Financial Armegeddon?

Match day discussion, transfers, and all things Accies

Financial Armegeddon?

Postby TerracingTomas » Sun Nov 22, 2020 12:52 pm

There is a view that the owners aren’t too concerned if we are relegated to the Championship, as it will be easier to bring our youth players through in that environment. Ronnie admitted as much at a fans forum when he said how difficult it was to develop young players in the Premiership. Despite repeated protestations from Ronnie, Les and Maitland that no, the Premiership is where they want to be its easy to buy into such a view particularly when you see what is unfolding on the pitch this season. .

However the evidence out there suggests that it makes no sense for the owners to accept relegation as it’s going contribute to a potential financial armegeddon. First off the obvious loss of match day revenue from the fans. I’m not talking about home fans, as the club seems to have discounted their financial input but the money that comes from the visits of the old firm and the likes of Hibs, Aberdeen and Motherwell. Not just gate receipts but hospitality etc. Then there’s the prize money. Even finishing 11th brings in a hell of a lot more than the Championship. Last season we got £1.18m while Ross County got £562,000 for winning the Championship. A mid table championship position gets you £225,000. Ok next season if relegated there would be a parachute payment and we would still get the UEFA payout for one season but unless we went straight back up they are gone after that one season. Then there is the revenue from advertising and sponsorship. With less exposure comes less revenue. Not allowing for the fact that our sponsors aren’t really serious financial players.

I know we have been relegated before and survived but then there is the latest and most significant nail in the financial coffin namely the rent from the North Stand that Accies get from South Lanarkshire Council. McGowan was throwing around a figure of a £300,000 loss of rental income after the Lanarkshire Joint Valuation Board said they were moving out at the end of their lease in May next year. I took that with a pinch of salt as I do with any of McGowan’s financial claims but started digging around annual reports and accounts and it turns out McGowan is right! Since 2001, South Lanarkshire Council has leased the entire North Stand from Accies. They then sub lease it to the Joint Valuation Board and to South Lanarkshire Leisure and Culture. The publicly available accounts for both bodies show the Valuation Board for year 17/18 paid the Council £318,000 annual rental. SLC Leisure and Culture for year 18/19 paid £138,000. Total £456,000. The Council will probably take a small percentage of that for an admin fee but Accies are receiving well over £400k a year in rental income and have been for nearly the last 20 years. That income has paid the mortgage on the stadium meaning income form other renters e.g. the gym, accountants and nursery pay for the upkeep of the stadium and provide a surplus.

So combine the loss of rental income and premiership status (never mind this seasons’ coved impact) and the only reason you would want to see the club relegated is if you have a potential death wish. Over to you Owners. Oh and don't kid yourself that Jamie Hamilton is going anytime soon for million. :oops: :oops: :oops:
TerracingTomas
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Re: Financial Armegeddon?

Postby porcupine » Sun Nov 22, 2020 1:41 pm

A good bit of detective work here, TT, on a wet Sunday in Scotland. (Or are you somewhere in Europe with being an hour ahead of me :D ??) It's worthy of a longish response to keep the discussion going.

I clearly remember that the original SLC North Stand rental deal was the only way that the new Stadium build was financially viable. There was significant pressure within the Council in Hamilton to ensure Accies did not fold, after the debacle of the sale of Douglas Park when all the "fees/comissions/expenses" to many sundry parties left nothing in the pot to build a new stadium, following years of ground sharing and acrimony.

The Coucil saved the day by signing a generous 20 year lease for what was needed accomodation at that time. By the expiry on 2021, Accies were assumed to have been financially managed to achieve a strong permanent financial footing. That question remains unclear, given the continuing 'snake' of companies accounts that we have discussed before on a number of occasions.

Your right in anticipating financial armageddon. The Club looks to be heading to League One, after one spell in the Championship next year. Covis has exacerbated the situation, with no income from Season Tickets (small), Gate money (small, other than Old Firm/Well), Hospitality & Sponsorship, all geared to being in the Premiership. There's no comparable meaningful income in the Championship, quite apart from Final League Position payments in whatever league Accies end up in. In addition "Working from Home" probably eliminates the needs of much of SLC's future need of vast office space for much of its staff.

We REALLY look doomed this season, with a manager who has proved no better than the last one. He seems unable to blend a team of mostly journeymen plus some talented youngsters into any consistent force. We are already cut adrift with only 7 points from a possible 39, and our defence goals lost should be frightening him. 5-4-1, BR? or 6-3-1?

Given what you've said, It looks like we are off to "nowhereland" over the next 2/3 seasons, if we even survive financially that long.
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Re: Financial Armegeddon?

Postby smc4761 » Sun Nov 22, 2020 2:41 pm

What frustrates me is we always talk of the this wonderful youth system we have. Dont get me wrong we have had some decent players come through over the years. BUT the idea I would assume is to bring through the young players then sell them on for lots of money.

How many youngsters have we brought through over past 10 years and sold on for decent money. McCarthy, McArthur, Easton, these were about 10 years ago. Lewis Ferguson went for peanuts. I am struggling to think of anyone we have sold for decent money, Hendry??.

Looking across to our neighbours, Well, they seem to have had more success selling players on than we ever had, same could be said of other clubs as well.

If we drop down a division or 2 bringing players on will have to be way forward but I would imagine they would also go for even less money
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Re: Financial Armegeddon?

Postby Stevie Clarke » Sun Nov 22, 2020 5:30 pm

Did the money we got from selling Docherty and Ferguson not help keep us afloat, so soon after being conned out of nearly a million? Hendrie went for around £250k, though I think the club talked in terms of add ons that never materialised, seeing as he's now at Morecambe!
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Re: Financial Armegeddon?

Postby porcupine » Sun Nov 22, 2020 5:45 pm

That's 2/3 years ago, SC, and probably already gone in running costs. We have signed many players since then who have gone, probably having their contract paid up in full.

IMO, we have a (too) big squad for our income against the cost of all that. Even if the suggested big sponsorship deals from new start-up companies ever crystalised, then consider wages costs of our squad, whether playing or injured. Cant imagine B E's salary is less than £40K p.a but even at £25K times 25 full timers, we all can do the maths.

Convince me otherwise!
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Re: Financial Armegeddon?

Postby Stevie Clarke » Sun Nov 22, 2020 8:29 pm

porcupine wrote:That's 2/3 years ago, SC, and probably already gone in running costs. We have signed many players since then who have gone, probably having their contract paid up in full.

IMO, we have a (too) big squad for our income against the cost of all that. Even if the suggested big sponsorship deals from new start-up companies ever crystalised, then consider wages costs of our squad, whether playing or injured. Cant imagine B E's salary is less than £40K p.a but even at £25K times 25 full timers, we all can do the maths.

Convince me otherwise!


Sorry, that was a bit of poor wording, I was really answering smc's point about selling players for decent cash. The £1m+ league cash will probably keep us going this season but after that...I agree with TT's post.
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Re: Financial Armegeddon?

Postby smc4761 » Sun Nov 22, 2020 11:51 pm

sorry guys I forgot about Docherty £600 000 ?

Cant think of anyone else
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Re: Financial Armegeddon?

Postby TerracingTomas » Mon Nov 23, 2020 1:13 pm

Cant think of anyone else


We got a reported £80,000 from Aberdeen for Devlin who was a youth product and we are supposed to have got another £25,000 add on when he got his first Scotland cap but there isn’t any other youth product transfer fee that I can think of.
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Re: Financial Armegeddon?

Postby porcupine » Mon Nov 23, 2020 6:27 pm

smc4761 wrote:sorry guys I forgot about Docherty £600 000 ?

Cant think of anyone else


Remember, we sold him because we had just been scammed for a million quid, so there was already a shortfall in any liquid funds of around £400K :oops: :oops: :oops:

Don't know whether the Hull City deal gave us anything else from what was reputed by Ronnie to be a sell-on clause of 20%.

Still think we are financially flucked after at least one relegation most likely at the end of the season. TT's original synopsis stands firm IMO. :cry:
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