What I find so difficult to understand, is that we were obviously profitable in the Premiership when we played at the Dell, with gates of @ 16,000. How is it that we could pay 'Premiership wages' then and make profits, yet now we are paying well below that this season, have reduced the playing staff dramatically, yet seem to still be making big losses.
I understand why we made big losses during the passed 2 seasons but what worries me is that it would be almost impossible for us to break even unless we have a full stadium for every home game, and played youth players, with one or two experienced players.
I realise we are paying the mortgage on the stadium which has been widely reported as between £2-4m per year but this should be covered by the lower wages (and obviously the hope that the ground would be full for all home games).
This highlights to me more than I appreciated previously that we have actually been mis-managed since the decision was taken to build the new ground, as this was based on the theory that we would stay in the Premiership for always (with it's TV rights income) and no account was taken of whether we could afford the costs if we would be relegated.
Having seen Charlie's figures, which show well thought through analysis, it worries me that we can't afford to go on without investment, as it is clear that we can't make a profit in the stadium we use. If we were to fill the stadium for the remainder of the games it would generate approximately £4.5-5m extra income which still wouldn't enable us to break even this season. Very worrying............