League two income.

[Gatekeeper]

How much do L2 clubs get each year from the FL and PL each season?

 

[Gladders]

 

[AFCB_Mark]

The Premier League pays a "solidarity payment" to all Football League clubs. Partly used as leverage so that the FL accept whatever stupid stuff Scudamore would like them to agree too, such as EPPP. But I digress.

This solidarity payment increased this season in line with the latest PL TV deal. Apparently it's worth around 300k per year to a League Two club:
http://www.fcbusiness.co.uk/news/ar...+increase+football+league+solidarity+payments

 

[Gatekeeper]

Thanks Mark

 

[northstandexile]

Originally is was about £700k a couple of years ago, but I think it has gone up a bit perhaps £1m now.

 

[Gatekeeper]

Originally is was about £700k a couple of years ago, but I think it has gone up a bit perhaps £1m now.

1m!
Where does that extra money come from?

 

[Greenacres]

The figure I heard maybe eighteen months ago was that the difference between the Conference and League Two was around £700k, at which time our amount was around £50k, so the figures mentioned above may not be too wide of the mark. I'm not sure if teams relegated from the Football League get parachute payments, like those relegated from the Premier League, hopefully we won't be finding out any time soon!

 

[Luke Imp]

They do and the parachute payments increased this season.

 

[Chris FGR]

Think we'll stand a good chance of breaking even over the next couple of years in that case, given this massive increase in income especially when added to bigger gates, record season ticket sales and a determination from our management not to over pay for players.

Our playing budget for the squad that ended last season was down to around 900k, having shifted out a lot of the higher earners and replaced them with younger players from lower leagues and loanees during the season. Will probably go up again slightly this year, but still be a lot less then previous years. The future is looking very bright.

 

[PaulHaddock]

So you spent just over 700k on wages?

 

[Chris FGR]

No, our playing budget for the squad we had come the end of the season would have worked out at £900k apparently, obviously spent more then that during the year getting rid of a few higher earners.

Add the £700k to the increased income from tickets, merchandise, and sponsorship and we could well have more coming in then going out within a year or two. So much for people saying we'll never be sustainable.

 

[Luke Imp]

I know what you're saying and probably correct to a point but it also costs more to run an FL Club than it does an NL Club.

 

[Kenneth E End]

No, our playing budget for the squad we had come the end of the season would have worked out at £900k apparently, obviously spent more then that during the year getting rid of a few higher earners.

Add the £700k to the increased income from tickets, merchandise, and sponsorship and we could well have more coming in then going out within a year or two. So much for people saying we'll never be sustainable.

£900k FGR's wage bill.
Is Steve Evans your accountant?

 

[Laker]

£900k FGR's wage bill.
Is Steve Evans your accountant?

Probably Diane Abbott.....

 

[AdamStag]

How is it possible to lose £2.5 a year if wages are £900k?

Seems like your chairman is blowing more hot air than clear air.

 

[GTFCfish]

How is it possible to lose £2.5 a year if wages are £900k?

Seems like your chairman is blowing more hot air than clear air.

I think Vince had a hole in his trouser pocket.

 

[Conker]

Think we'll stand a good chance of breaking even over the next couple of years in that case, given this massive increase in income especially when added to bigger gates, record season ticket sales and a determination from our management not to over pay for players.

Our playing budget for the squad that ended last season was down to around 900k, having shifted out a lot of the higher earners and replaced them with younger players from lower leagues and loanees during the season. Will probably go up again slightly this year, but still be a lot less then previous years. The future is looking very bright.

So much shite in one post.

Hardly any clubs are sustainable in the football league, and 900k budget is obviously bullshit. Forest Green are not going to be sustainable now just because they are in the FL.

 

[Chris FGR]

If hardly any club are sustainable in the FL, why do we get so much shit for making losses? Seems pretty hypocritical.

And the 900k budget is not bullshit, in the play off final programme Coops mentioned how ridiculous Adam Virgo's comment that our budget is 3x Lincoln's was, stating "In that case their budget must be 300k then."

We got rid of a load of high earners and replaced them with youngsters from lower leagues and loanees during the season, so I can well believe that the squad we finished the season with was around that amount budget-wise.

It's been made pretty clear we're not going to be overpaying players anymore, lots of agents are taking the piss seeing us as a gravy train but we're not going down that route anymore, if a player wants too much we're not going for them.

 

[Gladders]

If hardly any club are sustainable in the FL, why do we get so much shit for making losses? Seems pretty hypocritical.

Because no other club lost 5m in two seasons on non league wages

 

[Trapdoor]

Ahem.

Exeter are pretty close to being "sustainable". We have to at least break even or we cant pay our players.

 

[Kenneth E End]

If hardly any club are sustainable in the FL, why do we get so much shit for making losses? Seems pretty hypocritical.

And the 900k budget is not bullshit, in the play off final programme Coops mentioned how ridiculous Adam Virgo's comment that our budget is 3x Lincoln's was, stating "In that case their budget must be 300k then."

We got rid of a load of high earners and replaced them with youngsters from lower leagues and loanees during the season, so I can well believe that the squad we finished the season with was around that amount budget-wise.

It's been made pretty clear we're not going to be overpaying players anymore, lots of agents are taking the piss seeing us as a gravy train but we're not going down that route anymore, if a player wants too much we're not going for them.

Of course people always tell the truth.

Did you know Matt Tubbs was earning £650pw at Crawley.

 

[Chris FGR]

Of course people always tell the truth.

Why be that specific though? He could have just said it's rubbish without quoting an actual figure.

Anyway the point is that with massively increased income, and being more sensible on the wages we're paying out, we're going to be a lot more solid financially then most people expect.

 

[Optipez]

I think you'll find the higher up the pyramid you go, the harder it is to break even.
Under the Supporters Trust we had to break even as we'd come out of administration and had no overdraft facility. Averaging around 4,700 over the seasons we had some truly awful players and were lucky to stay up. I think we turned over around £1.5 million per season.
The chairman was so desperate to get us sold he didn't bother with legal due diligence and we sold to a crook with no money at all, but still it was a better option than trying to break even.
I'm afraid unless you're either spectacularly successful with managerial and player appointments, your crowds jump to an average of 9,000 or your chairman takes your budget closer to £2 million from his back pocket then you'll do well to last more than three seasons as your best players get picked off, managers move on and the initial buzz of excitement settles back to 1000 bums on seats.
It's a grind. Rushden couldn't sustain it, Accy have a freakishly good manager and Morecambe are like a drowning man who at some point is going to go under.
Money is not everything but without it , it's almost impossible to make progress.

 

[Luke Imp]

I think you'll find the higher up the pyramid you go, the harder it is to break even.
Under the Supporters Trust we had to break even as we'd come out of administration and had no overdraft facility. Averaging around 4,700 over the seasons we had some truly awful players and were lucky to stay up. I think we turned over around £1.5 million per season.
The chairman was so desperate to get us sold he didn't bother with legal due diligence and we sold to a crook with no money at all, but still it was a better option than trying to break even.
I'm afraid unless you're either spectacularly successful with managerial and player appointments, your crowds jump to an average of 9,000 or your chairman takes your budget closer to £2 million from his back pocket then you'll do well to last more than three seasons as your best players get picked off, managers move on and the initial buzz of excitement settles back to 1000 bums on seats.
It's a grind. Rushden couldn't sustain it, Accy have a freakishly good manager and Morecambe are like a drowning man who at some point is going to go under.
Money is not everything but without it , it's almost impossible to make progress.

Is that possible?!

 

[Optipez]

With season tickets and concessions, base the average at around £13 x 25 matches including cups, very little commercial activity and go back seven years and its not a million miles off.

 

[Luke Imp]

Plus the league payments as well?! Just seems almost impossibly low, that's all.

 

[Optipez]

I could well be wrong, in which case it paints a bleaker picture for small clubs with smaller turnovers because we were absolutely skint and really struggling without a chairman dipping in to his pockets.

 

[Kenneth E End]

Is that possible?!

No it isn't, unless tickets are being sold outrageously cheap.

Usually for every 1,000 fans you get through your door you'll make around £500,000 in revenue + £750,000 central funding. So Luton for example, averaging around 8,000 fans each week will turnover around £4.5m a year (ballpark obviously - maybe a tad high).

If a club was only turning over £1.5m a year, under the old salary cap, you couldn't have a TOTAL budget of more than c£750k.