Accounts 22/23

[st albans fox]

we lost ten places so our merit payment was going to be slashed

our broadcast revenue was also depleted re no euro campaign (as was euro match day )

 

looks like we took a hit of almost £40m compared to previous season on those metrics 

 

we sacked Brendan and his team.  Wages and other costs seem to have increased by £29m from 21/22.   They were consistent in previous year so did that sacking cost way more than we thought ????  I’m struggling to work out where increases come from in the playing squad ??

 

so we have those losses together totalling approx £70m more than previous year. our profit on madders and wes were £75m.  

 

presumably people expected us to post losses around £60m  

 

we can see how they’ve probably undercooked that but the additional £20m beyond £70m ….. 

 

the point here is that last June we knew where we stood

we knew we’d broken ffp without selling a further £50m (profit) of players before July 1st.
we made a conscious decision to stick Barnes into 23/24.  Can only assume we thought we’d get a fine in the PL and we were better off trying to keep more of a lid on 23/24 losses because EFL have a history of points deductions and there was no guarantee of promotion 

 

 

 

 

 

[st albans fox]

13 minutes ago, Pliskin said:

They are Morons. 
 

It’s not disrespectful, what’s disrespectful the the ridiculous state they’ve now left us in. There’s no defence at all……. You can’t bring up success as a defence, it’s not even negligence it goes well beyond that. This is a club, that when they already knew they were in breach, still offered Harrison £100k a week……. Knowing they were in breach still have given Winks a reported £80k a week……..

 

This is incompetence, ineptitude, insanity……. To suggest anything other is ridiculous. 
 

Top, cannot run this football club, he has not got a clue what he is doing. And he is surrounded by people who are equally as incompetent. He either needs to sack everyone around him, employ a more competent backroom staff, and then take a step back and just contribute under their advice, sack everyone around him, and sell the club. 
 

He has destroyed his fathers legacy, everything we built up over years has been ruined because of the few absolutely brainless seasons. 
 

A free beer and cake can’t get them out of this one, although it seems a % of the fan base would probably fall for that again……..

Winks isn’t on 80k/week 

BUT he would definitely have a promotion bonus in place (which could equate to that as a budgeted annual total. Eg. 50k/week + 1.5m bonus) 

 

 

[funkyrobot]

1 hour ago, Sly said:

Interesting read - wages and Amortisation are the painful bits. 

 

 

 

Another clickbaity tweet from Maguire. Comparing two clubs with massively differing footballing achievements over that period. Brighton have clearly won the accountants cup but what else have they actually won? They’re also dining out on sales that won’t happen again - £65m for Cucurella and £100m for Caicedo aren’t going to happen in the future. The bank of Chelsea is shut and the players aren’t at Brighton that will command that kind of fee. Their best player Fati is an expensive Barcelona loanee. 

[Itsthejoeker]

22 minutes ago, An Away Move said:

Listening to the ‘When you’re smiling’ podcast. Maguire says Leicester used to be spoken of along with Liverpool and Man City, and think about the company in that sentence, as being the best clubs at data driven player analysis in terms of skill and and return on investment. Somewhere along the way that has been switched off. Didn’t Rodgers once say he doesn’t pay that much attention to data driven models and didn’t some of our scouting analysts leave out of frustration over the last few seasons?

I contribute a huge amount of this to Rodgers, I get the impression he can be very difficult if things don't go his way.

 

I can imagine the "it's clear you don't back me" and "I've been doing this a long time, this is how it works" comments are very persuasive. The bloke must be an absolute master of managing up the chain and persuading his bosses that if they don't dish out this big contract then we won't survive, especially when you compound that with us being in such an uncharted territory post league win.

[st albans fox]

5 minutes ago, funkyrobot said:

Another clickbaity tweet from Maguire. Comparing two clubs with massively differing footballing achievements over that period. Brighton have clearly won the accountants cup but what else have they actually won? They’re also dining out on sales that won’t happen again - £65m for Cucurella and £100m for Caicedo aren’t going to happen in the future. The bank of Chelsea is shut and the players aren’t at Brighton that will command that kind of fee. Their best player Fati is an expensive Barcelona loanee. 

They have more than a few that they bought for less than £10m which are worth £30m plus 

 

their model is way better than ours was because they are were still finding gems which cost <10m and expected low wages whilst qualifying for Europe 

 

we thought that we needed to spend £20m+ and pay 80k/week to do that !! 
 

you can only assume that their recruitment team is far more efficient than ours was. Working harder ?  I believe that they use stats based models to find these guys - research into Tony Bloom and his business’ reveals more 

[Tazfox]

We've really got to hope the academy lads can step up now! Doesn't sound like we will be able to afford to keep some of the contracts expiring at the end of the season. (Ndidi, Yannick, Vardy) and won't be able to spend big to replace them.

 

So hopefully Nelson, Alves and Braybrooke hit the ground running next season

[kenny]

5 minutes ago, st albans fox said:

They have more than a few that they bought for less than £10m which are worth £30m plus 

 

their model is way better than ours was because they are were still finding gems which cost <10m and expected low wages whilst qualifying for Europe 

 

we thought that we needed to spend £20m+ and pay 80k/week to do that !! 
 

you can only assume that their recruitment team is far more efficient than ours was. Working harder ?  I believe that they use stats based models to find these guys - research into Tony Bloom and his business’ reveals more 

We did the same approach under Pearson and Walsh.

 

I suspect our blueprint is now being replicated elsewhere.

[eblair]

How tf did wages increase from 2022. A year we were useless. Who got the wage increases? How is this possible. God they are incompetents running the club

 

Also anyone believe we actually had relegation clauses that meaningfully reduced our wage bill? Club have lied constantly for 2 years 

 

I am so angry. Nonsense about stadium expansion as well. Honestly clowns 

[StanSP]

14 minutes ago, funkyrobot said:

Another clickbaity tweet from Maguire. Comparing two clubs with massively differing footballing achievements over that period. Brighton have clearly won the accountants cup but what else have they actually won? They’re also dining out on sales that won’t happen again - £65m for Cucurella and £100m for Caicedo aren’t going to happen in the future. The bank of Chelsea is shut and the players aren’t at Brighton that will command that kind of fee. Their best player Fati is an expensive Barcelona loanee. 

Buonanotte - £5.3m

Enciso - £9.5m

Valentin Barco - £9m

Baleba - £25m

Mitoma - £2.5m

Adingra - £6m

 

I'm willing to stake that they will see considerable profit on every single one of those players. And that's just a select few.

 

They've absolutely nailed their recruitment over past 4 or 5 years. They'll continue to rake in profits. The question now is can their recruitment model continue to live up to scrutiny over the next few seasons. To be honest, I don't see why it can't. 

[StanSP]

1 minute ago, eblair said:

How tf did wages increase from 2022. A year we were useless. Who got the wage increases? How is this possible. God they are incompetents running the club

Daka, Bertrand, Soumare and Vestergaard signings. 

 

[Fox 4 Life]

Worth listening to Les Ferdinand on the stick to football podcast. The QPR similarities are huge. He covers FFP, how it's impossible to sell the players on high wages etc 

[Tommy Fresh]

21 minutes ago, funkyrobot said:

Another clickbaity tweet from Maguire. Comparing two clubs with massively differing footballing achievements over that period. Brighton have clearly won the accountants cup but what else have they actually won? They’re also dining out on sales that won’t happen again - £65m for Cucurella and £100m for Caicedo aren’t going to happen in the future. The bank of Chelsea is shut and the players aren’t at Brighton that will command that kind of fee. Their best player Fati is an expensive Barcelona loanee. 

Enciso will go for stupid money, and they have a load that will go for considerably more than they paid for them such as, Buonanotte, Adingra, Baleba, Barco. You've also then got the older players who no doubt would fetch decent fees, Mitoma and Estupinan. They have also got Ibrahim Osman lined up to join who in a few years will also go for more then they've paid.

[ozvaldo]

We all better savour the next 7 games.  These could literally be the last 7 games with a decent squad for an incredibly long time.

Thanks to Susan, Jon and Top for royally ****ing us.  

[st albans fox]

8 minutes ago, StanSP said:

Daka, Bertrand, Soumare and Vestergaard signings. 

 

Aren’t they in the previous years accounts ?   New entries for 22/23 would be faes and the Jan signings of VK and souttar.  Fofana dropped out 

[Tommy Fresh]

3 minutes ago, st albans fox said:

Aren’t they in the previous years accounts ?   New entries for 22/23 would be faes and the Jan signings of VK and souttar.  Fofana dropped out 

If you listen to ex pro's a lot of contracts when offered increase annually 

[Foxy_jim]

35 minutes ago, funkyrobot said:

Another clickbaity tweet from Maguire. Comparing two clubs with massively differing footballing achievements over that period. Brighton have clearly won the accountants cup but what else have they actually won? They’re also dining out on sales that won’t happen again - £65m for Cucurella and £100m for Caicedo aren’t going to happen in the future. The bank of Chelsea is shut and the players aren’t at Brighton that will command that kind of fee. Their best player Fati is an expensive Barcelona loanee. 

Well this just isn't true at all. Brighton have stacks of top young players who are worth millions. Pedro, Mitoma, Enciso, Buanacotte and Adnigra off the top of my head would fetch big fees. Fati is not their best player at all far from it. 

[Noahfence]

Might as well just sell Seagrave and turn it into a Tesco 

[Footballwipe]

I just don't get why there was no plan b? It's like we forgot relegation and the FFP rules didn't exist.

 

There's being risky with a strategy of bringing in people on huge salaries with hope of cracking the UCL places, but what was the backup if it didn't work? Was it pure arrogance to think that we A) wouldn't get into the top positions and B) that we wouldn't get relegated?

 

They have stuffed this up, just like we did after the title win. The only saving grace for them then was the enormous money we earned from UCL, meaning we posted a £90m profit, as well as keeping up our "sell a good-un once a year" strategy keeping us in check.

 

The owner is culpable, the board are culpable, those blindly following KPFC are culpable and make no mistake, if we don't get promoted this season we could be languishing in the shitty echelons of the Championship yet again as we work to redress the financial implosion we have bought upon ourselves.

[Rob1742]

The key issue was when Brendan came back in the summer and being told the financial situation.

 

We had a manager with the raving hump on a massive contract who we couldn’t sack as it would have put us in a mess financially. 
 

But what I don’t get is why we were in such a financial mess that June upon his return from holiday?

 

It was as if it was a huge surprise. What created the impending financial disaster and could that have been stopped?

 

It’s tricky as Brendan was a great signing at the time and it worked, we won the FA Cup, we had Puel, so we pulled a trigger and backed a big manager. 
 

In my opinion we have tried to be something we aren’t. We have maybe the best training ground in the world, paid huge wages to keep the likes of Vardy. We got players like Tielemans ahead of other clubs, but in the end we are little old Leicester with a little old Leicester budget.

 

Im not bothered though. Vardy, Maddison, Tielemans, Fofana, Evans, Cambiasso, Kante. We  got and saw players that were clearly above our station and we went on a great journey with them.

 

Think we over did it, well we must have done but we did things I never thought were possible.

 

I suppose it’s like living like a millionaire when you don’t have the money, then get everything repossessed. But you have some great memories and a couple of amazing trophies.

 

 

 

[coolhandfox]

10 hours ago, moore_94 said:

For the books I think it might actually show as a profit? (not sure how it works honestly, @coolhandfox?)

 

Paid about £20m for him on a 5 year contract in 2020

 

We got about £12m for him from Fulham when he had 2 years left

You have to divide the transfer fee by the length of the contract, which give you the yearly amortization of the fee on the debt side of the accounts. 

 

We you sale a player you have to work out the remaining years of the contract and times it by the yearly amortisation figure to give you a overall figure.

 

The you have to take that away from the transfer fee received to give you the postive gain (Profit) on our accounts. 

 

For Castange case I believe we brought him for 21m on a 5 year contract, which means his transfer is amortised at 4.2m a season. 

 

If we sold him for 12m with two years left, that 12m - (4.2m x 2 years) 8.4m = 3.6m profit  

 

However we may have carried out Player Impairment as a result of relegation which reduces the value of the squad, which can impact of the remaining amortised figure for each player which can change that calculation.  

[Ricey]

16 minutes ago, Rob1742 said:

The key issue was when Brendan came back in the summer and being told the financial situation.

 

We had a manager with the raving hump on a massive contract who we couldn’t sack as it would have put us in a mess financially. 
 

But what I don’t get is why we were in such a financial mess that June upon his return from holiday?

 

It was as if it was a huge surprise. What created the impending financial disaster and could that have been stopped?

 

It’s tricky as Brendan was a great signing at the time and it worked, we won the FA Cup, we had Puel, so we pulled a trigger and backed a big manager. 
 

In my opinion we have tried to be something we aren’t. We have maybe the best training ground in the world, paid huge wages to keep the likes of Vardy. We got players like Tielemans ahead of other clubs, but in the end we are little old Leicester with a little old Leicester budget.

 

Im not bothered though. Vardy, Maddison, Tielemans, Fofana, Evans, Cambiasso, Kante. We  got and saw players that were clearly above our station and we went on a great journey with them.

 

Think we over did it, well we must have done but we did things I never thought were possible.

 

I suppose it’s like living like a millionaire when you don’t have the money, then get everything repossessed. But you have some great memories and a couple of amazing trophies.

 

 

 

 

Either the club didn't care about PSR, did the maths wrong or, more likely, they expected to sell a few players. Tielemans, Soyuncu, Vestergaard, Praet, Soumare, Choudhury etc etc. I think the club were confident that they could shift a few of those out, oblivious to the fact that no one was ever going to give us a good offer and no one can afford their inflated wages.

[Lesta2014]

1 minute ago, Ricey said:

 

Either the club didn't care about PSR, did the maths wrong or, more likely, they expected to sell a few players. Tielemans, Soyuncu, Vestergaard, Praet, Soumare, Choudhury etc etc. I think the club were confident that they could shift a few of those out, oblivious to the fact that no one was ever going to give us a good offer and no one can afford their inflated wages.

And we’ve still gone a given choudhury a new contract

[Ricey]

What I find staggering is that we lost £90m despite PL TV money and selling our two most prized assets. That is terrifying and makes me think that we have at least 2 more breaches coming for this season and next.

 

What I also find staggering, but at the same time predictable, is that the clubs defence is "Well, we earnt the right to spend that sort of money because of sporting merit". I've not read the PSR guidelines thoroughly, but I can assure you that there is no mitigation or consideration for sporting merit. The only way you can safely afford to ramp up your investment is to increase your revenue.

 

It sounds like the club started to budget for finishing in Europe (or at the very least in the top half) AND selling a high value player, all the while not budgeting for the fact that we might at some point need to sack one of the highest paid managers in the world and letting the wage bill run wild. That is not a safe or sustainable business plan. It was also going to end in disaster the minute we had a bad season. Even if we had finished in the European places last season, we probably still would have breached.

 

Our wage bill vs revenue has been alarming for years. This has been staring the club in the face and they've done little about it.

[Ricey]

9 minutes ago, Lesta2014 said:

And we’ve still gone a given choudhury a new contract

My only hope with that is that he's on reduced terms, knowing that if he had left on a free then there was no way he'd get a contract anywhere near like the one he had previously.

[coolhandfox]

Worth remembering this is for a 13 month period instead of a 12 month period, which has a negative impact on the figures for example:

 

If you do some crude math on on the wage bill of 206m (15.8m a month) it 190m for a 12 month period.

 

So you have to remember that when comparing to last years accounts. 

Edited 3 April 2024 by coolhandfox