450 days later

[BLUEBLOOD]

I was taught..Look after the pennies and the pounds will look after themselves.

Hire a manager to run the shop,He/she hires 1 or 2 staff(profits permitting)and hey presto even if the club earnt an extra £1000 per year..An extra grand is better than a kick up the jacksy.

And if the shop doesn't make a profit ??

 

[blue shrimp]

And if the shop doesn't make a profit ??

We currently have around 10,000 potential customers so the club cannot lose...Can it...Besides the current mob running it must be earning a profit.

 

[BLUEBLOOD]

We currently have around 10,000 potential customers so the club cannot lose...Can it...Besides the current mob running it must be earning a profit.

Pure speculation :p

 

[Firestorm]

61k x 23 =nearly 1.4 million over your supposed 4 years equals around 5.6 million then add 4 years of TV money another 8 million..total nearly 14million?..These are after all your theories..Not mine.

Regarding the supposed 1 million..RM actually stated 900k had been spent on the project.

Regarding Robinson that is the aim of many small club as ourselves to tie players to longish deals and hope for a nice transfer fee.

Don't forget to take off the additional salaries required to compete at Championship levels , 22 players averaging 1k per week extra 1.1m pa
+ the additions like employers NI etc (between 25% and 50% of salary I understand) call it 250K pa
so over the 4 years the increased costs would be 5.4M

The ticket price contains vat so the 5.6M reduces to 4.6 M .

So not including TV revenue we are running at a loss of 200K pa , over and above the current trading loss of 2M PA ,
TV Revenue of 2M PA and basically the club is running at break even...

Remember our last Championship season we only made a profit due to the sale of Freddy.

 

[Firestorm]

We currently have around 10,000 potential customers so the club cannot lose...Can it...Besides the current mob running it must be earning a profit.

Could that be down to them being a large organisation being able to negotiate lower prices than a sole outlet trader ?

Its also a cash flow issue, An annual fee guaranteed hits the accounts ...end of. Not outlay for stock, no interest to pay on the money borrowed to pay for stock, no regular monthy outgoings for salaries etc .

The club will have made the, sensible imho, decision to forgo the potential increase in profit for a guaranteed fixed income. thus ironong out the budgetry issues and regulating an element of the cash flow.

Also the 1000 Robinson shirts mentioned, I would doubt that just because they like a particular player 1000 people would choose to buy a shirt they would no normally purchase. In all honesty i would doubt that any one would buy a shirt because of a particular player , sure they may get Robisons name of their new shirt but they would have bought it anyway.....

 

[blue shrimp]

Could that be down to them being a large organisation being able to negotiate lower prices than a sole outlet trader ?

Its also a cash flow issue, An annual fee guaranteed hits the accounts ...end of. Not outlay for stock, no interest to pay on the money borrowed to pay for stock, no regular monthy outgoings for salaries etc .

The club will have made the, sensible imho, decision to forgo the potential increase in profit for a guaranteed fixed income. thus ironong out the budgetry issues and regulating an element of the cash flow.

Also the 1000 Robinson shirts mentioned, I would doubt that just because they like a particular player 1000 people would choose to buy a shirt they would no normally purchase. In all honesty i would doubt that any one would buy a shirt because of a particular player , sure they may get Robisons name of their new shirt but they would have bought it anyway.....

Do the club use this method on other revenue streams? Catering,car parking.prog sales?I understand your point yet to me any club needing cash badly such as us should be exhausting every avenue to earn the maximum.

Your previous post discribed the 2 million loss?Could you explain why the club paid SEL UK 1 million pounds when the directors of that company are also directors of the football club.

 

[bazzashrimper]

dont forget that everything we sell we don't get full price because we have to pay the tax man some of it.

:O whoops

 

[Firestorm]

Do the club use this method on other revenue streams? Catering,car parking.prog sales?I understand your point yet to me any club needing cash badly such as us should be exhausting every avenue to earn the maximum.

Your previous post discribed the 2 million loss?Could you explain why the club paid SEL UK 1 million pounds when the directors of that company are also directors of the football club.

The only 1M I can see due to SEL was also due in 2007 and 2006 and related ,IIRC, to the release of the loan due to Lansbury. I seem to recall that SEL took on the debt SUFC owed to Lansbury in order to keep the debt "in house"

Catering has been Franchised this season , as the programmes are not printed in house the bulk of the production overhead is already outsourced.
With respect to carparking there is no gain re cash flow to be made from franchising as the carpark is sold out with annual season tickets and therefore there is no potential for fluctations in income and the cash is all taken up front.

The club needs cash badly, as you say , and is willing to take it as a regular guaranteed sum rather than take a bit of a gamble by tying themselves into a cost with the hope that it may make more. Similar to the discount offered to season tickets in a way....

 

[blue shrimp]

The only 1M I can see due to SEL was also due in 2007 and 2006 and related ,IIRC, to the release of the loan due to Lansbury. I seem to recall that SEL took on the debt SUFC owed to Lansbury in order to keep the debt "in house"

Catering has been Franchised this season , as the programmes are not printed in house the bulk of the production overhead is already outsourced.
With respect to carparking there is no gain re cash flow to be made from franchising as the carpark is sold out with annual season tickets and therefore there is no potential for fluctations in income and the cash is all taken up front.

The club needs cash badly, as you say , and is willing to take it as a regular guaranteed sum rather than take a bit of a gamble by tying themselves into a cost with the hope that it may make more. Similar to the discount offered to season tickets in a way....

The shop and catering have been farmed out based purely on the thought of easy money without the hassle?Begs the question if the club cannot be arsed to maximise profits what will they do at FF.

Regarding the million pounds to SEL..Would it have been better spent paying off the taxman?

 

[Firestorm]

Regarding the million pounds to SEL..Would it have been better spent paying off the taxman?

Its not been paid anywhere its been sitting in the accounts as a Creditor for the past 3 years.

At the time SEL lent it to SUFC to pay off Lansbury we were meeting our tax obligations

 

[Firestorm]

The shop and catering have been farmed out based purely on the thought of easy money without the hassle?Begs the question if the club cannot be arsed to maximise profits what will they do at FF.

Its not really a case of without the hassle, its a more down to cashflow . If the club has not got the ready cash to invest in stock or commit to paying staff then they would not be able to maximise the potential in the shop / catering etc. So they did actually maximise the profits available to them at the time.
Regarding FF, they are letting the retail units out , surely that falls short of maximising their profits too, couldn't they run the shops themselves ?? Obviously the answer is no so I can't see much difference.

The majority of stadia franchise out the non footballing activities these days , especially catering.

 

[blue shrimp]

Its not really a case of without the hassle, its a more down to cashflow . If the club has not got the ready cash to invest in stock or commit to paying staff then they would not be able to maximise the potential in the shop / catering etc. So they did actually maximise the profits available to them at the time.
Regarding FF, they are letting the retail units out , surely that falls short of maximising their profits too, couldn't they run the shops themselves ?? Obviously the answer is no so I can't see much difference.

The majority of stadia franchise out the non footballing activities these days , especially catering.

So the big clubs franchise out clubshop and the catering?How many clubs in the championship use this method?Would be very interested to know.

 

[canveyshrimper]

So the big clubs franchise out clubshop and the catering?How many clubs in the championship use this method?Would be very interested to know.

If you want to know, why not do your own research I am sure the info is available on th' internet.

 

[weststander]

So the big clubs franchise out clubshop and the catering?How many clubs in the championship use this method?Would be very interested to know.

Azure Catering currently have Brentford, Carlisle, Falkirk, Hearts, Hibs, Nottingham Forest, Rangers, Oldham, Queens Park Rangers, Murrayfield adn Durham Cricket Club on their books at the moment.

Twas easy to look up and only took a couple of minutes !

http://www.azurecatering.co.uk/