Crazy or madness

https://www.lep.co.uk/sport/fo.....LD1ApTa6V9CYgeC_5os4

Hope this woks Preston North End have just posted a 16 million yes 16 million pound loss

The figure of £177 spent on wages per every £100 of income is eye watering, and similar to the kind of ratios Scunny were hitting a few years ago.

As touched on in the Lincoln thread last week, the difference is that, Preston’s losses are being covered in the form of shares by the family of Trevor Hemmings, who owned Preston for many years and did with a net worth of something like £1.5bn when he died a couple of years ago. It was Swann’s interest bearing loans, and his idiocy, that were Scunny’s problem.

Like Lincoln, Preston’s losses pose them no real risk. Brighton, probably pound for pound the best run club in the country (if not the world) are in debt to their owner something to the tune of £500m (yep, that’s half a billion). But, keep in mind that this money has taken them from the foot of League One (once saved by one Russell Slade) to pushing for the Champion’s League, he’s almost certainly increased the value of the club by an even greater figure when you consider Chelsea were recently sold for £4.25bn.

Posting huge losses is fine if you do it smartly and can afford to underwrite short-term failure. What it does remind you though, is that Town will NEVER sustainably exist as a second tier club ever again.

Quoted from Poojah

The figure of £177 spent on wages per every £100 of income is eye watering, and similar to the kind of ratios Scunny were hitting a few years ago.

As touched on in the Lincoln thread last week, the difference is that, Preston’s losses are being covered in the form of shares by the family of Trevor Hemmings, who owned Preston for many years and did with a net worth of something like £1.5bn when he died a couple of years ago. It was Swann’s interest bearing loans, and his idiocy, that were Scunny’s problem.

Like Lincoln, Preston’s losses pose them no real risk. Brighton, probably pound for pound the best run club in the country (if not the world) are in debt to their owner something to the tune of £500m (yep, that’s half a billion). But, keep in mind that this money has taken them from the foot of League One (once saved by one Russell Slade) to pushing for the Champion’s League, he’s almost certainly increased the value of the club by an even greater figure when you consider Chelsea were recently sold for £4.25bn.

Posting huge losses is fine if you do it smartly and can afford to underwrite short-term failure. What it does remind you though, is that Town will NEVER sustainably exist as a second tier club ever again.

Thankfully I have memories of Town in the second tier. As you point out it may never happen again, but I can live in hope. League 1 will probably be our financial limit.

Wow! That’s absolutely crazy

The question is who’s going to cover these types of loss when the Hemmings family decides they don’t support Preston like the old man did?

Quoted from louth_in_the_south

The question is who’s going to cover these types of loss when the Hemmings family decides they don’t support Preston like the old man did?

Exactly.

It's like the Rushden and Diamonds saga. A very wealthy owner, who I believe owned Dr Martens too, took two non league teams, (Rushden Town and Irlingborough Diamonds), combined them, built an impressive stadium and got them into L1.

Then one day he decided not to keep pumping millions into the club. He gave it away, but as no one was was willing to throw serious money at it, they eventually sank without trace.

In most businesses at some point sustainability has to come into the equation otherwise disaster looms. But in football it seems there are no end of people willing to sponsor loss making clubs, for a while at least.            

Quoted from DB

Thankfully I have memories of Town in the second tier. As you point out it may never happen again, but I can live in hope. League 1 will probably be our financial limit.

I don’t think getting back there is necessarily beyond us. But certainly to stay there for a meaningful period of time without the backing of someone willing and able to underwrite substantial losses is a near impossibility.

Quoted from louth_in_the_south

The question is who’s going to cover these types of loss when the Hemmings family decides they don’t support Preston like the old man did?

Bolton & Wigan in that neck of the woods are prime examples of what happens.  

Quoted from Poojah

As touched on in the Lincoln thread last week, the difference is that, Preston’s losses are being covered in the form of shares by the family of Trevor Hemmings, who owned Preston for many years and did with a net worth of something like £1.5bn when he died a couple of years ago.

According to Kieran Maguire, they're funding the losses with loans at the moment. The club owes its parent company £77m and has total liabilities of £86m. The owners loaned another £5m to the club last summer. As others have said, as long as someone is there to stand behind these losses, it's 'sustainable'. But if the plug gets pulled they'll sink like a stone. The reality is that most clubs are run at a significant loss as it's the only way for most to be competitive. If Town are to be truly sustainable (without external funding) and be competitive, even at L1 or L2 level, we're going to have to either significantly increase our revenue or find another way to gain an edge.

Need the Ross family to invest. we could easily be chanpionship with their dosh.