More cuts on the way

All advertisments are hidden for logged in members, why not log in/register?

L

lenners

Banned
Joined
Aug 7, 2009
Messages
3,099
Reaction score
332
Can't post a link but it's clear from the article in the Yorkshire Post today that more cost cutting is on the way.
Killa confirmed as leaving and Beighton Blade's ramblings seem to be as wide of the mark as it's possible to be.
Going to be an interesting agm this morning.
 



BornOnShoreham said:
http://www.yorkshirepost.co.uk/football/Kilgallon-exit-as-crunch-hits.5923051.jp

Pretty depressing in the short term and £600,000 for Killa is probably a bit les than we might have expected but not much less. How much will Weeds get out of that?
Click to expand...

Some very annoying stuff about directors loans in there as well.
McCabe's reign could come to a very unpleasant conclusion if things continue to slide off the pitch.
Rich people making more money out of our club in that way doesn't look good at all.
 
I'm sorry Len but I will not stand for this criticism of McCabe.

He is the best thing since sliced bread, the office block has brought in £6m cash and he has promised substantial investment in January. Just leave it will you?
 
Love the bit about 'commercial' rates of interest from Trev. Brilliant stuff. Base rates at 0.5%. No problem - I'll take 10%. Remember though McCabe doesn't take a salary from SUFC so he is clearly entitled to some remuneration
 
Ollessendro said:
That figure seems very low. With us hovering close to the play offs and 4 teams interested in buying him 600k seems nothing. I think it makes sense to sell him, but I was expecting a figure around the million mark. I'll be very disappointed if he goes for 600k.
Click to expand...

I'd rather keep him and lose him for nothing at the end of the season than sell him for £600k
 
So im guessing were not going to get the added injection of cash from KMC?
 
I'd rather keep him and lose him for nothing at the end of the season than sell him for £600k

So would I. The extra cash from getting in the playoffs (extra gate money, TV) would put a big dent in that. Especially given that 600 grand ain't going to get a better player (and some of it may have been earmarked for the pointless purchase of Cresswell).
 
I am as patient and pragmatic as anyone regarding the football club but I sincerely hope we don't make anymore cut backs on the playing side. At the moment our squad is just (and only just) strong enough to compete for a top 6 place. If we cut wages and spending on the squad anymore we're going to be no better off than our depressing neighbours at Hillsborough.

The squad is slowly but surely getting weaker and weaker. I think we have a good group of lads but we have lost so much quality in the last year. We badly need to invest in 2 or 3 decent players in January otherwise the squad we have wont sustain a promotion challenge.

If we made more cut backs on fruitless projects abroad and started investing in our own playing staff we might have a chance. Im a McCabe fan I always have been but I genuinely feel the playing side has suffered because of ambitions for the club as a business. Yes I know we spent 3 million on Ched Evans and we supposedly have one of the highest wage bills - but if thats the case the money we have used could definately have been invested better.

There is probably more to it than the average fan (me) can contemplate but what we dont need to hear right now is another tightening of our belts - we need to kick on and show a bit of courage. We are in a good financial state compared to other clubs.
 
I'm not taking all that as read it doesn't make sense to state before the January transfer window that you are spending cash, it just drives up prices.

I don't think everything is in top-nick for the club, which is why they are gutted about the World Cup decision and the grants that would of given us to increase our revenue streams.
I don't think we've got £3 Million plus in January but I also don't think we are without a pot to piss in.

The YP is notoriously shite when it comes to Sheffield United anyway. I suppose more will become apparent after the meeting today.
 



With regard to the article, there's very little we didn't know in there. All very obvious stuff about the loss of income.

But I am a bit baffled by the directors' loans aspect. Why do we need to borrow £10k off Jason Rockett? Is this sort of thing normal?
 
re the loans...Mccabe £1.5m at 10%....nice rates if you can get em...err can I have some of that please especially if its secured on the land value.

re the 2 other loans of £10k...well who knows...maybe they both paid a month of Ched's wages betweent hem?
 
I think the question needs to be when was the loan taken out with McCabe. It might then answer some of the question in regards to the rate.

It would also be interesting to know how much money he has taken out of the club. I would suspect it would be negligible.
 
Kev Gee said:
So im guessing were not going to get the added injection of cash from KMC?
Click to expand...

Why should we?

With all the shit McCabe has had to put up with due to an irrational love of a football club, plus all the other placating of our glorious fans in the carpark when they harrang him I don't blame him for not putting any more money in.
 
Robbie said:
I'd rather keep him and lose him for nothing at the end of the season than sell him for £600k
Click to expand...

Think you might have a point Robbie.

Revolution said:
I'd rather keep him and lose him for nothing at the end of the season than sell him for £600k

So would I. The extra cash from getting in the playoffs (extra gate money, TV) would put a big dent in that. Especially given that 600 grand ain't going to get a better player (and some of it may have been earmarked for the pointless purchase of Cresswell).
Click to expand...

This only backs up what robbie said. Killas heart might not be in the club, but he still is one of the best defenders in the Championship. He has contributed significantly to our upsurge in form. He sured up the left back spot when Stewart and Taylor were both awful. Since then he's forged that partnsership with Morgan at centre back and suddenly we've kept 3 clean sheets in a row.

We stand a much better chance of getting in the play offs f we keep him. The division is piss poor and even though we look awful at times, we're still good enough to make the top 6. I'd keep him and let him go and the end of the season. £600k is absolutely nothing and, as Rev says, we'd probably make the money back should we get in the play offs.

LouTheBlade said:
Yes I know we spent 3 million on Ched Evans and we supposedly have one of the highest wage bills - but if thats the case the money we have used could definately have been invested better.
Click to expand...

We certainly did not spend £3m on Ched Evans Lou. It's £3 mill based on apperances, goals, standard of football, international caps. It's more likely that we payed £1.5 up front, however i've heard (and from blades fans opinions that I trust) that the lump sum figure might even have been as low as 750k.
 
As I've said before Sheffield United PLC is a property company with a small football subsidiary. At present we have £37million of loans and debt, of which £13m alone is for the hotel.

Now lets assume that the rate of interest on the hotel debt is similar to what McCabe is taking on his £1.5m loan...ie 10%....(and its likely to be more)then its costing £1.3m alone to service the hotel debt. So the hotel needs to make £1.3m in operating profits per annum, or £25,000 a week. Typical long term operating margins at hotels are in the mid 20%s depending on the economic environment. So assuming a normal one (which this clearly isn't) thats over £5m in revenue per annum....or £100,000 a week...thats a hell of of a lot of beds and food per day just to break even!!!

Maybe someone on here can convince me thats what the hotel is doing but in this environment I can't believe it is....and that might be the hub of the problem. Is the property side of the plc actually losing money? I've seen what it says in the accounts, but thats history. In todays economic environment I would be its losing money.
 
Average occupancy rates in regional UK hotels looks to be around 70% which seems quite boyant. How was the hotel structured? Didnt SUFC build the thing and then let it to the hotel operator for a fixed fee? As for the rest of the SUFC property empire, I wouldnt read the Bank Of England's thoughts on commerical property sector. Oh dear.
 
Not sure why you think we would be paying 10% or more at the moment on our commercial borrowings NN6. If we are being asked for anything like that amount then surely it would be worth offering loan stock to the masses.
Unless we really are up s**t creek without a paddle, in which case I'm not sure we would get any commercial backing at all, a 7% rate would be enough to raise a fair few quid I would have thought.
 
We have historically used HBOS who could probably raise funds for a 10 year period at around 6.12% how much credit premium would they charge for a hotel company in the current climate? Another 4% seems fair to me.
 
Santos said:
Why should we?

With all the shit McCabe has had to put up with due to an irrational love of a football club, plus all the other placating of our glorious fans in the carpark when they harrang him I don't blame him for not putting any more money in.
Click to expand...

That was the day McCabe threw the towel in .......
 
Dear oh dear....

BornOnShoreham said:
http://www.yorkshirepost.co.uk/football/Kilgallon-exit-as-crunch-hits.5923051.jp

Pretty depressing in the short term and £600,000 for Killa is probably a bit les than we might have expected but not much less. How much will Weeds get out of that?
Click to expand...


Quote from the YP article:
"Blackwell said: "It is a fete accompli that 'Killa' will be going."

I would have expected better from professional journalists.

(It's 'fait accomplis' by the way - unless they're planning to celebrate his departure with a bazaar/festival).
 
NN6 said:
As I've said before Sheffield United PLC is a property company with a small football subsidiary. At present we have £37million of loans and debt, of which £13m alone is for the hotel.

Now lets assume that the rate of interest on the hotel debt is similar to what McCabe is taking on his £1.5m loan...ie 10%....(and its likely to be more)then its costing £1.3m alone to service the hotel debt. So the hotel needs to make £1.3m in operating profits per annum, or £25,000 a week. Typical long term operating margins at hotels are in the mid 20%s depending on the economic environment. So assuming a normal one (which this clearly isn't) thats over £5m in revenue per annum....or £100,000 a week...thats a hell of of a lot of beds and food per day just to break even!!!

Maybe someone on here can convince me thats what the hotel is doing but in this environment I can't believe it is....and that might be the hub of the problem. Is the property side of the plc actually losing money? I've seen what it says in the accounts, but thats history. In todays economic environment I would be its losing money.
Click to expand...

Worth noting that Copthorne pay us an agreed fee per annum for use of the hotel. Poor occupancy rates and turnover is their problem but they won't suffer that for long and I'm sure they will pay to break the contract if that is what the figures are telling them to do. Also worth noting that our accounts said that October 2009 was the best month yet for the hotel

I think that the depth of this recession, no matter how astute McCabe is in terms of spreading and mitigating risk around a portfolio, has caught him out. As a result I am convinced that the first team is suffering, and/or I think player sales have had to be brought forward.
 
The hotel is already funded by the deal with operator this covers all the interest costs. If they are short of customer they still have to give us the fixed rate.
Not saying everything is fine but in regards to the hotel the deal was pretty bomb proof.
 
Isiah...so are you implying McCabe is taking an 'above market' rate of interest on his loan?

Surely if, as many believe, he's got the best interests of the club at heart he will be taking less interest than commercial rates?
 



Ollessendro said:
We certainly did not spend £3m on Ched Evans Lou. It's £3 mill based on apperances, goals, standard of football, international caps. It's more likely that we payed £1.5 up front, however i've heard (and from blades fans opinions that I trust) that the lump sum figure might even have been as low as 750k.
Click to expand...

Some of the above is probably true but I very much doubt the initial fee was as low as that. It wouldnt be worth City letting him go for such a modest fee - plus they declined our first couple of offers and drove up the price.

To be honest I dont really care how much we spent on him - he hasnt delivered so far anyway so 750k or 3 mill is bad for a shirt filler.
 
You must log in or register to reply here.

Similar threads

Champagneblade
Squad far more suited to 3 at the back
Replies
3
Views
492
Houston_Blade
Houston_Blade
Alan Birchenall's hair
Must be the best season ever for half the posters on this forum.....
2
Replies
59
Views
4K
Bell4
Bell4
5
The good old days
Replies
7
Views
1K
I should coco
I should coco
S
We are going to love our day out at Wembley next May
2
Replies
46
Views
4K
Lord Eddard Muir
Lord Eddard Muir
Slim Man
From the brink of promotion
Replies
27
Views
2K
BigBed
BigBed

All advertisments are hidden for logged in members, why not log in/register?

All advertisments are hidden for logged in members, why not log in/register?

Back
Top Bottom