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FFP Pressures this summer

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Martin Alvito said:
More or less. It's part of why the squad value is declining.

Things should be improving on the P&L relative to '20-'21, so we should be looking at a further reduction in the underlying loss and perhaps even a wash after the sale of those players. The implication is that we can spend heavily without having to sell further this offseason, since we can post a max loss of 105 million over a three-year period.

However, I don't think we'll do it. Moshiri presumably is looking for further investment, diluting what he can recover from BMD, because either he cannot or does not wish to bankroll the losses further. New ownership will want the books to look like West Ham's, and sooner rather than later. BMD should help quite a bit, but we're probably looking at another season where we don't spend much more than we sell.
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Was very disappointed with the underling loss for 21-22, without Richarlsion it was another £100 million. have we brought down our losses enough in a year for the £70 mill from Kean and Gordon to be significant or offer huge scope - not so sure.

I make our scope about £30 - £35 mill myself, but be happy if im wrong.

Good to see you about mate! ;)
 
Martin Alvito said:
It does, but Moshiri soliciting outside investment from American firms suggests that the days of tolerating max losses are probably over. That's what has changed. We also have the problem of getting wages under 70% of turnover a few seasons from now, and keeping them there.

Long story short, I think the club has the ability but may not have the willingness for a big net spend right now.
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I fear you're right. I stated yesterday that MSP were here as vampires.

The very least we should see though is sell-to-buy, with all proceeds recycled by Dyche.
 
You just got to love these ad placements lol
1685787982371.webp
 

davek said:
I fear you're right. I stated yesterday that MSP were here as vampires.

The very least we should see though is sell-to-buy, with all proceeds recycled by Dyche.
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I don't think they're vampires, but I do think they will want the finances cleaned up. They don't have to be vampires to make a profit from here, and doing that takes on substantial risk of relegation and a loss of value. They just have to turn the club into a functional going concern, then flip it, while staying up to make money.

The Glazers could suck the life out of United because the club was in a strong financial position and had all that goodwill. Same with Arsenal, when Kroenke was bleeding them to build his Los Angeles palace. We're not in that position, so the pathway to making money as an investor is a little different.
 
Martin Alvito said:
I don't think they're vampires, but I do think they will want the finances cleaned up. They don't have to be vampires to make a profit from here, and doing that takes on substantial risk of relegation and a loss of value. They just have to turn the club into a functional going concern, then flip it, while staying up to make money.

The Glazers could suck the life out of United because the club was in a strong financial position and had all that goodwill. Same with Arsenal, when Kroenke was bleeding them to build his Los Angeles palace. We're not in that position, so the pathway to making money as an investor is a little different.
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The big question is and one i haven't seen anyone mention - is in a business where the majority shareholder was writing blank cheques (if you know what i mean) to fund the club - how do MSP intend to fund our losses...........that's my concern to be honest.
 
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Gibson, Welch and Branthwaite
You would think that 1 of these will be a regular in the match day squad now.

Similarly Simms, Cannon and Dobbin will be competing with each other in pre-season.

Would like to see one of Mills and Warrington stick about for the season, there might be others that can impress.

No more brining In expensive bench-warmers.

We can seriously trim the fat off this wage bill without any real damage.
 
Neiler said:
The big question is and one i haven't seen anyone mention - is in a business where the majority shareholder was writing blank cheques (if you know what i mean) to fund the club - how do MSP intend to fund our losses...........that's my concern n to be honest.
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The short version is probably trim the wage bill (which will happen naturally anyway as we ditch dead amortization and wages) and see how much of a hole in the boat BMD revenue plugs. A large proportion of the current losses are related to bad decisions made years ago. We paid big transfer fees and wages for players that did not contribute, or did not contribute enough, and have no meaningful sell-on value. That math doesn't work.

Maupay aside, Thelwell made a lot of positive decisions this past summer. It's probably why the Americans like him. The objective this summer has to be getting about ten goals in with near certainty, without taking a step backward in defense. If we do that, we're fine. We'll be comfortably up, we can keep buying young to replace expensive mistakes in the next two summers, and develop them into contributors. Then, suddenly, we end up with a squad full of assets in their prime on wages where we can sell them, rather than ones that are dead money, and the whole thing becomes self-sustaining. We quit rebuilding, and start reloading.

The Americans make out like bandits, and we become attractive to someone who can help us take the next step by investing wisely to chase the CL positions and silverware. That's the story we need to write at the moment, and it starts by solving the most pressing problem and another couple summers of smarter buys than the ones we made in the past.
 
DonegalEvertonian said:
We are all wondering if FFP is going to impact us this summer so i done some simple investigation.

Income:

Premier League Money: £84m
PL prize money £8.8m
TV money £110.39m
Player Trading £69m
Sponsorship (Last available figure) £50m
Match day income (.59*19) 11.2m

In and around £333.4 coming in

Players wages £43.12m
Operating expenses £205m

Expenditure (excluding payoff of staff and players) 248.12

So should be in and around £85m profit.

Obviously these figures are based on the last available data and not all income and expenditure is accounted for but I can see not conceiveable why we can make a loss this season considering the new stadium is a seperate entity.
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I admire your positivity but all these figures that get bandied around seem to change every time I see them.
The reality is we don’t have a clue! 🤷‍♂️

Thinking about it the Club don’t either! - So what hope have we got.?!
 

Martin Alvito said:
The short version is probably trim the wage bill (which will happen naturally anyway as we ditch dead amortization and wages) and see how much of a hole in the boat BMD revenue plugs. A large proportion of the current losses are related to bad decisions made years ago. We paid big transfer fees and wages for players that did not contribute, or did not contribute enough, and have no meaningful sell-on value. That math doesn't work.

Maupay aside, Thelwell made a lot of positive decisions this past summer. It's probably why the Americans like him. The objective this summer has to be getting about ten goals in with near certainty, without taking a step backward in defense. If we do that, we're fine. We'll be comfortably up, we can keep buying young to replace expensive mistakes in the next two summers, and develop them into contributors. Then, suddenly, we end up with a squad full of assets in their prime on wages where we can sell them, rather than ones that are dead money, and the whole thing becomes self-sustaining. We quit rebuilding, and start reloading.

The Americans make out like bandits, and we become attractive to someone who can help us take the next step by investing wisely to chase the CL positions and silverware. That's the story we need to write at the moment, and it starts by solving the most pressing problem and another couple summers of smarter buys than the ones we made in the past.
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This is a very good summary.

Essentially longer term we have to get the wages down and keep under control, and short term we need to plug the gap with sales.

Dyche is probably the perfect manager for this situation. It may involve recruiting more from the championship.

My own view is we should never have moved away from the template Moyes brought in, so if we can go back to that as a basis, all the better.
 

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