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Palace accounts - £54m loss
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palace99  New Mills 13 Apr 21 5.00pm |
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Originally posted by braunstoneagle
in the report it said we only had £58m in cash reserves due to a £30m loan we had taken out. headlines for me are up to last years accounts (if i remember correctly) we had actually broken even over our tenure in the PL. if it had not been for AWB sale last year would have been £40m loss, so £60 this year factors in covid losses. we could easily clear £10m a year in wages this summer without losing wilf. i really, really want him to stay his whole career but can see the £50 & additional £6.5m off the wage bill being attractive to the americans. agree the cash figure looks better than it is because of the £30m loan - the zero net debt is a little misleading as essentially the day you take a loan out and put it in your bank account your net debt is zero (i.e the 2 are equal).
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 ASCPFC  Pro-Cathedral/caravan park 14 Apr 21 3.29pm |
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I didn't buy the shirt this year so that explains about £50.
Red and Blue Army! |
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| palace99 New Mills 15 Apr 21 4.41pm |
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just re-reading the accounts summary again and it says wages were 93% of the £142.3m revenue, although this was for a 13 month year, rather than 12. So adjusting this for 12 months, it gives wages of £122.2m which is 86% wages to revenue. This may include all staff rather than just players and coaches but it is still massively high - last year it was quoted as 78% although that % was based on footballing wages only. Until SP gets this under control we will never be able to compete in the transfer market
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| Ali_Campbell New Addington 15 Apr 21 7.50pm |
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I think it’s the highest ratio in the league. I just can’t see is spending big in the summer which is worrying. Other clubs who have experienced losses will be bailed out by their chairman/owners. We have taken out a 30m loan and for every £1 earned, we lose 86p in wages. Unsustainable long term. Unless we generate our own transfer kitty, it will be 10-15m war chest for the summer. Perhaps it’s time to cash in on wilf
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| crystal-purley Purley 15 Apr 21 8.17pm |
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It does explain the lack of repairs in the Arthur though. 93% of revenue does leave some leeway and writing off the cost of transfers over 4 years might pay for most of what is needed. I hope.
Enjoying getting up later and not having someone who knows better than me (apart from the missus of course). |
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| ASCPFC Pro-Cathedral/caravan park 15 Apr 21 8.32pm |
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Nick Leeson has said we'll be alright soon though.
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Sir James Hird  Mount Martha 15 Apr 21 9.03pm |
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| Ginger Pubic Wig Wickham de L'Ouest 25 Apr 21 4.53pm |
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There is talk that FFP will be significantly relaxed as a sop to PSG for not joining the ESL. If that's true, we can be in a very comfortable position if our American owners show even a modicum of commitment. We have relatively low debt, low outgoings (starting this summer) and that is a world apart from a vast number of clubs. There will be good value in the market and our financial position is going to be relatively strong.
If you want to live in a world full of kindness, respect and love, try to show these qualities. |
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| Ali_Campbell New Addington 25 Apr 21 8.20pm |
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I thought we was in a strong position when we sold AWB for 50m. I also thought we were in a strong position last season when we some how got a return of about 9-10m on sorloth and signed Eze. We are in more debt now than we have ever been and fans think we will see an improvement in transfer dealings.
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| TheBigToePunt 25 Apr 21 9.19pm |
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Originally posted by palace99
just re-reading the accounts summary again and it says wages were 93% of the £142.3m revenue, although this was for a 13 month year, rather than 12. So adjusting this for 12 months, it gives wages of £122.2m which is 86% wages to revenue. This may include all staff rather than just players and coaches but it is still massively high - last year it was quoted as 78% although that % was based on footballing wages only. Until SP gets this under control we will never be able to compete in the transfer market Other way around surely? Competing in the transfer market is what has led to such a high wages to revenue ratio. We got to the point three or four years ago where the club felt they had to start matching the wages that good Premier league players were getting elsewhere. If we are going to do things differently from now then it'll involve not competing in the transfer market, at least not toe to toe with anyone significant.
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| crystal-purley Purley 26 Apr 21 12.05pm |
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The last time we were in this much debt we didn't own the ground. Additionally there are quite a few players on high contracts which close out this season. Hopefully we will be investing soon and I have a hunch that both fees and wages will either stagnate or drop a little this season. The only worry is that we have so many players to replace this season and we will need Roy or someone of similar talents to cover the gaps caused by those we lose.
Enjoying getting up later and not having someone who knows better than me (apart from the missus of course). |
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| TheBigToePunt 26 Apr 21 1.04pm |
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Originally posted by crystal-purley
The last time we were in this much debt we didn't own the ground. Additionally there are quite a few players on high contracts which close out this season. Hopefully we will be investing soon and I have a hunch that both fees and wages will either stagnate or drop a little this season. The only worry is that we have so many players to replace this season and we will need Roy or someone of similar talents to cover the gaps caused by those we lose. True, but then those were very different days. We now have the benefit of premier league TV deal money, though it is difficult to know what constitutes a sensible or sustainable level of debt. What is plain is that even with our relatively limited spending and long stay at the top flight table, we are struggling to break even. That must mean that the business model has reached its limits if nothing else. What is interesting is that even if Benteke had led the line with courage, skill and 20 goals a season for the last four years, ably supported by 15 goal a season Wickham, ahead of a defence brilliantly marshalled by Sakho, who the pundits all agreed was the best centre half outside the top six, the economic picture wouldn't look any different. Unless those investments led us to Champions League football, we would not have seen a return on them financially.
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