Is relegation really goner cost the club this much?

[Blade58]

£20m?

I know it's the Daily Star, but got me thinking.

http://www.dailystar.co.uk/football/view/189114/Sheffield-United-to-slash-wages/

While we all understand only too well how relegation ultimately costs clubs a considerable amount of money, as the article says, with reduced revenue streams such as corporate sponsorship, TV money and hospitality, is it really as much as the article suggests?

If the club are to be affected by the amount suggested, we'll be lucky to get a football team on the pitch next season

How much will it affect SUFC?

Wasn't there a 4m - 5m shortfall already showing in the last set of accounts?

£4M drop in income for reduced TV rights and sponsorship was a figure I believe Wednesday touted around for their relegation last season. Ours may be more, because traditionally, we've tended to have better corporate sponsorship and revenue streams, although that is not substantiated and is only my opinion.

My take is the wage bill will have to come down to around £4m. That is a huge drop from the reported £10m or so currently. Backroom staff, admin and the likes will all be drastically reduced.

Every player will have a price and that includes the kids (already intimated by MA)

On the face of it, we are right in the doggy doo!

 

[Flatulent_Bob]

Current wage bill is higher than 10 million.

 

[flash-blade]

thought United would box clever and go into admin when we lost to Derby, Scunny and Palace, but boxing clever is not something you would say United's boardroom have done for a few years now. We will struggle next season but we WILL come through this and the fans will get back to supporting the club now that all these doom and gloom merchants from the premiership have dissapeared. UTB

 

[Torrix1889]

McCabe will not want to be the one to lead us into Admin but I fear it's a reality we may have to face.....

 

[Jim Chimmerney]

McCabe will not want to be the one to lead us into Admin but I fear it's a reality we may have to face.....

I can't understand why people say admin is a possibility. Surely this could only happen if McCabe suddenly demands his family's money back ?

 

[lenners]

I can't understand why people say admin is a possibility. Surely this could only happen if McCabe suddenly demands his family's money back ?

I can't see what administration delivers to McCabe.
Although I am wondering who is going to pay the bills and how McCabe is weighing up how to protect himself.

 

[raul]

I can't understand how it can't be a possibility Fleety. Already 20odd mill down, facing huge losses next season AND he's not putting anymore in. His only way out is to take the ground in return for his debts becase there is no way SUFC is ever going to be in a position to repay him. At least with a rental from the club he was first lifted over the turnstiles at by his Father for all eternity can go sone way to it. Do that, then go for admin to clear out the rest.

All those years laughing at Wendy.....

 

[lenners]

How would the club pay the rental though Raul?
Which ever way you cut it, we cannot pay our way.

 

[Tuns]

Hopefully, when he's deciding how much longer to leave the club in financial limbo and what to take back he will take into account the fact he's got a cheap hotel out of us, that he used United to open doors for his business international ventures and that the reason United owe him money is because of some very bad decsions and some unluckly ones - all of which he made or allowed to be made.

The situation we have been in for the last 2 years and presumably for the next year or 2 at least is far worse than a one off hit of admin would have been. But as other posters have said I can't see how McCabe could personally benefit from admin even though the club would, so I can't see him doing it.

 

[Bladesway]

I wouldn't think we would go into administration. You would notice how the squad was being sold off and once all the saleable first teamers had gone we would start putting kids in the shope window. I haven't seen any signs of that just yet, have you?

Actually, thinking about it.................................