jamsmasher
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- Feb 8, 2011
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I don't imagine my situation is that uncommon. I think I've moved up through the leagues too quickly for my own good. Firstly, for an idea of the rise:
Obviously started in 2010 and fortuitously went up through the play-offs in 2012 and 2013 before a frustrating spell in League Two was dramatically ended with a overhauled formation.
So as a non-league club, I'd be in debt for the duration of the season, but prize and TV money would see me temporarily slip into the green until October and November swung by and the debt would accumulate once more. As I rose and grew, the debt grew from what might be £50k in the off-season in the Blue Square South to £300k+ in League Two, but I'd keep my head above water in the summer as the increase in wage payments was matched by increases in prize money and solidarity payments. The board also helped out with several cash injections of £30k-£50k.
The problem now is that I'm in League One. From what I gather, solidarity payments are the same as they are for League Two and television and prize money isn't that much more than in League One. The board, however, were keen to increase my League Two budget (which probably went from £12k to £15k a week) to £26k in my first year in League Two. I was only too happy to make use of that and my wage bill rose to around £23k.
Because of my quick rise up the leagues, I've been successful in holding on to my best players and have just once sold a player that I probably would have like to have kept. On reflection, I would have kept him. He went for £100k in the summer of 2017; I thought I'd let him go as it seemed like a lot of money at the time. Anyway, it's turned that that was only really a drop in the ocean.
The club is now £620k in debt and it's October, despite a summer cash injection of just over £400k. The debt was around £900k at the end of last season. I'm now a reasonably strong League One club with ticket prices at £14.70 a head (a rise of about £4 since the Blue Square South days) and a stadium capacity of 4,200 (950 seated), facilities that haven't been upgraded since I began and a debt which will easily pass £1M. The board has also reined in the wage budget to £23k a week. With the need to satisfy my young squad's demand for signing-on fees and year-on-year gradually increasing wages, the lack of any players who could demand a substantial fee (£500k+), the introduction of agents into my players' lives, a tiny stadium and a debt which will easily surpass £1M in the summer, what am I to do?
Do boards ever choose to take loans out? Am I to rely on cash injections? Or the ultimate resignation of my chairman who "loves the club"? How common is administration and a subsequent point docking?
Cheers!
---------- Post added at 01:03 AM ---------- Previous post was yesterday at 04:50 AM ----------
bump
Obviously started in 2010 and fortuitously went up through the play-offs in 2012 and 2013 before a frustrating spell in League Two was dramatically ended with a overhauled formation.
So as a non-league club, I'd be in debt for the duration of the season, but prize and TV money would see me temporarily slip into the green until October and November swung by and the debt would accumulate once more. As I rose and grew, the debt grew from what might be £50k in the off-season in the Blue Square South to £300k+ in League Two, but I'd keep my head above water in the summer as the increase in wage payments was matched by increases in prize money and solidarity payments. The board also helped out with several cash injections of £30k-£50k.
The problem now is that I'm in League One. From what I gather, solidarity payments are the same as they are for League Two and television and prize money isn't that much more than in League One. The board, however, were keen to increase my League Two budget (which probably went from £12k to £15k a week) to £26k in my first year in League Two. I was only too happy to make use of that and my wage bill rose to around £23k.
Because of my quick rise up the leagues, I've been successful in holding on to my best players and have just once sold a player that I probably would have like to have kept. On reflection, I would have kept him. He went for £100k in the summer of 2017; I thought I'd let him go as it seemed like a lot of money at the time. Anyway, it's turned that that was only really a drop in the ocean.
The club is now £620k in debt and it's October, despite a summer cash injection of just over £400k. The debt was around £900k at the end of last season. I'm now a reasonably strong League One club with ticket prices at £14.70 a head (a rise of about £4 since the Blue Square South days) and a stadium capacity of 4,200 (950 seated), facilities that haven't been upgraded since I began and a debt which will easily pass £1M. The board has also reined in the wage budget to £23k a week. With the need to satisfy my young squad's demand for signing-on fees and year-on-year gradually increasing wages, the lack of any players who could demand a substantial fee (£500k+), the introduction of agents into my players' lives, a tiny stadium and a debt which will easily surpass £1M in the summer, what am I to do?
Do boards ever choose to take loans out? Am I to rely on cash injections? Or the ultimate resignation of my chairman who "loves the club"? How common is administration and a subsequent point docking?
Cheers!
---------- Post added at 01:03 AM ---------- Previous post was yesterday at 04:50 AM ----------
bump