The first test of whether we are truly on the path to sustainability won't be known until June 2022 because 2012/2022 will be the first full season where the commercial benefits of the grandstand will become apparent and there will be no distortion of the figures created by the additional expenditure to complete the infrastructure of the Club.
In the meantime we can only hope for a promotion this season to create a stable financial position in League 1 from which to properly deliver the sustainability that underpins the Club's 5-year plan.For that to be achieved not only have attendances got to be sustained or improved but commercial revenue too. Attendances will be largely dictated by on-field performance and commercial revenues will have to be continually driven higher.
For every 1,000 increase in average attendance the Club receive a net income of around £250,000 (£11 net income per ticket x 23 games) so the real challenge is to find other sources of income. A glance at Preston North End's recently published accounts (a Club I would say on a par with ourselves and now a well established Championship club) shows an average attendance of just over 14,000 and a turnover of £12.4m. Only 28% of that turnover was from ticket sales. 60% of the income was from EFL distributions and TV money (£7.5m). Most tellingly only £1m turnover was from commercial activities and none was from player sales. Frightening, their wage bill was £16m and hence they posted a significant loss underwritten by their off-shore owner Trevor Hemmings.
For the Club to achieve the sustainability they have studiously mapped out requires significant increases in commercial income but perhaps most importantly a vastly improved improvement in net transfer income. This is where the 'pillar' of the Academy is so important to the path towards sustainability. Simply we have to start producing youngsters that can be sold - yes it means being a 'selling club' but it's an imperative. We also have sign and improve players on extended contracts to sell on as part of that requirement. The Preston lesson expressed above demands it.
Since 2011 we have travelled a long way under the initial saving of the club and subsequent judicious management of it by James Brent right up to the virtual total acquisition by Simon Hallett in June last year. Off the field I genuinely feel we are in as good a position as we could possibly be. The emergent transparency and values have underpinned the feeling that we again unified and as a supporter I feel very much part of our Club. Coupled with the excellence of the Argyle Community Trust that is an unparalleled achievement. We are on our way - we've just got to get over the line with a promotion and preferably this season. That's the tricky bit!
In the meantime we can only hope for a promotion this season to create a stable financial position in League 1 from which to properly deliver the sustainability that underpins the Club's 5-year plan.For that to be achieved not only have attendances got to be sustained or improved but commercial revenue too. Attendances will be largely dictated by on-field performance and commercial revenues will have to be continually driven higher.
For every 1,000 increase in average attendance the Club receive a net income of around £250,000 (£11 net income per ticket x 23 games) so the real challenge is to find other sources of income. A glance at Preston North End's recently published accounts (a Club I would say on a par with ourselves and now a well established Championship club) shows an average attendance of just over 14,000 and a turnover of £12.4m. Only 28% of that turnover was from ticket sales. 60% of the income was from EFL distributions and TV money (£7.5m). Most tellingly only £1m turnover was from commercial activities and none was from player sales. Frightening, their wage bill was £16m and hence they posted a significant loss underwritten by their off-shore owner Trevor Hemmings.
For the Club to achieve the sustainability they have studiously mapped out requires significant increases in commercial income but perhaps most importantly a vastly improved improvement in net transfer income. This is where the 'pillar' of the Academy is so important to the path towards sustainability. Simply we have to start producing youngsters that can be sold - yes it means being a 'selling club' but it's an imperative. We also have sign and improve players on extended contracts to sell on as part of that requirement. The Preston lesson expressed above demands it.
Since 2011 we have travelled a long way under the initial saving of the club and subsequent judicious management of it by James Brent right up to the virtual total acquisition by Simon Hallett in June last year. Off the field I genuinely feel we are in as good a position as we could possibly be. The emergent transparency and values have underpinned the feeling that we again unified and as a supporter I feel very much part of our Club. Coupled with the excellence of the Argyle Community Trust that is an unparalleled achievement. We are on our way - we've just got to get over the line with a promotion and preferably this season. That's the tricky bit!
