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| Quote Big Dave T="Big Dave T"Only Hull FC and Leeds operate at a profit. Would be a big ask for a club to become totally self-sustainable without the 13k plus '"
Good thread this (serious...not being sarcastic). This is very much my field, so my compliments to all those who contributed.
And capital expenditure and capital investment are the same thing. But all that really means is (usually substantial) expenditure that (usually) when you kick it it hurts your foot, the benefits of which can be spread over a number of years.
But as for the point I quoted above...wrong I'm afraid. Bradford have been posting profits since the present administration remedied (with much pain) the living-beyond-means of the Caisley years. And they have no debt either. Contrary in both cases to a lot of the waknerage posted by the ill-informed or maliciously-minded (think you guys suffer a bit from that sort of thing too?)
And yes, its a big ask, but Bradford have had no choice but to manage it - we have NO wealthy backers prepared to bankroll the club, and put in directors loans. And no significant bank borrowing facilities. If we don't generate a neutral or positive cash flow every year we'll soon go down with a bad case of dead. And, for accounting reasons I won't bore you with, to break even in cash terms we need to make modest trading profits.
It sounds like your owners are looking to do to you what had to happen with Bradford. You could do worse than look at Bradford's situation as an indicator of what happens if you have to stand entirely on your own feet as a business without a wealthy backer to bankroll.
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| Very good thread and no trolling.
Cannot really add anything to what has been said, but it seems that the only way Rovers are going to start breaking even or turning a profit is to cut down the wage bill.
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| Quote Mild Rover="Mild Rover"
Prize money is lovely, I'm sure - not least as it reflects success on the pitch. It would be dangerous for a club to become reliant on it though.'" Ala Leeds utd. The last thing you want is for people to get giddy over your sucess and mortage the club on it.
As has been said, crowds are pretty much as big as there going to get so more emphasis needs to be put on the corporate side. You could do a Wakefield and build a stand with mostly exec. boxes with standing for away fans underneath! It's time to start schmoozing bigger businesses to come on board in regards to sponsorship.
Also merchandise needs to be seriously looked at, while a lot of Hull fans don't particularly like James Rule he has a good record in developing markets and sales. I live smack bang in the middle of your heartland and there has been a dramatic rise in rovers shirts being worn. Problem is that while you've been in the wilderness new, young fans have chosen FC. It will take time but I think someone who is not paricularly a fan to come in and adress this would be a good idea, someone who can make business decisions and advise hudgell in how to take you forward.
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| Quote dandaman="dandaman"you think????
seriously though think in a couple of years youll be there in profit, fc was in a worse situation money wise and are beleived to be debt free and thats been acheived by uncle cath and rule. so as long as results are right on the pitch i can see dosh coming in at craven park'" i know people do knock them but the off the field business seems to be fairly sound!
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| Quote Adeybull="Adeybull"Good thread this (serious...not being sarcastic). This is very much my field, so my compliments to all those who contributed.
And capital expenditure and capital investment are the same thing. But all that really means is (usually substantial) expenditure that (usually) when you kick it it hurts your foot, the benefits of which can be spread over a number of years.
But as for the point I quoted above...wrong I'm afraid. Bradford have been posting profits since the present administration remedied (with much pain) the living-beyond-means of the Caisley years. And they have no debt either. Contrary in both cases to a lot of the waknerage posted by the ill-informed or maliciously-minded (think you guys suffer a bit from that sort of thing too?)
And yes, its a big ask, but Bradford have had no choice but to manage it - we have NO wealthy backers prepared to bankroll the club, and put in directors loans. And no significant bank borrowing facilities. If we don't generate a neutral or positive cash flow every year we'll soon go down with a bad case of dead. And, for accounting reasons I won't bore you with, to break even in cash terms we need to make modest trading profits.
It sounds like your owners are looking to do to you what had to happen with Bradford. You could do worse than look at Bradford's situation as an indicator of what happens if you have to stand entirely on your own feet as a business without a wealthy backer to bankroll.'"
Serious question, its been mentioned on here that Rovers may need to make some tought decisions to balance the books around players wages etc. Do Bradford spend upto the cap? Has that impacted the on-field performances?
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| As has been said our crowds are in the region of as high as they can get. I would say we could get to around the 10k mark if we developed the 'match day experience'. The away facilities being developed would benefit this, I know hudge has said he wants to concentrate on the home fans etc but I think this was a mistake. If we could get the PR up on the away facilities we could add a lot on the gates from the likes of Leeds, Wire, Wigan Saints etc and on lower away crowd game we could sell off the away standing area at a reduced price. I know we try at the moment but the south stand at a £5 is still not an attractive prospect.
Sponsorship and marketting are the key growth areas, again with better corporate facilities this would improve, as it stands at the moment if a business wants to wine / dine and take people to a match it is not the best of experiences, is Craven park as it stands the sort of place you'd want as a front for your business. Where the investment to do this comes from is another matter, maybe we need to form alliances with council / government agencies (ala Hull and the NHS) to develop the North stand into a multi purpose facility that includes modern corporate facilities. (think this was muted but not heard anymore).
The probelm with cutting back on the wage bill is that all that would do is lower performance which then lowers crowds and attractiveness to sponsors / partners. so it is a fine balance to maintain it.
Finally the Club Rovers thing, although rushed in a bit and also not communicated the best is IMO the way a lot of clubs will go, if used correctly it allows the clubs to target their core fan base and tailor the product and raise funds.
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| Quote barham red="barham red"As has been said our crowds are in the region of as high as they can get. I would say we could get to around the 10k mark if we developed the 'match day experience'. The away facilities being developed would benefit this, I know hudge has said he wants to concentrate on the home fans etc but I think this was a mistake. If we could get the PR up on the away facilities we could add a lot on the gates from the likes of Leeds, Wire, Wigan Saints etc and on lower away crowd game we could sell off the away standing area at a reduced price. I know we try at the moment but the south stand at a £5 is still not an attractive prospect.
Sponsorship and marketting are the key growth areas, again with better corporate facilities this would improve, as it stands at the moment if a business wants to wine / dine and take people to a match it is not the best of experiences, is Craven park as it stands the sort of place you'd want as a front for your business. Where the investment to do this comes from is another matter, maybe we need to form alliances with council / government agencies (ala Hull and the NHS) to develop the North stand into a multi purpose facility that includes modern corporate facilities. (think this was muted but not heard anymore).
The probelm with cutting back on the wage bill is that all that would do is lower performance which then lowers crowds and attractiveness to sponsors / partners. so it is a fine balance to maintain it.
Finally the Club Rovers thing, although rushed in a bit and also not communicated the best is IMO the way a lot of clubs will go, if used correctly it allows the clubs to target their core fan base and tailor the product and raise funds.'"
All fair points. Interesting to see how clubs like Hudds, Celtic and London will keep hold of their franchises should sponsorship or other revenue avenues dry up.
Some clubs will have to cut wage bills. Its the sensible decision vs going bankrupt. Sadly if that means some fans stay away because of average performances then so be it.
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| Quote Big Dave T="Big Dave T"All fair points. Interesting to see how clubs like Hudds, Celtic and London will keep hold of their franchises should sponsorship or other revenue avenues dry up.
'"
Thats what I wonder, when we went to quins this year the home support was tiny (3kish), and it does make you wonder how long this can be viable even with a reduced wage bill. I'm assuming Quins are propped up by their RU team but how long will the backers put up with this for.
Celtic may improve their attendances, but they would need to maybe sign a Gavin Henson type player to generate the headlines and pull the crowds in, think they would eb better placed if they played in Cardiff although the move to Newport may help.
Hudds must be running at a heavy loss, they practically gave their passes away this year and as was seen in the last PO game the core support still looks pretty small, next years pass sales there will be interesting to see if they have increased due to the exceptional year they have had. If not then it makes you think they are running out of places / ideas of how to increase as they have all the boxes ticked now. Are there passes staying reduced this year?
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| Quote Adeybull="Adeybull"Good thread this (serious...not being sarcastic). This is very much my field, so my compliments to all those who contributed.
And capital expenditure and capital investment are the same thing. But all that really means is (usually substantial) expenditure that (usually) when you kick it it hurts your foot, the benefits of which can be spread over a number of years.
But as for the point I quoted above...wrong I'm afraid. Bradford have been posting profits since the present administration remedied (with much pain) the living-beyond-means of the Caisley years. And they have no debt either. Contrary in both cases to a lot of the waknerage posted by the ill-informed or maliciously-minded (think you guys suffer a bit from that sort of thing too?)
And yes, its a big ask, but Bradford have had no choice but to manage it - we have NO wealthy backers prepared to bankroll the club, and put in directors loans. And no significant bank borrowing facilities. If we don't generate a neutral or positive cash flow every year we'll soon go down with a bad case of dead. And, for accounting reasons I won't bore you with, to break even in cash terms we need to make modest trading profits.
It sounds like your owners are looking to do to you what had to happen with Bradford. You could do worse than look at Bradford's situation as an indicator of what happens if you have to stand entirely on your own feet as a business without a wealthy backer to bankroll.'"
Very interesting post and to me quite reassuring that it can be done. People might look at the downturn in Bradford's on-field fortunes and say it is a bad example. On the other hand if they'd had Greg Bird, rather than Catalans their season could easily have been rather better - and that wasn't a cash issue. Rovers 80s glory years were followed by very hard times and while I'm sure fans wouldn't swap the former for anything, they definately wouldn't want to go through the latter again. The greatest legacy Morgan could leave would be a trophy - for Hudgell it'd be getting the club operating in the black.
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| Quote Big Dave T="Big Dave T"Serious question, its been mentioned on here that Rovers may need to make some tought decisions to balance the books around players wages etc. Do Bradford spend upto the cap? Has that impacted the on-field performances?'"
When you compare Bradford's squad to that of their team of a few years ago, it is clear that costs have been cut and that they aren't as successful. They haven't suffered 'a bad case of dead' though, to quote Adeybull. We've got a 'what happened to all the big signings thread?', but if signing younger, cheaper players with potential is to be our new approach that will help balance the books. Given the state of the country, prudence is going to be en vogue in the next few years.
We do need a prop, but I think we can get too hung up on Hull's big new pack doing what Hudds did to us this year. We only play them twice after all and our ball playing backrowers, mean we are a different type of team. We still need a prop, to give a better platform in the first place.
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| Quote Mild Rover="Mild Rover" The greatest legacy Morgan could leave would be a trophy - for Hudgell it'd be getting the club operating in the black.'"
Wise words.
Very refreshing to see an open, honest debate on this subject. Fair play to all who have contributed, its a good read.
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| Quote Mild Rover="Mild Rover" The greatest legacy Morgan could leave would be a trophy - for Hudgell it'd be getting the club operating in the black.'"
Indeed, and it's fair to say that Hudgells legacy is the most important, even if it sacrifices Morgans!
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