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Icecream Snow

"Reality Bites"

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From the Pinkun Front Pagehttp://www.pinkun.com/norwich-city/reality-bites-the-figures-that-show-why-norwich-city-are-having-to-do-things-differently-this-summer-1-5055886I''m guessing Michael Bailey is being fed the figures by Stuart Webber to justify all the inevitable sales that are coming. But it''s pretty staggering if we didn''t really buy anyone (the Redmond sale paid for Pritchard, Canos and Oliveria), we started with an overdraft of £3million, got £41 million in parachute payments, and ended the season £8million overdrawn.

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All of which makes last season''s inertia from the board even more inexcusable.

That said the article says our wage bill was around £34m at the end of last season (that sounds a bit low to me but Bailey must have got it from somewhere) and the 7 departures will have brought that down by a further £10m or so. Our income as a championship club with no tv money will be around £24m per annum if season ticket sales hold up so I still don''t see the need for any fire sale given we have £31 in parachute payments this season and I will not accept us selling off any player we think we can get a bit of cash for. The need to plan ahead is obvious but we are clearly back in the good old "prudence with ambition" days and this season there needs to be enough of the latter as this could be our last chance to get back up for a while.

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£31m that should say! if it was £31 then the need for sales would probably be a bit more pressing!

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[quote user="Jim Smith"]All of which makes last season''s inertia from the board even more inexcusable.

That said the article says our wage bill was around £34m at the end of last season (that sounds a bit low to me but Bailey must have got it from somewhere) and the 7 departures will have brought that down by a further £10m or so. Our income as a championship club with no tv money will be around £24m per annum if season ticket sales hold up so I still don''t see the need for any fire sale given we have £31 in parachute payments this season and I will not accept us selling off any player we think we can get a bit of cash for. The need to plan ahead is obvious but we are clearly back in the good old "prudence with ambition" days and this season there needs to be enough of the latter as this could be our last chance to get back up for a while.[/quote]Jim, it depends what Bailey means by "wage bill". For comparison, in the 2014-15 season, in the Championship, our overall wage bill was around £48.5m, but the player wage bill was about £34m. If Bailey means the latter then that would make rough sense, although one might have expected a bit of inflation to make the figure for the season just gone a touch higher.

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Surely it always has to be prudence with ambition, regardless of the division we''re in. You could argue we should have been much more prudent before we bought RvW, Naismith and Wildschut.

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It''s not just about balancing the wages with income, which using ball park figures is pretty much what we have done with the release of the 7.

It''s also about generating enough funds to bring in players in other areas that we simply have to address if we are to be serious contenders. We need one (or maybe two) left backs and central defenders. On top of that we look in need of a defensive midfielder.

On paper we would get shot of Jarvis, Naismith, and Wildschut but who is going to come in and pay the wages they are currently on. Unfortunately that means we are looking to sell some of our better (all-be-it older) squad members such as Jerome, Howson and Dorrans.

Tough decisions to have to take which only goes to show what an unbalanced pigs breakfast of a squad AN left us with.

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In all fairness to the Alex Neil School of Transfer Excellence, he did adopt a fair few stinkers bought in Neil Adams'' and the Hughton tenure.

He also seem to have no nous or contacts in the transfer market - this could have also been down to the poor recruiters in Darnborough and that other guy. A perfect sh!T storm if you will, the fault of which can also be laid at McNally''s doorstep.

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A lot of very good youngsters were brought on board during AN''s tenure.

Unfortunately he seemed to have a blind spot with regards to the real needs of his first team squad.

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"Financially illiterate board"-I wish all of my bank accounts and properties demonstrated the same level of ''financial illiteracy'' as theirs!

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[quote user="BroadstairsR"]A lot of very good youngsters were brought on board during AN''s tenure. Unfortunately he seemed to have a blind spot with regards to the real needs of his first team squad.[/quote]

 

True, and an obsession with buying attacking midfielders !

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It will be interesting to see in the next Annual Report of NCFC Plc how much of the £17m+ contingent liabilities have actually become liabilities during this season.

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@ Donkey Dangler wrote;-

Dont forget the wise words of Highland Canary.

Went something like;-

"If you cant fly then run,

if you cant run then walk,

if you cant walk then crawl,

but whatever you do, you have to keep moving forward"

If it wasn''t Highland it was someone equally famous.

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[quote user="Donkey dangler"]Dont forget the wise words of Highland Canary.[/quote]Indeed, everyone should have "You couldn''t make it up!" writ large on their desk, fridge door, or wherever. 

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The club wasted LOTS of money (or use a less savoury expression) while in the PL and last year. The board were - and still are - not geared up for the PL. They lack basic fundamental principles and are almost paralysed with the fear of it.

The club is being downsized.

Now, that is not necessarily a bad thing. We tend to work better with less resources and the club certainly needed to be efficient.

The downside is that should the club ever regain their PL status, it will be done on the cheap. Secondly, the club will then need to spend which they will not do, so we will be back to Square One.

This maintains Delia''s comfort zone of NCFC being a upper tier Championship Club.

The end.

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Without making any comment on how we got to where we are, I thought that it would be useful to put some numbers to the somewhat lacking in substance Archant article.

We all know that the club is facing difficult financial decisions, but just how much do we need to trim the wage bill in order to "live within our means"?

As I am the kind of saddo who does this kind of thing and there is not a lot to do in the close season, I have attempted to forecast the club''s profit & loss over the next couple of years. In the true spirit of fag-packet accountancy (or spreadsheets as we call them now), you are welcome to dissect the following and draw your own conclusions.

NCFC P&L Actual Forecast Forecast Forecast

Prem Champ Champ Champ

Year ending Jun-16 Jun-17 Jun-18 Jun-19

Championship TV revenue 0 2100 2100 2100

EPL solidarity payments 0 0 0 4464

EPL TV revenue 70165 40916 33476 0

Gate receipts 11509 11000 11000 11000

Media 139 0 0 0

Catering 4370 4100 4100 4100

Commercial 9955 8000 8000 8000

UEFA solidarity & prizes 825 800 800 800

Other 853 800 800 800

Total operating turnover 97816 67716 60276 31264

Other operating income 2741 500 250 250

Player wages % of t/o 55% 65% 55% 45%

Player wages 53799 44015 33152 14069

Other wages 13394 13000 12500 9000

Net player trading 1160 3500 0 0

Operating expenses 17989 14500 14000 10000

Total costs 86342 75015 59652 33069

JV profit and asset disposals 4

PBIT 14219 -6800 874 -1555

Looking at player wages in isolation, we will have a to reduce costs by c£11m in the coming year and then by a further c£9m if we are still in the championship in 2018/19.

To put it another way our player wage budget will fall from £54m in our prem season to around £14m the season after next if promotion is not achieved. Quite a scary thought!

This is just an educated guess of course but interesting for fellow saddos to mull over.

Apologies if the table doesn''t display properly, I''ve been messing around with this stupid thing for ages.

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[quote user="Andrew Spanton"]I tried that but it didn''t allow me to paste the picture in the message. Is there a way of doing that?[/quote]
You do realize that your attempted input is the domain of Purple Canary. Expect a post from him shortly suggesting that your posting of Swiss bank account numbers should be moved to the non-football section. [:D]

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I am well aware of Purple''s prowess on this site. Perhaps the font of all knowledge can shed any light on how to post a table or even a picture of a table????

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[quote user="Andrew Spanton"]I tried that but it didn''t allow me to paste the picture in the message. Is there a way of doing that?[/quote]I just copied & pasted a png format image of the 2017 Championship Table into the body of a test message. Worked fine. Not sure why you should have a problem with it.

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