FA Cup cash boost

[loyalroyaldaz]

Have you lot never heard of a black hole !
There is sure to be one along round about july...................

[brendywendy]

if a business brings in less than it spends, there will be a black hole each and every year

[Ian Royal]

Well, I'm happy to be corrected, but I could have sworn that somewhere it said we made £1 million for last year's cup run.

Don't forget that what we get isn't necessarily all profit from those particular games. There will be additional outlay caused by these extra games.

Travel costs, staff wages, home matchday costs, policing costs, win & cup performance bonuses to players etc etc.

[weybridgewanderer]

what are the chances of this fixing our "cash flow" issues, miraculously allowing them to extend the season ticket renewal deadline date?

[RoyalBlue]

Those numbers make you think we should probably have taken the cup more seriously in previous seasons.

I love the fact that McDermott treats the Cup properly and even more so that we've been rewarded for that with some long overdue cup success. It's amazing what a couple of results can do!

didnt have to as JM was bankrolling us then

Depends what you call bankrolling. I wouldn't view loaning money, even on preferential terms, as particularly bankrolling and I still have to see any figures quoted for how much he has unconditionally donated.

what are the chances of this fixing our "cash flow" issues, miraculously allowing them to extend the season ticket renewal deadline date?

About the same as us reaching the cup final.

[weybridgewanderer]

Well, I'm happy to be corrected, but I could have sworn that somewhere it said we made £1 million for last year's cup run.

Don't forget that what we get isn't necessarily all profit from those particular games. There will be additional outlay caused by these extra games.

Travel costs, staff wages, home matchday costs, policing costs, win & cup performance bonuses to players etc etc.

win bonuses!!

[JC]

Those numbers make you think we should probably have taken the cup more seriously in previous seasons.

I love the fact that McDermott treats the Cup properly and even more so that we've been rewarded for that with some long overdue cup success. It's amazing what a couple of results can do!

didnt have to as JM was bankrolling us then

Depends what you call bankrolling. I wouldn't view loaning money, even on preferential terms, as particularly bankrolling and I still have to see any figures quoted for how much he has unconditionally donated.

what are the chances of this fixing our "cash flow" issues, miraculously allowing them to extend the season ticket renewal deadline date?

About the same as us reaching the cup final.

He has invested about £15 million in shares and further loans of about £26 million. I would call that bankrolling

[Scarface]

Our FA cup run will have earned us about 350k before last night in prize money and gate receipts.

Last night will have brought in £427k from the FA. £247k in broadcast fees and £180k in prize money. When you add in 50% of Goodison park ticket sales - we're now sitting on about 1.25m of unexpected extra income.

We're guaranteed another £247k in broadcast fees and perhaps about £400k in gate receipts depending who we play. Therefore we now hopefully have a hefty £2m to deduct from our annual shortfall of 5-7m.

Yet it could be so much more. Win the next game and suddenly its big money. £360k for winning the quarter final, a guaranteed £450k for losing the semi final, 50% of a Wembley attendance of 90,000 and another TV fee and so we're thinking another £2.5m if we win this one game.

Sheer dreamland but if we were to win the semi, you get £900k for winning and another £900k for losing the final a massive TV fee and another 50% of a very expensive 90,000 stadium. Probably worth £3-4m more than losing the semi.

So win the quarter final and the semi final and theres no excuse to sell any players this summer.

http://www.thefa.com/TheFACup/FACompeti ... nd20082009
http://www.thefa.com/TheFACup/FACompeti ... /FACuponTV

Absolute dreamland, not getting to the final, but thinking that money will stop any mass sale of assets in the summer.

[Royal Rother]

He has invested about £15 million in shares and further loans of about £26 million. I would call that bankrolling

Ah no, you see, when he sells the club the loan would effectively be repaid and of course he would actually be selling most / all of the shares so in RoyalBlue's twisted little view of the world that does not mean bankrolling in any way shape or form.

Only giving the money to the club as a donation would qualify as bankrolling.

The fact that he cannot, nor will he ever, understand that by converting loans to share capital that money has been, in most practical terms, a non-refundable donation to the club, is amusing in its way.

[Royal Rother]

Our FA cup run will have earned us about 350k before last night in prize money and gate receipts.

Last night will have brought in £427k from the FA. £247k in broadcast fees and £180k in prize money. When you add in 50% of Goodison park ticket sales - we're now sitting on about 1.25m of unexpected extra income.

We're guaranteed another £247k in broadcast fees and perhaps about £400k in gate receipts depending who we play. Therefore we now hopefully have a hefty £2m to deduct from our annual shortfall of 5-7m.

Yet it could be so much more. Win the next game and suddenly its big money. £360k for winning the quarter final, a guaranteed £450k for losing the semi final, 50% of a Wembley attendance of 90,000 and another TV fee and so we're thinking another £2.5m if we win this one game.

Sheer dreamland but if we were to win the semi, you get £900k for winning and another £900k for losing the final a massive TV fee and another 50% of a very expensive 90,000 stadium. Probably worth £3-4m more than losing the semi.

So win the quarter final and the semi final and theres no excuse to sell any players this summer.

http://www.thefa.com/TheFACup/FACompeti ... nd20082009
http://www.thefa.com/TheFACup/FACompeti ... /FACuponTV

Absolute dreamland, not getting to the final, but thinking that money will stop any mass sale of assets in the summer.

Yeah, because that's the way the club has always been run. Asset strip it to inflate JM's bank balance. Ain't that right?

[MmmMonsterMunch]

If by some miracle got to the final & played Manc or Arsenal we would get Europa League football too & no doubt that will be some more cash in the kitty.

Screw the money though I want a trip to Wembley.

Loving the fact BM treats the cup properly - it's a welcome distraction from the league which can be bloody frustrating at times!

[Tails]

If by some miracle got to the final & played Manc or Arsenal we would get Europa League football too & no doubt that will be some more cash in the kitty.

Screw the money though I want a trip to Wembley.

Loving the fact BM treats the cup properly - it's a welcome distraction from the league which can be bloody frustrating at times!

Sadly getting into Europe isn't quite the cash cow [Champions League aside] its cracked up to be.

[Hoop Blah]

Those numbers make you think we should probably have taken the cup more seriously in previous seasons.

I love the fact that McDermott treats the Cup properly and even more so that we've been rewarded for that with some long overdue cup success. It's amazing what a couple of results can do!

didnt have to as JM was bankrolling us then

The years Coppell really started using the cup as a second string run out coincided with the club returning a profit thanks to the Premier League TV money. He did it in 05/06 but the season before I'm pretty sure it was basically a full strength side for the FA Cup, and rightly so in my book.

[brendywendy]

Of course by bankroll i mean finance. I always assumed bankrolling meant borrowing money from a bank anyway.probably wrongly. Either way i see no one else willing to give away millions to us,so dont see why you think he should. The only money described as a gift was lita,and maybe asaba. But i guess he meant the gift of the loan facility for them. Just dont get why he would ever 'give' us that money.

As for the cup policy. As far as im concerned with the tiny squad we had in o5/07, and the prize of prem footy, that coppel made the decision on the basis of a firmly held belief that it was right for us then. And since it was a successful policy, thats good enough for me.even if i was uncomfortable with it, i could see the policy had merit,and was done in the best interest of the club at the time. I am also glad weve changed it back, and think that coppellos only mistake,as always was to be too slow to change previously successful policy.

[Half Man Half Biscuit]

The Royals will be getting £247,500 just for being shown live on TV against Man City/Villa . . . plus £360,000 should they win!

A replay would earn another TV fee.

They also got prize money of £67,500 for winning third round, £90,000 for fourth round and £180,000 for beating Everton plus £123,750 for last night's game being shown live.

On top of this there is a share of gate receipts, plus fees for being on radio and highlights shown on TV of other rounds

So far alone (including TV from quarter final) the Royals have made £708,750 from prize money and TV alone, so it must be over £1million so far . . .

Good post - fair bit of conjecture in there - but here's to more posts of this calibre.

[Northern Git]

He has invested about £15 million in shares and further loans of about £26 million. I would call that bankrolling

Ah no, you see, when he sells the club the loan would effectively be repaid and of course he would actually be selling most / all of the shares so in RoyalBlue's twisted little view of the world that does not mean bankrolling in any way shape or form.

Only giving the money to the club as a donation would qualify as bankrolling.

The fact that he cannot, nor will he ever, understand that by converting loans to share capital that money has been, in most practical terms, a non-refundable donation to the club, is amusing in its way.

Its been a fanancial method that JM has used in other businesses in the past, it is however probably one of the reasons why he has not been able to sell the club.

Its OK converting loans to shares when a business is on a 'high' and the shares are increasing in value (ie promation to the Premier League etc) but when the business is not doing so well (ie relegation, TV money etc decreasing) and shares are decreasing in value it is a potential massive loss. The intial loan to share value on transaction completion is probably what is setting JMs valuation of club, and I would suspect it massively overvalues the club in relation to its current actual trading position.

[PieEater]

But a lot of those loans actually funded capital investments, increasing the asset value.

[The Rouge]

It won't be reinvested in the squad so it's the academy.

[brendywendy]

But a lot of those loans actually funded capital investments, increasing the asset value.

Zis^^^

[Svlad Cjelli]

The Royals will be getting £247,500 just for being shown live on TV against Man City/Villa . . . plus £360,000 should they win!

A replay would earn another TV fee.

They also got prize money of £67,500 for winning third round, £90,000 for fourth round and £180,000 for beating Everton plus £123,750 for last night's game being shown live.

On top of this there is a share of gate receipts, plus fees for being on radio and highlights shown on TV of other rounds

So far alone (including TV from quarter final) the Royals have made £708,750 from prize money and TV alone, so it must be over £1million so far . . .

No, that's wrong - you only get the prize money for the last round you make - it's not added up for every round.

Also, for those who said we'll get 50% of the Everton ticket income, it's actually 40% of this - after Everton's expenses are deducted. 20% of match receipts after expenses go to the FA prize fund.