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To Spend or Not to Spend....

With all this gossip floating around on how much we are going to spend on that striker who will fire the goals we need to get us into Europe, we sometimes really need to stop and think about it.

So far, we have recieved 13 million pounds for RSC, 3 million pounds for Derbyshire, and who knows what else for the few others who have left our shores. We also have recieved (or are bound to receive) several millions from the FA for being in the Premier League, as well as Media Rights. We also have the Season Memberships and Clothing Apparel. Finally, Club Sponsorships.

Well that sums up the Ins. Now for the outs. Top of the list, Blackburn Rovers, is a Business. The Club runs to try to make a profit, or minimise losses. We have several expenses, ground expenses, board expenses, maintanence, Player Wages, Staff Wages, Backroom Staff Wages, Advertising and Promotional Campaigns. As well as the other thing, transfer Fees.

Now I'm sure I have missed a few things in the Ins and Outs, but you get the jist. This takes us to the next point. Do we sell because we have to, or because it is financially viable. I believe its the latter. Blackburn arent in the worst financial state, but we arent in the best either. Every dollar that comes in, does not automatically co-relate to available transfer funds. And that is something we fail to understand. All the other ins, simply does not make up for all the outs.

The 16 million recieved from the sale of Roque and Derbyshire will not become 16 million available on transfers. In saying that, if we didnt sell these 2 players, how much, or even, would we, have had any money to spend. Sure, the finances would have been worked out somewhere or another.....

End of the day, as fans, we do need to understand, that unfortunately, the club is a business. Money In does not always create the opportunities to money out. However, we put our trust in the club and the manager, to make the most of whatever money we have to spend....

Confused?

I think we all are, thats just finances

Aint it?

Sas

A confused Rover from Down under.....




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The Journalist

Writer: Sasman! Mail feedback, articles or suggestions

Date:Saturday July 25 2009

Time: 7:19AM

Your Comments (oldest first)

Change to most recent first
Rovers are largely a break even operation at the moment, they turn a small profit for investors and keep the fans dreams alive in the process. It is confusing stuff but I trust what the chairman says as he has never given me reason to doubt him.
Mikey D
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25/07/2009 09:38:00

Nice business 101 there! Good read and well balanced! and btw, whos been continously abusing the poll so it looks we think we're screwed?!
GoneRoverBoard
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25/07/2009 10:32:00

one of the unfortunate things about the polls mate, someone comes in every 3rd or 4th poll and wants to ruin it.......feel free to start a new poll in the forums where every1 is entitled to 1 vote only.... as for the thread, cheers lads, was at work and browsin around the sites, too many idiots out there these days who really dont understand that we are a business at times
sasman
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25/07/2009 11:16:00

I dont think anyone doubts that John Williams and his board are'nt doing their utmost to keep the club competitive in the Premier League. What is frustrating is that the club is unable to progress because its owners.. our "beloved" trustees.. have no interest in it anymore, refuse to invest in it, and for some reason can't sell it on to someone else who will put in some money. Thats what annoys me.. I mean we must hold the record for being up for sale longer than any other club in a top division. It's ridiculous!!
spinaker
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25/07/2009 16:22:00

As a finance guy I like the idea about making a small profit every year. I'm not at all frustrated about our owners, better have them then some rich guy which care about the club 2-3 years and then are out again. Just see Leeds their fans can't be happy. Add to it that I like us having some local guys at the team (or coming from the youth team at least). Sometimes I think big clubs forget their local roots, I hate that. It also starting to happen in Denmark, big clubs only think about profit and championships so they just buy a team which can do that, but then they forget their local roots. I know we did it a bit in the 90'ties, but not since and I like that.....cheers
riisenholt
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25/07/2009 16:46:00

I can appreciate where your coming from in terms of local roots, but everything else you've said smacks of a lack of ambition.
spinaker
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25/07/2009 17:56:00

what is it with ambition nowadays? How can we show ambition with the budgets we have? We do what we can with the money we have - if we had more we would spend it!!!!
Mikey D
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27/07/2009 10:14:00

I think we have a good quality squad as it is. It all depends on the strategies employed by Sam, and how the players respond to it. Sure, a touch of class or 2 would be great if we can find someone for the right price, lets just see how we go
sasman
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28/07/2009 00:23:00

Christ Mikey.. thats my point.. the club is unable to show ambition because its investors wont invest in it!!! It's not a case of "if we had more we would spend it" as you put it.. because there is more.. they just dont want to invest it... surely you can see that we'd be better off without them.
spinaker
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28/07/2009 05:38:00

 

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