All clubs at our level can only spend a limited proportion of their income. We have a greater income than all but two or three clubs in this division. So how are we going over budget so much that we need Cryne to subsidise and what the chuff is his cash injection being spent on?
Not a scooby. I'd like it explained too. I can't make it stack up when you look at other clubs in comparison.
This is why I can't understand how people can say we wouldn't survive without his backing. We should just manage our income more efficiently.
I'd rather PC stay tbh but we should be able to do a whole lot more squad wise without his backing, with his backing we should have the best squad in the league. I have no figures to base that on, just comparison with other clubs and my estimates of what our squad is (or should) be costing given that it's largely kids from lower leagues.
I thought owner donations counted as income. So he can choose to put money in and then spend it on wages if we need a higher wage bill.
Maybe Marlon. I'm not saying it's being trousered or owt, it'd just be good to have some understanding in the now, rather than a year or more in arrears as the published accounts are. Too late to have a moan about then.
It was just a thought ponty ,never entered my head you were thinking that tbh. I just think Patrick's taking a lot of stick on presumptions, accounts are printed every year to the best of my knowledge I'm not clever enough to break them down nor do I want to but I'm sure some can.
Yes Under SCMP rules, the total amount that you can pay out in player wages is limited to 60% of Income. All the usual income streams (Gate Receipts, Season Ticket Sales, Transfer Fees Received, Prize money, TV payments and Commercial Income) are included as well as any donations like those from an owner. Owner loans are no longer allowed, so any payments received from an owner now have to be outright donations. The budget as defined by SCMP has absolutely nothing to do with the figures in the Annual Accounts. It is an artificial way of levelling the playing field for all clubs in our division. It was instituted in order to prevent the disastrous overspending that almost led to the demise of many clubs that chased promotion with money they did not have, which in turn led many into Administration. However, I would be very surprised if Patrick Cryne was making donations solely to increase the amount that the club can spend on wages, simply because with only £60 in every £100 donated counting towards the SCMP budget, it is simply not a very efficient way to increase payroll. It is much more likely the PC is making donations when the club nears its overdraft limit in order to fund transfer fees or unexpected lump sum payments like firing managers and hiring new ones, which are not budgeted for and which are not covered under the SCMP rules. It is important that there are two budgets. The maximum budget for payroll is controlled by SCMP. The club will have its own budget that covers everything including the salaries of non-players, the academy, rent, rates etc etc. This will also include a budget for transfer fees and agent fees. As well as a budget, the club will also produce a cash flow statement, which will identify periods of potential shortfall in cash receipts. These will need to be covered by PC. The club has a bank overdraft, and since it has no assets on which the bank could take a charge, PC also acts as the guarantor of the bank overdraft. In other words, if the worst comes about, PC repays the overdraft. It should not be assumed that the club would spend all of its internal budget for transfer fees before the season commences. A wise club will plan for unforeseen circumstances like injuries, and would have something in reserve to cover for these unexpected occurrences. Obviously, I am not privy to any internal information, or any actual numbers. I am making assumptions in order to clarify the situation for you.
I pay my £1 and get a copy of the BFC Accounts, usually in December, but I have no interest in any other club, so I honestly do not know. If the purpose of your question is to say, why is it necessary at BFC when it is not necessary elsewhere I think that the answer probably lies in a comparison of overheads of the respective clubs. These are not broken down in the financial accounts so any attempt by me to identify differences would be pure conjecture. Nevertheless, I would be interested to see how much we spend on the academy each year, as compared in Doncaster for example. Each time that we sell an academy graduate, we pat ourselves on the back and congratulate ourselves on the value of our academy. However, even after the recent Stones and Holgate sales, we could still be in a net loss situation if the cost of the academy is the £!m per annum that was once quoted. It certainly does not look a good investment this year with just 1 win between the Junior team and the U21 team. I drew comparison with Doncaster earlier because we were knocked out of the Youth Cup by them last week. I know that Patrick Cryne is totally committed to the academy, and I would not be surprised if he was contributing to some of its funding. I too am a strong advocate of the academy, but if it were me, I would be looking for some accountability from the academy management.
This is part of the problem. If we do not know what the overheads are at Oakwell and how this relates to income, then it is difficult to say if we can be self sufficient or not. I would expect the academy is fairly costly to fund, but the much praised Crewe Alexandra youth set up has been funded on gates of 3,000. Clubs like Rochdale and Burton have to find the money from somewhere to fund their academies.
The Crewe Academy has produced a lot of good players, which means that it is probably at least self-financing. It has become the natural next step for youngsters rejected by Liverpool, Everton, Manchester United and Manchester City. Jacob Butterfield was rejected by Manchester United, so we have benefited from the high reject rates at the top clubs, but not to the extent that Crewe benefit. I do not even know if Rochdale and Burton have academies, but even if they do, they will not include an indoor training facility, an all weather outdoor training facility and 6 full sized pitches. Personally, as a fan, I do not expect to be in a position to hold the club to account. Such analysis is highly complex in any event. My comment in the previous posting related to Patrick Cryne, who is an accountant by training and who would have the knowledge to do so.
