I'm totally honest.

http://www.bbc.co.uk/sport/football/36189779

The I do get the sentiment.

I guess Wilder was referring to something less complicated and without the types of outgoings that brought B'mouth into such tangled financial affairs.
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Why is it six million? If its just Walker I thought it would be around five, realise add ons but you surrly have to ignore them until they kick in or is this the s6 type figure, higher than it is but sounds good,
 

The year they won the Championship they spent an extra £20m in "staff wages" (one can assume most of that was on player wages) from what they spent the year before. These days many teams in the Championship spend big money on transfer fees which are a lot more obvious than these wages. I wonder if that is in response to these new FFP rules.
 
steve26272 said:
seen this type of quote a few times, and it's bollox.
if I buy a new car I don't say it cost me £20 grand, but it's actually £30 grand cos I'm keeping it 5 years, and it'll cost me £2k per year to run. No, it cost me £20k to buy, then monthly expenses such as petrol, tax, insurance (players wages) come out of my monthly wages (gate receipts, TV, sponsorship etc)
this is a way the clubs make a deal seem more costly than they are if spread over 36 months, unless we pay him his 36monthly wages in advance on day 1 ??
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Does the club run at a profit that allows this wonderful model to work?
 
BusheyBlade said:
The year they won the Championship they spent an extra £20m in "staff wages" (one can assume most of that was on player wages) from what they spent the year before. These days many teams in the Championship spend big money on transfer fees which are a lot more obvious than these wages. I wonder if that is in response to these new FFP rules.
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It'll be interesting to see whether the club maintain their fiscal literacy now that we're within one step of the Premiership. I can't see us spending mega amounts in the immediate future, but things can quickly change if a change of ownership takes place. For now I'm happy the way Wilder goes about his business.
 
steve26272 said:
seen this type of quote a few times, and it's bollox.
if I buy a new car I don't say it cost me £20 grand, but it's actually £30 grand cos I'm keeping it 5 years, and it'll cost me £2k per year to run. No, it cost me £20k to buy, then monthly expenses such as petrol, tax, insurance (players wages) come out of my monthly wages (gate receipts, TV, sponsorship etc)
this is a way the clubs make a deal seem more costly than they are if spread over 36 months, unless we pay him his 36monthly wages in advance on day 1 ??
Click to expand...

Let's assume our income in the championship is £15m a year and, for the sake of argument, we have to break even each season. And let's assume that our wage bill is £10m and our other expenses £5m so each year we break even.

If we get a windfall of £5m and we spend that in transfer fees for four players at £3m in total with wages of £2m per year. That's fine this year as we have an extra £2m to cover it. So our wage bill is now £12m. Next year our wage bill will still be £12m, our expenses will be £5m and our income will be £15m. Leaving a shortfall of £2m. So we have to get rid of someone to cover it. Brooks maybe, or Whiteman, or Fleck. Or stick a tenner on ticket prices.
 
BusheyBlade said:
I'd rather steer clear of comparisons with the way Bournemouth "spend in ways that are relative to where they're having to compete" if I'm totally honest.

http://www.bbc.co.uk/sport/football/36189779

Though I do get the sentiment.
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Exactly, let's not pretend that the Russian in charge of Bournemouth didn't invest gigantic amounts and bent the rules.

The secret has always been appoint a good manager and buy well.

Some people won't like it but we haven't been in the same league as Bournemouth for money for quite a few years.
 
Seeing as the money is generated by a 'sell on' of a home grown, Blades supporting player, it would be nice to think that a good portion of the income could be used to keep similar type stars of the future at the Lane. There are plenty coming through the system, we just need to be able to fend off approaches from the likes of Everton.
 
It's simple, carry on getting value, but maybe in the form of one or two more expensive purchases than we would've made before, and save the rest for when we need it, maybe in January.

Wilder obviously won't use it to pay inflated fees to get existing targets signed up immediately, although it can only strengthen our position to offer a bit more if we need to, for Leonard for example.

First of all I'd like us to make sure we don't sell Brooks, with this windfall (probably more like £4m IMO) we certainly don't need to.

Lenihan seems like he'd be a good investment and possibly the best candidate to be the second centre half signing, so I'd like to see us get him, maybe for £1m with add ons.

I think Connor Ripley from Boro would be a great bonus signing if we could get him for £1m or less, but I don't think we'll spend that on a keeper at this stage, or any player unlikely to go straight into the first team.

We'll probably continue to pursue Leonard but maybe we could go for Conor Coady or Jackson Irvine, although the latter would be hard to sign. If we get Lenihan though we might not need to sign a CM because he can play both positions, like Basham.

Marcus Maddison could be a possibility now but Brooks has to be factored in so maybe that makes it unlikely. Daniel Johnson from Preston could be another attacking midfield possibility, I think he'd suit us.

If we could get Omar Bogle for around £1m I'd be interested in that, he could be a good Championship striker IMO, hard to judge him too harshly playing in that Wigan team last season.
 
steve26272 said:
seen this type of quote a few times, and it's bollox.
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It's not bollocks though is it, if our wage bill is already committed and this is a new additional player to increase our overall bill. Our income won't magically rise and so it is only prudent to consider how the 3 or four years of wages will be funded.

It is like your example of a new car. You have already budgeted regular expenses of a car out of your monthly income, but if you buy a new additional 'second' car you will have to find a way of paying these expenses.

It's a bit like rocket science but without the rockets.........or the science.
 
The transfer fee is £45 million with potential add-ons of £5 million taking to potential fee to £50 mil.

I believe the 10% clause was based on profit made by Spurs not sale price.

So surely our cut will be nearer £4 million instead of £6 million.
 



Sheffsteel said:
The transfer fee is £45 million with potential add-ons of £5 million taking to potential fee to £50 mil.

So surely our cut will be nearer £4 million instead of £6 million.
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Apparently its 10% of the profit on what spurs paid.
 
If they do well this coming season there could also be another big increase in revenue for the club if they chose to go down the Wendy route and give a big rise to ST prices .
 
BushBlade said:
Let's assume our income in the championship is £15m a year and, for the sake of argument, we have to break even each season. And let's assume that our wage bill is £10m and our other expenses £5m so each year we break even.

If we get a windfall of £5m and we spend that in transfer fees for four players at £3m in total with wages of £2m per year. That's fine this year as we have an extra £2m to cover it. So our wage bill is now £12m. Next year our wage bill will still be £12m, our expenses will be £5m and our income will be £15m. Leaving a shortfall of £2m. So we have to get rid of someone to cover it. Brooks maybe, or Whiteman, or Fleck. Or stick a tenner on ticket prices.
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Yes but if we win promotion does that not blow your argument out the water, only asking like
 
Depends who's pocket it's in....if it were my pocket then none!

Assuming we actually have this money, we will stick to the original plan as was and assess the squad through the first three months to see where we are at and then plan our spending accordingly. Like a proper football club does.
 
BushBlade said:
So we have to get rid of someone to cover it. Brooks maybe, or Whiteman, or Fleck. Or stick a tenner on ticket prices.
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Probably the best ones to get rid of are the ones being replaced by the new signings. You don't keep adding to the squad ad infinitum.
 
If we were to use some of it a powerful pacey striker and a winger would be my choices to look for.
 
Boxer Blade said:
Yes but if we win promotion does that not blow your argument out the water, only asking like
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Yes. I like your thinking. That's more or less how we ended up in L1. 2007/8; £15m parachute payments, spent the lot. 2008/9; £8m parachute payments; spent the lot, flogged Beattie to reduce wage bill and cover the loss of the other £7m we didn't get in parachute payments.
2009/10; sold Kyles to cover the £8m we didn't get in parachute payments.

That's why people said 'KM gambled on getting back to the PL' because it was a genuine gamble and one that we lost.
 



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