Dear Mr Chairman

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Smoking Kills Dancing Doe
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Re: Dear Mr Chairman

by Smoking Kills Dancing Doe » 10 Sep 2010 10:13

under the tin
Rev Algenon Stickleback H whereas if we don't balance the books, and run up losses of a couple of a million a year or so, everything will be fine and dandy.

That's based on the supposition that the club is able to break even.
I have my doubts as to the achievability of that aim.
If the only way to plug the gap is to sell off the silver, then I would suggest that would be to the general denigration of the playing strength.
(Of course, there are exceptions, how much did we mug off Norwich for Andy Hughes? :P )
I happen to believe that this sort of policy presents a clear and present danger to the club's ability to compete at ths level.
It's perfectly relevant to make the comparison with the household budget.
Yes, I understand that outgoings need to be kept under control, but equally, income needs to be sustained, or the debts will mount anyway.
Were we to to get relegated, because our playing strength was not competitive at this level, that will undoubtedly have an effect on the club's income, and our could still be facing your "couple of million a year" losses in a few years time, but at a lower level. Same nett result.


See that is the key, there has to be a middle ground. It's all well and good saying we need to be run as a business. But how is that possible with out levels of income and wages the way they are? The key to our success in recent years has been outside investment from JM. He allowed us to always invest and always move the team forward, that led to our success.

It's easy to say that we need to run a profit, that anyone who says otherwise is a 'mong'. But the real question is how does this club move forward? Cause we have all seen what happens when a club stands still.

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Hoop Blah
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Re: Dear Mr Chairman

by Hoop Blah » 10 Sep 2010 10:27

I'm sure we can break even. But if that's the aim then we're only really going to be going in one direction because the rest of the competition aren't that fussed about breaking even.

The majority of the competition are looking to improve and have some means or other of funding that and writing off the debt/losses. All things being equal (ie barring the odd season of over achieving in relation to the budget) that means they're going to have better squads which bring about better results.

If that's where the club is, then that's where it is. We have to be a bit more realistic as to the result of that policy though.

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Smoking Kills Dancing Doe
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Re: Dear Mr Chairman

by Smoking Kills Dancing Doe » 10 Sep 2010 10:38

Well hopefully the league will finally set some kind of income based wage cap. Won't be holding my breath.

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RoyalBlue
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Re: Dear Mr Chairman

by RoyalBlue » 10 Sep 2010 11:16

Smoking Kills Dancing Doe Well hopefully the league will finally set some kind of income based wage cap. Won't be holding my breath.


As you intimate, it's unlikely. Furthermore, it would probably be almost impossible to enforce. Just like income tax, some smart accountants will find legitimate ways around it. The wealthy are always better placed to do things like that than someone on an average income.

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Re: Dear Mr Chairman

by Rev Algenon Stickleback H » 10 Sep 2010 19:29

RoyalBlue
Smoking Kills Dancing Doe Well hopefully the league will finally set some kind of income based wage cap. Won't be holding my breath.


As you intimate, it's unlikely. Furthermore, it would probably be almost impossible to enforce. Just like income tax, some smart accountants will find legitimate ways around it. The wealthy are always better placed to do things like that than someone on an average income.

I'd prefer something like the German licence system. If a club gets in debt they have to rebudget to get out of debt or they are kicked out of the league.

And caps etc do work in other leagues around the world. It's not as if they are short of a lawyer of two in the USA, for example, yet clubs there don't seek loopholes to avoid the cap.

the big difference there is that chairman there agree with the idea of wage restraint, whereas too many here are like a gambling addict let loose in Vegas with a company credit card.


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Hoop Blah
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Re: Dear Mr Chairman

by Hoop Blah » 10 Sep 2010 19:59

The MLS is a minor league where ther isn't much to play for and they're not really looking to keep the worlds better players to compete at the highest level.

I thought the league also had a say in the ownership of players as well so it's quite a different situation.

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Re: Dear Mr Chairman

by Svlad Cjelli » 10 Sep 2010 21:18

MLS also doesn't have relegation and promotion. It's the size of the financial gap between the top two divisions that causes the problem. Because many clubs up there know they'll likely go bust if they get relegated, they get into massive debt trying to stay there - and the clubs that go up aren't able to spend to the same levels. the more they spend in the PL to try and compete, the harder the impact when they eventually get relegated.

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Smoking Kills Dancing Doe
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Re: Dear Mr Chairman

by Smoking Kills Dancing Doe » 10 Sep 2010 21:38

The problem is that any kind of budget restriction would have to come from the top down and there is just far to much money to be made at the top end of the Premiership. So much so that clubs can literally run up billions in debt and their owners still make money.

Even at this level it's out of control. For every PNE there's a Forest. Did anyone else see Davies hammering his board for the lack of investment? Look at the squad they have! It's a disgrace. Cardiff's even worse and that's excluding Bellamy. 'boro have thrown a fortune at this season. Bristol City have a Chairman prepared to take over whatever debts they run up.

What we are trying to do is admirable, but I fear its doomed to failure.

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Re: Dear Mr Chairman

by Svlad Cjelli » 11 Sep 2010 13:01

But what is the alternative - join the debt-race to compete?

There has to be an adjustment of some sort, and the more that go bust the sooner it will come. UEFA regulations will start to make a difference soon, too!


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Re: Dear Mr Chairman

by glass half full » 11 Sep 2010 13:45

Only non-league clubs seem to go bust. Is HMRC tougher on smaller clubs?

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Re: Dear Mr Chairman

by parky » 11 Sep 2010 13:52

Z175 I think Alex as player of the month indicates photoshop........


ALOL

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Harpers So Solid Crew
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Re: Dear Mr Chairman

by Harpers So Solid Crew » 11 Sep 2010 20:35

So did he get booed??

Some interesting thoughts here http://www.bbc.co.uk/blogs/paulfletcher ... tml#250569 for football fans, check out the wages at Preston for a start, and compare that to RRFC for 05/06, then say we did not compete, or invest.

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Re: Dear Mr Chairman

by Hoop Blah » 12 Sep 2010 07:52

Surely that's the point isn't it? Around that time of the 05/06 side we did compete financially and we saw the rewards doing so can bring, when aligned with a decent manager and a nice slice of luck.


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Re: Move along

by royal-biscuit-man » 12 Sep 2010 13:47

Gordons Cumming So Reading FC has no ambition? Maybe.................

Whoever thinks that, and doesn't like it, move along to support a team that does.You wont be missed (not by me anyway)

Leave Reading FC to it's own real supporters as you lot are becoming very boring.

Reading FC (ambitious or not ambitious, makes no diference to me I'll still support them)

Life's too short for all this moaning.

If we were in the Prem Gylfi would have stayed, we weren't, so he left (we got 7 million :lol: ) move on............(yawn)

Agree 100%.

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Madejski out

by superreadingfan » 06 Nov 2010 17:28

It's time for Madejski to go he had his 15 minutes with the club, even got his own documentary or two, but it's time for him to go. He has done nothing for the club and we are at the risk of going backwards. Madejski may have built the stadium on a landfill but theres still dump on display.

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Re: Madejski out

by SLAMMED » 06 Nov 2010 17:29

:roll:

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Re: Madejski out

by glass half full » 06 Nov 2010 17:44

superreadingfan It's time for Madejski to go he had his 15 minutes with the club, even got his own documentary or two, but it's time for him to go. He has done nothing for the club and we are at the risk of going backwards. Madejski may have built the stadium on a landfill but theres still dump on display.


This requires repeating ad nauseam:

Sir John Madejski is 68 years old and, like many people of his age, he wants a quieter life and ideally would like to sell the clun to a responsible individual of financial credibility, who would like to invest in and improve the status of Reading Football Club. Regrettably, at this stage, there has been no taker but we live in hope that someone will arrive.

Feel sure that SJM will happily stand down then ----- and ONLY THEN.

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Re: Dear Mr Chairman

by superreadingfan » 06 Nov 2010 17:47

no taker for a club that he wants to sell for over billion pounds but can't even run on a profit without massive cuts or firesales?? oh DEAR

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Re: Dear Mr Chairman

by ankeny » 06 Nov 2010 17:52

I fully appreciate what hes done for the club(I remember the waller days)but until he goes we will get nowhere

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Re: Dear Mr Chairman

by Row Z Royal » 06 Nov 2010 17:52

Good to see that that doom mongers are alivey and well.

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