Takeover

[Pragmatist]

No I didn’t I have barely mentioned the loans. I said that selling our better players solves nothing and simply meant we prolonged administration if we were not sold to a new owner. The idea under the current owners that we can become self sufficient and do anything but cling to Championship survival is naive to say the least.

All clubs in the Championship will become self-sufficient.  Our crowds and our academy provide us with every opportunity to be one of the stronger ones compared to other clubs

How many clubs are currently self sufficient in the Championship and breaking even? What timescale are clubs expected to make the transition to self sufficient? That is going to be a massive upheaval currently.

As for ourselves becoming self sufficient under the current owners… I shudder to think where that would leave us as a club, certainly not in a strong position.

The answer to the first question is None, including those with parachute payments. The maximum permitted loss is £39m over 3 years, and unless owners pump in equity (maximum £24m over 3 years), the maximum loss is just £15m over 3 years.  Most  are losing £20-£25m a year.  A transition will take a couple of years but just as we are now, clubs are being very careful with these limits and hardly any transfer fees have been paid by Championship clubs since COVID.  In that sense the transition has already started, and clubs know that points deductions will happen if they don’t transition, as some found out last year. 

The objective is to make all clubs self-sufficient, regardless of who the owners are.  Many current owners wouldn’t have bought if they weren’t able to throw their tens of millions at gambling to go up, putting the clubs’ future existences at risk. The Championship is a basket case of ownership.  Nearly every Championship is in reality up for sale. Big changes are coming.

Prag I’ve enjoyed the conversation, I will say that I believe a Prem 2 and or a legal challenge to the wage cap will happen before more than a handful (3-6 clubs) become self sufficient. Clubs with owners prepared to spend are already looking to find ways around the rules as I said look at Blues ‘sponsorship’ announcements. It really won’t be the level playing Or even less sloped field fans are hoping for imo.

Likewise - a good conversation.  

I do see a Prem 2 happening, but I doubt there will be a legal challenge because it’s to stop multiple clubs going bust. Has to happen. Biggest issue is how to deal with parachute payments. 

Sponsorship deals and stadium naming rights etc will all be under the microscope to ensure that they are on arms length market rate terms.  Those clubs who can increase their revenue will obviously have an advantage but we should do ok on that front.  If clubs are allowed to spend 70% of their revenue on wages then obviously boosting the revenue is important.

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Making the Championship self-sufficient will take a decade or more. Hardly worth talking about in the context of our immediate future.

It will take less than 5 years.  Why?  Because if it doesn’t then half the Championship clubs will otherwise no longer exist.