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Millers Banter: Unofficial Rotherham United Fans Forum / Message Board → Football / Sport / RUFC Related → Turnover, wages and performances
 

Topic: Turnover, wages and performances

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ian
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Turnover, wages and performances
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Rotherham United last year had a turnover of approximately 5 million, which incurred a loss of nearly 0.5 million covered by the parent company. . This was the amount we had to plan as we came into the championship.

Remembering that many of the players were brought in before we knew the result of the Play-off...thus effecting planning but necessary to secure something going forward.

 

Then:

2.3 million is what we get from T.V. money.

New sponsorship might amount to 1 million and an increase in gates of 50k.

A very rough guess, but Im going to say approx 9 million turnover  by the end of this season 2014-15.

My point is not whether my calculations are spot on, but rather to compare.

 

The Championship 2012-13

Barnsley (fairly similar) had the second lowest Gross turnover at 9.1 million. They also had the lowest wage bill at 7.7 million, which is a huge proportion of income.

some Others:

Blackpool 22 million; 11 wages.

Bristol city 8 million; 15 wages

Bolton 35 million; 37 wages.

Burnley 15 and 15.

Cardiff 17 and 32

Huddersfield 11 and 13.

Millwall 12 and 12

Posh 10 and 6...

http://www.theguardian.com/football/2014/may/22/club-by-club-guide-championship-finances-2012-2013

 

 



-- Edited by ian on Sunday 11th of January 2015 09:45:16 PM

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Exetermiller
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Those wages as a proportion of turnover are utterly unsustainable aren't they. They make your eyes water. How on earth this industry survives is beyond me - where the majority of the market players are in permanent debt, rarely make profit. I don't think it took into account transfer fees did it?

Further proves how we are aliens in this league.  Money talks and without sorting the units, G&C, expansion of NYS there is absolutely no way we can survive in that climate



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ian
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Not sure about that.

I wouldn't think it did.

We (and about 60 other clubs) need huge revenue from sponsorship and other asserts as you said. Not just this, but, as TS has already done, the ability and willingness to inject the few million that is allowed by a benefactor (3 mill from this year I think).

Of course the likes of palace and QPR got lucky but what will happen to QPR if they get relegated is anyone's guess. It's worth bearing in mind that leverage buyouts as well as the obvious commercial attractiveness of a club still remain huge loopholes among other tricks of the trade.

Of course, youth development and other infrastructure is exempt


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Millers4Ever
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Probably a good guestimate Ian and thanks.  Yeah I saw that Guardian article last year and it is hard to believe the situation can carry on but it always seems to.  I'm left a bit baffled by Leicester's foraging into the transfer market to be honest. Didn't they fall foul of the financial fairplay rules?

If you are correct in your figures say, how do you/anyone view RUFC's position vis a vis the current transfer market?



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ian
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Current rules:

 

Max permitted loss is 8 million.

 

If loss is between 3 and 8 million then owner can cover loss with equity injection up to the 5 million difference between lowest and max loss allowed. 

 

so, IF, TS, had the cash and wanted to, He could spend up to around 17 million on chasing the dream/establishing ourselves in the championship.

 

Assuming a wage bill of 10 million to capture one or two high earners, then we could spend 7 million on transfers, or any equation the club fancies.

 

The reality is that TS is not the kind of person to be so reckless. I would guess that he does not have that kind of spare cash either.

 

so, the more realistic alternative is that we survive against the odds this year and would probably need to do this for at least 3-4 seasons coupled with great progression on and off the pitch to increase revenue and we might have be able to progress the club to secure its increase in stature going forward.

 

N.B. I think I am right in saying these figures are per season?

 

However, see New Rules on next page for season 2016-17

 

Fair Play tax.jpg.opt860x1173o0,0s860x1173.jpg



-- Edited by ian on Monday 12th of January 2015 01:52:24 PM

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ian
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Financial Fair Play: Championship clubs agree new regulations (new Rules)

Championship clubs have agreed a new set of Financial Fair Play (FFP) regulations to be implemented from the start of the 2016/17 season.

Under the regulations, Championship clubs' finances will be monitored over three seasons during which they will may lose up to £15m without having to detail how that loss will be funded.

At present, clubs must operate with losses of under £3m a season.

Clubs who fail to meet existing FFP rules face a transfer embargo.

Existing Championship FFP rules

2014-15: Losses of no more than £3m, up to £6m with owner investment

2015-16: Losses of no more than £2m, up to £13m with owner investment

The new 'profitability and sustainability' guidelines were agreed at an EGM in Derby on Thursday.

The new rules allow for a club's losses to go beyond the £15m cap over three seasons but not exceed an aggregate of £39m (averaging £13m a season).



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Millers4Ever
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Thanks very much Ian

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