by Yorkshire Royal »
11 Aug 2011 14:14
Royal Rother Stoke City gambled in 2008 when their wages to turnover ration was 106%. If they hadn't gone up they would have been in big trouble. In the 1st season in the PL it fell to a very commendable 56%.
But when all's said and done the Coates family have put £40m into the club, most of which has been converted into Share Capital so they are no longer showing as loans. Madejski did exactly the same thing but for a smaller amount of a total loan that was very similar to the Coates' injections. But Coates' fortune is / was somewhat bigger than Madejski's.
In 2009 Mr Coates “Going forward it must be our aim to make Stoke City football club self-financing, so that it is not overly reliant on new funds being continually introduced by a benefactor.”
In short, the club is aiming for self-sufficiency, but still needs some help for the moment. However, if Stoke City do become a permanent fixture in the Premier League, then they should no longer have to rely on Coates to prop up transfers or the wage bill. A laudable intention, but the jury’s still out on that one, as we have seen how difficult it is for other clubs to wean themselves off their financial support.
This is where the investment in new training facilities and academy might help, as Stoke City could then start to develop its own youth policy and attract young players from other clubs. The average age of the first team is currently one of the highest in the Premier League, as grizzled old professionals battle to remain in the top tier, but that could change with a focus on in-house coaching and development.
So in some ways Stoke City are very similar to Reading, in other ways well ahead of us, and in others way behind. Whatever, the philosophy seems to be very similar. In Tony Pulis (never been relegated in 20 years as a manager) maybe they have a manager who is just that little bit better / harder nosed than Steve Coppell.
We have a massive advantage that will continue to pay dividends for many years, i.e. we already have a well functioning Academy.
If we could just go back to this point ^. Absolutely spot on. And the original poster's view couldn't be further from the truth. Stoke actually hold up Reading as the model they are trying to recreate. The only difference is the shortfall each year is covered by the Coates family, not by player sales; for 2 key reasons. The family are Stoke football fans and secondly they are bankrolled by an incredibly successful business - their online gambling firm is the single largest private employer in Stoke-On-Trent and the family will soon be billionaires... (750m in last rich list I believe).
However they have a strict wage policy (which admittedly got bent slightly with Jones' signing on fee) and genuinely do have a plan to make the club self sufficient if they can. Part of this plan is to stop spending on transfers and rely on their fledgling academy. Again, our academy is the model they are basing it on.
I don't doubt, if SJM had the level of cash and the passion for the game that the Coates' do, then he would inject some cash to cover the shortfall. Sadly, at this point he does not.
Therefore the original point of this thread is actually totally wrong. Reading FC have shown Stoke and other similar minded, responsible clubs, how to sustainably run a real football club.