Coventry pay to resurface Sixfields pitch as waggot predicts us playing there (2 Viewers)

[Grendel]

Robbo you're mixing two ideas here mate.

1) SHORT TERM - we're better at the Ricoh than Sixfields even without extra revenue. Fact. The finances back this up. It's not arguable.

2) LONG TERM - the club need extra revenue to be competitive. This is arguable. F&B would've brought in less than 5% of our turnover. It's possible that we can create other revenues if we own our own ground.

To expand, there are a few ways we can achieve 2: get a better deal at the Ricoh (this will involve negotiations), buy the Ricoh (this would involve a bid from Sisu), distress ACL as hope that somehow you end up with the Ricoh (this is a multi-year strategy), build your own ground.

There are TWO "Ricoh deals" here. One that get us home while the long term is sorted, for that revenues are irrelevant. One that let's us stay there long term and become viable as a business, revenues may well be important here (again, this is far from proven, just because it's repeated a lot doesn't mean it's true.)

Hope that clears it up a bit.

I'm struggling with 5% of turnover. Was our turnover £20 million at the Ricoh?

 

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[shmmeee]

I'm struggling with 5% of turnover. Was our turnover £20 million at the Ricoh?

Sorry was assuming that we just got given the £100k profit as opposed to having the £1m income minus expenses.

Probably a massive accounting faux pas to be fair.

 

[Grendel]

Sorry was assuming that we just got given the £100k profit as opposed to having the £1m income minus expenses.

Probably a massive accounting faux pas to be fair.

I would hope that if the club owned the revenue stream the profit would be higher. In that industry 10% seems very low.

 

[Astute]

I would hope that if the club owned the revenue stream the profit would be higher. In that industry 10% seems very low.

In any industry from taking any sort of business over a reduction of turnover of over 90% seems like poor leadership at best. But SISU have managed this easily.

 

[bigfatronssba]

So does anyone know how much concourse F & B's were worth at the Ricoh in an average season (12-13 for instance).

I would like to know the value over which my club is being destroyed.

 

[mark82]

So does anyone know how much concourse F & B's were worth at the Ricoh in an average season (12-13 for instance).

I would like to know the value over which my club is being destroyed.

Difficult to estimate really. If average crowd is 12,000 and each buys one item of £3.50 that would be just under £1million a year.

 

[mark82]

Under financial fair play that is extra money that can be put towards the squad too so I'm all for having it.

 

[Kingokings204]

Under financial fair play that is extra money that can be put towards the squad too so I'm all for having it.

I highly doubt that would be the case.

 

[RoboCCFC90]

Difficult to estimate really. If average crowd is 12,000 and each buys one item of £3.50 that would be just under £1million a year.

Even if it was half of that, it would still be welcome funding, for instance if we made £750,000 from Matchday revenues (Parking, F&B, etc) over the season and invested that into the squad you could invest that into wages for three good quality players at this level. (Almost circa £5,000pw, not many Clubs will offer that in this league if any)

 

[Norman Binns]

Difficult to estimate really. If average crowd is 12,000 and each buys one item of £3.50 that would be just under £1million a year.

Do you seriously think everyone buys something? Even if they did what do you think the profit on a £3.50 sale would be?

I personally wouldn’t entertain the idea of purchasing substandard slop served at football grounds. Long queues for vastly overpriced junk and I’d never be ripped off by it.

I’ve never been able to understand why people can’t go 2 hours without eating or drinking something. What is even more baffling is people who leave their seats 10 minutes before the half time whistle to go down onto the concourse.

 

[bigfatronssba]

Difficult to estimate really. If average crowd is 12,000 and each buys one item of £3.50 that would be just under £1million a year.

That isn't profit though. It has been suggested on here before that cost of sales account for 90% of turnover on f & B's, which would make the relevant figure around £100k.

 

[shmmeee]

Even if it was half of that, it would still be welcome funding, for instance if we made £750,000 from Matchday revenues (Parking, F&B, etc) over the season and invested that into the squad you could invest that into wages for three good quality players at this level. (Almost circa £5,000pw, not many Clubs will offer that in this league if any)

Rob we make nothing like that. Closer to £200k all in.

That's still maybe 2 players at just under £2k a week (ignoring signing on, agent's fees, win bonuses, etc.).

 

[Kingokings204]

Rob we make nothing like that. Closer to £200k all in.

That's still maybe 2 players at just under £2k a week (ignoring signing on, agent's fees, win bonuses, etc.).

So 1 good player then. Also does anyone actually think this money would actually go into the squad? More chance TF gets the number 9 jersey before money goes back into the squad.

 

[Otis]

Do you seriously think everyone buys something? Even if they did what do you think the profit on a £3.50 sale would be?

I personally wouldn’t entertain the idea of purchasing substandard slop served at football grounds. Long queues for vastly overpriced junk and I’d never be ripped off by it.

I’ve never been able to understand why people can’t go 2 hours without eating or drinking something. What is even more baffling is people who leave their seats 10 minutes before the half time whistle to go down onto the concourse.

Yep. something that puzzles me too. Do people deliberately not eat before games so they can go and buy expensive bland food inside the ground and miss part of the match in having to do so?

Baffling.

 

[shmmeee]

I would hope that if the club owned the revenue stream the profit would be higher. In that industry 10% seems very low.

I thought AEG would be brought in. Their catering partner is Compass. Why would Compass be able to increase profit over Compass?

There's a huge amount of waste in catering a football game though, have a look at the amount of food that's thrown out at the end of a game.

Here's a link that suggests the average profit margin in the industry is 10%: http://www.ehow.com/info_12086624_typical-catering-profit-margin.html

It seems looking around it's normal to make about 40% profit on the sale, then rent, wages, etc. out of that bring it down.

What are you thinking the profit margin should be?

 

[Kingokings204]

Yep. something that puzzles me too. Do people deliberately not eat before games so they can go and buy expensive bland food inside the ground and miss part of the match in having to do so?

Baffling.

I've never seen a queue at the Ricoh to be fair. If you want a pie or beer you don't wait unless it was crewe for 32000 people and then there was tbf.

Point is f and b is almost worthless and the money made wouldn't go back into ccfc especially the paying side as it just isn't enough to get 1 player in hardly.

We are making no money now and ticket sales alone would jump up another 2-3m and that's a Wilson transfer fee in ticket sales alone. Still no shirt sponsor btw?

All about real estate and bullying tactics. Something for nothing and sell on. We have been told by a high court judge what they tried to do and it has failed badly thank god.

One positive bit of news I don't think there is an appeal at the moment so if that's the case once the money is paid we have a clear path back to the Ricoh if the 2 parties are genuine and both want back home .

 

[Otis]

Last time I ever bought food inside the ground has to be at least 20 years ago,

It's poor quality and very expensive and I don't want to have to go down to the concourse with 8 mins of the first half left so I can get served first.

 

[Otis]

I've never seen a queue at the Ricoh to be fair. If you want a pie or beer you don't wait unless it was crewe for 32000 people and then there was tbf.

Point is f and b is almost worthless and the money made wouldn't go back into ccfc especially the paying side as it just isn't enough to get 1 player in hardly.

We are making no money now and ticket sales alone would jump up another 2-3m and that's a Wilson transfer fee in ticket sales alone. Still no shirt sponsor btw?

All about real estate and bullying tactics. Something for nothing and sell on. We have been told by a high court judge what they tried to do and it has failed badly thank god.

One positive bit of news I don't think there is an appeal at the moment so if that's the case once the money is paid we have a clear path back to the Ricoh if the 2 parties are genuine and both want back home .

You do see hundreds of fans though going down for food and drink with as much as 10 mins left of the first half. Why on earth would anyone do that?

 

[chiefdave]

I would hope that if the club owned the revenue stream the profit would be higher. In that industry 10% seems very low.

That would be an obvious plus but is it achievable? I would imagine the whole point behind the creation of IEC and partnering with Compass is they can operate at a much lower cost than if ACL, or in the future the club, operated themselves. Should that not increase the margin?

 

[shmmeee]

It's nonsense. 10% profit is good in most industries. I think Grendel's view is skewed a little working in the luxury car market where ripping people off is the norm. (JLR's profit margin is 17.9%, Tesco's about 6%)

 

[chiefdave]

I thought AEG would be brought in. Their catering partner is Compass. Why would Compass be able to increase profit over Compass

Come on shmmeee, everyone knows that Compass working for AEG would bring in millions more than Compass' own joint venture company. It must be true Tim Fisher told us.

 

[shmmeee]

Come on shmmeee, everyone knows that Compass working for AEG would bring in millions more than Compass' own joint venture company. It must be true Tim Fisher told us.

Unless Joy will be down the market playing hardball on batches...

 

[skybluefred]

Unless Joy will be down the market playing hardball on batches...

E bah gum shmmeee "batches" proves your a true Coventrian.lol