Trevor Birch on RS Tonight

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A shorter summary is we're £50m in debt and more deep cuts are on the way.
I was surprised he wasn't asked how we could be in such a state when we've effectively got another two years in parachute payments from Tevez but c'est la vie.

Thats dynamic journalism for you! Radio Sheffield, never afraid to not ask the questions that matter!

Next time they do this they should allow a fan to ask the questions. Obviously Radio Sheff haven't ever done any auditting
 

A shorter summary is we're £50m in debt and more deep cuts are on the way.
I was surprised he wasn't asked how we could be in such a state when we've effectively got another two years in parachute payments from Tevez but c'est la vie.

£48M come on, keep up :rolleyes:

I'm guessing that the Tevez money will cover McCabe's investment for the next 3 or 4 years and it depends as I said above how much he's covering.
 
£48M come on, keep up :rolleyes:

I'm guessing that the Tevez money will cover McCabe's investment for the next 3 or 4 years and it depends as I said above how much he's covering.

Aye and he's going to do quite well in terms of the interest on his loans, isn't he?
While at the same time continuing to own a valuable asset which he may be able to sell at some point in the future.
 
I guess they key question is how much are we currently losing which is subsequently being subsidised by McCabe.

Re the wage bill, we must be playing a few average players a far too decent wage.

Agree with that. If we are paying wages to players at a level only exceeded by the clubs still with parachute payments thenthe club is being fleeced by the existing squad? Certainly as fans we are being fleeced to watch that crap.
 
A full transcript is available on OS: LINKY

Q. How much debt is the Club in?
TB: "It is not a secret, it is in our annual account but I emphasise that we have a minimal debt relating to the football club itself. We have a bank debt of £22m against non football assets such as the hotel, ancillary properties around the ground, plus £26m by way of soft loans, effectively from Kevin McCabe, his family and the Scarborough Group - that is a very tangible level of support that very few clubs have been able to enjoy."


Q. What is your role here?
TB: "To help the Club stand on its own two feet financially and to assist with finding investment to help take SUFC forward."


Q. Is Kevin McCabe's passion for SUFC still the same?
TB: "Kevin remains a passionate and committed supporter but he has taken his investment in the Club as far as he can; developing the ground and other assets, taking the team into the Premier League and the Play-Off Final etc, and he thinks the time is right for him to say that he can't subsidise us any longer."

Q. Does he want out?
TB: "He loves the Club and wants to stay but if a good deal came in that was good for the club he would stand aside."


Q. Is there a substantial investment in our foreign clubs?
TB: "The accounts last year showed, I think, £2m invested in Chengdu but not in the others, and it did not stop us investing in players, the ground etc over here. It is still early days to see the benefit of bringing players over here, just as is overall international sponsorship of our foreign clubs."


Q. Are we a selling club?
TB: "I think every club is these days apart from Manchester United."


Q. How come Spurs were able to take Kyle Walker during a season-long loan?
TB: "It was in the rules because there was a clause agreed by both clubs."


Q. Where will the Kilgallon money be invested?
TB: "Well, of course, it isn't all upfront. And with our wage bill being so high we have to make a decision to support that wage bill. We have had two years of parachute payments, but receive none now, yet we are running probably the highest wage bill in the Championship outside of clubs who do have parachute payments. It really stretches our resources and effectively means that we are living beyond our means.
"Money has to come from somewhere and we do not have infinite resources, so if we do not find new investment we have to look from within. We have to cut our cloth according to our coat and if we win promotion we will have to adjust the wage bill because of what I have already explained."


Q. Why haven't United spent to strengthen the team?
TB: "Bringing players in is a two-sided equation because it comprises fees and wages. Funds have to be brought in simply to run the Club as well."


Q. Are we in freefall like other clubs?
TB: "No, we have stabilised in this first season without parachute payments, we are 6th with every opportunity of reaching the play-offs. In that sense we are in a stable position but we have to keep re-assessing our situation like all clubs.
"It is a struggle for all Championship clubs to balance the budget and you are forced to speculate on players' wages to give yourself an advantage. Now, we have increasingly to rely on our own resources.
"All clubs are tightening their belts and the January transfer window reflected that because there were was very little money changing hands."


Q. How has Kevin Blackwell done?
TB: "He has a very strong record and I have the highest admiration for him. I have witnessed his organisation and his working with the players, whilst the infrastructure regarding scouting and preparation has been first-rate.
"To do what he has done this season - sixth, having to blood 19 new players and still shape a team spirit - should not be underestimated."


Q. Is there a realistic chance of promotion?
TB: "Sure, we are as strong as anyone when we have our best players fit. In our situation we have to stick to the right strategy with a good scouting network that identifies players who could play in the Premiership and, if possible, bring them on. But with so many clubs in the same boat it can be a bit of a lottery."


Q. Would promotion radically change things?
TB: "In a big way in terms of revenue from the media which is currently around the £50m mark whilst the average Championship club's total annual turnover, including ticket revenue, sponsorship etc is only between £16-18m.
"The difference is remarkable and it is growing which is a big issue. On the back of the new TV rights deal the Play-Off Final could soon be worth around £100m."


Q. Will the ground developments still go ahead?
TB: "There might be a delay in activating them but if there is a choice between that and spending on the team then the team would come first."


Q. What is your message to the fans?
TB: "I would hope they continue to support the team because when fit they are a match for anybody. Considering what they have had to overcome this season they deserve great credit and the manager has done a fantastic job in very difficult circumstances.
 
Aye and he's going to do quite well in terms of the interest on his loans, isn't he?
While at the same time continuing to own a valuable asset which he may be able to sell at some point in the future.

Perhaps you should have jumped on the bandwagon, taken the risk and took the abuse ;)

You'd be laughing now!
 
We must have certainly shelled out some cash on wages.
We're £50m in debt and yet have brought in £30m plus from Tevez and transfer fees in the last 12 months.
 
Perhaps you should have jumped on the bandwagon, taken the risk and took the abuse ;)

You'd be laughing now!

I suspect we're going to get many more of these standard responses from the loyalists and the club as the situation worsens over the coming months.
 
No surprise to hear me say I am very disappointed, even though I think walker asked better questions than I imagined he would.

How can Trev say the £2m on Chengdu has not affected the first team? I thought he was struggling then and overall it is clear that the property recession has buggered us.

Really embarrassing hearing him talk about international property visions, then remembering he'd better say with SUFC at its core.

He sounded very downbeat as well.
 
I suspect we're going to get many more of these standard responses from the loyalists and the club as the situation worsens over the coming months.

That is the other option, we have no control in this Len... It's not defending McCabe, its the other option.

He put the money in, so he does what he wants.

Had we, we'd do what we wanted.

Simple.
 
No surprise to hear me say I am very disappointed, even though I think walker asked better questions than I imagined he would.

How can Trev say the £2m on Chengdu has not affected the first team? I thought he was struggling then and overall it is clear that the property recession has buggered us.

Really embarrassing hearing him talk about international property visions, then remembering he'd better say with SUFC at its core.

He sounded very downbeat as well.

Too be honest I liked the way he spoke. He was as honest as he could be.

Just a very dour message.

Still didn't answer the key questions.

Where are we going after this season?
 

To be honest, it probably worked better the way they did it. Better with quick succinct questions than the long-winded 'I'll get to the point in a minute' types that ring in.

No disrespect but some of the muppets who ring up, it'd be like Rourke's Drift.
 
Confirmation to me that McCabe's property businesses mean MUCH more to him than The Blades.

Just HOW MUCH money does the man want?
 
Confirmation to me that McCabe's property businesses mean MUCH more to him than The Blades.

Just HOW MUCH money does the man want?

Maybe he missed the email on how much money one man can have. :rolleyes:
 
Confirmation to me that McCabe's property businesses mean MUCH more to him than The Blades.

Just HOW MUCH money does the man want?

All the people considering not going any more....

Do you level at them that they care more about their money than the Blades?
 
Confirmation to me that McCabe's property businesses mean MUCH more to him than The Blades.

Just HOW MUCH money does the man want?

I think you might be confusing his passion as a Blades supporter and his astute business acumen, that is how he earns his living. I think to use up to £50 million of your own money to support you football club is admirable, I wish I was in the position, as it is I have 50p currently available.

On a serious note though its one heck of an investment from his own money and surely you dont expect it to be an endless supply of cash. I know most is in loans and he will be recieving interest on the principle and fully expects to get his money back, but wow, to tie up that amount of your own money in a football club is brave.

In our dreams we would all invest millions in the Blades, in reality for most of us its a season ticket, shirt and pie. maybe £500 per year.
 
The bottom line is that in attempting to bridge the financial gap to the point at which we could compete in the PL long term, we turned into a property development and speculation company as well as a football club. At the time it certainly didn't look as if there was anything wrong with that, the property market had been a pretty good bet for a long time, and not many forsaw what was going to happen to the economy, and the huge knock on effect on asset prices.

That led to where we are now, not very long after we had made some very serious investments. Allied to this, banks are desperate to reduce their exposure to football clubs, so borrowing is no longer the option it was in the past.

The wage bill is a bit of a red herring. There is virtually no debt on the football side of things, and the club seems to have largely lived within its means, when transfer fees received are factored in. We certainly ain't a Southampton, Leeds etc.

With the assets that the group now has, even at their currently depressed value, £20 odd million of bank debt really isn't too bad. I think there was a sound strategy to absolutely secure the long term future of the club, but it has been scuppered, in the short to medium term, by the economic collapse - a global problem. But the long term prognosis is probably very good indeed.

McCabe's personal wealth will have taken an enormous hit. I don't blame him for not wanting to put any more money in. But the position we are in isn't his "fault" if you accept that his strategy was, at the time, a sound one, which I think he did in the best interests of the club. And he isn't making noises about taking his money out, just not putting any more in.

We are simply victims of very unfortunate circumstance.
 
Lets be reight...
McCabes getting on now, he could pop his cogs any time soon. Me in his position, i'd sell so much up put it in the blades and lets try and win a cup or something. Id be Legend to blades fans for putting money in and die a happy man having see us win something.

Bout time the Mr Bean put some money in too!!!!
 
Id be Legend to blades fans for putting money in and die a happy man having see us win something.

I wouldn't be so sure.

When he was putting the money in... "he had no ambition" and "should put his hand in his pocket".
 
Interesting thought.

Regarding TB saying the play-off final could soon be worth 100mill...well, the cynic in me (and i'm sure many of you) could imagine a team gambling a second place finish for a play-off final worth £100mill (£50 mill more)

Double or nothing - extreme!!
 
I wouldn't be so sure.

When he was putting the money in... "he had no ambition" and "should put his hand in his pocket".

Not that much money.... He's worth what... £250 million... may be less...

£70million I'd put in being in his shoes.
 
Not that much money.... He's worth what... £250 million... may be less...

A lot of his fortune is tied up in family assetts and property, not just sat in a current account.

£70million I'd put in being in his shoes.

Very easy to say based on someone elses £70million.

Is this in addition to the money already? or including?
 
Bottom line is we have enough good players to get up but a manager who couldn't manage a good shit. McCabe main failing is not getting rid of this dinosaur when he had the chance in May.
 

A lot of his fortune is tied up in family assetts and property, not just sat in a current account.

I'd sell up £70 million.



Very easy to say based on someone elses £70million.

Is this in addition to the money already? or including?

It is easy to say, but I would personally do it. And this would be an addition to the current amount.
I would also have us coming out to the Star wars music and cheerleaders dresses in female storm trooper outfits.
 

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