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Why everyone’s for sale…
Posted by E5 Hat on 3/7/2025, 5:38:16
Just read interesting article HullLive wrote before last game of the season, entitled Disaster of Relegation for Hull.
It had the maths worked out and overall loss of revenue for them going down to L1 would have been £9-£12M.
Where it gets a lot worse, as the L1 rules are no relegated club can spend more than 75% of revenue on wages. If we stay in L1 for a second season it’s 60%!
So our current squad will be well over that. Plus we need money in from player sales to balance the books, pay players off, etc. we won’t be going out buying £1M players, not a chance. So in reality anyone in our squad could be sold.
We can’t afford another year of high spend on a squad as the ground gets nearer to completion, we are still needing to borrow 50% of the ground spend even with Prem money.
All hopes rest on MB and recruitment team building a strong powerful team on a strict budget. COYH
I stand to be corrected, but I think the parachute payments are received at the end of a season, not the start. At the end of this season, we will receive our final instalment.
They can be - but will we want to use much of it? To run the club competently financially the board have to tackle the black whole in this years budget.
Regardless of what we can spend to recruit, we have to trim the current squad down massively to hit the 75% max mark on wage spend vs revenue.
Or our new CFO needs to secure significant new revenue streams to allow more wages on the books
I don't think (I don't know) that we're a bit of a different case to Hull City. Mainly because of parachute payments. I would assume (again don't know) that our PP count as revenue in the L1 rules. Meaning we're not just looking at ticket sales and EFL payment . Far from it. I would imagine Birmingham might have been in trouble with their spend last season too?
Theres two things here; profit is important so as you say buying great new talent at a £1M is a potentially the best route for us. But where we are now is the rules of no more than 75% of revenue can be wages. Our revenues this year will be way lower than last year, so having a lot of players on £10-£20K per week isnt going to work.
PP doesnt count towards revenue as some thought...
In essence we have to sell a lot to sort this out or secure some amazing new revenue stream.
I'm no finance expert, but isn't the 75% cap for relegated clubs based on turnover, not revenue? The last published (April 2025) turnover figure for LTFC was up to 30/06/2024 and stood at £132,321,000. 75% of that is approaching £100,000,000.
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What you read on here is 100% conjecture, fiction, lies, bullshit and complete bollocks. If you want to be taken seriously, you are in the wrong place.
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on 3/7/2025, 5:38:16