Why are football clubs struggling? (1 Viewer)

[rob9872]

They've had the season ticket money
The tv money will be distributed as normal as soon as a resolution is sought

All they miss is the away fans income and last minute walk ups (most lower league would be 80% ST I'd guess).

Against that smaller loss for approx. 4-5 home games remaining (avg 2000 fans at £15 x 5 games = £150k)
Players furloughed, no travel costs, medical costs, additional kit, ground upkeep, policing, stewards etc

Providing next season goes ahead, they should imo be better placed than most businesses but all we're hearing is doom and gloom.

Am I missing something obvious?

 

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[MusicDating]

Fleetwood's wages are 128% of their income.

 

[Cranfield Sky Blue]

All the match day revenue outside of tickets. This can be substantial in some cases.

Programmes
Burgers
Beers
Bookies
Corporate
Raffle

if you have your own stadium (novel concept I know) weekly activities outside football is enormous.

 

[chiefdave]

Am I missing something obvious?

Most clubs were already loss making so throwing in losing ten games of income is going to be a problem. Potentially they will have to make pro-rata refunds on season tickets, advertising, sponsorship, hiring out of facilities on non-matchdays and broadcasting revenue. They also don't know what is happening with the rest of the season yet have players going out of contract on June 30th.

Thats before you even consider the possibility that some, or even all, of next season will be BCD.

 

[Colin Steins Smile]

Expenditure greater than income and no reserves!

 

[fernandopartridge]

They've had the season ticket money
The tv money will be distributed as normal as soon as a resolution is sought

All they miss is the away fans income and last minute walk ups (most lower league would be 80% ST I'd guess).

Against that smaller loss for approx. 4-5 home games remaining (avg 2000 fans at £15 x 5 games = £150k)
Players furloughed, no travel costs, medical costs, additional kit, ground upkeep, policing, stewards etc

Providing next season goes ahead, they should imo be better placed than most businesses but all we're hearing is doom and gloom.

Am I missing something obvious?

It might be cash flow. I think the struggling bit though is really where they consider the impact of BCD income against costs.

 

[rob9872]

Surely all the more reason to finish things and get their share out of the money if that's the case. Also not 10 games income as suggested higher up. 10 games expenditure but only 5 games income (home/away), nothing made from away games.

 

[chiefdave]

Surely all the more reason to finish things and get their share out of the money if that's the case. Also not 10 games income as suggested higher up. 10 games expenditure but only 5 games income (home/away), nothing made from away games.

Given the cost of testing and the loss of revenue due to BCD playing the games would cost clubs far more money than it would generate.

 

[rob9872]

Given the cost of testing and the loss of revenue due to BCD playing the games would cost clubs far more money than it would generate.

The EFL have confirmed they will pay for any testing.
However when I said finish things I don't mean the season, I meant by finishing now so they get their share.

 

[chiefdave]

The EFL have confirmed they will pay for any testing.
However when I said finish things I don't mean the season, I meant by finishing now so they get their share.

Latest media reports are that the EFL intend to use Prenetics for testing and each club will be charged £100K. Clubs will also able to opt out and carry out their own independent testing.

Its not just the testing. We've had cup games with low crowds where we've lost money due to it costing more to stage the game than was generated in revenue. If you remove ticket corporate and advertising revenue every game is going to run at a significant loss.

 

[Flying Fokker]

Behind closed doors.

Wages will go down on signing new contracts. The only hope for the clubs is TV revenue or they are likely to fold. It will be interesting to see if ‘Stay at home fans’ (As opposed to nomads) will take the tv offer up.

 

[speedie87]

Furlough Claims is capped at £2500 a month most players mgm earn a lot More than that!

 

[bawtryneal]

They've had the season ticket money
The tv money will be distributed as normal as soon as a resolution is sought

All they miss is the away fans income and last minute walk ups (most lower league would be 80% ST I'd guess).

Against that smaller loss for approx. 4-5 home games remaining (avg 2000 fans at £15 x 5 games = £150k)
Players furloughed, no travel costs, medical costs, additional kit, ground upkeep, policing, stewards etc

Providing next season goes ahead, they should imo be better placed than most businesses but all we're hearing is doom and gloom.

Am I missing something obvious?

Also they cannot sell season tickets for next season yet , and probably for a few months yet, plus a number of clubs borrow money on the back of future season ticket sales.