£8m

[Sensiblade]

One big thing I always think regarding football clubs finances vs a normal business's finances is that the staff - in this part the players - from football teams don't buy the products the company provides.
If you work for a gas company you will more than likely need to buy gas for your home
If you work in the food industry you need to buy food.
As a professional footballer you take money from the 'industry' but don't give back, free tickets, free merchandise etc.
As a business model it just doesn't work unless you are realistic with regards incomings from sponsors/investors/ticket sales etc.

Also there isn't any other industry I can think of that has people from all walks of life telling a company how they should spend their money.
I have a Sony TV, it doesn't mean I can say 'OK I've invested in the TV I think you should make this product now' like people do with football teams and player signings.

 

[Worksop II]

I have a Sony TV, it doesn't mean I can say 'OK I've invested in the TV I think you should make this product now'

I have full confidence in Sony and what they do.

In 50 years of following Football and the Blades, I can count on one hand those that "appeared" to know what they were doing, both on and off the pitch.

They need all the help they can get ...............................

 

[Sensiblade]

I have full confidence in Sony and what they do.

In 50 years of following Football and the Blades, I can count on one hand those that "appeared" to know what they were doing, both on and off the pitch.

They need all the help they can get ...............................

Sony may have been bad example though as they're losing a lot of money too.

 

[Worksop II]

Sony may have been bad example though as they're losing a lot of money too.

We can ship some Patrons in to give em a Boost ..... we have a few at a loose end

 

[robbiez666]

If £8m is correct then could someone explain to me how small football clubs who get low gates and don;t have cup runs survive? Our wage bill will be £2-3 million at a guess. £1m for the Academy isn't it? Another million in running costs. Then you have the in comings. Ticket sales 20,000 x say £15 every home game. Rents, Sponsorship, TV etc.

 

[wizadry]

Also there isn't any other industry I can think of that has people from all walks of life telling a company how they should spend their money.

So we should spend our money and never question anything? Some of our fans have been brainwashed mate,i suggest you get the cotton buds out!

 

[Sensiblade]

So we should spend our money and never question anything? Some of our fans have been brainwashed mate,i suggest you get the cotton buds out!

People have the right to question anything they like.
I like anyone would love united to have a 20 goal a season striker in the squad, but it's not my decision who that should be if united were to buy one and i don't feel the need to get irate about decisions that have been made so far this season.

Football like most other high profile team sports is for most teams a struggle financially for the most part with a high % of teams making a loss year after year.
In any other industry most like for like companies making the same losses would shut their doors and not open them again.

 

[cahill]

As someone who can't understand his own wage slip (because my other half takes possession) and is business and economics illiterate its reassuring that there are those who know their clog iron when it comes to football finances. A fascinating read.

This message is not meant to be ironic or sarcastic

 

[Woodwardfan]

Woodwardfan . i do agree with you , but in part you are wrong when you say fans know so little about the financial side of football. The Blades fans know when a club has not been run correctly by poor governance and overall management . Like any business beholden to shareholders the CEO carries the can . Football as a business is no different and fans require answers.

SUFC were not only rescued from the abyss , we had fallen off the cliff , and thankfully being astute Mr McCabe with Mr Prince provided a financial parachute .

When Mr McCabe became chairman he had to sort out financial issues, created by previous chairman who used SUFC has a cash cow ,and did not invest , but instead there actions , did bleed SUFC dry . No money in the coffers and banks calling in loans. , Mr McCabe saved SUFC .

Indeed part of the Bramall Lane land footprint is still owned by a previous chairman., which still requires resolving .The Lane is prime real estate and Mr McCabe did rescue the ground asset from being sold off . It was agreed in principle we would play at Don Valley Stadium.

The financial crash of 2007 did not help Mr McCabe and his property business ventures , but still backed SUFC financially . It does cost a boat load of money to run a football club and raise cash through banks / funders to keep it afloat with cross company guarantees , some also being personal to the McCabe family.


Where Mr McCabe has gone spectacularly wrong is taking poor advice from outside on all things football , with listening to other football managers on our previous appointments of managers . I can name Sir Alex Ferguson and David Moyes as two.

Crowds of 20,000 do not cover the clubs cost . We cannot shut the academy as we are still paying for the dam thing and will be for many years to come.

We have the banks , financial institutions on our side , we are moving forward both in the board room and on the pitch.

Mr McCabe , Mr Prince are the way forward for the club . If Mr McCabe 2 years ago had said fuck it , i have had enough , we would be in the fourth division . This is a defining year , let us hope we are in the championship.

UTB

Good posts on here, good thread. I'm sure all of us appreciate that the 8m has helped a lot and can picture where we might have been without it.

The next audited accounts under the new ownership will be very interesting reading and I look forward to discussing them with some posters on here if that's what they wish.

Rather than simply repeating all my previous bullshit, may I suggest all fans, whether they know the sums or not, concentrate on the manager's performance rather than the board. He has the tools and it is up to him to deliver the results.

The manager of Oldham will have far less budget to work with than our manager has, and so do the vast majority of clubs in our league, probably all but a couple.

As for past mistakes Lord Bos, I think we should concentrate on the here and now and where we are heading under the new ownership. The rest is history.

 

[alcoblade]

Good posts on here, good thread. I'm sure all of us appreciate that the 8m has helped a lot and can picture where we might have been without it.

The next audited accounts under the new ownership will be very interesting reading and I look forward to discussing them with some posters on here if that's what they wish.

Rather than simply repeating all my previous bullshit, may I suggest all fans, whether they know the sums or not, concentrate on the manager's performance rather than the board. He has the tools and it is up to him to deliver the results.

The manager of Oldham will have far less budget to work with than our manager has, and so do the vast majority of clubs in our league, probably all but a couple.

As for past mistakes Lord Bos, I think we should concentrate on the here and now and where we are heading under the new ownership. The rest is history.

I think many are still questioning where the £8m has gone, rather than feeling at all thankful. I certainly don't.

I do question the management though. For two reasons;

If we've really squandered so much money, and any significant proportion has gone in the playing side, then hes spent really badly.

But I suspect it hasn't gone on the team ( or anywhere). I question when the stats tell you that we can clearly get the better of most teams when we go at them, why on earth are we still wasting the first 60 minutes of every game with this non football.

UTB

 

[Woodwardfan]

I think many are still questioning where the £8m has gone, rather than feeling at all thankful. I certainly don't.

I do question the management though. For two reasons;

If we've really squandered so much money, and any significant proportion has gone in the playing side, then hes spent really badly.

But I suspect it hasn't gone on the team ( or anywhere). I question when the stats tell you that we can clearly get the better of most teams when we go at them, why on earth are we still wasting the first 60 minutes of every game with this non football.

UTB

Two safe assumptions:

1.Our wages bill will be amongst the top 3 in the division.

2.We are very close to the FFP limit, or will be by the end of January.

All the other stuff re money is incidental to those important factors.

We should be gaining promotion if expenditure was the only requirement, but it isn't.

 

[alcoblade]

Two safe assumptions:

1.Our wages bill will be amongst the top 3 in the division.

2.We are very close to the FFP limit, or will be by the end of January.

All the other stuff re money is incidental to those important factors.

We should be gaining promotion if expenditure was the only requirement, but it isn't.

Fair points, however I can't "appreciate the £8m" unless i accept that is has been spent, which I dont.

Without it, we should still be in the top spenders, so the manager will still come under scrutiny for the reasons stated.


UTB

 

[Woodwardfan]

Fair points, however I can't "appreciate the £8m" unless i accept that is has been spent, which I dont.

Without it, we should still be in the top spenders, so the manager will still come under scrutiny for the reasons stated.


UTB

Why would Phipps lie when he knows the accounts will be out in due course? Why would he lie anyway?

 

[alcoblade]

Why would Phipps lie when he knows the accounts will be out in due course? Why would he lie anyway?

I'm less concerned that Phipps is lying, more that someone else is spinning him some bullshit.

The numbers simply do not add up, or if they do heads should roll for the way in which we've squandered it.

 

[judge]

Why would Phipps lie when he knows the accounts will be out in due course? Why would he lie anyway?

because trying to make sense of our accounts is like finding the bogs in here

 

[Sharrowblade]

Its time for a touch of reality.

The club has implemented a wages business plan it is adhering to.This includes 1st team, U21s and development.

The business plan is ratified by the board, and was based on the current squad at the start of the season, there is little room for manouevre when it comes to any potential new signings.

I'm sure it would surprise a lot of supporters, by how low our weekly wage bill with regards to playing staff is.

Many supporters think all United players are on thousands. They are not.

It is a sensible sustainable model for a football club in the third tier of english football.

If they were promoted the plan is to increase it by something like 50%.

This would be still very low by Championship standards.

Why are the majority of our players scottish? with all due respect, because their league pays even less.

Why are the snortbeasts losing money each year despite having 400,000 life-long fans. Well if you're paying Mattock 11 grand a week (over a half a million a year) what do you expect. That's only one player (and not a reight good one) in a squad of about 30. I don't supose all their loan signings were cheap either.

As for the £8m investment, the cup run, the Maguire transfer, season ticket sales, Its only fair supporters question that, but one may like to consider that wages aside, there are other costs involved such as general club staff, the boys in blue (the coppers), Medical Insurance which will be hefty, match day catering, away travel and hotel costs, gas, electric, rates, kit suppliers. outside contractors, performing rights society, and many more.

I have not taken into account any payment that the directors may receive.

Therefore, the club may claim to have invested £8 million, but clearly not in the way most fans envisage....in the actual team.

 

[Worksop II]

Mr McCabe with Mr Prince provided a financial parachute .

Unfortunate turn of phrase, all a parachute does is slow down your decent .............

I thought Mr Prince was actually gonna come up with a Rocket, you know, to go the other way