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Money, Money, Money...£££


Tac-tics
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After what's happening down the road and especially what had happened to us.... It dangerously got me thinking!!

 

The money we are spending now, is this INVESTMENT where Markus wont make a significant return finance wise personally and keeps the money locked in the club which will keeps us debt free as an operating business.

 

Or is the money a long term loan?

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I think Cortese has said on a couple of occasions the club is not in any debt. I assume that would include Markus in that. I also of the opinion that whilst we are spending LOADS on wages for a league 1 side, we are getting good crowds in, and progression in the cups has done the coffers nicely too. If Markus was to suddenly up and leave, i think we have the ability to cope with our current spending without the money coming in from anyone else. That sets us apart big time from the blue few.

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As ML owns the club the loan is, to all intents and purposes, to himself.

When he comes to sell, the club will only be worth the assets at that time. ie the stadium;Staplewood, which he is improving; and the playing squad which he is improving.

Any buyer would not want to inherit any debt he has accumulated along the way.

I think we have to trust him and be grateful that at the moment he is spending.

If we reach the premiership it will be interesting to see how ML reacts to the larger sums involved.

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We have spent well over 3 million and made no money on players sold.

 

I hope its not a loan or we could be fooked when he moves on.

 

AP will spend as much as he can & move on ala Redknapp if things turn sour.

 

Pleased with the signings, not sure we needed quite so many and question if some of the signings are any better than we have already.

 

AP is well known for trying to 'fix' problems with more signings - with a billionaire backer he maybe getting carried away?

 

The next manager will not be given the same licence to spend, so hope AP gets it right.

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Markus and Nicola have gone on record as saying Southampton will run as a cash club... paying upfront for everything with no secured debts.

 

They definately confirmed that the money for the new training facilities came straight from Liebherrs back pocket.

 

We are not spending massive money... we might be in League 1 but our turnover will be 4 or 5 times as much as much as more than half the teams in our division, so our spending is relative.

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I think it was said that when we were in the championship a gate of around 19000 was the break even point, so considering we are now probably spending less on operating costs and are getting better gates we should be turning a profit.

That also had to cover hefty mortgage payments which we no longer need to make. I think we would break even now on crowds of 15k, maybe less.

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After what's happening down the road and especially what had happened to us.... It dangerously got me thinking!!

 

The money we are spending now, is this INVESTMENT where Markus wont make a significant return finance wise personally and keeps the money locked in the club which will keeps us debt free as an operating business.

 

Or is the money a long term loan?

 

I was thinking the same.

 

However if we've spent maybe 3 million in total, seen increased gate revenue, plus 12.5k season ticket sales then a lot of money has been raised towards these signings. As for salaries going up, interest paid on debts has gone down.......

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I would imagine that ML sees Saints as an interesting project/hobby. Being a good businees man he wants to make Saints a success financially and on the playing field. In both respects he knows that you have to speculate to accumulate, as the saying goes.

There is an element of a gamble, but people like ML thrive on such challenges, they are natural risk takers and that is why they are successful in the first place !

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For a club of our size and the crowds we are pulling in, i'd say we are living within our means.

 

in relative terms, 800k-1m on a transfer isn't much for us..when we average over 20k in attendances. We've also had the additional bonuses in the cups...FA Cup wins, JPT wins etc...it all puts a decent amount of money back into the club which even pays for some of the signings we've made

 

for e.g. - look at Wolves, prepared to pay 2M (yes 2m ffs) for Jason roberts...

Edited by S-Clarke
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That also had to cover hefty mortgage payments which we no longer need to make. I think we would break even now on crowds of 15k, maybe less.

 

Plus interest and repayments on a large overdraft and a huge wage bill (Rasiak, Saga, Rudi, etc.)

 

I would imagine 12-13k would be a more realistic break even figure now, possibly less.

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After what's happening down the road and especially what had happened to us.... It dangerously got me thinking!!

 

The money we are spending now, is this INVESTMENT where Markus wont make a significant return finance wise personally and keeps the money locked in the club which will keeps us debt free as an operating business.

 

Or is the money a long term loan?

 

 

with Saga gone the pay of Puncheon and at least one other signing is covered.As for the transfer fees (other than Fonte) income from our cup runs will probably cover the vast majority. We're going to make at least 600K from just the Skate game-even if we lose.

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Plus interest and repayments on a large overdraft and a huge wage bill (Rasiak, Saga, Rudi, etc.)

 

I would imagine 12-13k would be a more realistic break even figure now, possibly less.

 

I agree with what you are saying, but the figure you say is a bit low imo. When you consider that 12,500 each home game are season tickets. So the club makes no cash from them each game. (Maybe a few quid on beer, but does the club get this money?)

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Plus interest and repayments on a large overdraft and a huge wage bill (Rasiak, Saga, Rudi, etc.)

 

I would imagine 12-13k would be a more realistic break even figure now, possibly less.

Suspect the wage bill has not gone down much overall, OK some of the big earners have gone, but we have 40 players in the squad at present, with one or two "big" earners still in there. But agreed about the overdraft, hence I said "maybe less". Point is that I suspect that we are now operating on a sound financial footing.

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Suspect the wage bill has not gone down much overall, OK some of the big earners have gone, but we have 40 players in the squad at present, with one or two "big" earners still in there. But agreed about the overdraft, hence I said "maybe less". Point is that I suspect that we are now operating on a sound financial footing.

 

I really hope so, but unless we have some success before Markus decides he has had enough, I still fear we could be left in the sh.1.t with a big squad on wages that other clubs won't match, therefore the players will sit out their contracts.

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Relative terms. We have blown league 1 right out if sight with spending

 

pardew has no reason not to get top 2 next season

 

Here you go again, equating spend with success. If it was a given and the price was say £3m, wouldn't the clubs that could afford stump up the money and book their place in the CCC?

 

I notice that for all their exta spending power Man City were beaten by their, in comparison, poor neighbours the other night! No bought success there then.

 

All Pardew can do it to put a squad together and get them playing as well as possible, there are NO easy rides.

 

I notice now that his target is to get as close to the play offs as possible this year, not reach them now.

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If we reach the premiership it will be interesting to see how ML reacts to the larger sums involved.

 

An interesting question indeed and one that I've often wondered about myself . I suppose as the inner workings of Markus Liebherr's mind remain a bit of an enigma all you can say at the moment is that we'll cross that bridge if and when we come to it .

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