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Post by Pseudoscally on Apr 26, 2017 6:19:43 GMT
I was just trying to work out why our playing budget is so low compared to others in the league. So, I've had a quick look through our last P/L account summary from the end of May 2016.
Our total revenue was £1,224,907 with a gross profit of £1,009,127 . I couldn't find a more detailed breakdown although I do remember receiving it at some point.
I do realise it costs a great deal to run a football club but surely with that amount of revenue coming into the club there are ways we can increase the playing budget substantially through cost savings.
Our playing budget is said to be around the £350k mark - surely an increase of 20-25% has got to be realistic and a priority to have some hope for next season.
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Post by Blue boy on Apr 26, 2017 6:43:45 GMT
I was just trying to work out why our playing budget is so low compared to others in the league. So, I've had a quick look through our last P/L account summary from the end of May 2016.
Our total revenue was £1,224,907 with a gross profit of £1,009,127 . I couldn't find a more detailed breakdown although I do remember receiving it at some point.
I do realise it costs a great deal to run a football club but surely with that amount of revenue coming into the club there are ways we can increase the playing budget substantially through cost savings.
Our playing budget is said to be around the £350k mark - surely an increase of 20-25% has got to be realistic and a priority to have some hope for next season. Gross Profit of over a Million !!!
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Post by Pseudoscally on Apr 26, 2017 7:24:50 GMT
I was just trying to work out why our playing budget is so low compared to others in the league. So, I've had a quick look through our last P/L account summary from the end of May 2016.
Our total revenue was £1,224,907 with a gross profit of £1,009,127 . I couldn't find a more detailed breakdown although I do remember receiving it at some point.
I do realise it costs a great deal to run a football club but surely with that amount of revenue coming into the club there are ways we can increase the playing budget substantially through cost savings.
Our playing budget is said to be around the £350k mark - surely an increase of 20-25% has got to be realistic and a priority to have some hope for next season. Gross Profit of over a Million !!! I know it sounds a lot but, as I said, I do realise it costs a great deal to run a football club. I do however think that there must be scope for cost savings with a view to increasing the playing budget.
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Post by thebluecamp on Apr 26, 2017 7:41:55 GMT
Impressive, but the nett profit / loss is the key figure.
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Post by TheTheremin on Apr 26, 2017 7:59:24 GMT
If we get decent money for Hughes rather than banking it all in the rainy day fund we do need to invest a little more on the playing/management side. Number one priority is a full time experienced assistant for McCarthy. I'm certain that is where it has gone wrong on match days recently. With a little more tactical nous to close out the latter stages of games we'd be on 60+ points.
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Post by Al on Apr 26, 2017 8:06:26 GMT
How many times does it need to be said?
Our budget is low in comparison as most other clubs are bankrolled and are unsustainable.
Plus the guy on about profit of a million. You sir would fall at the first hurdle on Dragons Den!
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Post by Pseudoscally on Apr 26, 2017 9:41:36 GMT
How many times does it need to be said? Our budget is low in comparison as most other clubs are bankrolled and are unsustainable. Plus the guy on about profit of a million. You sir would fall at the first hurdle on Dragons Den! I do understand the difference between Gross and Net profit and I really do understand the costs associated with running the FC.
I just think we can be smarter on what we're spending and where we're spending it in order to try and increase the playing budget to hopefully have a competitive team next season.
A priority for the board would be to identify anywhere in the football club where significant savings could be made.
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Post by Lino2 on Apr 26, 2017 9:48:00 GMT
Good call. Get in touch with Lawrence Kirby the financial director at the club, perhaps he's not thought of this.
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Post by Superman on Apr 26, 2017 10:27:12 GMT
Listening to the presentations at the recent CFU meeting it is clear that Lawrence Kirby rightly seeks vigorous justification for expenditure. Mark Maguire explained that part of his role was to try and ensure that better value is obtained for services we buy. This was illustrated by the several hundred pounds saving per overnight stay that he has negotiated. He is also trying to ensure that fund raising is targeted correctly and not putting the club at risk. An example being the introduction of the now regular car boot sale run by an outside concern at no risk to the club but if successful could bring in between 7 and 10k per year. When run internally one of the two events lost the club money. I left the meeting feeling that the club is starting to operate in a smarter way off the pitch, and that additional financial income either through better targeted income streams or reduction in waste will make the fan owned model more sustainable. Whether this will be sufficient to eventually put the club in a position to challenge at the top of the National League and whether it will happen quickly enough to give better playing resources next year I guess we will have to wait and see and pass judgement then.
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Post by Pseudoscally on Apr 26, 2017 10:47:11 GMT
Listening to the presentations at the recent CFU meeting it is clear that Lawrence Kirby rightly seeks vigorous justification for expenditure. Mark Maguire explained that part of his role was to try and ensure that better value is obtained for services we buy. This was illustrated by the several hundred pounds saving per overnight stay that he has negotiated. He is also trying to ensure that fund raising is targeted correctly and not putting the club at risk. An example being the introduction of the now regular car boot sale run by an outside concern at no risk to the club but if successful could bring in between 7 and 10k per year. When run internally one of the two events lost the club money. I left the meeting feeling that the club is starting to operate in a smarter way off the pitch, and that additional financial income either through better targeted income streams or reduction in waste will make the fan owned model more sustainable. Whether this will be sufficient to eventually put the club in a position to challenge at the top of the National League and whether it will happen quickly enough to give better playing resources next year I guess we will have to wait and see and pass judgement then. All sounds positive and I'm glad the club are taking this approach. I'd go further regarding overnight stays. Are they really necessary?
When a saving is found is that going to directly be added to the playing budget or just left in the pot?
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Post by sqzl on Apr 26, 2017 10:55:11 GMT
Impressive, but the nett profit / loss is the key figure. Exactly...too many will read into this as us making a wedge, we aren't guys. As for the car boot sales it's all good and well making us 7-10k a year, but MM is probably on a fair wage, and if that's all he's saving us surely LK could think about saving money on a wage. What he's suggesting is part of his role is simple procurement procedures any company should be following to look for the lowest price, with respect, doesn't take a CEO to work that out.
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Post by Common Sense on Apr 26, 2017 11:09:38 GMT
We now have two accountants on the board, I think they'll have a better idea of how to finance a business than Devachat!
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Post by sqzl on Apr 26, 2017 11:11:36 GMT
We now have two accountants on the board, I think they'll have a better idea of how to finance a business than Devachat! That said, accountants don't look for the best deals, procurement do that. Trust me i am one.(Not for CFC obv) We control finances yes, but that doesn't include saving money on hotels etc, that is purely commercial or procurement side.
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Post by Superman on Apr 26, 2017 11:28:46 GMT
The car boot was just one example. You are right it shouldn't need the CEO to be the one to sort out best value etc, but clearly before his appointment the club was not operating smartly enough and he seems to have the clout and determination to drive through these improvements. Time will tell how successful he is. The reliance on a few part time volunteers alone, no matter how talented or committed, can not realistically be expected to always deliver best practice. I found it informative to attend a CFU meeting and have the opportunity to both listen and talk to officers of the club. I recommend it to others.
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Post by mcseal on Apr 26, 2017 11:36:12 GMT
All sounds positive and I'm glad the club are taking this approach. I'd go further regarding overnight stays. Are they really necessary?
Didn't seem to do us much good last Saturday !
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Post by bethnalblue on Apr 26, 2017 11:49:19 GMT
But they did at Eastleigh and Torquay Utd.
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Post by kdkdkd on Apr 26, 2017 13:22:18 GMT
But they did at Eastleigh and Torquay Utd. And last week for sutton
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Post by dmcnally on Apr 26, 2017 13:22:46 GMT
Listening to the presentations at the recent CFU meeting it is clear that Lawrence Kirby rightly seeks vigorous justification for expenditure. Mark Maguire explained that part of his role was to try and ensure that better value is obtained for services we buy. This was illustrated by the several hundred pounds saving per overnight stay that he has negotiated. He is also trying to ensure that fund raising is targeted correctly and not putting the club at risk. An example being the introduction of the now regular car boot sale run by an outside concern at no risk to the club but if successful could bring in between 7 and 10k per year. When run internally one of the two events lost the club money. I left the meeting feeling that the club is starting to operate in a smarter way off the pitch, and that additional financial income either through better targeted income streams or reduction in waste will make the fan owned model more sustainable. Whether this will be sufficient to eventually put the club in a position to challenge at the top of the National League and whether it will happen quickly enough to give better playing resources next year I guess we will have to wait and see and pass judgement then. All sounds positive and I'm glad the club are taking this approach. I'd go further regarding overnight stays. Are they really necessary?
When a saving is found is that going to directly be added to the playing budget or just left in the pot?
Was thinking this myself. If overnight stays cost £1.9k a time, and we stay overnight four or five times a season, that's just short of £10k we could be saving right there. Quite often reducing your costs can be easier than increasing your revenue!
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Post by sqzl on Apr 26, 2017 13:25:43 GMT
All sounds positive and I'm glad the club are taking this approach. I'd go further regarding overnight stays. Are they really necessary?
When a saving is found is that going to directly be added to the playing budget or just left in the pot?
Was thinking this myself. If overnight stays cost £1.9k a time, and we stay overnight four or five times a season, that's just short of £10k we could be saving right there. Quite often reducing your costs can be easier than increasing your revenue! In the same sense though, it's difficult to expect the players to get a coach to Torquay, play to the best of their ability, and get a coach back that same day. I appreciate fans do that, but as a player i can imagine i'd want to be down there the night before and not be on an early morning coach.
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Post by dmcnally on Apr 26, 2017 13:32:47 GMT
Was thinking this myself. If overnight stays cost £1.9k a time, and we stay overnight four or five times a season, that's just short of £10k we could be saving right there. Quite often reducing your costs can be easier than increasing your revenue! In the same sense though, it's difficult to expect the players to get a coach to Torquay, play to the best of their ability, and get a coach back that same day. I appreciate fans do that, but as a player i can imagine i'd want to be down there the night before and not be on an early morning coach. Yeah sorry forgot to add that t the end of my post, that one or two games we may have to stay over. But there again; one or two is less than four or five and so thats a few grand saved.
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