The Money Factor
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eastern eagle
It's all well and good fantasising about our transfer targets and should we specualte to accummulate but consider this:

If we average 16,000 per home game at an average of £20 per ticket (probably too high) then after VAT our income is £6,263,000.

I have no idea what sponsorship. TV, catering and media sales bring in but if we have 22 first teamers averaging £6,000 ( Jordans alleged budget) a week then the payroll for player only basic is 100% of our gate income. Considering we have another 100+ employees to pay each month I think that we are one of least "wealthy" teams in this division.

Ergo, we must develop the youth and put "sellable" assets on decent longer term contracts to ensure when they leave we get a transfer fee.

We have probably the best manager in the division but if we don't go up in the next two seasons then I think we have to prepare ourselves for long term lower division football.

Mind you at my advanced age the best seasons I experienced (besides our residency at Wembley under Sir Steve) were 1959-1964 in Divisions 3 & 4.
sheepy
having big budgets means very little. bristol city probably have an even lower budget than ourselves yet came within a game of winning promotion. Wolves have consistently spend a hell of a lot of money and have achieved sod all over the last 15 years.

I agree with you sentiments on the youth development though and I believe this is already a strong part of the club's strategy.

Oh, and I'd reckon that the average ticket price was a bit higher than £20
Ralph
quote:
Originally posted by sheepy
Wolves have consistently spend a hell of a lot of money and have achieved sod all over the last 15 years.


They were promoted to the Premier League not that long ago. But your point is still right. Also, consider signings like Kuqi compared to AJ or Clint Hill compared to Valerian Ishmael. You dont have to spend big to achieve (indeed this club never has) but you have to be astute.
Beanie
I think to be honest that any attempt to work out the finance of any club based solely on gate receipts is meaningless. In the last couple of days it has been shown that the Premiership get 61% of their income from sources other than gate receipts. Whilst the figures are obviously vastly different in the Championship I would anticipate the profile being pretty much the same.

The flaw in the logic any way is that Palace have among the highest ticket prices in the Championship and quite a few clubs have lower or not much higher average gates. Put those two together and Palace would be in the higher reaches of the Championship in terms of gross gate receipts, you can offset this against the fact that being a London club many of the expenses, such as policing costs and indeed non-playing staffs wages are higher and you can quickly see that it is impossible to say where we would stand in the rich list.

All of this is in any case not relevant. If money were all it took each year the relegated sides with their parachute payments would bounce right back, but clearly that doesn't happen.
bendyjoe
quote:
Originally posted by Ralph
You dont have to spend big to achieve (indeed this club never has) but you have to be astute.


Which has always been the problem. Marco Gabbiadini? When we spend big, often we mess up, with a few exceptions - Nigel Martyn being the one that springs to mind.

Those figures are interesting, but you have to factor in everything else - programme sales, catering money, corporate stuff, and the fact that, this season at least, the sale of at least one of our talented ickle ones will help bankroll the club for the year. Simon's generosity permitting.
Stellavista
quote:
Originally posted by sheepy

having big budgets means very little. bristol city probably have an even lower budget than ourselves yet came within a game of winning promotion.



I'd disagree in Brizzle's case. They have a chairman who is investing a
fair amount into the club.
I'm not saying that Jordan isn't, but the signs were there in January that we need to sell before we can buy in any substantial way.
Optimistic Kev
quote:
Originally posted by Beanie
I think to be honest that any attempt to work out the finance of any club based solely on gate receipts is meaningless. In the last couple of days it has been shown that the Premiership get 61% of their income from sources other than gate receipts. Whilst the figures are obviously vastly different in the Championship I would anticipate the profile being pretty much the same.


Unfortunately this isn't the case. Although usually entrenched in the Holmesdale, I recently had a corporate ticket in the Boardroom which involved a tour of the ground undertaken by Phil Alexander. I asked him a question with regards to revenenue etc.

He mentioned that while Palace are in the CCC - 90% of our revenue comes in from Season Tickets\Gate recepits, Merchandise and Catering, only around 10% from other sources i.e Sponsorship, TV revenue etc. In the Premier League this turns round completely (based on Palace only, other clubs may be different) - 90% of revenue is from external sources with only 10% then coming from Season Ticket sales etc.

It does show just how reliant Premier League clubs rely on the Sky money and how many clubs get into difficulty without it.

Dropping season ticket sales and a reduction of people paying on the door will greatly reduce our revenue - which also has a knock on effect with catering and merchandise i.e. less is then brought. I am not sure of Season Ticket sales for next season, I would hope\expect them to increase on last season due to the Warnock effect, the team playing better, improving results and Taylor no longer being manager of the team - I really hope this is the case.
The Money Factor
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