Southampton F.C - Empty seats?

[DogsOfWar]

I had a quick look at their financial results last year.
They made a 6.6 million loss, they still owe 27 million in outstanding transfer fees (22 million has to be paid back this season) and are undertaking a 30 million pound training academy.
They had also took out a 6 million loan for some other financial shenanigans and made an 11.9 million loss the previous season.

That's over 80 million to pay back from a 70 million turnover club (and that's doubling turnover from the previous year). These transfers will make Southampton pretty much debt free, stopping them from doing a Pompey, and pay for their new training scheme which will be a lasting legacy.

Koeman will still have best part of 20 million + the extra SKY money to invest in the team, so if he gets it right they could quickly establish themselves as a strong mid-table team.

Worst case scenario is that they get relegated but with a hugely reduced wage bill and parachute payments next year they will be in a fantastic position to return to the Premiership.

This may appear to smack of short termism but it will put the club in a much stronger position in the long term.

 

[Cravenspurs]

I had a quick look at their financial results last year.
They made a 6.6 million loss, they still owe 27 million in outstanding transfer fees (22 million has to be paid back this season) and are undertaking a 30 million pound training academy.
They had also took out a 6 million loan for some other financial shenanigans and made an 11.9 million loss the previous season.

That's over 80 million to pay back from a 70 million turnover club (and that's doubling turnover from the previous year). These transfers will make Southampton pretty much debt free, stopping them from doing a Pompey, and pay for their new training scheme which will be a lasting legacy.

Koeman will still have best part of 20 million + the extra SKY money to invest in the team, so if he gets it right they could quickly establish themselves as a strong mid-table team.

Worst case scenario is that they get relegated but with a hugely reduced wage bill and parachute payments next year they will be in a fantastic position to return to the Premiership.

This may appear to smack of short termism but it will put the club in a much stronger position in the long term.

I am a naive american when it comes to british footballing history, but Southhampton has to be one of the most storied clubs in the isles, right?

Their academy alone produces enough print every year to be one of the more influential clubs in the area.

The question is a bit off in regards to a response to your statement, but I just want to get the general overall feel for the brand of Southhampton. Cause it seems strong and in turn they should be a consistent presence in the top flight.

 

[yankspurs]

I had a quick look at their financial results last year.
They made a 6.6 million loss, they still owe 27 million in outstanding transfer fees (22 million has to be paid back this season) and are undertaking a 30 million pound training academy.
They had also took out a 6 million loan for some other financial shenanigans and made an 11.9 million loss the previous season.

That's over 80 million to pay back from a 70 million turnover club (and that's doubling turnover from the previous year). These transfers will make Southampton pretty much debt free, stopping them from doing a Pompey, and pay for their new training scheme which will be a lasting legacy.

Koeman will still have best part of 20 million + the extra SKY money to invest in the team, so if he gets it right they could quickly establish themselves as a strong mid-table team.

Worst case scenario is that they get relegated but with a hugely reduced wage bill and parachute payments next year they will be in a fantastic position to return to the Premiership.

This may appear to smack of short termism but it will put the club in a much stronger position in the long term.

She's probably stripping the assets to pay off the debt the club owes to put it in amuch better position to be sold for maximum dollar. Smart business decision. Just feel bad for the fans that have to deal with it.

They've already got ~£100m from their outgoings so far(not sure the fees of their incomings). If Schneiderlin and Rodriguez go that's close to ~£130m. I dont think anyone has gotten a hold of the tv money numbers yet, but I imagine it is likely close to £50m(dont forget, the NBC contract has sky rocketed the tv money). Southampton might end this window being £100m+ ahead to pay off the debts putting them in perfect condition to be sold. I would not be surprised if there is a new owner in place by the January window or they are in the process of getting a new one in. I'd have to imagine they have already been having discussions with prospective buyers.

 

[Yid]

She's probably stripping the assets to pay off the debt the club owes to put it in amuch better position to be sold for maximum dollar. Smart business decision. Just feel bad for the fans that have to deal with it..............................................*****

Here bud, fixed that for ya.

IJGMC

 

[yankspurs]

Here bud, fixed that for ya.

IJGMC

That would be quite a scary sight. The mental image. *shudders* Some things you just cant unsee.

Gonna have to go google my wife Alejandra Buitrago again now.

 

[Yid]

That would be quite a scary sight. The mental image. *shudders* Some things you just cant unsee.
Gonna have to go google my wife Alejandra Buitrago again now.

Oh whoa, I just did (google that is), and what a sight for sore eyes. Very pretty.

 

[yankspurs]

Oh whoa, I just did (google that is), and what a sight for sore eyes. Very pretty.

I spent the entire WC obsessing over her

 

[Tequila]

I spent the entire WC obsessing over her

Give me a HELL YEAH if you just googled her name and then went HELL YEAH.

HELL YEAH!

 

[beats1]

I had a quick look at their financial results last year.
They made a 6.6 million loss, they still owe 27 million in outstanding transfer fees (22 million has to be paid back this season) and are undertaking a 30 million pound training academy.
They had also took out a 6 million loan for some other financial shenanigans and made an 11.9 million loss the previous season.

That's over 80 million to pay back from a 70 million turnover club (and that's doubling turnover from the previous year). These transfers will make Southampton pretty much debt free, stopping them from doing a Pompey, and pay for their new training scheme which will be a lasting legacy.

Koeman will still have best part of 20 million + the extra SKY money to invest in the team, so if he gets it right they could quickly establish themselves as a strong mid-table team.

Worst case scenario is that they get relegated but with a hugely reduced wage bill and parachute payments next year they will be in a fantastic position to return to the Premiership.

This may appear to smack of short termism but it will put the club in a much stronger position in the long term.

Thats the 2013 revenue results, last year they got the new tv deal which would increase their revenue to £100m. Not to mention if you look at clubs during their second season the wage bill as well as the revenue do shoot up

Also worth noting that most clubs owe these type of transfer debts. Levy is known especially to pay his fees over 15 years in one million pound instalments.

You say they have 80m to pay back(which they don't) for a 70m revenue but they don't owe that money now, debt isn't necessary bad.

The money owed last season was paid, the figure they owe is £27m this season but worth noting part of this figure is part of the money they used to buy players last season and only £22m should be paid this season(which may of been accounted for). Then £5m the season after.

This situation isn't comparable to pompey their net debt is £19m and their interest payments are £0.6m.

Also the £6m loan was taken out to pay their transfer money payment early to effectively cut down costs in the long term.

As for the training ground its not going to be £30m in one go. In actual fact the first phase of the training ground has been finished which cost the club the largest chunk of that £30m. The second phase will start at this season so in reality they only have to pay £15m or less for the second phase of the development(initial plans, which is the first phase came to £15m before they upgraded the facilities).

So all of sudden that £80m doesnt look scary and worth noting with the interest payments of £0.6m there isn't any need to rush pay the £19m back quickly since their revenue would be £100million plus.

Southampton are in great shape tbh(when compared to other clubs) and hence can afford expansion of the training ground(which was initially only going to be cheaper but instead upgraded what they wanted.

West Ham's Net debt stands at £77m(and rising), they pay £5m in interest each season and have a turnover of £91m with a much higher wage bill of £56m whilst posting a loss of £4m

Sunderland Net debt stands at £78m, they pay £2m in interest each season and have a turnover of £76m with a wage bill of £58m whilst posting a loss of £13m

Manchester United Net debt stands at £295m, they pay £72m in interest each season and have a turnover of £363m with a wage bill of £181m whilst posting a loss of £9m

Liverpool Net debt stands at £114m, they pay £4m in interest each season and have a turnover of £206m with a wage bill of £132m whilst posting a loss of £50m

Everton Net debt stands at £45m, they pay £4m in interest each season and have a turnover of £86m with a wage bill of £63m whilst posting a profit of £2m before tax

Then you chelsea who have a debt of £958m, without any interest. This is owed to Roman Abramovich, who has done this so that he wouldnt get in trouble tbh. If the EU were to freeze the assets of Russian Oligarchs, then chelsea could be screwed if Roman calls in his debt.

Arsenal Net debt stands at £93m(they have a huge cash reserve), they pay £14m in interest each season and have a turnover of £283m with a wage bill of £154m whilst posting a profit of £7m

Compare that to Southampton's £19m net debt and £600k interest payment and its crazy to say they could end up as pomp the only difference is that Southampton have said what their transfer commitments are. The new TV money covered the transfer money payments and the sale of shaw would give them a decent transfer kitty as well covering the cost of the training ground.

Southampton fans are being screwed

 

[goughie1966]

Go on, show us the Spurs figures.

 

[nidge]

Accounts for the year ending 30 June 2013

Turnover: £147m
Wage bill: £96m
Profit before tax: £4m
Net debt: £55m
Interest payable: £8m

 

[Japhet]

Who did they have for this seasons kit launch?

Is it Cash Converters?

 

[Coyboy]

I am a naive american when it comes to british footballing history, but Southhampton has to be one of the most storied clubs in the isles, right?

Their academy alone produces enough print every year to be one of the more influential clubs in the area.

The question is a bit off in regards to a response to your statement, but I just want to get the general overall feel for the brand of Southhampton. Cause it seems strong and in turn they should be a consistent presence in the top flight.

Is this a spoof?

 

[goughie1966]

Southampton actually bring in a player, a Champions League winner no less:










Ryan Betrand on loan
http://www.bbc.co.uk/sport/0/football/28576393

 

[SpursManChris]

Thats the 2013 revenue results, last year they got the new tv deal which would increase their revenue to £100m. Not to mention if you look at clubs during their second season the wage bill as well as the revenue do shoot up

Also worth noting that most clubs owe these type of transfer debts. Levy is known especially to pay his fees over 15 years in one million pound instalments.

You say they have 80m to pay back(which they don't) for a 70m revenue but they don't owe that money now, debt isn't necessary bad.

The money owed last season was paid, the figure they owe is £27m this season but worth noting part of this figure is part of the money they used to buy players last season and only £22m should be paid this season(which may of been accounted for). Then £5m the season after.

This situation isn't comparable to pompey their net debt is £19m and their interest payments are £0.6m.

Also the £6m loan was taken out to pay their transfer money payment early to effectively cut down costs in the long term.

As for the training ground its not going to be £30m in one go. In actual fact the first phase of the training ground has been finished which cost the club the largest chunk of that £30m. The second phase will start at this season so in reality they only have to pay £15m or less for the second phase of the development(initial plans, which is the first phase came to £15m before they upgraded the facilities).

So all of sudden that £80m doesnt look scary and worth noting with the interest payments of £0.6m there isn't any need to rush pay the £19m back quickly since their revenue would be £100million plus.

Southampton are in great shape tbh(when compared to other clubs) and hence can afford expansion of the training ground(which was initially only going to be cheaper but instead upgraded what they wanted.

West Ham's Net debt stands at £77m(and rising), they pay £5m in interest each season and have a turnover of £91m with a much higher wage bill of £56m whilst posting a loss of £4m

Sunderland Net debt stands at £78m, they pay £2m in interest each season and have a turnover of £76m with a wage bill of £58m whilst posting a loss of £13m

Manchester United Net debt stands at £295m, they pay £72m in interest each season and have a turnover of £363m with a wage bill of £181m whilst posting a loss of £9m

Liverpool Net debt stands at £114m, they pay £4m in interest each season and have a turnover of £206m with a wage bill of £132m whilst posting a loss of £50m

Everton Net debt stands at £45m, they pay £4m in interest each season and have a turnover of £86m with a wage bill of £63m whilst posting a profit of £2m before tax

Then you chelsea who have a debt of £958m, without any interest. This is owed to Roman Abramovich, who has done this so that he wouldnt get in trouble tbh. If the EU were to freeze the assets of Russian Oligarchs, then chelsea could be screwed if Roman calls in his debt.

Arsenal Net debt stands at £93m(they have a huge cash reserve), they pay £14m in interest each season and have a turnover of £283m with a wage bill of £154m whilst posting a profit of £7m

Compare that to Southampton's £19m net debt and £600k interest payment and its crazy to say they could end up as pomp the only difference is that Southampton have said what their transfer commitments are. The new TV money covered the transfer money payments and the sale of shaw would give them a decent transfer kitty as well covering the cost of the training ground.

Southampton fans are being screwed

where on earth do you source that from?

 

[RichieS]

where on earth do you source that from?

One of the 'broadsheets' does a state of football clubs' finances report every year.

 

[Kendall]

She's probably stripping the assets to pay off the debt the club owes to put it in amuch better position to be sold for maximum dollar. Smart business decision. Just feel bad for the fans that have to deal with it.

I don't think asset-stripping a club of the very assets that are likely to sustain it as a profitable entity is a smart business decision. They have debt, but as long as they stay in the Premier League and firstly maintain the TV money and secondly continue to charge PL prices for tickets, they will be good for the debt.

Selling their best assets, fucking off the fans and potentially going down would be the worst business decision going. It would kill their revenue stream and devalue the business as an entity - regardless of debt.

They're playing with fire.

 

[FinnYid]

I don't think asset-stripping a club of the very assets that are likely to sustain it as a profitable entity is a smart business decision. They have debt, but as long as they stay in the Premier League and firstly maintain the TV money and secondly continue to charge PL prices for tickets, they will be good for the debt.

Selling their best assets, fucking off the fans and potentially going down would be the worst business decision going. It would kill their revenue stream and devalue the business as an entity - regardless of debt.

They're playing with fire.

They had little choice regarding departures, but managed to get good fees. Now they just have to get it right with incoming players and they are comfortably in midtable. Though Koeman is bit of an question mark. Reckon they bring few in within a week.

 

[UncleBuck]

I feel proper sorry for them, i really do. Can't help but listen to each transfer story break and imagine if that was us, and it so could've been.

No idea what their owner is playing at, i can think of at least three occassions in the last ten years where they've had the makings of a team that could really push and, each time, come the end of the season they sell anyone worth a crap and start again.

You know what I agree 100%, the only thing being after reading your post for the umpteenth time I realised that this could so easily apply to us given who we've let go in the last six/seven seasons!

 

[DogsOfWar]

I don't think asset-stripping a club of the very assets that are likely to sustain it as a profitable entity is a smart business decision. They have debt, but as long as they stay in the Premier League and firstly maintain the TV money and secondly continue to charge PL prices for tickets, they will be good for the debt.

Selling their best assets, fucking off the fans and potentially going down would be the worst business decision going. It would kill their revenue stream and devalue the business as an entity - regardless of debt.

They're playing with fire.

But they have sold 5 players for 100 million. One was old, two were kids, and the other two were fairly decent.
Any decent manager should be able to spend 50 million on 5 players to replace them and bank 50 million to clear debt/pay for the academy and manage a mid-table position.

 

[dontcallme]

We've felt ourselves that when players really want to leave there's not much you can do and the best thing to do is get the best price you can.

As we saw with Modric and Berbatov you can often get an extra season out of players who want out.

Southampton have done great to get the fees they want for their wantaway players but haven't replaced them adequately yet.

Chambers and Shaw aren't much of a loss for them in the short-term but Lambert, Lallana and Lovren are. 2 season ago they spent a fair bit of time in a relegatino fight. They needed a centre back desperately. Last season they were noticeably better.

Fonte, Hooiveld and Yoshida really haven't shown they can do it in the Prem.

They're playing a dangerous game. Their signings so far are from abroad so no idea on if they'll step in and do the job immediately.