Chairman,s Financial Statement

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fred disley

Chairman,s Financial Statement

Post by fred disley »

I see Dave Phillips has once again spelt out in clear terms the harsh realities of owning and running a full time football club, something we as supporters do not always put to the front of our minds,most of us cannot see it, cannot feel it therefore it cannot hurt us, I wonder if we had to look at it up close every day then our perception,s may change.
Like any household what do you do when your outgoings exceed your income, possibly cut back, borrow (but only if you have something to borrow against) or stick your head in the sand and hope it will pass you by, which it may do for a time but will eventually catch up with you big time.
Can we survive as a full time football team, I certainly hope so as I would not turn up every week if I thought different, but what is painfully obvious is things do need to change in a seismic way because the existing model just moves us from one slow burning crisis to another, that is not a criticism of our existing board just an observation on harsh reality.
Community trust ownership which I support in principle but with reservations will not bring any more money into the club, it may reduce the outgoings in some marginal way by sharper scrutiny of costs but in all the clubs that have this or a similar model how many are successful in promotion or generating a large surplus of capital, very very few if any. Yes they survive, but nothing more.
This post is about having the conversation on a level where we do not moan about people who have taken more out of the club than they have put in, or have made decisions that we did not agree with because in most cases we never knew the full facts and if we had known we would have probably agreed with them. That is a waste of our energy and deflects us from our true goal, But somewhere out there is someone who will have the inkling of an idea, maybe not the finished thought but an idea that will make a difference.
Starting the conversation for those of you that still work for a living, why not speak with your employers and explain the positives of being a club sponsor, the promotion by advertising of your product and company, said advertising is cost deductible against income etc etc. and for those say that still work for say Centrax which used to be a large local employer , why are you investing your cash in sponsoring Exeter Chiefs and not your local club. For those that work for one of our largest employers, Torbay Council why not become a corporate sponsor or at least consider a three year rental holiday on the ground. When you consider some of the so called vanity projects that Torbay council has run in the last few years that have cost millions then supporting their local club would be small fry to them.
All this will cost you is your time and persuasion skills, no money whatsoever, if say fifty requests were made to companies logic dictates that a percentage will have to be successful.
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Post by Kit_robin »

I do find there are frustrating contradictions in the chairman's statement. He begins by saying we are "paying our way", but then suggests that fan ownership may mean a sustainable club would only survive at national league south level. I think we all agree that the squad Nicholson has assembled is more than good enough to survive in the conference, so are we overspending? Or is the truth that we are a perfectly sustainable club at national league level. With our gates we absolutely should be, and if we're not were being run badly.

Where I am in full agreement with the chairman is that currently plainmoor offers little in off field revenue, and while I think there is more that can be done with it there are massive limitations for any significant sums to be raised. This means that promotion back to the league becomes much more difficult (though not impossible, as Phillips seems to suggest) without investment. Although a private investor could do this i actually think one of the best ways of getting a move away from plainmoor would be for TUST to deliver this. The council may well be much more open to selling the freehold to a communist venture than one designed to make money for developers, and TUST could enter into partnerships with other companies who may wish to use the site to get something built (as is the norm in many developments to actually get something built). I'm sure a lot of people will point to how much money is currently in the bank, but it matters very little - most developers don't have the money needed for their development in the bank. They have investors, loans etc to get things built expecting a return there is no reason why the fans can't do this for themselves and therefore safeguard the future of the football club in any development that may come about.
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Post by Scorpion »

The National League is not a financially viable league. The TV revenues and sponsorship moneys are in no way comparable to FL levels and yet most of the clubs are full time. I don't see how clubs can operate on a full time basis without having either someone to bank roll them or with a very large support for this level: 3500 plus, preferably more. Phillips has basically said that Plainmoor is only viable at this level with someone to fund the team, which Torquay don't have.

In the last ten years Canvey Island, Scarborough, Rushden & Diamonds, Halifax Town, Salisbury City, Chester City, Darlington and Hereford United have all either gone bust or been relegated multiple divisions (voluntarily or at the insistence of the FA) as they couldn't operate effectively at this level. That's a LOT of teams for a league this small. What is needed is for the member clubs to come together and apply some common sense such as a salary cap restricting the size of a clubs' wage budget to a percentage of their turnover, as they do in League Two. Unfortunately, common sense seems to be absent and there are too many clubs willing to spend well beyond their means to "chase the dream", so I can't see it happening. In the meantime, teams at this level will continue to overpay players who, in the main, are not actually very good to "keep up with the Joneses".
Eddyherr

Post by Eddyherr »

Maybe he'd care to explain how last season the break even was 1800 fans. Sorry, nice guy but absolutely clueless at running a football club.
Neal
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Post by Neal »

I would like to state that I actually appreciate everything that Dave Philips has done for the club, it probably wouldn't have existed without him.

I think he is preparing us for a mediocre season if Im honest, to limit our expectations, which is reasonable if funding is limited.

We are one of the best supported clubs in this league so we should be able to compete. There must be some serious backers for other clubs, and ok that's ok but for some it wont be sustainable, because that doesn't guarantee success, it increases the probability of success (or should do) but does not guarantee.

On an average gate of 1800 we should compete, that means at least a mid table finish, which most of us would accept (I guess) given the last couple of seasons. I think what he is saying is that with no investment and with gates of 1800 the probability of promotion is not good. I accept that, its probably true. But things change in life, events happen. We might fluke a top 5 finish, a real football investor might pop up, some of the other clubs with backers might fail, who the heck knows. We might actually exceed 1800 if the season starts well. One of might win the lottery, OR we will all get involved more with TUST and throw in a bit more.

The bottom line on gates of 1800 we should survive in this league if the club is run well. That gate is not a Conf south gate, gee nowhere near, they get 2 or 3 hundred.
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Post by PhilGull »

Neal wrote:I would like to state that I actually appreciate everything that Dave Philips has done for the club, it probably wouldn't have existed without him.

I think he is preparing us for a mediocre season if Im honest, to limit our expectations, which is reasonable if funding is limited.

We are one of the best supported clubs in this league so we should be able to compete. There must be some serious backers for other clubs, and ok that's ok but for some it wont be sustainable, because that doesn't guarantee success, it increases the probability of success (or should do) but does not guarantee.

On an average gate of 1800 we should compete, that means at least a mid table finish, which most of us would accept (I guess) given the last couple of seasons. I think what he is saying is that with no investment and with gates of 1800 the probability of promotion is not good. I accept that, its probably true. But things change in life, events happen. We might fluke a top 5 finish, a real football investor might pop up, some of the other clubs with backers might fail, who the heck knows. We might actually exceed 1800 if the season starts well. One of might win the lottery, OR we will all get involved more with TUST and throw in a bit more.

The bottom line on gates of 1800 we should survive in this league if the club is run well. That gate is not a Conf south gate, gee nowhere near, they get 2 or 3 hundred.

Something we know only too well. Having been bankrolled ourselves for a few years we now find ourselves in the proverbial shit.
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