Does anyone know this? I think the 8m is a deficit rather than a debt, as in our club was going to cost us 8m more to run this season than we’d make from income? Rather than it being 8m of debt, where for example we are Xm into our overdraft, have Xm loan to pay off and there’s still Xm deficit left over. If it is all deficit then it’s the wage bill/costs we need to bring down by 8m, rather than we need to raise 8m from sales right? Although I imagine it’ll be a mix of both, bring the wage bill down and use transfer fees gained to pay for the remaining overspend on wages, but if we do it that way and don’t get promoted we are still stuck with the left over deficit next season when all that transfer money is used up paying this seasons wage overspend. Wouldn’t it be safer to sell enough players to remove 8m from wages, rather than sell 8m worth of players. Some of the deficit could be monthly payments of past transfer fees (anyone know?) In which case a mix of reducing wages and raising funds would do it. Sorry for all the questions, i think it’s important we know the breakdown of this, otherwise we are all under the impression that we need to make 8m from sales, which might not be the case. I failed business economics at school so if someone understands this better than I do please enlighten me
I think you might have hit the nail on the head. If you're right though it doesn't look good in the other extreme. Why aren't they backing a Manager that they've head hunted and paid compensation for? It doesn't make sense. Especially now Brittain has gone. It means we now need a right back, central midfielder and striker. I sincerely hope funds are being freed up somehow. When I say that. I mean to actually go out and buy someone.
There's a fairly comprehensive breakdown of the latest accounts here: https://barnsleyfc.org.uk/threads/bfc-accounts-2021.312517/ It's not just a shortfall due to decreased income in League One compared to the Championship, the club was already running at a significant loss due to the actions of the former Chairman. The current board are having to bring wages under control.
I’ve been trying to get this across for some time. And it’s being regularly distorted by people who don’t understand finance or accounting and are repeatedly confusing cash, debt and loss/deficit. We have a £7-8m deficit to reduce. An equity injection subsidises this but does not negate it. Player sales generate cash and maybe a profit element on the p&l but the most important thing is reducing the wage bill.
Stirrer ;-) It’s pretty obvious though isn’t it? If our turnover in league 1 pre any player profits, is £7-8m, we should have more to pay on wages than Cheltenham. Whether we use it well or not is a whole other kettle of fish.
It's a revenue drop. Meaning if we sustain the same expenditure as previously we'd be £7m/£8m worse off at the end of the 'year'. It's also phased over the year, so we don't need to bring in all the cash tomorrow, because not all the 'bills' go out tomorrow. The accountants (Rob Zuk) just need to have confidence we're reducing expenditure and bringing funds in to the club at the same time, which we're doing, to phase the P&L appropriately with all the different factors.
Thanks again Khaled... "I failed business economics at school so if someone understands this better than I do please enlighten me" I'm certain I've rumbled you now
