Albion reveal £8m loss (From The Argus)
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Albion reveal £8m loss
8:30am Saturday 12th January 2013 in Sport By Andy Naylor
Tony Bloom
Albion lost £8 million last year, their first at The Amex.
They are expecting a similar loss this year, despite the increase in capacity.
The shock figures are revealed by chairman Tony Bloom in today’s programme for the visit of Derby County.
Bloom, discussing the impact Financial Fair Play rules will have on the club, said: “Like most other Championship clubs we run at a substantial loss. Last year we lost around £8 million and in the current year, notwithstanding our record crowds, we forecast a similar sized loss.
“This unfortunately is today’s reality of life in the Championship, especially for those teams pushing hard for success on the pitch.
“In spite of these massive losses we are actually within the current FFP parameters. This reflects the phased launch of the FFP rules for Championship clubs, so as the rules tighten each year we will progressively have to bring our budgets more into balance in order to meet the sliding FFP targets.
“Easier said than done! But the consequence of not doing so is that we will break the FFP criteria and so find ourselves subjected to a player transfer embargo until we bring our finances back into line with the rules, and the possibility of additional steep financial penalties.”
The three-stage expansion of The Amex, due for completion by March, will increase the capacity to almost 31,000 from 22,500 last season.
Bloom has warned fans future price rises are inevitable to help fund squad strengthening for boss Gus Poyet after some supporters protested about normal admission charges for last Saturday’s FA Cup victory against Newcastle.
He said: “One of the reasons we moved forward so quickly to expand the stadium capacity was so we could bring in more revenue.
“Nobody wants prices to go up, but we have to be realistic. This will happen over time, and we will aim to keep increases manageable – and we will do everything we can to make things easy, such as the interest-free direct debit scheme, which spreads the cost of a season ticket over 12 months.
“Our intention is to give Gus additional money to attract more quality players.”
Full story and analysis in The Argus today
Comments(58)
cheese rolls !
says...
8:40am Sat 12 Jan 13
namgo49
says...
8:49am Sat 12 Jan 13
Having said that the Amex must be very expensive to run and TB must be taking some some sort of return on his 100mill investment.
Jonathan Mouette
says...
8:52am Sat 12 Jan 13
Siboloy
says...
8:57am Sat 12 Jan 13
patcham albion
says...
8:59am Sat 12 Jan 13
Claude Back
says...
9:12am Sat 12 Jan 13
If so, then it is a false figure as those costs won't be incurred each season.
mark by the sea
says...
9:19am Sat 12 Jan 13
Claude Back wrote:I think the figure does not include loans, ie loan from TB in the region of 160 million, this includes the training and Amex facilities.. 8 million is not a lot if you think cms is on a million a year in wages! ,
Does this 'loss' include the costs of planning and developing the Academy at Lancing and installing extra seating at the Amex?
If so, then it is a false figure as those costs won't be incurred each season.
BigRob1983
says...
9:31am Sat 12 Jan 13
CMS £2.5m
Buckley £1m
Vicente's Salary
We broke our transfer record not once but twice in a few days!
This will be no surprise to anyone outside of the club trust me. Its a budgetted, planned loss and I guarantee there is a 5 year plan to ensure the best chance of Premiership Football on the South Coast for the first time for 30 years.
We play in one of the best stadiums in the world,our crowds are the largest in the Division, even our pies are immense. As a season ticket holder at the Goldstone, Priestfield, Withdean and now The Amex our club is being well run and this loss was entirely inevitable .
Keep the faith!
i luv my dog
says...
9:34am Sat 12 Jan 13
mark by the sea
says...
9:39am Sat 12 Jan 13
i luv my dog wrote:Problem is chasing the premiership for more than a couple of years will bankrupt most clubs, we don't owe a bank a single pound. Getting premiership brings in over 50 million even with relegation after one season.
The football industry shoots its self in the foot every time. Footballers are not worth a million a year let alone more. If the football club does not generate enough profit it pay these high wages it is their own fault. The gap between championship and premier gets wider and wider each year, next season it will be enormous. If Brighton do not make the premier this season will they ever?
WisdomSpeaks
says...
9:45am Sat 12 Jan 13
I would be on a plane to China/Malaysia/Japan
/India for the purpose of creating an awareness of our great club in the fastest growing economies (and football interest) areas of the globe.
All you have to do is open some Super Seagull stores in those areas and start giving out Seagull strips to schools, orphanages etc and arranging club tours out there. Then sell TV rights if possible for our games. We need our own live TV facility for that which I believe we have in place.
What's for sure we need top top marketing people who have world wide experience and who are VISIONARIES! So much can be achieved when people understand The Law of Attraction and consciously keep focussing on what they want and not what they don't want (debt and losses).
WE CAN DO IT!!!
i luv my dog
says...
9:45am Sat 12 Jan 13
Alan G Skinner
says...
9:51am Sat 12 Jan 13
MelsTels
says...
9:55am Sat 12 Jan 13
UTA and well done to the board - I have every confidence
Cardiffcgull
says...
9:58am Sat 12 Jan 13
Well done all, UTA!!!
Seagullkid
says...
10:01am Sat 12 Jan 13
but I have my faith with tony to deliver premier football in 5 years, at least we are not at the mercy of funding by the banks.
tonytowner1
says...
10:07am Sat 12 Jan 13
Half empty stadiums can never be a good thing
Ulloa is going to be just magnificent I suspect!
Naylor's a Twunt
says...
10:13am Sat 12 Jan 13
GosportGull
says...
10:15am Sat 12 Jan 13
Anyway , lets hope for a good win today against Derby and smash in a few goals .. i would love to see Will Hoskins score a few more !
Any news on JFC returning ? I have been away all week ....
GG
graham w
says...
10:16am Sat 12 Jan 13
Alan G Skinner
says...
10:21am Sat 12 Jan 13
Seagullkid wrote:We are not talking about huge increases, small gradual increases. Even at 31000 in the Premier League we will run at 100%, every game a sell out. In the Championship we will run at 27000/28000, no problem. The only way to stop price rises is for clubs to get together with the FA and impliment strict wage caps, which even if they did, foreign bureaucrats in brussels would interfere and tell us what we are doing is unlawful.
what's the point of getting the Amex up to 31,000 if the price of tickets are to go up? have a go at me but sounds like we should have stayed as we were at least a full house is better than a 31,000 Amex half empty because of high ticket prices.
but I have my faith with tony to deliver premier football in 5 years, at least we are not at the mercy of funding by the banks.
mark by the sea
says...
10:37am Sat 12 Jan 13
tonytowner1 wrote:Absolutely, the catering needs sorting, club need another bar other than dicks bar,
Sort the catering queues and that's another £0.5 million revenue per annum - all those that don't bother as it means missing the football!!
Half empty stadiums can never be a good thing
Ulloa is going to be just magnificent I suspect!
dave from bexill
says...
10:39am Sat 12 Jan 13
I think Tony Bloom's statement above is partly to explain the situation to those supporters who can't quite understand why the club can't at present look to bring in the likes of; Kenwyne Jones, Carlton Cole, Drogba or even Charley Austin, as much as we might love to see this calibre of player at the club.
The Premiership is a great league and the place we all want to be, but it ain't a panacea for all the ills in the game,and too many clubs who make it, then become almost destroyed by not being able to sustain the level, despite all the added income, most of which seems to go to pay the distorted level of wages to players who in many cases give no thoughts to the clubs or supporters. Chasing the dream is fantastic, but more than ever it can change into a nightmare. UTA, three points today, I'm certain.
Old Scrote of the Amex
says...
10:41am Sat 12 Jan 13
Alan G Skinner wrote:It's nothing to do with Brussels - wage caps are illegal and rightly so. We may not feel anyone is worth a footballer's salary, but that is - and should be - entirely between the two parties. No-one should be allowed to interfere. If the Premier League has shown us anything it is that high wages and subsequently high ticket prices do not equal tiny crowds.
Seagullkid wrote:We are not talking about huge increases, small gradual increases. Even at 31000 in the Premier League we will run at 100%, every game a sell out. In the Championship we will run at 27000/28000, no problem. The only way to stop price rises is for clubs to get together with the FA and impliment strict wage caps, which even if they did, foreign bureaucrats in brussels would interfere and tell us what we are doing is unlawful.
what's the point of getting the Amex up to 31,000 if the price of tickets are to go up? have a go at me but sounds like we should have stayed as we were at least a full house is better than a 31,000 Amex half empty because of high ticket prices.
but I have my faith with tony to deliver premier football in 5 years, at least we are not at the mercy of funding by the banks.
mark by the sea
says...
10:43am Sat 12 Jan 13
Alan G Skinner wrote:Lets remember premiership football brings sell out after sell out, so 31000 would give us a average of 29000 over the season... If they could get the catering organised, and to be frank I have never seen such a poor service in my life.. Charge say £2 a game more and the club should be on a better footing, especially with the sky cash
Seagullkid wrote:We are not talking about huge increases, small gradual increases. Even at 31000 in the Premier League we will run at 100%, every game a sell out. In the Championship we will run at 27000/28000, no problem. The only way to stop price rises is for clubs to get together with the FA and impliment strict wage caps, which even if they did, foreign bureaucrats in brussels would interfere and tell us what we are doing is unlawful.
what's the point of getting the Amex up to 31,000 if the price of tickets are to go up? have a go at me but sounds like we should have stayed as we were at least a full house is better than a 31,000 Amex half empty because of high ticket prices.
but I have my faith with tony to deliver premier football in 5 years, at least we are not at the mercy of funding by the banks.
WisdomSpeaks
says...
10:44am Sat 12 Jan 13
GosportGull wrote:Me too - but do you think he'll get a full game today??????
So can we expect to see a culling of the squad come end of the season ? I think once the Training Academy is up and running we will develop our own younger talent and lessen the need for big money , high wages players .. I wonder if that £8million takes into consideration the Training Academy ?
Anyway , lets hope for a good win today against Derby and smash in a few goals .. i would love to see Will Hoskins score a few more !
Any news on JFC returning ? I have been away all week ....
GG
Claude Back
says...
10:52am Sat 12 Jan 13
mark by the sea wrote:Are you advocating another bar for dicks, then? ;-)
tonytowner1 wrote:Absolutely, the catering needs sorting, club need another bar other than dicks bar,
Sort the catering queues and that's another £0.5 million revenue per annum - all those that don't bother as it means missing the football!!
Half empty stadiums can never be a good thing
Ulloa is going to be just magnificent I suspect!
(Now we wait for some 'genius' to say, 'See you in it.')
Claude Back
says...
11:06am Sat 12 Jan 13
mark by the sea wrote:Sorry, Mark but charging more would not increase the overall reveue. Admission prices generally are for too high and if Football is to survive it needs to lower players' wages not increase admission fees for what is sometimes dubious entertainment value. Nobody can say they enjoy every game unless they are mentally challenged. Therefore, if prices go up people will be more choosey about what games they go too. I am talking generally here but it applies to the Albion as well. They are doing ok now but will they always do so? Contrary to the laws of Physics, what goes up does not always come down....price wise.
Alan G Skinner wrote:Lets remember premiership football brings sell out after sell out, so 31000 would give us a average of 29000 over the season... If they could get the catering organised, and to be frank I have never seen such a poor service in my life.. Charge say £2 a game more and the club should be on a better footing, especially with the sky cash
Seagullkid wrote:We are not talking about huge increases, small gradual increases. Even at 31000 in the Premier League we will run at 100%, every game a sell out. In the Championship we will run at 27000/28000, no problem. The only way to stop price rises is for clubs to get together with the FA and impliment strict wage caps, which even if they did, foreign bureaucrats in brussels would interfere and tell us what we are doing is unlawful.
what's the point of getting the Amex up to 31,000 if the price of tickets are to go up? have a go at me but sounds like we should have stayed as we were at least a full house is better than a 31,000 Amex half empty because of high ticket prices.
but I have my faith with tony to deliver premier football in 5 years, at least we are not at the mercy of funding by the banks.
Claude Back
says...
11:11am Sat 12 Jan 13
CanfieldRob
says...
11:23am Sat 12 Jan 13
Naylor's a Twunt wrote:I enjoy reading these posts as a rule, but then it can be ruined by rubbish such as this. I don't know what a "twunt" is but suspect I don't want to. Mr Naylor is just doing his job and like all of us has a right to his opinion. He cannot decide not to bother if it is freezing cold and miserable conditions. It is not a "free seat" but a necessity to do his job correctly and report to the readers of the newspaper employing him.
Perhaps the club should start charging Mr Naylor as he sits in his free seat eating and drinking for free whilst writing half-truths and criticising paying fans for having an opinion
VegasSeagull
says...
11:39am Sat 12 Jan 13
Mr. Bloom does not tell us how we came to this loss situation. How much of that 8 million was long term capital investment in the infrastructure of the Amex, stadium exspansion.
Was any of that 8 million as a result of making payments on the initial investment to build the stadium.
I would guess that we probably spent at least one million on lawyer and architect fees related to the new acadamy, was that part of the 8 million.
The projected loss for this season is a further 8 million, does any of the above also relate to this years trading accounts.
The projected 8 million loss for this year does not factor in a playoff place and the extra revenue that would bring in. It also does not factor in the the possibility of promotion and the enormous prize money that would bring.
These figures are bare bones figures, this is what we banked and this is what we spent, they tell us very little. One off infrastructure expenditure payments spent last year will not be spent this year but there maybe new one off payments for other projects.
Whilst it is good to be told something about our financial position, it would be better if we were told a little more as to how we came to run at a 8 million loss.
Alan G Skinner
says...
11:49am Sat 12 Jan 13
Seagullkid
says...
11:52am Sat 12 Jan 13
you pay for what you get
simple.
Far gull
says...
11:56am Sat 12 Jan 13
VegasSeagull wrote:Agree vegas to simplisitic to describe loss as 8 million without more detail.Suspect (HOPE) Tony has it under control .We need to make a profit at least once every 5 yrs ,perhaps not at present only for HMRC/ government to waste it on all manner of project ! The EU for one.
8 million loss last year and a projected further 8 million loss this year, that sounds bad but we don't really know if it is, it could be that those figures are very good.
Mr. Bloom does not tell us how we came to this loss situation. How much of that 8 million was long term capital investment in the infrastructure of the Amex, stadium exspansion.
Was any of that 8 million as a result of making payments on the initial investment to build the stadium.
I would guess that we probably spent at least one million on lawyer and architect fees related to the new acadamy, was that part of the 8 million.
The projected loss for this season is a further 8 million, does any of the above also relate to this years trading accounts.
The projected 8 million loss for this year does not factor in a playoff place and the extra revenue that would bring in. It also does not factor in the the possibility of promotion and the enormous prize money that would bring.
These figures are bare bones figures, this is what we banked and this is what we spent, they tell us very little. One off infrastructure expenditure payments spent last year will not be spent this year but there maybe new one off payments for other projects.
Whilst it is good to be told something about our financial position, it would be better if we were told a little more as to how we came to run at a 8 million loss.
Many issues with this but all we can do is enjoy and trust in Tony,which is not difficult given no other supporter has stumped up so much of their own money for the club.Any more weathly albion fans out their please step forward i would if i had the cash ,because the ride we are on is not bad at all after 30 yrs !!!!!!!!
VegasSeagull
says...
12:23pm Sat 12 Jan 13
Today we hear of losses, today, the day when we are about to negotiate a wage package for a new player.
Projected loss of 8 million this year, projected on what information?
Who knew we would beat Newcastle, that match probably gave us in excess of 250k. We now have the next round, could it be on live TV, probably, could it make us another 250k, certainly, but who knew?
Can we win the next round, will we have another 250k coming in, maybe.
Playoff matches, all of them will probably be on live TV, will we be in the playoffs? If we are, could they give us maybe 1 million in revenue, who knows?
Then we have the biggest unknown of all, will we get promoted and pick up in excess of 50 million?
Bare bones accounting tells us nothing other than Bloom is explaining why, some price increases will need to be made, in some way, at some time in the future.
Bucket feet Duffy
says...
12:42pm Sat 12 Jan 13
We ave established ourselves as a top team in the championship
Building for the future now is important whilst keeping ourselves well in line with the initiatives guidelines bringing in good quality people to run the club and having an academy are just some of the things that will see us in the premiership in the future for sure, we will never be a MU but if you look at Southampton as a club, that is where we will be if we continue as we are, I remember Gus saying last season that they were a few years ahead of us, which reinforces belief that he knows what he wants to archive at the club
heathgate
says...
1:38pm Sat 12 Jan 13
Next season I will have the increased costs, plus more restricted travel options for me from the West Country. I will have to have a serious think, and I dont think I will be alone here.
Lets see what happens on the pitch, if we get some signings of note and start to challenge at a higher level than 9th, maybe that will be worth the 300 mile round trip on top of match and parking costs now that Coldean had been screwed up by irresponsible drivers.
PS: Flu is keeping me away this week.
LeKevo
says...
1:51pm Sat 12 Jan 13
Purchasing players.?
Amex upgrade.?
New Academy.?
Fees for the above.?
The list could be extensive, but once the stability of infrastructure arrives how much of these losses will we lose.?
Certainly doesn't seem like panic mode so am sure these forward thinking powers of BHA knew what the immediate future will bring & what the long term financial gains the club will be heading.
I am no financial whizzkid, but am sure TB & his team are, so i guess it nice to know what is happening, though rest assured we have nothing to worry about.
VegasSeagull
says...
2:00pm Sat 12 Jan 13
Individual sponsorship for our regular players is something that really should be looked at.
If we sign a player on 20k a week wages we should then look to secure a sponsor for that player. The player would incur certain duties to his sponsor, appearances and maybe a tv ad or two, but I can't see that as a problem.
Some players might even have two sponsors.
It might be possible to get a players entire wages paid for by sponsors or just a percenrage but what ever it would be it would reduce the costs to the club.
bbb1969
says...
2:00pm Sat 12 Jan 13
Put prices up, less people go, less money spent
PressBoxTeaBoy
says...
2:06pm Sat 12 Jan 13
WisdomSpeaks wrote:Oh my god !
Great. Now the most important thing is taking the focus off the debt and putting the focus on increasing revenue streams in ways other than increasing the fans ticket prices and selling our best players. Those two routes lead to disaster!
I would be on a plane to China/Malaysia/Japan
/India for the purpose of creating an awareness of our great club in the fastest growing economies (and football interest) areas of the globe.
All you have to do is open some Super Seagull stores in those areas and start giving out Seagull strips to schools, orphanages etc and arranging club tours out there. Then sell TV rights if possible for our games. We need our own live TV facility for that which I believe we have in place.
What's for sure we need top top marketing people who have world wide experience and who are VISIONARIES! So much can be achieved when people understand The Law of Attraction and consciously keep focussing on what they want and not what they don't want (debt and losses).
WE CAN DO IT!!!
mikeygit
says...
2:09pm Sat 12 Jan 13
VegasSeagull
says...
2:12pm Sat 12 Jan 13
If you took 10 pounds off a ticket priced at 35 pounds that would mean that possibly 22,000 people would pay less to get in, 220 thousand pounds less.
5,000 extra fans at 25 quid each gives us 125k that would represent a loss of just under 100k than if the seats were left empty. Extra sales in beer and food is not going to cover that loss.
heathgate
says...
2:13pm Sat 12 Jan 13
russellsnr2
says...
2:15pm Sat 12 Jan 13
mikeygit wrote:NO CMS in team today whats going on Argus?
TEAMS ANNOUNCED and no place for Hoskins today!!! Shame---but Vicente named in squad so he may get 20mins--could be interesting
Freeloaders
says...
2:23pm Sat 12 Jan 13
mikeygit
says...
2:38pm Sat 12 Jan 13
VegasSeagull
says...
2:54pm Sat 12 Jan 13
Not even a team list.
Seagullkid
says...
3:07pm Sat 12 Jan 13
VegasSeagull
says...
5:02pm Sat 12 Jan 13
Seagullkid wrote:and what do you have to say now after we have won and Branes scored?
what's going on now? why bother with another striker when we don't use the ones we got already.and Hoskins should be playing after last week!
bbb1969
says...
8:07pm Sat 12 Jan 13
VegasSeagull wrote:Agree with your detail vegas however putting prices up may impact the 22000 crowd and thus even more empty seats, less pints and pies and increased losses. I dont hold a season ticket and go when i can with my 3 boys. Last year it was 65 pounds, now it costs me 95 and thats witout the famous pies and a pint. We are still in the championship and are not premier yet so make the prices lower not just to fill the stadium but to keep the numbers above 20000.
People talk of reducing the ticket price so as to fill 5,000 empty seats, that could be false economics.
If you took 10 pounds off a ticket priced at 35 pounds that would mean that possibly 22,000 people would pay less to get in, 220 thousand pounds less.
5,000 extra fans at 25 quid each gives us 125k that would represent a loss of just under 100k than if the seats were left empty. Extra sales in beer and food is not going to cover that loss.
martyt
says...
10:08pm Sat 12 Jan 13
WisdomSpeaks wrote:sell tv rights ,you as a team cant even show your games lives in dicks bar ,when the bus drivers have there break while the game is played ,i would sort out the house keeping first ,before you try to take on the world
Great. Now the most important thing is taking the focus off the debt and putting the focus on increasing revenue streams in ways other than increasing the fans ticket prices and selling our best players. Those two routes lead to disaster!
I would be on a plane to China/Malaysia/Japan
/India for the purpose of creating an awareness of our great club in the fastest growing economies (and football interest) areas of the globe.
All you have to do is open some Super Seagull stores in those areas and start giving out Seagull strips to schools, orphanages etc and arranging club tours out there. Then sell TV rights if possible for our games. We need our own live TV facility for that which I believe we have in place.
What's for sure we need top top marketing people who have world wide experience and who are VISIONARIES! So much can be achieved when people understand The Law of Attraction and consciously keep focussing on what they want and not what they don't want (debt and losses).
WE CAN DO IT!!!
martyt
says...
10:27pm Sat 12 Jan 13
Claude Back wrote:dick s bar is the worst bar i have ever seen ,its not even badly run its not run at all ,the standard of the fit out was poor the manager is very poor the staff are bad the queue time is too long and that s even when its the bus drivers in there having to wait 5 minutes for a tea/coffee is a joke i used to take my own coffee when i drove a bus for the game on park and ride ,i would hate to think how long folk have to wait for drinks ,and before you ask i ran pubs/hotels for 20 years and that what gives me an an in sight in to the mess that s dick s bar
mark by the sea wrote:Are you advocating another bar for dicks, then? ;-)
tonytowner1 wrote:Absolutely, the catering needs sorting, club need another bar other than dicks bar,
Sort the catering queues and that's another £0.5 million revenue per annum - all those that don't bother as it means missing the football!!
Half empty stadiums can never be a good thing
Ulloa is going to be just magnificent I suspect!
(Now we wait for some 'genius' to say, 'See you in it.')
the taffster
says...
11:58am Sun 13 Jan 13
Withdean-er
says...
2:37pm Sun 13 Jan 13
heathgate wrote:Your bet on Barnes was correct, and unfortunately for you, he scored the all important opener.
No Hoskins, well doesnt that just sum things up, I bet Barnes is in there though, Hoskins will now leave in the next 2 weeks, that is a shame.
Howie2
says...
4:10pm Sun 13 Jan 13
Hove Actually
says...
5:08pm Sun 13 Jan 13
Jimmy Stewart's Imaginary Rabbit says...
8:40am Sat 12 Jan 13
Having said that though I do have faith in Mr Barber being able to turn it round, and it's not the worst thing in the world that this news has broken during the transfer window.