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SUFC: The Future Sustainability of the club

Our hopes and visions for the rebirth of Southend United, plus any plans published by the consortium for discussion

BriggBlue

Schoolboy
I've been doing some research on just how sustainable the football pyramid is in England and one fact shocked me.

In the championship the average DAILY loss of a club in the championship is £70,000 a day.

That league is made up of clubs that are bigger than us and have more revenue streams, to get to that league we need 3 promotions each of which will cost significant investment.

Just how does our club, which is incredibly well supported even attempt to become sustainable and remain sustainable given the insane levels of spending in the leagues above ours?
 
I've been doing some research on just how sustainable the football pyramid is in England and one fact shocked me.

In the championship the average DAILY loss of a club in the championship is £70,000 a day.

That league is made up of clubs that are bigger than us and have more revenue streams, to get to that league we need 3 promotions each of which will cost significant investment.

Just how does our club, which is incredibly well supported even attempt to become sustainable and remain sustainable given the insane levels of spending in the leagues above ours?
We cant compete at that level and be sustainable, the nature of money in the professional game makes it impossible. Its a sugar daddy sport and roots halls limited capacity cant change that much.

Ron wasnt wrong about needing a bigger capacity modern stadium to make championship football more of a reality.

We simply have to redefine our definition of success.

Success for a club like ours is a non loss making league 2 team, occasionaly league one when every now and then the stars align and we chance upon 4 or 5 excellent players.

Not very sexy, but thats the way it is.
And always has been really.
 
Good question with no real answer tbh except wealthy owner , hitting payola in transfer mkt or multiple cup runs.
Re Southends position and the national league generally the vast majority based on matchday revenue should really be part time those with decent size crowds should imo have a much higher ratio of volunteers and fewer higher paid positions to live within the new reality of how long it takes to get a promotion, I suspect big spending FGR will come unstuck , we'll I hope so anyway 😉.
 
As said before.. a working youth system. Sell the better ones to make a good revenue stream. The others remain in the squad (by that, I mean the right calibre for the level we’re at). Youth will want to come to us as it’s potentially a route to a) higher level or b) a permanent contract and fulfill their dreams.
 
We cant compete at that level and be sustainable, the nature of money in the professional game makes it impossible. Its a sugar daddy sport and roots halls limited capacity cant change that much.

Ron wasnt wrong about needing a bigger capacity modern stadium to make championship football more of a reality.

We simply have to redefine our definition of success.

Success for a club like ours is a non loss making league 2 team, occasionaly league one when every now and then the stars align and we chance upon 4 or 5 excellent players.

Not very sexy, but thats the way it is.
And always has been really.
Or better L1. Championship is a financial basket case.
 
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Very hard to make a club in the National League financially sustainable. Tv revenue at this level doesn't pay well at all so really clubs income is from fans and player trading which if we are all honest the fees for players at our level are peanuts unless you got 20% sell on clause which might go for millions in the future, in reality its small chance of that happening. The reality is we need to be back in the efl to then become financially sustainable.
 
Very hard to make a club in the National League financially sustainable. Tv revenue at this level doesn't pay well at all so really clubs income is from fans and player trading which if we are all honest the fees for players at our level are peanuts unless you got 20% sell on clause which might go for millions in the future, in reality its small chance of that happening. The reality is we need to be back in the efl to then become financially sustainable.
Agreed, I don't think we can really get anywhere near sustainable and mount a promotion challenge in this league. First priority should be get out this rancid 'footballing' division. Becoming sustainable in League 2 by picking up gems from non league is the way to get going. Get out this league by whatever means possible. Doesn't matter if it's short term loans to me. Far easier to stay up than get promoted as champions.
 
The way you punch above your weight is to be more efficient.

Most teams are incredibly inefficient. Look at the way most teams change managers every 18 months (or less). Regularly changing managers is inefficient. You pay off the old guy and his staff and get in a whole new lot of staff. The new manager then wants a different style of football so you need a different set of players for it so you end up paying up contracts and paying new signing on fees for players to replace them. That’s inefficient to be doing every year.

You then need to recruit better. This is usually less to do with talent identification and more to do with fit - are they the right character, are you recruiting them to play to their strengths etc. Putting them in the best position to succeed will raise their value.

You then need to sell at the right time. When you have promising youngsters let them get a good amount of first team experience to maximise their value and sell them when teams meet your valuation not when you need to pay the gas bill. You then want to ensure you get sell-ons and don’t just accept the bid that has the most cash up front.

With the proceeds you want to invest in ascending players. My preference is usually the best players from the division or two below. There’s less risk IMO with a player who has starred in NLS than a youth player dropping down from higher divisions. Players who have starred in the division below have established their floor and should be confident. Players released from higher up you don’t know how far they will need to fall. Plus being released is a knock to their confidence. Moving to a new club, a new area, is a bad time to be dealing with doubts.

Cup runs then bring in extra revenue and can put players in the spotlight to bring in more transfer revenue. Eastwood’s goal v Man U increased his value and let us bring in Nicky Bailey the following season. We were then able to sell Bailey for a big profit. Collymore took us to the fifth round of the FA Cup and that increased his value. We used that money to bring in Tommy Mooney, Jason Lee, Jonathan Hunt etc who all went onto play Premiership (sadly we wasted their value selling early on all three - after a manager change) and Otto but we wasted the Otto money on a big name signing in Mike Marsh who was a terrific talent but clearly a descending player and went into a downward spiral that took to the return of Tilly to emerge from.

If we can get the management structure right, get the recruitment more right than wrong and get some cup runs we can get to L1 and hang around there. I think we’re on the right path but it won’t necessarily all come at once.
 
Agreed, I don't think we can really get anywhere near sustainable and mount a promotion challenge in this league. First priority should be get out this rancid 'footballing' division. Becoming sustainable in League 2 by picking up gems from non league is the way to get going. Get out this league by whatever means possible. Doesn't matter if it's short term loans to me. Far easier to stay up than get promoted as champions.
Unfortunately we probably need to invest to go up and then become financially sustainable in the efl with higher revenue streams which being in the efl offers, sky have certainly up there game interms of lower league coverage. Just look at the club's who gone up since we've been down in this league, they all invested and now reaping the rewards. I'm not saying we need to go all in ie wrexham style but we do need to show bit of intent in the transfer window. John still diamond's in the rough will only take us so far. The reality of today football world you need to invest to win, even in this league.
 
Talking of sustainability, Where's the Southend Story then ! Is it coming soon to a streaming service as Wrexham managed to bring some cash in albeit with the Hollywierd connections
 
Just how does our club, which is incredibly well supported even attempt to become sustainable and remain sustainable given the insane levels of spending in the leagues above ours?

The only way to do that is not to pay for players/spend within our means and improving our means by bettering our traditional revenue streams and finding new creative revenue streams.
 
I don't get the we need to be in EFL to be sustainable - how many EFL clubs are profitable? Yes, there is more money for participating in L2 - but players wages are also higher. There appears little evidence to suggest clubs are able to be more sustainable in L2.

The Brentford model - last time I checked the owner has put in millions and millions!
 
I don't get the we need to be in EFL to be sustainable - how many EFL clubs are profitable? Yes, there is more money for participating in L2 - but players wages are also higher. There appears little evidence to suggest clubs are able to be more sustainable in L2.

The Brentford model - last time I checked the owner has put in millions and millions!
Just by being in L2 our revenue would be 50% higher..
In NL to break even we would have to completely change our structure- much fewer staff, volunteers, mix of loans and NLS/NLN sourced players, low chance of promotion. The reality however unpalatable .
Best is to plan for a manageable level of losses compatible with an acceptable chance of promotion and then a more realistic chance of “sustainability”
 
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Just by being in L2 our revenue would be 50% higher..
In NL to break even we would have to completely change our structure- much fewer staff, volunteers, mix of loans and NLS/NLN sourced players, low chance of promotion. The reality however unpalatable .
Best is to plan for a manageable level of losses compatible with an acceptable chance of promotion and then a more realistic chance of “sustainability”

Yeah I get revenue increases - but what about costs? As I said seems most EFL teams also run at a loss - so where is the evidence that it's 'easier' to be sustainable in L2?
 
Yeah I get revenue increases - but what about costs? As I said seems most EFL teams also run at a loss - so where is the evidence that it's 'easier' to be sustainable in L2?
The increase in wages would be far less than the increase in revenue? The increase in revenue is the same as our current playing budget!! So it would be much easier…
 
The increase in wages would be far less than the increase in revenue? The increase in revenue is the same as our current playing budget!! So it would be much easier…
Well yes, that would be how you come sustainable - but is it possible? I'll try and check a couple l2 clubs accounts when I get a chance. But if our playing wage budget is only £1m, that's sub £50k average annual salary per player - I doubt that gets much in l2, and hence wouldnt surprise me if wages rose just as much, maybe not instantly but as you replace players.
 
COSU will run the club very well.
Brilliant news.
However the 'spend' required to get us out of the NL will not be forthcoming, meaning every season we can just copy and paste....insert team name are spending big, paying silly money etc etc. Leaving us competitive but not successful but also very well run with regards to budgets etc. Then how long will we get 4.5k season tickets with perpetual NL football.
Not a criticism, greatful to have the mew owners etc BUT those clubs with wealthy backers willing to spunk millions will get the big signings that will ultimately win promotion.
 
The way you punch above your weight is to be more efficient.

Most teams are incredibly inefficient. Look at the way most teams change managers every 18 months (or less). Regularly changing managers is inefficient. You pay off the old guy and his staff and get in a whole new lot of staff. The new manager then wants a different style of football so you need a different set of players for it so you end up paying up contracts and paying new signing on fees for players to replace them. That’s inefficient to be doing every year.

You then need to recruit better. This is usually less to do with talent identification and more to do with fit - are they the right character, are you recruiting them to play to their strengths etc. Putting them in the best position to succeed will raise their value.

You then need to sell at the right time. When you have promising youngsters let them get a good amount of first team experience to maximise their value and sell them when teams meet your valuation not when you need to pay the gas bill. You then want to ensure you get sell-ons and don’t just accept the bid that has the most cash up front.

With the proceeds you want to invest in ascending players. My preference is usually the best players from the division or two below. There’s less risk IMO with a player who has starred in NLS than a youth player dropping down from higher divisions. Players who have starred in the division below have established their floor and should be confident. Players released from higher up you don’t know how far they will need to fall. Plus being released is a knock to their confidence. Moving to a new club, a new area, is a bad time to be dealing with doubts.

Cup runs then bring in extra revenue and can put players in the spotlight to bring in more transfer revenue. Eastwood’s goal v Man U increased his value and let us bring in Nicky Bailey the following season. We were then able to sell Bailey for a big profit. Collymore took us to the fifth round of the FA Cup and that increased his value. We used that money to bring in Tommy Mooney, Jason Lee, Jonathan Hunt etc who all went onto play Premiership (sadly we wasted their value selling early on all three - after a manager change) and Otto but we wasted the Otto money on a big name signing in Mike Marsh who was a terrific talent but clearly a descending player and went into a downward spiral that took to the return of Tilly to emerge from.

If we can get the management structure right, get the recruitment more right than wrong and get some cup runs we can get to L1 and hang around there. I think we’re on the right path but it won’t necessarily all come at once.

Hence the structure that Stan was pushing for when he was involved.

The idea being that the Club has an identity, a style of play, and a way to operate and we stay within those boundaries.

So the football we play, for example, is a decision that the club made, not necessarily the manager. So, when the time comes that Kev moves on, ideally he has been poached by higher up because he is doing superbly and not sacked as it’s all gone horribly wrong. When we look at a successor, we stick to a manager that plays the same type of football (amongst other things). So, we may overlook a manager with promotions like a Steve Evans and opt for a manager who plays how we like and his best finish is a failed play-off campaign for example.

That way, the players we have fit the philosophy of the club. So they are comfortable in possession, fit to operate a press, goalkeeper that can play and so forth. So, new manager doesn’t have to axe 7/8 players and bring in 7/8. They work with the coaching staff in place. So we don’t have a MM who brings in 7 members of staff, we replace 1/2.

Its all very simple, very basis stuff that Stan was campaigning at the start, none of what he said was reinventing the wheel, but was what a sensible football club does, how a proper club operates.

Then, cup runs, sell ons and turning RH into a 365 day operation instead of a 23 day one.

When I watched the Macclesfield documentary on the BBC, one thing they did was have a gym that was open to the public. I’d love for us to have something similar, so we can work out at Roots Hall. I don’t live in Southend, but I work there, so I’d be tempted to get a membership to workout before/after work.

Have a pub/bar that is open in the week for the public. One that does food too. Quick pint and a burger at Roots Hall after work would be excellent.

That’s the problem that COSU have with how they set their budgets. They spent over £4 million before having the keys, Roots Hall was run down and needs sorting for them to bring in additional revenue, creditors are still being paid and so forth. So much money has, and will be spent before they even get the chance to fork out on the playing side.

It’s a balancing act for them at the moment.
 
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