Stockport financial statement

Statement about last year’s accounts on the Stockport website. Haven’t digested this properly yet but looks like they need to think very carefully about what they do next - are the player contracts they have now sustainable? Lots of investment and owner’s loan of £2.6m converted to equity.

https://www.stockportcounty.com/club-statement-financial-update/

Quoted from KingstonMariner

Statement about last year’s accounts on the Stockport website. Haven’t digested this properly yet but looks like they need to think very carefully about what they do next - are the player contracts they have now sustainable? Lots of investment and owner’s loan of £2.6m converted to equity.

https://www.stockportcounty.com/club-statement-financial-update/

Firstly, you're under the assumption that the owner wants them to be "sustainable" and isn't happy to continue to fund losses. And they're currently walking towards the title which comes with promotion to L2 and an instant extra £1 million a year in EFL TV Money & Premier League solidarity payments.

I think they will be just fine.

Quoted from GollyGTFC

Firstly, you're under the assumption that the owner wants them to be "sustainable" and isn't happy to continue to fund losses. And they're currently walking towards the title which comes with promotion to L2 and an instant extra £1 million a year in EFL TV Money & Premier League solidarity payments.

I think they will be just fine.

Firstly, you’re under the assumption that I’m making assumptions about the owner’s wishes. Do you take lessons in being patronising or does it come naturally to you?

The point about sustainability is that when the sugar daddy loses interest or runs out of money a club can end up in the shît.

The extra million they’ll get in L2 could easily get eaten up with extra wage demands.

Quoted from KingstonMariner

Firstly, you’re under the assumption that I’m making assumptions about the owner’s wishes. Do you take lessons in being patronising or does it come naturally to you?

The point about sustainability is that when the sugar daddy loses interest or runs out of money a club can end up in the shît.

The extra million they’ll get in L2 could easily get eaten up with extra wage demands.

If I were you I would avoid our 2021-22 accounts when they are released next winter.

I just find it bizarre that so many Town fans obsess about "sugar daddy" owned clubs and talk about sustainability when we ourselves have owners that have and will continue to spend far beyond our means.

But I guess Stockport or whoever else are just shamelessly buying success whilst our owners are nobly investing in the future.

My understanding is that the guy that owns Stockport is very much a county fan and whilst they’re spending big time get out of this out of a league, I’m not sure he’ll be going anywhere too soon.

You’d imagine for all the spending and natural excitement surrounding the club at the minute, county fans remember the not too distant past…

Of all the clubs being bankrolled in this league to have a concern about it’s probably Wrexham, I’m baffled as to what is going on there other than some play thing…

Quoted from GollyGTFC

If I were you I would avoid our 2021-22 accounts when they are released next winter.

I just find it bizarre that so many Town fans obsess about "sugar daddy" owned clubs and talk about sustainability when we ourselves have owners that have and will continue to spend far beyond our means.

But I guess Stockport or whoever else are just shamelessly buying success whilst our owners are nobly investing in the future.

Stockwood has gone on record to say that he personally knows the Stockport owner but his approach to financing a football club is totally different. We've already been told our accounts will be running at a significant loss for the next couple of years but much of that is going on infrastructure.

Isn't it funny that many of the clubs spending wages well beyond their means are the ones who have done so previously?

Also worth considering that Stockport aren't in exactly the same situation as us as their council owns their ground. The club has a ludicrously long lease so I expect their owner is mostly spending on players at the moment. Our current owners have been spending money on upkeep and improvements of BP which had been on the back burner for some years/decades.

Quoted from jamesgtfc

Stockwood has gone on record to say that he personally knows the Stockport owner but his approach to financing a football club is totally different. We've already been told our accounts will be running at a significant loss for the next couple of years but much of that is going on infrastructure.

Isn't it funny that many of the clubs spending wages well beyond their means are the ones who have done so previously?

Sorry, but we were told after the takeover that our wage budget this season would be higher than last season in League 2. Whilst some much need infrastructure improvements have been caught up with we are clearly spending more on wages than our income would allow without our owners investing in/bankrolling the club.

That approach isn’t dirty or cheating. Andrew & Jason have been very clear how they might recoup their investment without drawing money from future club operating revenue. If the club rises through the league system the clubs value will increase and the shares they own will be worth more than the price they paid for them to the point that hopefully the increase in their share will offset the money they have put into the club for those infrastructure improvements & to cover the increase in wage budget.

We will see what happens next season when all those costly infrastructure improvements have already been done. Will the wage budget be increased? That is quite possible given that money budgeted for over future seasons to pay off our former “principle funder” has been covered by player sales & historic add-on clauses. We’ll see.

Obviously the best case scenario is we win the play-offs and get promoted. But if we don’t ideally Stockport & Wrexham will be promoted because those are the 2 most dangerous  clubs. Stockport because they have spent money extremely intelligently and Wrexham because they have spunked so much cash that eventually they will get promoted. Without those 2 next season we’re left with Chesterfield and Notts County who have spent big money, but both of them have done a poor job doing it. Notts are all over the place and Chesterfield put all their eggs in one basket and disaster struck.

[quote=120785]

Firstly, you’re under the assumption that I’m making assumptions about the owner’s wishes. Do you take lessons in being patronising or does it come naturally to you?



I had to laugh when I read the above coming from the most patronising poster on this forum

Quoted from GollyGTFC

Sorry, but we were told after the takeover that our wage budget this season would be higher than last season in League 2. Whilst some much need infrastructure improvements have been caught up with we are clearly spending more on wages than our income would allow without our owners investing in/bankrolling the club.

That approach isn’t dirty or cheating. Andrew & Jason have been very clear how they might recoup their investment without drawing money from future club operating revenue. If the club rises through the league system the clubs value will increase and the shares they own will be worth more than the price they paid for them to the point that hopefully the increase in their share will offset the money they have put into the club for those infrastructure improvements & to cover the increase in wage budget.

We will see what happens next season when all those costly infrastructure improvements have already been done. Will the wage budget be increased? That is quite possible given that money budgeted for over future seasons to pay off our former “principle funder” has been covered by player sales & historic add-on clauses. We’ll see.

Obviously the best case scenario is we win the play-offs and get promoted. But if we don’t ideally Stockport & Wrexham will be promoted because those are the 2 most dangerous  clubs. Stockport because they have spent money extremely intelligently and Wrexham because they have spunked so much cash that eventually they will get promoted. Without those 2 next season we’re left with Chesterfield and Notts County who have spent big money, but both of them have done a poor job doing it. Notts are all over the place and Chesterfield put all their eggs in one basket and disaster struck.

1000 extra bums on seats for 22 games at £15 a head on average is £330k over the season. I'm not saying that they aren't putting money in to boost the wage budget but we aren't throwing loads of cash at the playing budget like Stockport, Chesterfield and Wrexham. Within the wage budget this season we've been paying Luke Spokes and Ira Jackson who haven't played plus Danny Rose and Felipe Morais. I appreciate that 2 of those settled their contracts but it's still cost us. You can add the barely seen Sean Scannell to that list and James McKeown must be one of the best paid keepers in this division.

Given our insistence on Covid clauses I imagine we had relegation clauses but there was still a significant amount of wages under contract before the rebuild began.

I hope we move towards the Peterborough model once our benign debt is gone with our focus being on developing players to sell on for profit and reinvest.