Current financial situation of the club

[Tom's Pasta]

Clearly things are going brilliantly on the pitch for us at the moment and it's fantastic to be enjoying football again after last season's mess.

I just wondered if anyone knows, or can make an educated guess as to how we're shaping up financially at the moment. Promotion is obviously the target for this season but do our finances depend on it? We've offloaded some players on big wages and got some decent money in from sales.

But just over a year ago the club had no money to spend on transfers until we sold Fofana. I know parachute payments come in to it but I can't be the only one who doesn't really understand it entirely.

Discuss?

Edited 24 September 2023 by Tom's Pasta
Spelling

[MattFox]

Without going into the figures we’ll be ok with go straight back up but if we stay down we’ll probably have to start trimming costs

 

We haven’t had any major cost cutting off field this year

[norwichfox]

Thought I saw Top searching down the back of the sofa earlier in the week...

Edited 24 September 2023 by norwichfox

[Spudulike]

23 minutes ago, MattFox said:

Without going into the figures we’ll be ok with go straight back up but if we stay down we’ll probably have to start trimming costs

 

We haven’t had any major cost cutting off field this year

Hope that doesn't mean that we won't be able to take up the option of signing Fatawu. 

[davieG]

On 06/09/2023 at 01:58, Bluearmyfox28 said:

On the basis that we have no more outgoings or incomings, here’s a summary of how the transfer window went:

 

Players brought in (9):

- Coady (£7.5m) Estimated Wage - £40k

- Winks (£10m) Estimated Wage - £40k

- Doyle (Loan £500k) Estimated Wage - £3.5k

- Hermansen (£5m) Estimated Wage - £25k

- Mavididi (£6.5m) Estimated Wage - £25k

- Casadei (Loan) Estimated Wage - £15k

- Akgun (Loan £430k) Estimated Wage - £11k

- Fatawu (Loan) Estimated Wage - £8k

- Cannon (£7.5m) Estimated Wage - £15k

 

Total outcost on player transfers  - £37.4m

Estimated cost on wages per week - £182k

 

Players sold/released (14):

- Evans (Released) Estimated Wage - £100k

- Soyuncu (Released) Estimated Wage - £45k

- Youri (Released) Estimated Wage - £120k

- Amartey (Released) Estimated Wage - £57k

- Mendy (Released) Estimated Wage - £49k

- Bertrand (Released) Estimated Wage - £78k

- Perez (Released) Estimated Wage - £83k

- Hirst (£1.5m) Estimated Wage - £11k

- Maddison (£37.5m) Estimated Wage - £110k

- Barnes (£38m) Estimated Wage - £80k

- Castagne (£11m) Estimated Wage - £67k

- Kristensen (Loan £1m) Estimated Wage £30k

- Thomas (Loan) Estimated Wage £25k

- Soumare (Loan) Estimated Wage £80k

 

Total income on player transfers - £89m 

Estimated savings on weekly wages - £935k

 

Based off the figures I’ve managed to find the club have made a profit of around £51.6m on player turnover. They have also saved around £753k on weekly wages after player turnover, which totals up to a saving on wages of £39.1m per annum.

I know some of the wages may be well off as there is little information released on wages, however, this is based off previous contracts as well as looking at multiple different websites available and finalising a medium. Just thought I would share for anyone that has interest in what the finances potentially look like.

 

 

2 hours ago, Tom's Pasta said:

Clearly things are going brilliantly on the pitch for us at the moment and it's fantastic to be enjoying football again after last season's mess.

I just wondered if anyone knows, or can make an educated guess as to how we're shaping up financially at the moment. Promotion is obviously the target for this season but do our finances depend on it? We've offloaded some players on big wages and got some decent money in from sales.

But just over a year ago the club had no money to spend on transfers until we sold Fofana. I know parachute payments come in to it but I can't be the only one who doesn't really understand it entirely.

Discuss?

 

[Ric Flair]

44 minutes ago, Spudulike said:

Hope that doesn't mean that we won't be able to take up the option of signing Fatawu. 

If we don't go up, I doubt we'll be paying £14m (the option price) for a player. We haven't even done that this summer.

[HitchinFox]

If we only stay in the Championship for one season, relegation could have been a bit of a blessing financially. We got a lot of players (and a manger) off the wage bill who, you could argue, weren't performing at the level expected for the money they were paid. We have also used the income from Barnes and Maddison sparingly.

 

Sure, we're missing a huge load of money from broadcasting this season, but parashute payments soften that particular blow. 

 

If we return to the Prem in 2024-25, we will be much leaner, carrying less costs than we did in our last Prem season.

[Bazly]

Don't forget the £100mn law suit against Everton pending the FFP ruling coming soon. I think if the group action goes ahead then an out of court settlement could land a big pay day and we should return to the EPL on a much lower wage bill than when we left plus a couple of positions have had an upgrade with a firing on all cylinders striker or strike pairing the only obviously missing ingredient. Maybe a Cannon firing will sort that out?

[st albans fox]

1 minute ago, Bazly said:

Don't forget the £100mn law suit against Everton pending the FFP ruling coming soon. I think if the group action goes ahead then an out of court settlement could land a big pay day and we should return to the EPL on a much lower wage bill than when we left plus a couple of positions have had an upgrade with a firing on all cylinders striker or strike pairing the only obviously missing ingredient. Maybe a Cannon firing will sort that out?

nothing of significance coming from that imo in the near term 

even if they are found guilty any claim would take a long time, even if you manage to get a positive outcome (which isn’t certain) 

 

how long did sheff u wait for their £12m from West Ham? 

[st albans fox]

3 hours ago, Ric Flair said:

If we don't go up, I doubt we'll be paying £14m (the option price) for a player. We haven't even done that this summer.

Add that he likely wouldn’t want to spend another season in the championship 

and Lisbon will want to get a fee in from somewhere which wouldn’t be us at those numbers 

[murphy]

3 hours ago, HitchinFox said:

If we only stay in the Championship for one season, relegation could have been a bit of a blessing financially. We got a lot of players (and a manger) off the wage bill who, you could argue, weren't performing at the level expected for the money they were paid. We have also used the income from Barnes and Maddison sparingly.

 

Sure, we're missing a huge load of money from broadcasting this season, but parashute payments soften that particular blow. 

 

If we return to the Prem in 2024-25, we will be much leaner, carrying less costs than we did in our last Prem season.

I can't agree with this.  Even with parachute payments we lose £60m in broadcast revenue straight away.  Also, we sold Maddison and Barnes at half their true value imo due to relegation.  

 

Yes, we needed a refresh, but I don't see any benefit in going down to The Championship to do it.  If we were still a PL team we would have more money to spend and be able to get PL players.  If we do go up, we will have to spend big to get PL quality players anyway.  In other words, we may have to buy twice in some cases.  We threw away ten years of growth in that shambolic last season.  If we go up again, we start again, from scratch, at the bottom of the pile.

 

One thing I can't really understand is how we were bottom of the net spend table over the previous five years for clubs that had spent all five years in The PL.  I know we paid big wages, but how come we were so skint if our net spend was so low?

 

[sacreblueits442]

6 hours ago, Tom's Pasta said:

Clearly things are going brilliantly on the pitch for us at the moment and it's fantastic to be enjoying football again after last season's mess.

I just wondered if anyone knows, or can make an educated guess as to how we're shaping up financially at the moment. Promotion is obviously the target for this season but do our finances depend on it? We've offloaded some players on big wages and got some decent money in from sales.

But just over a year ago the club had no money to spend on transfers until we sold Fofana. I know parachute payments come in to it but I can't be the only one who doesn't really understand it entirely.

Discuss?

...we have had this ongoing discussion on this forum which is constantly being updated!!!

  Not sure why we epuld be looking to go all over this again?

[Babylon]

18 minutes ago, murphy said:

I can't agree with this.  Even with parachute payments we lose £60m in broadcast revenue straight away.  Also, we sold Maddison and Barnes at half their true value imo due to relegation.  

 

Yes, we needed a refresh, but I don't see any benefit in going down to The Championship to do it.  If we were still a PL team we would have more money to spend and be able to get PL players.  If we do go up, we will have to spend big to get PL quality players anyway.  In other words, we may have to buy twice in some cases.  We threw away ten years of growth in that shambolic last season.  If we go up again, we start again, from scratch, at the bottom of the pile.

 

One thing I can't really understand is how we were bottom of the net spend table over the previous five years for clubs that had spent all five years in The PL.  I know we paid big wages, but how come we were so skint if our net spend was so low?

 

We paid out loads in wages, we built a £100m+ training ground and spent a lot of money getting the ground update to the point it did 

[Sol thewall Bamba]

Absolutely crucial we get promoted this season is the upshot of it.

[Babylon]

I’d imagine we banked on getting rid of more players than we have, which means we are probably more in the poo than we thought. But we have more large earners leaving next summer so the expiring contacts have done us a big favour last two years. 

[SemperEadem]

Not skint enough to bin the clappers.

[Ashley]

55 minutes ago, st albans fox said:

Add that he likely wouldn’t want to spend another season in the championship 

and Lisbon will want to get a fee in from somewhere which wouldn’t be us at those numbers 

I wonder if a certain bank would be involved yet again 🤔

[Drink Water]

I don't understand why there hasn't been any updates on the stadium expansion, infrastructure development is irrelevant to FFP, so I wonder what the reason is that they're not getting on with it in the Championship.

[st albans fox]

58 minutes ago, murphy said:

 

 

One thing I can't really understand is how we were bottom of the net spend table over the previous five years for clubs that had spent all five years in The PL.  I know we paid big wages, but how come we were so skint if our net spend was so low?

 

We spent a lot of money on wages and  transfer fees are spread over contract term but I note you write five years which is the standard cycle. It may be that the clubs you’re comparing us to would drop off a bit over the next couple years as their poor purchases catch up with them. 

 

I can only wonder if our poor transfer policy over many years came back to bite us on the bum. 
 

The owners also converted £200m of loans into shares so we can’t say that they didn’t put any cash in either.  otherwise I’d say it was probably that.  

[st albans fox]

23 minutes ago, Drink Water said:

I don't understand why there hasn't been any updates on the stadium expansion, infrastructure development is irrelevant to FFP, so I wonder what the reason is that they're not getting on with it in the Championship.

Yes I think so

it could well be that they also wait to see how we get on next season if we go up before committing 

[Royston.]

I'd say we're fine financially.

 

Everyone will be on reduced wages and our highest wage (Vardy) will be gone after this season

 

If we don't get promoted then expect a drop off in quality recruitment and likely sell KDH, Faes, Ndidi, Nacho will be out of contract???

 

But that would be fully deserved as we couldnt get out of this shìt league.

 

i thought parachute payments all go to paying off the loan so we wont see a penny.

[davieG]

The relegated clubs will receive 55% of the equal share of broadcast revenue paid to Premier League clubs in the first year after relegation; 45% the following year and 20% in year three. The payments stopped if the club was promoted to the Premier League again during the three-year period.28 May 2023

[cityfanlee23]

2 hours ago, Babylon said:

I’d imagine we banked on getting rid of more players than we have, which means we are probably more in the poo than we thought. But we have more large earners leaving next summer so the expiring contacts have done us a big favour last two years. 

[gurru991]

We have a few players in the last year of contract, Ndidi, Iheanacho, Vardy ,Choudhury, Praet , Albrighton & Vestergaard. We will free up salary but will need to purchase replacements so next summer will be very interesting financially.

[jayfox26]

9 hours ago, norwichfox said:

Thought I saw Top searching down the back of the sofa earlier in the week...

He was gutted when all he found down there was Danny Ward