Financial Implications of Relegation?

[Patches OHoolahan 0]

Although I do not accept we are down yet, I was just wondering what would happen to our wage and transfer budget with the loss of income resulting from relegation. As far as I can remember we are currently operating with a wage bill of £8m when £5m is all that we could really sustain. I have heard other estimates that suggest we could lose in the region of £5-6m should we drop into League 1. What would be a sustainable budget in these circumstances, because no doubt we would have to rebuild the squad almost from scratch.

Anyone got any ideas, or figures contrary to those which I have conjured up from memory?

[WeAreYellows49 0]

Well the player budget would drop for sure, seeing as won''t have too many assets left lol

[Jim Smith 2,339]

Since we will only have about 6 or 7 senior players in contract I suspect our wage bill will be quite low!TBH fear of relegation is one of the reasons behind the loan policy. It means we don''t have lot of players on big wages that we have to offload if the worst happens,

[Mello Yello 2,302]

Financial Implications of Relegation Knowing of an Embarrassing Demotion..... 

[I am a Banana 0]

[quote user="WeAreYellows49"]Well the player budget would drop for sure, seeing as won''t have too many assets left lol[/quote]

but some players would take a wage drop!

[WeAreYellows49 0]

[quote user="The Original Pinkun Poster"]

[quote user="WeAreYellows49"]Well the player budget would drop for sure, seeing as won''t have too many assets left lol[/quote]

but some players would take a wage drop!

[/quote]

Such as?

[Patches OHoolahan 0]

On another note which senior players do you think we would retain? As far as I can see, Drury, Otsemobor, Cureton, McDonald, Doherty maybe, Stefanovic if he recovers, Cort maybe, Russell  very much a maybe, Nelson, Fotheringham maybe, and Pattison. We have a few saleable assets, but it strikes me that we have a number of players who could leave at the end of the season, besides the loans.

[Blofield Canary 11]

Quite likely we would be no worse off or strangely could even be better off.

The only certain loss would be TV income which is less than £2 million.

Advertising and sponsorship could fall but it is unlikley as most of our income is from local companies who are not looking for national tv exposure.

Season ticket sales would drop but I would be surprised if they were below 18,000.

Xasual sales again may drop but a good run of results and they would hold up.

The big saving would be in our £8.5 million wage bill.

Croft will leave on a free, Mashall sold for around £1 million,Clingan another £1 million, Fozzy  would leave. That''s 4 big wage earners off the books. There would be no big earning loan players so our wage bill would easily drop below £4 million.

Bring back the lads from Luton and build for the future

                           Nelson

Otsemobor   Spillane  Doherty   Drury

Hoolahan Russell Patterson Lappin  

        Cureton  Martin

Subs Stefanovic. Macdonald, renton, Daly, Eagle

 

[Patches OHoolahan 0]

I think that we would do well to keep hold of Hoolahan, and I could see him going to say Bristol City for 750k. I also think Lappin will leave unless he plays about 5 or more games between now and the end of the season, as he is out of contract as well is he not? It''s a depressing thought having Eagle down the left, but maybe we could reinforce that area as well as the right wing. I agree with your estimate on Marshall''s price, but would hope for a bit more for Clingan.

[Blofield Canary 11]

We can discuss the valuation of some of the players and who goes and who stays. The main point I was making is that relegation will not see the club go into melt down or the demise of the board as some posters expect.

Ironically relegation could well stabilise the club financially and allow us to rebuild. Still be a hell of a lot happier for us to stay up though!

[ZLF 274]

[quote user="jbghost"]

Quite likely we would be no worse off or strangely could even be better off.

The only certain loss would be TV income which is less than £2 million.

Advertising and sponsorship could fall but it is unlikley as most of our income is from local companies who are not looking for national tv exposure.

Season ticket sales would drop but I would be surprised if they were below 18,000.

Xasual sales again may drop but a good run of results and they would hold up.

The big saving would be in our £8.5 million wage bill.

Croft will leave on a free, Mashall sold for around £1 million,Clingan another £1 million, Fozzy  would leave. That''s 4 big wage earners off the books. There would be no big earning loan players so our wage bill would easily drop below £4 million.

Bring back the lads from Luton and build for the future

                           Nelson

Otsemobor   Spillane  Doherty   Drury

Hoolahan Russell Patterson Lappin  

        Cureton  Martin

Subs Stefanovic. Macdonald, renton, Daly, Eagle

 

[/quote]

I think tyhe experience in that teams will also leave,  Hoola, Ots, Pattison and Doc are I think certain to go too

[The Fish Seller 0]

[quote user="jbghost"]

Quite likely we would be no worse off or strangely could even be better off.

The only certain loss would be TV income which is less than £2 million.

Advertising and sponsorship could fall but it is unlikley as most of our income is from local companies who are not looking for national tv exposure.

Season ticket sales would drop but I would be surprised if they were below 18,000.

Xasual sales again may drop but a good run of results and they would hold up.

The big saving would be in our £8.5 million wage bill.

Croft will leave on a free, Mashall sold for around £1 million,Clingan another £1 million, Fozzy  would leave. That''s 4 big wage earners off the books. There would be no big earning loan players so our wage bill would easily drop below £4 million.

Bring back the lads from Luton and build for the future

                           Nelson

Otsemobor   Spillane  Doherty   Drury

Hoolahan Russell Patterson Lappin  

        Cureton  Martin

Subs Stefanovic. Macdonald, renton, Daly, Eagle

 

[/quote]Give me strength!!! You can even be positive about this???????????What you do underline is that we are only Marshall, Clingan and Croft away from having a Div 1 team and this probably explains why we are in the bottom three of the Championship.From your list I cannot see Hoolahan, Lappin, Pattison, Doherty staying after relegation possibly Rusty will be off too.Doesn''t leave us much at all does it?Still must be cheerful hey?Reckon building for the future in Div 1 might buy us a few years for another three year plan for promotion do you???Christ the excuses as to why we''re still there year on year are coming out before we''ve even dropped.1st year tough to adapt.2nd year Building for the future3rd year 1st year of a 3 year plan4th year 2nd year of a 3 year plan5th year we can''t compete with the teams coming down from the Champs, sack manager start new 3 year plan.......repeat ad infinitum.Am I striking a nerve?

[Green and Yellow 0]

LEEDS.  Simple as that, Use them  as a bench  mark of how difficult it is to  get out of Division1. And before anyone ask, Leicester have a board who have backed their manager. Don''t expect Delia and Plonkcaster to do the same. 

[Glutton for Punishment 0]

[quote user="jbghost"]

Quite likely we would be no worse off or strangely could even be better off.

The only certain loss would be TV income which is less than £2 million.

Advertising and sponsorship could fall but it is unlikley as most of our income is from local companies who are not looking for national tv exposure.

Season ticket sales would drop but I would be surprised if they were below 18,000.

Xasual sales again may drop but a good run of results and they would hold up.

The big saving would be in our £8.5 million wage bill.

Croft will leave on a free, Mashall sold for around £1 million,Clingan another £1 million, Fozzy  would leave. That''s 4 big wage earners off the books. There would be no big earning loan players so our wage bill would easily drop below £4 million.

Bring back the lads from Luton and build for the future

                           Nelson

Otsemobor   Spillane  Doherty   Drury

Hoolahan Russell Patterson Lappin  

        Cureton  Martin

Subs Stefanovic. Macdonald, renton, Daly, Eagle

[/quote]

Can I have some of what you''re on, jgbhost? Your optimism is admirable but baffling. Do you sit on the board?

The question is whether relegation would result in administration and this depends on season ticket sales. The securitisation deal that is the financial foundation for the club is linked to future gate receipts. A fall in gate receipts (I don''t know the trigger level) will mean that creditors can call in their loans which in turn, unless the finance deal can be renegotiated (big if), will lead to administration.

Neil Doncaster''s refusal to comment on how season ticket sales are going is a worrying sign that all is not well. I''m sure he would have delighted in telling us that sales are ahead of expectation. The trigger date for points deduction in the current or following season due to administration is 26th March, and perhaps this explains the bringing forward of season ticket deadlines this year. If results do not improve on the pitch before then (and season ticket sales a low as a result), the board should be reviewing what is in the best interest of the club which could be to begin next season with the best chance possible. However I fear a conflict of interest as this would mean the current shareholders would lose their investment.

Being optimistic, there is still time yet, a couple of wins over Coventry and Blackpool puts a different perspective on things but realistically I fear that relegation and administration are highly likely.

It is pointless speculating about next season because the club''s finances and ownership would be totally different. It may well be that a clean sweep of debts and culture is just what this club needs but longer term success will depend on whomever is at the reigns after the transition.