oldskyblue58
CCFC Finance Director
Lets make it clear from the start anything here can only be a best guess, there is precious little detail or explanation available. So this is just an opinion at best
As a starting point this is the explanation I received from FL regarding which player wages count in the salary cost management protocol.
All player wages are included in the calculation. This covers basic wage, bonuses, appearances and any other add-ons. The calculation also includes PAYE, medical costs, cars and travel and also agent payments. Basically the full cost of a player is included. Players included are all contract players (full contract, non-contract, multiplicity etc.) and loan players. Players loaned out are deducted for the period of the loan. Players not included are youth players on a professional contract (i.e. players that have been in the club’s YD scheme and have been given a pro contract. They must be 20 years of age or under at the start of the season to be discounted from the SCMP calculation
SCMP relates to playing staff only
The relevant percentage of turnover is 60% and turnover is defined as
Income generated by a club that forms part of its football activities such as, commercial revenues, gate revenues, solidarity payments, Football League payments, donations, net transfer income (transfer fees paid) all make up the relevant income within the SCMP guidelines. The relevant income figure for SCMP will be a portion of total turnover, but not necessarily agree to total turnover figure in the accounts SCMP splits turnover into ‘normal income’ and ‘football fortune’ income. For League 1 clubs both these forms of income go into determining how much money a club can spend in relation to wages. In League 1’s case, this is set at 60% of turnover. This is calculated on an on-going basis going forward.
- the turnover that will count is most income the club will receive
- new share issues will count but not new loans or the conversion of loans
- the proportion is 60% of the budgeted turnover in that season not the previous one. The budget is I understand reviewed quarterly by FL and revised if necessary
- sales of players will increase the budget (by 60% of the proceeds) but purchases of players will reduce the calculation
- youth players given a professional contract and 20yo or under will not count in the calculation
lets be generous and say crowds stick at an average of 3000 (currently could argue much lower), 23 games ignoring cups at an average ticket price excl VAT £8 = £552000
other income will be
- TV monies
- League & cup prize monies
- shares of cup gate receipts
- advertising & sponsorship
- share of food & car park income
- program sales & tote
- shop sales
excluding cup runs at Arsenal then the turnover to be budgeted for looks woeful, am struggling to see much past £2m but say it gets to £3m. You really can not budget for an "Arsenal game" each year
that means a player budget, excluding players given professional contract and under 20, of £1.8m. Above that figure and we are in embargo. looks like a very young squad (as per waggots comments) with some current players not retained from the current squad to me. Bare in mind if players sold and a replacement bought then the base for the budget is increased by the sale but decreased by the purchase - that could mean no purchases and youth plus freebies plus loans to balance the calculation
So income £3m
Player wages £2.25m (inc the youngsters )
Rent say £170k as rumoured at Sixfields
Manager, Coaching, commercial & other staff and directors? well I would guess at some cost cutting being needed, but say it can be done for £600k
general administrative costs (shop rent, rates, shop purchases, insurance, travel, league fees, kit, advertising, ticketing etc etc) say £1m
Academy costs £500K
Interest on loans from ARVO & SISU funds. Well in 2013 that was £1.8m and they plan to have drawn down more from ARVO since - say interest £2m in total currently
costs at just over £6.5m - losses £3.5m+ (if lucky ?) before player sales or further loans
If SP thought the going was tough this year next season looks even harder
As a starting point this is the explanation I received from FL regarding which player wages count in the salary cost management protocol.
All player wages are included in the calculation. This covers basic wage, bonuses, appearances and any other add-ons. The calculation also includes PAYE, medical costs, cars and travel and also agent payments. Basically the full cost of a player is included. Players included are all contract players (full contract, non-contract, multiplicity etc.) and loan players. Players loaned out are deducted for the period of the loan. Players not included are youth players on a professional contract (i.e. players that have been in the club’s YD scheme and have been given a pro contract. They must be 20 years of age or under at the start of the season to be discounted from the SCMP calculation
SCMP relates to playing staff only
The relevant percentage of turnover is 60% and turnover is defined as
Income generated by a club that forms part of its football activities such as, commercial revenues, gate revenues, solidarity payments, Football League payments, donations, net transfer income (transfer fees paid) all make up the relevant income within the SCMP guidelines. The relevant income figure for SCMP will be a portion of total turnover, but not necessarily agree to total turnover figure in the accounts SCMP splits turnover into ‘normal income’ and ‘football fortune’ income. For League 1 clubs both these forms of income go into determining how much money a club can spend in relation to wages. In League 1’s case, this is set at 60% of turnover. This is calculated on an on-going basis going forward.
- the turnover that will count is most income the club will receive
- new share issues will count but not new loans or the conversion of loans
- the proportion is 60% of the budgeted turnover in that season not the previous one. The budget is I understand reviewed quarterly by FL and revised if necessary
- sales of players will increase the budget (by 60% of the proceeds) but purchases of players will reduce the calculation
- youth players given a professional contract and 20yo or under will not count in the calculation
lets be generous and say crowds stick at an average of 3000 (currently could argue much lower), 23 games ignoring cups at an average ticket price excl VAT £8 = £552000
other income will be
- TV monies
- League & cup prize monies
- shares of cup gate receipts
- advertising & sponsorship
- share of food & car park income
- program sales & tote
- shop sales
excluding cup runs at Arsenal then the turnover to be budgeted for looks woeful, am struggling to see much past £2m but say it gets to £3m. You really can not budget for an "Arsenal game" each year
that means a player budget, excluding players given professional contract and under 20, of £1.8m. Above that figure and we are in embargo. looks like a very young squad (as per waggots comments) with some current players not retained from the current squad to me. Bare in mind if players sold and a replacement bought then the base for the budget is increased by the sale but decreased by the purchase - that could mean no purchases and youth plus freebies plus loans to balance the calculation
So income £3m
Player wages £2.25m (inc the youngsters )
Rent say £170k as rumoured at Sixfields
Manager, Coaching, commercial & other staff and directors? well I would guess at some cost cutting being needed, but say it can be done for £600k
general administrative costs (shop rent, rates, shop purchases, insurance, travel, league fees, kit, advertising, ticketing etc etc) say £1m
Academy costs £500K
Interest on loans from ARVO & SISU funds. Well in 2013 that was £1.8m and they plan to have drawn down more from ARVO since - say interest £2m in total currently
costs at just over £6.5m - losses £3.5m+ (if lucky ?) before player sales or further loans
If SP thought the going was tough this year next season looks even harder
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