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simmo_2

Why is NCFC skint?

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I can''t believe how many fans have bought into the clubs financial problems, why does it seem we are the 1st club with parachute payments in dire straits.

When did Reading last receive parachute payments and there average home gate is approximately 25% lower than ours, but guess what they can bid over 10 million for our centre forward.

Something has got to change at board level soon or there will be at 50 clubs in a better financial position than ourselves very soon.

People on the message board bang on about the academy etc etc, but what kid would want join a poor championship/league 1 outfit. So then we end up with 2nd rate kids, it''s a domino effect from top to bottom.

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[quote user="simmo_2"]I can''t believe how many fans have bought into the clubs financial problems, why does it seem we are the 1st club with parachute payments in dire straits.

When did Reading last receive parachute payments and there average home gate is approximately 25% lower than ours, but guess what they can bid over 10 million for our centre forward.

Something has got to change at board level soon or there will be at 50 clubs in a better financial position than ourselves very soon.

People on the message board bang on about the academy etc etc, but what kid would want join a poor championship/league 1 outfit. So then we end up with 2nd rate kids, it''s a domino effect from top to bottom.[/quote]Wow, that didn''t take too much to become a ''fact''.

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Reading can''t bid £10m - they have new owners but how wealthy they actually are is a little bit of an unknown. The Premier League blocked them from buying Hull as they could sufficiently prove they had the money required.

The Football League unfortunately isn''t so discerning with who it allows to buy clubs so waved them through on a nod.

Norwich aren''t ''that skint'' but are in a process of reducing the wage bill to reflect the reduced parachute payment, while keeping one eye on the bigger reduction next season - which is entirely sensible.

The club is also trying to generate some cash to refresh an imbalanced, ageing and in many areas distinctively average squad.

I feel a decent amount of the Jonny and Dorrans fee will be put into signings and if Nelson or Jacob were to be sold on top of that we would see even more cash available for Webber. Alex Neil said back in January that by selling Olsson and Brady the club wasn''t in a position were it had to sell to balance the books - I believe that is still true, but there would also be no room to bring in players either.

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I don''t quite get it either.

OK the wages bill was far too high last season, but we have in the past had decent money in from player sales (Olsson, Brady,) parachute millions, sponsorship money and fullish houses (with good peripheral sales.)

The main signing has been Pritchard who is proving to be well worth the money and he is as good as money in the bank (along with a few others.) There was probably a large signing on fee for Watkins as well, but the last big splurge in the market was some time ago when Naismith, Klose and Pinto were signed all presumably financed with funds at the time. Later, Dijks will have cost a bit for that loan.

Is there perhaps a bit of sensible caution being shown here with one eye to the possible future of a longer stay in the Championship than we had all hoped for and with money being put aside for a rainy day.

The club is surely asset strong. The ground, training facilities, Academy along with quite a valuable squad.

I don''t suppose we''re rolling in it, but skint?

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Basic economics. As an example. If you''re incoming money is say £1000 per month, but you''re outgoing is £1200 it won''t be long before you are in severe financial difficulties. Hence a need to reevaluate your budget.

Hopefully that was simple enough.

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So Reading have bid £10 million for Oliviera, really so what has happened as i was sleeping last night ?

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This must be a record, I agree with Herman. Twice in one week! I might need to lie down;)

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Still can''t see this happening I am sure my father law started the rumour;) he told me last year that he wouldn''t mind having Oliviera and Naismith playing for the royals.

Maybe they will come in for double swoop;)

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We''re all guessing unless we''re on the inside, but I''d suggest Bethnal''s summary is fairly on the money.

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[quote user="TIL 1010"]So Reading have bid £10 million for Oliviera, really so what has happened as i was sleeping last night ?[/quote]Strange how even the ONE website that mentioned this didn''t even put a figure on it. But somehow there is NOW a definite figure of £10million. Nowt stranger than folk.

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[quote user="Bagster"]This must be a record, I agree with Herman. Twice in one week! I might need to lie down;)[/quote]You always agree with me, it''s just that you haven''t got around to admitting it yet.

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Not really that difficult. 2015-16 TV money = £70 million; 20116-17 c 41million; this year c £29 million; next year almost nothing.Non TV revenue under £30 million; wages bill 2015-16 £67 million.If we don''t get promoted this year, we will need to exist on a wages budget of less than half that which we had in our last promotion year.Hence the need to get the big earners off the books. Not skint, but shopping in Aldi rather than Waitrose.

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"Basic economics. As an example. If you''re incoming money is say £1000 per month, but you''re outgoing is £1200 it won''t be long before you are in severe financial difficulties. Hence a need to reevaluate your budget."

So I take that you''re up to date with our incomings and outgoings then?

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[quote user="BroadstairsR"]"Basic economics. As an example. If you''re incoming money is say £1000 per month, but you''re outgoing is £1200 it won''t be long before you are in severe financial difficulties. Hence a need to reevaluate your budget."

So I take that you''re up to date with our incomings and outgoings then?[/quote]See Badger''s post, but even without the full figures it''s pretty logical to realise that we had a lot of players on big wages but a lot less money coming in, due to being in the Champs for a second year. Therefore something had to give or we would face severe financial trouble.

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"See Badger''s post, but even without the full figures it''s pretty logical to realise that we had a lot of players on big wages but a lot less money coming in, due to being in the Champs for a second year. Therefore something had to give or we would face severe financial trouble."

I think we all realise that our outgoings last season were greater than our income, but I don''t think that was quite the OP''s, or my, point.

I spent more last year than I got in, but I am not skint.

I think that "skint" may be the pertinent word for it would be alarming to have to assume that we went from the relative luxury of Premier league income to being pot less in the space of just one season.

Now, and FACING A SECOND season in the Chumps it is more than clear that prudence has to be the order of the day otherwise we will be skint.

We are also asset strong but will get weaker the longer we rot in the second tier as our stars and starlets will have to be sold off to pay the way.

It is all basic and it''s good to see that, unlike some other well documented failing clubs, that the board is keeping one eye on the future that May or may not be in store for the club.

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Poor transfer record, high wages and huge drop in income.

The point about not being the first team to have parachute payments - are we not one of the first teams to have to cope with losing out on the newer, much higher TV income?

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We''re not skint Broadstairs, but we will soon be if we carry on in the same way. That''s the point me and others are trying to point out.

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[quote user="Herman"]Basic economics. As an example. If you''re incoming money is say £1000 per month, but you''re outgoing is £1200 it won''t be long before you are in severe financial difficulties. Hence a need to reevaluate your budget.

Hopefully that was simple enough.[/quote]Yep, it''s a similar situation to which UK PLC has been in.  Spot the common factor............ 

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Maybe we should pull out of the league and set up our own Paul. Everyone will want to join us and we can reap the financial benefits. We may have to play on our own for a few seasons but once everyone sees how great it is, then happy days.

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[quote user="Herman"]Maybe we should pull out of the league and set up our own Paul. Everyone will want to join us and we can reap the financial benefits. We may have to play on our own for a few seasons but once everyone sees how great it is, then happy days.[/quote]Good to see though that you can see the benefits of a bit of austerity where Norwich are concerned although being in total denial over the benefits of austerity when trying to clear a 160 Billion annual deficit.  Perhaps you are seeing the reality at last of what happens if you constantly live beyond your means.  

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Just sod off Moy. There''s a massive thread filled with your ill-informed nonsense, don''t start infecting others.

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[quote user="Herman"]Just sod off Moy. There''s a massive thread filled with your ill-informed nonsense, don''t start infecting others.[/quote]You simply don''t like having your hypocrisy exposed Herman...

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football is different to most business instead of stock piling cash when things are good the club put back what we were getting into wages and buying more expensive players

thats ok when things are Going well ( in PL ) but when that money stops coming in next season and you still have players on PL wages you are in big trouble

As for full houses each week well football clubs do not really make anything like they do from sky money

the ticket sales are very small compared to this

for example if a club sold 26000 tickets at say 30 quid 2 x a month every other Saturday thats only £ 780,000

now if Naismith is on the report 40k a week thats £160k out of that ! thats one player

teams do not make money from tickets they make money from SKY tv

if you take the sky money away you have to cut the wages to fit the 780,000 income ( example ) and thats what we are doing cutting wages to suit our income

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Main reason is because our owners are too stubborn to look for outside investment because they are still trying to run the club on a model of the 90s when the phrase Prudence with ambition was bandied about all the time!

Unless things change in the near future, or by some miracle we do go up this season then we are in for a long stint in the Championship!

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[quote user="paul moy"][quote user="Herman"]Just sod off Moy. There''s a massive thread filled with your ill-informed nonsense, don''t start infecting others.[/quote]You simply don''t like having your hypocrisy exposed Herman... [/quote]In Paul Moy economics you would have given our biggest players a tax-cut/pay-rise, raised the season ticket prices, got rid of the subsidised ticket for the kids/elderly, removed the disabled area and raised the prices of food and drinks. 

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"for example if a club sold 26000 tickets at say 30 quid 2 x a month every other Saturday that''s only £ 780,000."

Get your point NnG but:-

26, 000 x £30.00 (generous) x 23 home games = £17.9m per season.

Not enough admittedly/apparently but hardly peanuts and more than most clubs in the Football League get.

Makes you wonder how the clubs that get average attendances of under 10, 000 survive at all.

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