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The amount of cash that 20th spot earns...

Started by FPT, March 11, 2014, 07:51:52 PM

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FPT

@fulham_youth on Twitter was discussing the financial repercussions of relegation... Maybe it won't be that bad?

- Those worrying that we will suffer financially from relegation - Should we finish 20th, we receive £63m.

- That's thanks mostly to TV money. Because of the introduction of BT Sport, we will receive more than Man Utd did for winning the title.

- Put on top of that the parachute payments of about £60m over four years (£15m a year).

- So in the summer, should we finish 20th, we will receive £78m.

- I believe that when Al Fayed "borrowed" money against future TV earnings, that was just 16m, so £62m in reality.

- Not bad eh for relegation? £0 of debt, £62m in the summer, and £15m every year for the three years afterwards.

bigalffc

If this is correct then maybe it was Kahn's business plan. All he needs to do now is redevelop the ground for high price flats and wimbledon the 2nd is born
Instead of seeing the rug being pulled from under us we can learn to dance on a shifting carpet - Thomas Crum

grandad

Most of the windfall will go to pay the current players wages as they are on contract. Let´s hope the majority of the big earners move on.
Where there's a will there's a wife


MJG

The 15m borrowed at start of last summer was to cover cash flow until first tv payment in August.
It was actually paid back when the takeover went through.

As for debt free, I'm not so sure. I think our wages this season will have taken a major hit compared to the previous seasons. At best we will have lost 10-20m this season. Darren Bent cost 2m for loan and what 50k a week for 9 months for example.

HatterDon

Quote from: bigalffc on March 11, 2014, 07:56:56 PM
If this is correct then maybe it was Kahn's business plan. All he needs to do now is redevelop the ground for high price flats and wimbledon the 2nd is born

Do you really believe this, or are you just winding us up?
"As long as there is light, I will sing." -- Juana, la Cubana

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Andy S

However you dress it up relegation is still S#@T This is what it means: In order to cut costs savings have to be made. These savings come from peoples jobs and not only players will go. The players from the academy some very good will leave or be snapped up. Training staff will be cut. The new stand put on ice. The list goes on. Our only hope of survival is to invest in the future and aim for a quick return. The supporters lose out with fewer live matches on the TV but there will be 4 extra matches and we may win something again. We cannot though expect a walk in the park. Lets hope for a mirracle.