Brent Talks about the Finances!

[Bolshevik1966]

This may explain what Mr Brent can and cant do :

Here's the lowdown ahead of a busy summer of transfer business.
Does Financial Fair Play exist in League One?
The simple answer is not in name, instead clubs in League One and League Two must comply with the Salary Cost Management Protocol (SCMP) - a Financial Fair Play framework.
This means limiting the amount a club can spent on wages as a proportion of turnover.
From last season, only 60 per cent of a club's turnover in League One can be spent on players' wages. In League Two it is 55 per cent.
How exactly does it work?
Every summer, a club will be asked to provide a forecast of turnover for the upcoming season, this includes information about where the club expects to be at the halfway stage of the campaign.
The figures must be submitted with firm evidence from the previous season. Any major changes in income or expenditure would have to be explained.
It's likely that Coventry have been operating for most of this season on the budget forecast during their time at Sixfields with limited income.
What income is included as turnover?
It's very true when the Sky Blues chiefs say that every penny you spend with the club is important to SCMP as all these are included: match-day income (season tickets, gate receipts, programmes, catering), commercial income (sponsorship), TV and radio rights plus 'merit' payments based on league position.
Also any cup run income which the Football League could sanction additional wage spend.
Not having a proper match-day income at Ricoh Arena has made it difficult for the Sky Blues with turnover dramatically reduced.
Although moving to Sixfields would also have had adverse effects that are still being felt this season with regards turnover in SCMP.
Fans of Coventry City stage a protest outside Sixfields
Can an owner invest into the club without being subject to SCMP?
They can. The Football League turnover figure includes donations from the owners of the club as long as there is no expected repayment to the donor. This means clubs can't rely on large cash loans for their income.
Injections of equity also count as turnover. Therefore a wealthy owner can fund the club in ways that are not permitted in other divisions.
Is profit made on player sales included?
Yes, it will be part of the turnover on a cash basis when the installments are received.
What if the club makes revenue higher than forecast?
It can be used by the club to strengthen the squad. Coventry will have altered their mid-season forecast to include revenue from playing at the Ricoh Arena.
The Ricoh Arena during Coventry's Ricoh Return against Gillingham
So what wages are part of the SCMP calculation?
Only player wages are included. These relate to all contract players (full contract, non-contract ect) and loan players.
Wages of players loaned out to other clubs are deducted for the period of the loan.
Are any players wages excluded?
Wage costs for youth players on professional contracts don't count on SCMP.
They must be 20 years of age or under at the start of the season and have been in the club's Youth Development scheme.
So for the Sky Blues this season Ryan Haynes, James Maddison, Jack Finch, Jordan Willis and Aaron Phillips were all exempt.
Coventry City's James Maddison. Photo: Joe Bailey.
What is the aim of these rules?
The Football League hopes to reduce the levels of losses incurred at some clubs, and in the longer term, ensure that the two
divisions are made up of self-sustaining professional clubs, not ones relying on large cash loans to operate.
And the consequences for failing to comply with the rules?
Any club that are deemed to have breached the permitted spending threshold will be hit with a transfer embargo.
The Football League will monitor accounts and and a club that is forecasting a wage spent within 5 per cent of the figure will be asked for assurances that they won't break through the agreed percentage.
They aim to tackle the issue at 'source' and could refuse player registrations that could take the club over the agreed threshold.
This allow clubs to increase their wage bill should circumstances improve - e.g. a successful cup run will generate extra revenue and that could see the club given additional wage spend by the Football League.
Swindon Town were the first club sanctioned with a transfer embargo for breaking the rules.
Swindon were subject to a transfer embargo
You haven't mentioned transfer fees, are these not part of it?
They are not. SCMP only covers wages. If an owner wanted to give his manager a few millions to spend on players, they could.
As long as the wage bill equates to less than 60 per cent of turnover, they can flex their financial muscle to secure promotion. Wolves last season proved this point.
So that's why Coventry City's owners want to have their own stadium?
Yes, it would open up a revenue stream for 365-days of the year, not just on matchdays .
This is because Hospitality/Banqueting income is included as part of turnover - so therefore the more money they make, the more can be spent on players' wages.
However direct costs, such as food, staff and cleaning, must be deducted from that figure on the SCMP return.
Also not owning a stadium doesn't stop the club spending money on transfer fees or investing money to increase turnover as donations or in the form of increased equity.
Architects' image for new Coventry City stadium (Image: AFLS+P)
How is that different from the FFP we hear about in the Premier League and beyond?
Good question. That works on a breakeven approach based on the UEFA Financial Fair Play regulations and includes transfer fees plus wages.
If City were to win promotion to the Championship they would then have to operate under these far stricter rules.
Man City and QPR have been punished for excessive losses despite owners having put their own cash into the club to finance the spending. This would be allowed in League One.
Anything else we should know?
Clubs relegated from the Championship have Transitional Arrangements in place which allow to exclude the wage costs of all players signed pre-September of the relegation season, if they were signed on contract longer than three seasons.
Hence why Wolves were able to have such a large squad last season and Bristol City this term.

 

[Frazer Lloyd-Davies]

Extremely naive of people to expect James Brent to put a figure on budget. Hence why you never see any Chairman do it!

 

[The Grumpy Loyal]

There is so much spin in that article, it's untrue. If it was an 'interview' why didn't the Herald ask him some probing questions. It's more like a press release.

Quite simply, if he believes so strongly in improving the infrastructure of the club to drive revenue, why did he put barriers in the way with the planning which will delay and possibly scupper getting the grandstand refurb done? After all, he isn't funding any of it, so what's the skin off his nose anyway?

Talk of the Chamionship is laughable, given our current predicament. It's telling that he won't be drawn on the level of the budget. Smacks of knowing it's the achilles heel in his whole argument.

Adams is working with one hand tied behind his back.

Your reply looks very much like an anti-Brent reply. All criticism, no reasoned argument, no alternative.

Are you anti-Brent? Certainly looks like it.

Are you actually serious?

Is it ‘against the law’ on here to fundamentally disagree with the plan Brent has for the club and surrounding area?

Let me ask you a question, if someone on a political forum put forward a response about the concerns they have about Donald Trumps presidency, would you be outraged and asking them....”are you anti-Trump” as if it is some kind of absolute no-no?

In our current predicament on and off the field, a ‘see no evil hear no evil’ mentality is about as blinkered as one could ever be.

 

[The Grumpy Loyal]

Just to add, you talk about no reasoned argument and no alternative. Arguably Brent’s biggest cock up to date is the fact that if he didn’t lump all his own private money making plans in with the Grandstand refurb, that refurb could be sailing through planning by now.

There’s an alternative for a start.

 

[Knibbsworth]

There is so much spin in that article, it's untrue. If it was an 'interview' why didn't the Herald ask him some probing questions. It's more like a press release.

Quite simply, if he believes so strongly in improving the infrastructure of the club to drive revenue, why did he put barriers in the way with the planning which will delay and possibly scupper getting the grandstand refurb done? After all, he isn't funding any of it, so what's the skin off his nose anyway?

Talk of the Chamionship is laughable, given our current predicament. It's telling that he won't be drawn on the level of the budget. Smacks of knowing it's the achilles heel in his whole argument.

Adams is working with one hand tied behind his back.

Your reply looks very much like an anti-Brent reply. All criticism, no reasoned argument, no alternative.

Are you anti-Brent? Certainly looks like it.

Is it against the law to question James Brent now?

Only rather than deal with the substance of an important and well reasoned point, you seem more intent to force a public confession as if you are the Witchfinder General.

 

[Knibbsworth]

Your reply looks very much like an anti-Brent reply. All criticism, no reasoned argument, no alternative.

Are you anti-Brent? Certainly looks like it.

Let me ask you a question, if someone on a political forum put forward a response about the concerns they have about Donald Trumps presidency, would you be outraged and asking them....”are you anti-Trump” as if it is some kind of absolute no-no?

I think if Jimsing was American, he'd point his finger and accuse his opponent of being a commie and anti-America. That ought to put an end to any spirited public questioning.

 

[Bolshevik1966]

A few guys on here jumping to the board defence. Green police offering free drinks on match days ?

 

[jimsing]

Just to add, you talk about no reasoned argument and no alternative. Arguably Brent’s biggest cock up to date is the fact that if he didn’t lump all his own private money making plans in with the Grandstand refurb, that refurb could be sailing through planning by now.

There’s an alternative for a start.

You, too, look for ways of criticising Brent at every opportunity, without giving any reasoned argument.

It is very easy to criticise. It is not so easy to put forward alternative solutions.

You know full well that planning has not yet been delayed. Brent has estimated that works should go ahead some time early 2018.

Until we get to that point neither you nor any of your cohorts can realistically criticise Brent for delaying the refurb as you have no evidence, no facts whatsoever, on which to base your opinion, and that is all it is, AN OPINION, so stop trying to bend the facts.

 

[Andy Holland]

A few guys on here jumping to the board defence. Green police offering free drinks on match days ?

Don't be so idiotic. Not everyone has to share exactly your views.

 

[gaspargomez]

Extremely naive of people to expect James Brent to put a figure on budget. Hence why you never see any Chairman do it!

I don't think a figure in pounds and pence is of much relevance.

What people want to know is whether Argyle's playing budget it towards the top, middle or bottom when ranked against other League One teams. The club will have a reasonable idea of this.

The evidence suggests that Argyle are towards the bottom of the playing budget league. The players signed are mostly other club's rejects and Adams has made a few remarks to the Herald about the inadequacy of the budget. Who do we believe ?

 

[Bolshevik1966]

Fleetwood Town made a loss of £2.5m in the year 2014-2015. The club’s latest accounts have just been released and reveal a turnover of £3.9m (after costs) offset by ‘administrative expenses’ of £6.4m to create a total operating loss of £2,502,064. Andy Pilley The club lost more than £600,000 more than in 2013-2014. However, club chairman Andrew Pilley says the financial year has been one of forward planning, with the club’s £8.5m state-of-the-art Poolfoot Farm training complex set for completion in the coming months. The latest accounts cover the season in which Fleetwood competed in the third tier of English football for the first time in their history.The 2014/15 season saw them compete alongside the likes of Preston North End, Bristol City, Bradford and Sheffield United – teams with a rich history and with much larger fanbases than Town.The investment in the new training complex and the increase in expenditure of a near £1m on staff wages has seen the club post a £2.5m loss.Pilley said in his strategic report for the year commencing from June 30 2014 to June 30 2015 that it was a “crossroads” year for the club and that they have invested in the future. The chairman said: “The year was a successful one on the field of play, seeing the club compete, for the first time in their history in League One of the English Football League.“The club eventually finished in a very respectable 10th position.“The season in general was a crossroads in the club’s progression, as for the first time the club found themselves competing against an overwhelming majority of clubs steeped in history, with considerable fanbases and, as a consequence, with greater playing budgets and resources than Fleetwood.“It was key that the club used this season to consider a longer-term strategy to cope with that competition and to move towards a healthy and sustainable future. “It was also a year of planning and change off the field, with changes made to the club’s staffing and operations structure, which was seen as essential to keep pace with the progression made on the field.“The planning also saw continued work on the club’s new training base, integral to that ongoing development strategy of the football club.“In summary, a successful year on the field of play and one of forward strategic planning to ensure the investment and efforts of the chairman continued to provide progress, success and a healthy financial and football future.”The club’s staffing costs rose despite the average number of playing staff dropping from 61 to 55 and non-playing staff dropping from 69 to 64.The club spent £4,761,037 on staff wages compared to £3,842,368 the previous year.

Fleetwood Turnover 3.9m Argyle 6.2m ? sure someone clever will point us in the right direction. Please tell me Fleetwood player budget is not better than ours ?

Turnover has grown by almost a third at Plymouth Argyle according to the club's latest accounts, covering the first half of its promotion season.
Plymouth Argyle Football Club Ltd recorded turnover of £6.2m in the year ending 31 December 2016, up 31 per cent on 2015.
The club also generated earnings before interest, taxation, depreciation and amortisation of £757,000. This was achieved after increased expenditure on 'catch-up' maintenance.
Share capital increased by £4.4m with the funds used to buy back the Home Park ground and to reduce short and long term debt by £3.2m.
The club finished the 2016/17 season in second position in League 2, earning promotion to League 1.
Last month Argyle lodged plans for the redevelopment of the wider Home Park site, including a new grandstand and an ice rink on an adjacent site.

 

[Guiri Green]

Extremely naive of people to expect James Brent to put a figure on budget. Hence why you never see any Chairman do it!

I don't think a figure in pounds and pence is of much relevance.

What people want to know is whether Argyle's playing budget it towards the top, middle or bottom when ranked against other League One teams. The club will have a reasonable idea of this.

The evidence suggests that Argyle are towards the bottom of the playing budget league. The players signed are mostly other club's rejects and Adams has made a few remarks to the Herald about the inadequacy of the budget. Who do we believe ?

The amount in Pounds and Pence is of relevance to answer the question of where we are in comparison to everyone else, otherwise there is no comparison.

Where we are in relation to everyone else is of interest of course, but, ultimately of no purpose to know other than being used as an excuse for the manager or as a stick to beat Brent with.

It is what it is. Doubt very much it will change in January. If it were the lowest, would anybodys' expectations be rejigged. Probably no more acceptance of our pi88 poor start and showing than there is now.

If we had a top end budget, and the same results, I shudder to think of how we'd react.

Low Budget - Brent out. Top Budget - Adams out. No winners either way

 

[Ade the green]

I do wish people would stop saying our transfers in are other people’s rejects. It is such a ridiculous statement considering the whole process of exchanging contracts. As such , why has anyone signed our old boys because they’ve all been rejected by us.

 

[The Grumpy Loyal]

Just to add, you talk about no reasoned argument and no alternative. Arguably Brent’s biggest cock up to date is the fact that if he didn’t lump all his own private money making plans in with the Grandstand refurb, that refurb could be sailing through planning by now.

There’s an alternative for a start.

You, too, look for ways of criticising Brent at every opportunity, without giving any reasoned argument.

It is very easy to criticise. It is not so easy to put forward alternative solutions.

You know full well that planning has not yet been delayed. Brent has estimated that works should go ahead some time early 2018.

Until we get to that point neither you nor any of your cohorts can realistically criticise Brent for delaying the refurb as you have no evidence, no facts whatsoever, on which to base your opinion, and that is all it is, AN OPINION, so stop trying to bend the facts.

You are surely on a wind up aren’t you?

I couldn’t have possibly been more consistent and crystal clear exactly why I have questioned Brent’s motives from Day One. It is very well documented.

Whereas your stock argument has simply always been ‘trust in Brent’. That’s it. Nothing more. It is incredibly lame.

Oh and believe me, the Planning decision IS most definitely delayed. That penny may or may not drop with you as each week passes by, but I shan’t hold my breath. And that delay ( at best) is all down to he that can do no wrong in your eyes.

 

[Stuart House]

Bolshevik - a tip for you.

If you learn to use paragraphs & correct spacing people might be more inclined to read your post and engage in dialogue.