Lallana's Left Peg Posted 31 March, 2014 Share Posted 31 March, 2014 The transfer fee liabilities will restrict what we can do in the market, but at the same time our financial status means we aren't desperate for money. The big issue as I see it? The need to increase revenue streams in order to be able to offer new contracts to those who need them. Given how low it appears to be at the moment there should be plenty of growth ther However, recoup our Osvaldo fee and spend half that on a new striker and we're in ok shape. Might get awkward if our best players are willing to stay but want to see some more investment though... Link to comment Share on other sites More sharing options...
Alain Perrin Posted 31 March, 2014 Share Posted 31 March, 2014 Pretty standard practice for new management to highlight the things that need to be fixed. Rare (or rather stupid) is the person that comes in and says "all great here, no way I can better it". The committed transfer figure is high but an understandable tail given the bubble of spending on getting promotion spread over a number of years. Osvaldo, Gaston, Wanyama and Lovren probably account for most of that. If we assume that every player we sign or sell we pay for or get paid for over 3 years, then the key question what is a sustainable figure? Link to comment Share on other sites More sharing options...
Lallana's Left Peg Posted 31 March, 2014 Share Posted 31 March, 2014 If we assume that every player we sign or sell we pay for or get paid for over 3 years, then the key question what is a sustainable figure? Hard to work out as you need to take into account wages, and new contracts can spike that quickly if you've had a successful season. The good news is that an 8th place finish this season should garner around £80m in total TV revenue, up around £35m from last season based on the new contract and improving our league position by a fantastic 6 places in one season. We still have lots of financial flexibility but it is clear with those liabilities that we won't be big spenders for a few years. I'm just fine with that but we must continue to improve in other ways which means keeping the players we've got and continuing to make progress. The emphasis shifts even more on the Academy. Link to comment Share on other sites More sharing options...
toofarnorth Posted 31 March, 2014 Share Posted 31 March, 2014 I owe a shed load of money on a mortgage but am financially sound. Stupid headline. Link to comment Share on other sites More sharing options...
aintforever Posted 31 March, 2014 Share Posted 31 March, 2014 It sure does... Hofstetter says: "That past means Southampton will begin next season with a transfer debt of £27m - despite already repaying £21m of fees this season alone - but Hofstetter says that will not lead to the sale of star players such as Luke Shaw, Jay Rodriguez and Adam Lallana. "The most important point is that we are in a position where we do not need to sell any player Mauricio [Pochettino] wants to keep," Hofstetter added." "Whilst I perceive that we have inherited a difficult situation financially, there are now clear and structured plans in place to progress the club and avoid a similar situation from occurring again," Hofstetter said in a statement. Cortese was at Southampton from 2009 and was widely credited with helping to bring stability off the pitch after years of financial turmoil. However, Hofstetter says the new board must act now to eradicate some of the "burdens" of that regime. We do not HAVE to sell anyone because we are owned by a billionaire but reading the above I think we probably will. Link to comment Share on other sites More sharing options...
fanimal Posted 31 March, 2014 Share Posted 31 March, 2014 Check out the BBC Board saying financial situation difficult. FGS! After all the water extraction of the Skates, do not want this. At least saying do not have to sell players MOPO wants to keep. Link to comment Share on other sites More sharing options...
Bearsy Posted 31 March, 2014 Share Posted 31 March, 2014 "Whilst I perceive that we have inherited a difficult situation financially, there are now clear and structured plans in place to progress the club and avoid a similar situation from occurring again," Hofstetter said in a statement. Cortese was at Southampton from 2009 and was widely credited with helping to bring stability off the pitch after years of financial turmoil. However, Hofstetter says the new board must act now to eradicate some of the "burdens" of that regime. We do not HAVE to sell anyone because we are owned by a billionaire but reading the above I think we probably will. pls listen to aint on this cos these are his financials. He is v.much ITK on this. Link to comment Share on other sites More sharing options...
trousers Posted 31 March, 2014 Author Share Posted 31 March, 2014 Some stats for comparison.... (albeit from this time last year)... http://www.theguardian.com/football/2013/apr/18/premier-league-finances-club-by-club Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 31 March, 2014 Share Posted 31 March, 2014 These comments from Freddy are a little depressing. Good while it lasted, although we have no medals to show for it Link to comment Share on other sites More sharing options...
Clapham Saint Posted 31 March, 2014 Share Posted 31 March, 2014 If (and that's IF) the level of transfer fees owed and cost controls are considered a major issue by KL, it does seem a little odd for the former Chief Financial Officer to have been promoted to Chief Executive Officer (or whatever his job title actually is now). Link to comment Share on other sites More sharing options...
trousers Posted 31 March, 2014 Author Share Posted 31 March, 2014 These comments from Freddy are a little depressing. Good while it lasted, although we have no medals to show for it Bite potential rating = 9.3/10 Link to comment Share on other sites More sharing options...
Bearsy Posted 31 March, 2014 Share Posted 31 March, 2014 These comments from Freddy are a little depressing. Good while it lasted, although we have no medals to show for it man imagine how f*cked we'd be if we went down! tbf on ole cortese tho this big bump in tv earnings would seem to cover the shortfalls, i don't think we're quite in position where big kat has to start worry where her next meal is come from Link to comment Share on other sites More sharing options...
hypochondriac Posted 31 March, 2014 Share Posted 31 March, 2014 If (and that's IF) the level of transfer fees owed and cost controls are considered a major issue by KL, it does seem a little odd for the former Chief Financial Officer to have been promoted to Chief Executive Officer (or whatever his job title actually is now). Could have just been following orders? Link to comment Share on other sites More sharing options...
Sour Mash Posted 31 March, 2014 Share Posted 31 March, 2014 If (and that's IF) the level of transfer fees owed and cost controls are considered a major issue by KL, it does seem a little odd for the former Chief Financial Officer to have been promoted to Chief Executive Officer (or whatever his job title actually is now). Why is it odd? Link to comment Share on other sites More sharing options...
DuncanRG Posted 31 March, 2014 Share Posted 31 March, 2014 Interesting stuff. Don't fully understand the ins and outs of it but I certainly won't rely on you lot to interpret. Most important thing is that we won't have to sell any players for financial reasons. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Colinjb Posted 31 March, 2014 Share Posted 31 March, 2014 Not too bad overall. The transfer fees already owed are a concern but the value of the playing staff should offset them should the sh*t hit the fan. There does appear to be a shift in income emphasis, trying to make the club more self reliant. The hospitality boxes at the Newcastle game appeared to be nearly 90% taken, a stark contrast to earlier in the season. The intention is clearly for us to be self sufficient away from the Leibherr's fortunes and now steps can be taken to make that happen. The lasting legacy of the academy and infrastructure is a wonderful gift to behold. (Worth noting that the transfer fees owed would have been mostly offset by the increase in academy project spend..... I wonder how big a point of contention that was?) Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 31 March, 2014 Share Posted 31 March, 2014 So mopo wants "champions league" Freddy wants "clear and structured plans in place to progress the club and avoid a similar situation from occurring again" Link to comment Share on other sites More sharing options...
ToreSF Posted 31 March, 2014 Share Posted 31 March, 2014 £50 Million so we can pursue our Champions League aims. Idiot. Link to comment Share on other sites More sharing options...
Clapham Saint Posted 31 March, 2014 Share Posted 31 March, 2014 Why is it odd? Because the CFO should be keeping control of these things. If (again IF) this is a major problem then you wouldn't expect him to them be put in day to day control of the whole club. Of course the alternatives are that either he was fighting against the problems and was over ruled by NC (as hypo suggests), or it isn't considered an issue by KL - in which case no problem. Link to comment Share on other sites More sharing options...
Lallana's Left Peg Posted 31 March, 2014 Share Posted 31 March, 2014 So mopo wants "champions league" Freddy wants "clear and structured plans in place to progress the club and avoid a similar situation from occurring again" They aren't mutually exclusive, although more than fair to say the latter significantly decreases our changes of the former given how much money those above us spend. What do we think the limit of the team is if our players stay and reach their potential? As the squad evolves then depth will be sorted, and the potential of our players is scary. Keeping them together will be incredible hard. Link to comment Share on other sites More sharing options...
Olallana Posted 31 March, 2014 Share Posted 31 March, 2014 So mopo wants "champions league" Freddy wants "clear and structured plans in place to progress the club and avoid a similar situation from occurring again" Curious how you get Hans Hofstetter and/or Gareth Rogers to the nickname "Freddy"......? Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 31 March, 2014 Share Posted 31 March, 2014 They aren't mutually exclusive, although more than fair to say the latter significantly decreases our changes of the former given how much money those above us spend. What do we think the limit of the team is if our players stay and reach their potential? As the squad evolves then depth will be sorted, and the potential of our players is scary. Keeping them together will be incredible hard. Its a good question. I honestly think our best 11 is as good as Everton, Man U, Spurs and alot better than Newcastle, Stoke, Hull. Problem we have is quality in depth. Was hoping we would clear some dead wood this summer and bring in 3-4 with same ability as Wanyama and Lovren. Not sure this will happen now Link to comment Share on other sites More sharing options...
skintsaint Posted 31 March, 2014 Share Posted 31 March, 2014 Thing is the huge increase in TV money in 2013-14 will cover those losses basically. I know its more complex that that but I wouldn't panic about these figures. Link to comment Share on other sites More sharing options...
Sour Mash Posted 31 March, 2014 Share Posted 31 March, 2014 Because the CFO should be keeping control of these things. If (again IF) this is a major problem then you wouldn't expect him to them be put in day to day control of the whole club. Of course the alternatives are that either he was fighting against the problems and was over ruled by NC (as hypo suggests), or it isn't considered an issue by KL - in which case no problem. I think the statements from the club this morning have answered that one. Link to comment Share on other sites More sharing options...
Barry Sanchez Posted 31 March, 2014 Share Posted 31 March, 2014 Where will this £50m come from in this self reliant model? It wont but it will put to bed the doubters who think the club is talking out its arse. Link to comment Share on other sites More sharing options...
Deano6 Posted 31 March, 2014 Share Posted 31 March, 2014 More reliance on tv rights to secure players, awful business model for all clubs to have, we dont get the money to keep the players, agents and tax man does. What would "we" keeping the money entail? The owners withdrawing it and keeping it for themselves? Having it sit in a bank account unspent? One off distribution to SWF Full Members? Why are any of these better for SFC than spending it on improving the playing squad? Link to comment Share on other sites More sharing options...
Barry Sanchez Posted 31 March, 2014 Share Posted 31 March, 2014 man imagine how f*cked we'd be if we went down! tbf on ole cortese tho this big bump in tv earnings would seem to cover the shortfalls, i don't think we're quite in position where big kat has to start worry where her next meal is come from She could skip a meal or two and would be fine I would say. Link to comment Share on other sites More sharing options...
Tokyo-Saint Posted 31 March, 2014 Share Posted 31 March, 2014 No, it is massive Barry backtracking. What I don't get is that if he was going to say something ridiculous why not do a good offer? A fiver subscription is nothing. Why not throw in a car and a holiday Barry? Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 31 March, 2014 Share Posted 31 March, 2014 It wont but it will put to bed the doubters who think the club is talking out its arse. Also makes it hard for mopo to stay imho 1) i will definitly leave if Nicola leaves backtracked 2) wants champions league - club doesnt seem to be singing from same hymn sheet? Backtrack again? Is mopos stock now as high as its going to go under us? He will want reassurances on spending before signing a new deal, and the comments today dont excite me Link to comment Share on other sites More sharing options...
farawaysaint Posted 31 March, 2014 Share Posted 31 March, 2014 She could skip a meal or two and would be fine I would say. You are a disagreeable little troll. Link to comment Share on other sites More sharing options...
Barry Sanchez Posted 31 March, 2014 Share Posted 31 March, 2014 No, it is massive Barry backtracking. What I don't get is that if he was going to say something ridiculous why not do a good offer? A fiver subscription is nothing. Why not throw in a car and a holiday Barry? I'll buy you a holiday to wherever you want to go, I am distraught because I really bought into "the we are going into the Champions League with a 50,000 stadium and players from all over the globe shall know us" squad, I am gutted. Link to comment Share on other sites More sharing options...
Barry Sanchez Posted 31 March, 2014 Share Posted 31 March, 2014 You are a disagreeable little troll. Why is that a trollish comment, we all could be fine by skipping a meal or two, we have the means to get by. Link to comment Share on other sites More sharing options...
trousers Posted 31 March, 2014 Author Share Posted 31 March, 2014 From the horses' mouths... BBC Solent Sport @solentsport EXCLUSIVE #saintsfc financial results. CEO Gareth Rogers and director Hans Hofstetter talk to @biga... https://audioboo.fm/boos/2033417-exclusive-saintsfc-financial-results-ceo-gareth-rogers-and-director-hans-hofstetter-talk-to-bigadamsport … via @audioboo Link to comment Share on other sites More sharing options...
Bearsy Posted 31 March, 2014 Share Posted 31 March, 2014 No, it is massive Barry backtracking. What I don't get is that if he was going to say something ridiculous why not do a good offer? A fiver subscription is nothing. Why not throw in a car and a holiday Barry? needs to have more courage in convictions, like goatboy who even for the most minor disagreement immediately puts the life of his first born son on the line Link to comment Share on other sites More sharing options...
Daft Kerplunk Posted 31 March, 2014 Share Posted 31 March, 2014 So, TV money and future TV money guaranteed by us staying in the PL, investment in playing squad and training ground was needed to make this a reality (sign better players, increase overall standards in squad and competitiveness). Need to generate greater commercial revenue. Err, definitely, and realise it is a global environment that we can benefit from. See Ralph (never ever going to call him Freddy) Krueger's ambition to make more revenue globally. Better sponsorship deals, will be helped by not having the person at the top be difficult to work with (as some suggest) Current position is that we owe some money, but who doesn't. I don't read any of this as needing to sell, or that we won't buy new talent, just that it will be done in a measured and calculated way, and that we will generate greater revenue. Also, it is, as others have pointed out, in the best interests of everyone at the club to suggest we don't have as much money as they might think (works for transfers in as well as out), and that there were things not done in the best way under previous regime; hardly a new development in new structural announcements. Essentially, very little to see here until we know how things are going to pan out Link to comment Share on other sites More sharing options...
Bearsy Posted 31 March, 2014 Share Posted 31 March, 2014 interesting to note that our wage bill even now is still less than portsmouth racked up in 2008. They did get an FA Cup out of it tho tbf Link to comment Share on other sites More sharing options...
Glasgow_Saint Posted 31 March, 2014 Share Posted 31 March, 2014 needs to have more courage in convictions, like goatboy who even for the most minor disagreement immediately puts the life of his first born son on the line :lol: Link to comment Share on other sites More sharing options...
SteveBish Posted 31 March, 2014 Share Posted 31 March, 2014 One thing to also factor in is that our loss is a net loss after tax etc.. and was a profit before exceptional items and how much did we pay off in transfer fee during that period. If we had similar values in there paid and we have circa £30m more in income this year we will be fine hence the commitments from the club that we will not sell players the manager does not want to. I guess (it is a guess) that if we recoup Osvaldo's fee we may re-invest on other players but may not have a great deal more but we will see come summer. Link to comment Share on other sites More sharing options...
trousers Posted 31 March, 2014 Author Share Posted 31 March, 2014 (edited) From the horses' mouths... BBC Solent Sport @solentsport EXCLUSIVE #saintsfc financial results. CEO Gareth Rogers and director Hans Hofstetter talk to @biga... https://audioboo.fm/boos/2033417-exclusive-saintsfc-financial-results-ceo-gareth-rogers-and-director-hans-hofstetter-talk-to-bigadamsport … via @audioboo Just listened to that. My gut feel is that there is more to be optimistic about than pessimistic about in today's statement. Edited 31 March, 2014 by trousers Link to comment Share on other sites More sharing options...
alpine_saint Posted 31 March, 2014 Share Posted 31 March, 2014 Can someone summarise for the financially illiterate amongst us ? Are we broke or minted ? Do we need to sell, or will we be able to buy in the summer without selling ? Link to comment Share on other sites More sharing options...
Shropshire Saint Posted 31 March, 2014 Share Posted 31 March, 2014 The value of players is never shown as an asset in the accounts of football clubs although the liability for the transfers fees is. Expenditure (and income) on player transfer fees are treated as revenue income and expenditure. In other words, we have a 'hidden' asset of the value of the playing staff in the transfer market which is not shown on the balance sheet. As others have pointed out, spreading transfer fees over a number of seasons is common practice. The sensationalism that the press attach to these figures is unreal. Link to comment Share on other sites More sharing options...
John B Posted 31 March, 2014 Share Posted 31 March, 2014 Just listened to that. My gut feel is that there is more reason to be optimistic about than pessimistic about in today's statement. But does it mean that Cortese was not a great Businessman but rather reckless and owners were worried that he was going to spend too much of their money But we are eighth which is great and the owners have billions so I dont care about the financial position in the least Link to comment Share on other sites More sharing options...
Saint86 Posted 31 March, 2014 Share Posted 31 March, 2014 5million loss isn't too bad, we're looking rather healthy actually. 3 million in impairment losses on players, presumably Gaston and Vorren? Considering the massive increase in tv revenue that the new tv deal will have added to this seasons (next years) financial figures... I'd say we are bloody laughing to be honest. And we're about to promote the next bunch of kiddies. Re transfer debt, don't think £20m is that bad. We've spent the same, just split it over more seasons. Net spend is net spend at the end of the day. Everyone sounds very positive about it all, quotes about no players being sold, and being able to act to bring in players if needed. I'd have no issue selling shaw for a nice chunk of money if it means we signed Marshall of Begovic and a decent CB and or wellbeck (or ings etc) to add to the attack. Think next year and this summer will be a great time to be a saints fan atm. I no longer miss cortese, and its nice to have a family owner who enjoys being to the matches, long may it last! Link to comment Share on other sites More sharing options...
Toon Saint Posted 31 March, 2014 Share Posted 31 March, 2014 Deary me, Mr. Rogers isn't blessed in the charisma stakes is he? At least Hans sounded pretty optimistic about plans for the Summer. A bit early IMO to leap on these figures as examples of Cortese's poor business acumen. The commercial revenue isn't fantastic, but we were saddled with a sponsorship agreement signed before promotion to Prem. If Cortese was still here, who is to say that he wouldn't have been able to negotiate a much more lucrative deal for the coming season - thus putting us in a much better position, financially? While we might contest the merits of each transfer in 2012/2013 season (Mayuka, Forren, Ramirez,) Cortese took a calculated risk and it paid off by staying up. We have consolidated our Prem status with ease, and with the base of the academy and training ground, it's clear Cortese wasn't just after short-term handouts from KL all the time to pay the bills. Link to comment Share on other sites More sharing options...
ALWAYS_SFC Posted 31 March, 2014 Share Posted 31 March, 2014 Good thread this, interesting stuff BUT as normal being ruined by the two idiots.. Link to comment Share on other sites More sharing options...
dronskisaint Posted 31 March, 2014 Share Posted 31 March, 2014 No, it is massive Barry backtracking. What I don't get is that if he was going to say something ridiculous why not do a good offer? A fiver subscription is nothing. Why not throw in a car and a holiday Barry? We pay his benefits anyway so it's our money in the first place Link to comment Share on other sites More sharing options...
Colinjb Posted 31 March, 2014 Share Posted 31 March, 2014 Deary me, Mr. Rogers isn't blessed in the charisma stakes is he? At least Hans sounded pretty optimistic about plans for the Summer. A bit early IMO to leap on these figures as examples of Cortese's poor business acumen. The commercial revenue isn't fantastic, but we were saddled with a sponsorship agreement signed before promotion to Prem. If Cortese was still here, who is to say that he wouldn't have been able to negotiate a much more lucrative deal for the coming season - thus putting us in a much better position, financially? While we might contest the merits of each transfer in 2012/2013 season (Mayuka, Forren, Ramirez,) Cortese took a calculated risk and it paid off by staying up. We have consolidated our Prem status with ease, and with the base of the academy and training ground, it's clear Cortese wasn't just after short-term handouts from KL all the time to pay the bills. Nonetheless it did require outlay (let's face it, that was clear as day given how quickly we rebuilt after administration) to get us here in the first place. It seems to me at least that Cortese wanted us to keep pushing up on the back of investment from the family before stabilising at as high a level as possible. Be it through an appreciation that we have realistically hit a glass ceiling or through simple lack of desire to sink any further millions in we are now appearing to be moving away from this. Consolidation makes a lot of sense right now to ensure that we are stable going forward but treading water in football can be very unsatisfying in the context of the recent good times we've had. Link to comment Share on other sites More sharing options...
Daft Kerplunk Posted 31 March, 2014 Share Posted 31 March, 2014 ... treading water in football can be very unsatisfying in the context of the recent good times we've had. the problem is that treading water will potentially lead to going backwards. I am sure that the current regime will know that the playing side must be good enough to generate additional commercial revenue so we should be hopeful that this will be the case. Younger players will be much better next season, and with a few key additions, we can still climb, and build revenues. Cortese had the right vision for the club to climb as high as possible, just not necessarily the right way of communicating it to us as fans, apart from with results on the pitch (which were pretty bloody good, let's face facts on that) and I've always preferred over fluffy press releases Link to comment Share on other sites More sharing options...
Colinjb Posted 31 March, 2014 Share Posted 31 March, 2014 the problem is that treading water will potentially lead to going backwards. I am sure that the current regime will know that the playing side must be good enough to generate additional commercial revenue so we should be hopeful that this will be the case. Younger players will be much better next season, and with a few key additions, we can still climb, and build revenues. Cortese had the right vision for the club to climb as high as possible, just not necessarily the right way of communicating it to us as fans, apart from with results on the pitch (which were pretty bloody good, let's face facts on that) and I've always preferred over fluffy press releases Purely on the basis that football is inhabited by competitive and ambitious people, yep. Most professionals will not want to be at a club that is just surviving, there will need to be a drive and desire to be as good as we can be within the means we have imposed. Ralph Krueger's big challenge will be to get that balance right, in an environment when you are competing with organisations who will be looking to circumvent financial fair play, rather then embrace it then it could be impossible. Link to comment Share on other sites More sharing options...
SuperSAINT Posted 31 March, 2014 Share Posted 31 March, 2014 Would love to see a table to see how our wage bill compares with the rest of the prem. Link to comment Share on other sites More sharing options...
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