Finances Lies Damn Lies and statistics

[KeelansGlove 0]

Poor old Norwich could only afford a transfer fund for there first season in the Premiership for ten years of £2 Million.

Now I am a shareholder and get copies of the accounts but it is generally very difficult to get down to the nuts and bolts of where money has been spent from a set of accounts. Can somebody clarify the situation regarding the various we are skint statements.

Firstly the amount of cash from the premier league seems to be shrinking almost weekly, independant sources prior to the start of the season put the figure including increased sponsorship somewhere in the region of 25-30 Million dependant on live games not the currently reported 15-20 million some 10 million shy of that figure. So what is the truth ??

Next the Losses from last year, do these figures include the cost of building the south stand if so am I wrong in thinking this was to be funded from the sale of the land behind the river end ? If so when is this money coming in and are we likely to see this accounted for in a future year ?

Ok so we have been able to fund the new pitch at 750K (the equivalent of our most expensive signing) and 3 Mil for the corner infill (more than our total transfer budget)

So where has the money gone ? I would be interested to know a breakdown of the increased wages and one off costs of bonuses etc that have had to be paid on promotion to get some idea. Our squad is now smaller than last season, none of this seems to add up.

count the number of strikers we signed this summer (same as last summer !) 0

I''m not trying to start a witch hunt, just trying to understand the full situation to see where we have gone wrong.

Letting Iwan go seems more and more premature every week ( and I was never a big fan !)

 

 

 

[Mcsncfcmcs 0]

Can''t say I''ve got all the answers, but a few points to make.

Regarding the money brought in by being in the Prem, lots of the figures quoted are wildly optimisitc and take into account many different things. Some people put the figure at say £30m+ but that includes the two parachute payments of £7.5m(?) when you go down, money you obviously cannot budget for as part of this season in the Prem. The biggest factor you have to take into account (and is not taken into account when figures of the money are made) is how you get the money, and when you get it. You don''t just get one load of money at the start of the season (I believe you get something like £9m up front in the summer but that might be wrong). The rest of the money comes from appearances on the tele (guaranteed to be on 6 times - and we''ve been on 5 times so far so would should exceed that limit) as well as the money you get according to where you finish in the league (which clearly you only get at the end of the season, and you cannot really budget for how much you are going to get). Sponsorship money can be difficult to generalise about. For instance, signing a shirt sponsorship deal as a Prem club would bring you more money (as people predict), but that''s only an option if your current deal expires at the end of the season you get promoted (although I believe our deal with Proton does rise when we are a Prem club). All in all I think the Sky money comes to about £14m guaranteed over the course of the year.

The Jarrold Stand was built partly on the back of the land sale (which came to £6m - the stand cost £8m with the extra money covered by stand sponsorship and the executive/matchday facilities). Effectively the building was paid for as part of the securitisation deal, with the land sale paying part of it off (rather than the land sale directly paying for the building). I believe we get the £6m in two instalments of £3m, and I presume we have only received one part of that so far. One crucial thing you have to take into account as regards to the building of the South Stand on last years figures is the massive loss of match day revenue the club incurred. For example 4,000 less tickets sold for 15 home games than the previous year (lets say an average of £11 a ticket taking into account kids and adult prices would total £660k lost) plus the subsequent loss in food and drinks, match day club shop purchases, programmes, etc.

The pitch was undoubtedly a necessary investment. The in-fill is also needed for the future growth of our club. In time that will be paid off by the extra revenue selling those seats will bring in over the next 5 or 6 seasons. I don''t know how the cost is initiall met though (whether Prem money is spent - or was the money loaned?).

As for the rest, firstly I wouldn''t underestimate how much the wage bill has gone up this season as every player is on a divisional related contract (very sensible practice mind you). The signing of new contracts also are a worthy expense, but an expense nonetheless (eg Greeno''s wages have probably increased a lot - but that at least secures him/ or a good transfer fee for the future). The wages of Prem signings are also probably likely to be high for us and you have to take them into account when you consider how much money we have spent this summer (especially people like Helveg who came in on a free). If the wage bill was about £6m last year, it will probably be at least £10m this year (thats just a guess though), which would be atleast another £4m you have to find just for wages from your Prem money.

People also forget how much money we have had to pay out this summer for previous transfers in the form of extra installments as a result of obtaining Prem status. I''m not sure on any firm facts here but I think we had to pay another £250k for Svenny, another £250k for Hucks, another "six figure sum" for Drury (allegedly another £300k). Leon''s deal was something like £300k upfront, but

[Robert Fleck is still GOD! 0]

I must say that the parachute payment can be included in your financial figures for the next year as you will be able to advise any lender that you are guaranteed a mimimum of this figure as for the amount received for the clubs finishing position well last year that was 540K in the prem for every position so even if you come bottom you get 540K all these figures add up!

I mean yes they have released Briggs from his contract with two years remaining but this wont impact until their next filed accounts admittedly there will be a figure agreed to do this but the wage bill will have been reduced further.

But why when we have a little squad reduce it further when we cannot sign anyone? Unless they are unattached, how many premiership right backs havent got clubs?

After attending the game on Saturday I can honestly say that, that was the least commited game I have witnessed by Norwich since we lost to Bradford away 4-1 the season they got promoted!!

Yet that is another story!

[Gentleman Jim 0]

Couple of very good posts those two,

I think we just have to accept the fact that we haven''t got the money though, if we had, surely the club would have used it. Or am I being naive ?

The one obvious bit of comfort is that we are better off than we would have been without promotion and the future is not financially gloomy .

If we can achieve that 17th. position this year then next years influx of prem cash will possibly be all available for team building, instead of making up previous deficits.

In short we have to trust Delia and co,(she wouldn''t cook the books), they''ve done us proud so far.

 

[ob1 0]

Both of you seem to forget the 20million+ debt hanging over our heads.... interest payments anyone?

[Robert Fleck is still GOD! 0]

Yes but the Debt is more secure if we are in the Prem?

And there is more chance of paying of said debt and seciuring future finances!

Im not saying put ourselves in dire straits but a little bit of speculative purchases ie a forward as that is what Worthy said he wanted!

I must admit I would love to see given Leon a four game run to prove the doubters wrong as he is 110% commited and would save Worthy a small fortune!

The comments when people say we could go down and come back stronger?

What a load of Tosh! It is so hard as we all know to get out of that division never mind go down and try to get back up!

 

[BlyBlyBabes 0]

Presumably some funds would have been saved/budgeted for the January transfer window?

OTBC