Question Something I have never managed to get my head around

[Somerset Ex-TTB]

Just a question, the last couple of years with relegation from the championship the accounts show losses of about £2.5m a year?

During that time we have had a squad of around 18/19 players, and attendances averaging 8000.

According to RM these players are on very good wages (even championship level), which is driving the loss.

Fair enough, however this is the main question that I can't work out. Why do we fail to attract players due to the low wages we are offering?

This summer we haven't been able to compete with Orient and Hamilton, to name a couple that we actually know about.

There are plenty of other clubs in this division, without rich owners, and with probably lower revenue.

Tranmere, Swindon, Brighton, Bristol Rovers, Hartlepool, Gillingham, Wallsall, and Oldham to name some. All of which seem to operate with bigger squads, with less income, and if certain rumours and facts are to be believed, pay their players higher, or at least similar wages.

Very few of these clubs have also sold over £3m worth of players in the last 3 years, and have also got to the QF of the Carling Cup and played away at 2 of the biggest clubs in the country in the FA cup.

As far as I am aware, none of these clubs are having major financial difficulties as we are, so how can they cope and we cant?

Is the club badly run? Does it have too many non-playing staff? Is the stadium really taking up that much cash? Are the directors getting paid nice big consultancy fees?

What is wrong with SUFC at the moment??
Does anyone have any ideas why we are up **** creak when all the above reasons are taken into account?

 

[Matt the Shrimp]

Nope. All of those questions could, and should, be asked at tonight's AGM.

Of far greater concern, however, is that with the club losing £2m year-on-year, and with no obvious new sources of income coming in, how does the club propose to raise £680K by next month in order to pay its tax bill? Has the club considered asking its current directors to fund this via a debt-for-equity swap?

Matt

 

[Napster]

Hamilton were helped by the fact that Iriepken had already turned Hamilton down, so felt he owed them.

Hamilton Accies signing Izzy Iriekpen admits: I owe gaffer Billy Reid big time
Jul 28 2009 By Gary Ralston

IZZY Iriekpen spent the summer in the pages of Hello - but couldn't stand to say goodbye to Billy Reid all over again.

The former West Ham starlet has signed a two-year deal with Hamilton - six months after he KO'd a move to the club at the 11th hour to sign for Bristol City.

The central defender comes with an outstanding pedigree and was part of the Hammers Under-18 side that won the FA Youth Cup in 1999.

His team-mates included Michael Carrick and Joe Cole - and Iriekpen was a guest at the Chelsea midfielder's wedding last month.

That's when he found himself in the pages of the celebrity mag but he confesses he couldn't stand to ditch Reid at the altar after he called a couple of weeks ago to court him all over again.

Iriekpen said: "I told Billy I would join Hamilton in January but then Bristol City came in and I decided to go there instead as it was the Championship and I still felt I had unfinished business in England.

"I told Billy and he was a bit upset but understood my decision. I had a few choices to make this summer, including other clubs in England and Greece but when the gaffer called this time I had to come to Hamilton.

"I felt bad signing for Bristol last season and I definitely owe him, so it's payback time. Billy's a great guy to play for, an enthusiast who really sold the club and Scottish game to me.

"I haven't come here to fight relegation. I want to do well in cup competitions and the team is aiming to fight for top six, so hopefully I can play a part.

"Billy has also made me aware that if I do well a big team could come in for me so this is also my shop window.

"He won't stand in my way, he wants to see the careers of his players blossom and it has already happened here. The SPL has also proved successful for lads at other clubs, such as Rob Jones at Hibs. He came as a LeagueTwo player and has now moved to the Championship."

 

[Rob1920]

Tranmere, Swindon, Brighton, Bristol Rovers, Hartlepool, Gillingham, Wallsall, and Oldham to name some. All of which seem to operate with bigger squads, with less income, and if certain rumours and facts are to be believed, pay their players higher, or at least similar wages.

I believe both Swindon & Brighton have new rich owners.

Also we are having to re-address the balance with wages at the moment. As a result of relegation from the CC we've been stuck paying too many players CC wages whilst we're on L1 income levels, hence huge losses. Therefore we're now having to pay probably below average L1 wages to any new players to start clawing back the deficit. This in turn means the better players are rejecting our offers as too low for this level.

None of the other clubs you mention have had to cope with relegation from the CC recently (which financialy is a huge drop), and some have come up from L2 within the last couple of seasons which means they will have seen an increase in their income, not a reduction like us.

Rember, Luton came down with us, look at them now, and even Leeds who also came down with us still havent managed to buy their way back up even with their crowds & pulling power.

 

[Reg Martin]

Is the club badly run? Does it have too many non-playing staff? Is the stadium really taking up that much cash? Are the directors getting paid nice big consultancy fees?

I think the club has got a case to answer about about the management of the finances.
I wouldn't assume that other clubs are all managing comfortably. A lot of clubs have got themselves in a financial mess in recent years. At the moment it's us but it may well be the turn in the near future of some of those clubs you mentioned