The TV Money: What Do You Think It Means?

[CahillsCornerFlag]

So what are we actually likely to do with this new influx of money? Someone hit me a cold hard dose of reality.

 

[Essex Blue]

So what are we actually likely to do with this new influx of money? Someone hit me a cold hard dose of reality.

We will spend it. On what, or in what area, is yet to be determined. It's an opportunity that needs to be carefully managed.

 

[billycopper]

Unfortunately not. Most of that £88m will be used to keep the club afloat.

We currently make a loss of about £5m per year. Say that we currently pay £5m on interest/debt repayment and £5m on renting Finch Farm, if we were debt free and owned Finch Farm we would make a £5m profit each year before we even thought about increasing turnover.

 

[billycopper]

Which is a result of us spending more money than we receive, in spite of bumper TV deals as you say. The same thing will eventually happen with this new TV deal, but the extra money has to be spent before that happens.

Without the last TV deal, I doubt we would have been able to afford the likes of Arteta, Fellaini and Moyes on 65-75k a week. This new TV deal should enable the likes of Everton to offer better wages than some of the big clubs in Spain, Italy and Germany etc.

The proposed Park End development was quite a good idea IMO, and if we need to get rid of our mortgage to make stuff like that happen, then I wouldn't be against paying off the debt. I wouldn't necessarily be against paying off our mortgage and getting another loan at a better rate either.

We haven't been able to get credit to spend the TV money before it's come in and we've had to sell off players to stay afloat. This is an unprecedented opportunity to wipe the slate clean and get out of the debt trap once and for all.

 

[billycopper]

Not investing in the first team in January is even more criminal than first thought, when you see how much money will be coming our way in the next couple of seasons.

There was no value to be had. It's better to spend wisely in the summer than to pay inflated prices on players that Moyes might not be that convinced about in January.

 

[Hellerad]

Obviously it means a little more for lower asset teams, but it isn't a game changer. It will be good for paying down some debt and some reasonable squad depth, but if everybody makes more money it will just create fee/wage inflation across the board within a couple of years.

It will definitely make promotion/relegation more meaningful. Imagine balancing your books in reliance on the TV money and then getting relegated. Cough, QPR, Cough.

 

[Brennan]

We currently make a loss of about £5m per year. Say that we currently pay £5m on interest/debt repayment and £5m on renting Finch Farm, if we were debt free and owned Finch Farm we would make a £5m profit each year before we even thought about increasing turnover.

But we're not and we don't. :huh:

The revenue increase will be about £20m per annum. We just about break even every year. Wages will increase this summer and immediately take away some of that money. This money is not going to wipe out our debt, unless we spend it on nothing else and stagnate while other clubs improve.

 

[TheFinnFan]

how does that tv money work like?
why do we get it?

 

[Essex Blue]

There was no value to be had. It's better to spend wisely in the summer than to pay inflated prices on players that Moyes might not be that convinced about in January.

Can't agree in the slightest. Most other teams strengthened, and the value was found in their squads being stronger. Our squad remained as weak as it was, and we will have a worse season as a consequence. Please tell me where the value is in that?

7 million over 3 or 4 years isn't anywhere near being 'inflated', and Newcastle got plenty for their money.

We haven't been able to get credit to spend the TV money before it's come in and we've had to sell off players to stay afloat. This is an unprecedented opportunity to wipe the slate clean and get out of the debt trap once and for all.

Here's a mental idea, but instead of trying to get credit from the bank, why doesn't one of our directors access one of their FORTUNES and lend the money to the club themselves? The risk was minimal, with the Fellaini money this summer and the new TV money next summer.

 

[evertony]

Everything will just rise at the same rate, and the status quo will remain....there will be the billionaires like City, Utd and Chelsea, the next group of multi-millionaires comprising Spurs, Arsenal and the ****e, the pretenders including Villa, Newcastle and QPR, and then the rest.
Wage demands will rise pro-rata to the new TV money, as will agents fee's, and unfortunately as will ticket prices.

The problem remains that people with absolutely limited or no business acumen run football clubs....there is the odd exception true, but what other industry has its biggest 'players' billions in debt and still trading?

 

[TheFinnFan]

so it is kinda like you get a pay raise and at the same time your taxes raises too. ok. booooo

 

[billycopper]

But we're not and we don't. :huh:

The revenue increase will be about £20m per annum. We just about break even every year. Wages will increase this summer and immediately take away some of that money. This money is not going to wipe out our debt, unless we spend it on nothing else and stagnate while other clubs improve.

The tv money could be £88.81m as a windfall. We know that we owe £46m and there could be an overdraft as well. We might currently be paying something like £5m in interest alone on our debts.

If we paid back the £46m now we'll be £5m better off every season in future. It will take 10 years to reconcile it but it we'd be debt free. It would be crazy to take a short term view of the situation.

Same with Finch Farm. It's supposed to be valued and £17m and we may well pay £5m per year in rent. In 4 years time it's paid for itself.

It would cost us £63m up front but our accounts would show an extra £10m every year going forward. Paying interest and rent is just dead money.

 

[billycopper]

Can't agree in the slightest. Most other teams strengthened, and the value was found in their squads being stronger. Our squad remained as weak as it was, and we will have a worse season as a consequence. Please tell me where the value is in that?

7 million over 3 or 4 years isn't anywhere near being 'inflated', and Newcastle got plenty for their money.



Here's a mental idea, but instead of trying to get credit from the bank, why doesn't one of our directors access one of their FORTUNES and lend the money to the club themselves? The risk was minimal, with the Fellaini money this summer and the new TV money next summer.

Spurs only bought in Holtby, who was going to join in the summer anyway, and Arsenal signed a left back because Gibbs was injured. £20m is a lot for Sturridge and Coutinho as far as I'm concerned. Newcastle are about the only team who got their money's worth.

If a player is worth £5m and you have to pay £7m to get him in January because it will be difficult for the selling club to sign a replacement than it's inflated whether it's paid up front or over 4 years.

Maybe one of the directors did offer the club a loan to sign Fer or Negredo with the tv money as guarantee?

 

[Essex Blue]

Spurs only bought in Holtby, who was going to join in the summer anyway, and Arsenal signed a left back because Gibbs was injured. £20m is a lot for Sturridge and Coutinho as far as I'm concerned. Newcastle are about the only team who got their money's worth.

If a player is worth £5m and you have to pay £7m to get him in January because it will be difficult for the selling club to sign a replacement than it's inflated whether it's paid up front or over 4 years.

Maybe one of the directors did offer the club a loan to sign Fer or Negredo with the tv money as guarantee?

So Arsenal and Spurs strengthened their first team squad, as did Liverpool, as did Newcastle who got very good value. Everton failed to strengthen, and our season has fell apart ever since. There is no value in that.

There's really no hope if you think 7million pound over 3 years for a player like Leroy Fer represents an inflated fee. And you're just crazy if you think saving 2million pound at the expense of your season falling apart represents good value. Even Everton didn't hide behind the 'lack of value in January' excuse this time.

Directors can pretend to be lending all the money in the world, but it's a bit useless when they start turning down players who pass their medicals on the account that they might get injured in the future.

 

[steken1]

This is it - because every club will get more, the playing field will be identical to now.

Not in the strictest terms. Those who have big fan bases, play attractive football and create a desire to watch them will be able to comfortably outstrip other sides due to the Live Televised aspect of the payments.

Changing our style of football could be worth 30m+ over the life of this deal.