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Would relegation be that bad?

monkeybarry said:
Where do we send the invoices?!
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Vicario £15M
Porro £25M
Romero £40M
Van de Ven £60M
Kudus £50M
Davies & Bissouma of the wage bill. Muani & Palhinha loans cancelled. Veliz & Solomon deals are already agreed for about £10M collectively.

That’s £200M incoming and brings the wage bill below £100M.

We wouldn’t need to do this but the club wanted they would get £75M+ for Vuskovic & Gray. £50m+ for Bergvall. Spence, Danso, Udogie, Gallagher, Xavi, Solanke would be £25M+. Bentancur, Maddison, Richarlison could go on frees to get off the wage bill. Bunch of youngsters would bring no bring in to cash too.
 
robp135 said:
Vicario £15M
Porro £25M
Romero £40M
Van de Ven £60M
Kudus £50M
Davies & Bissouma of the wage bill. Muani & Palhinha loans cancelled. Veliz & Solomon deals are already agreed for about £10M collectively.

That’s £200M incoming and brings the wage bill below £100M.

We wouldn’t need to do this but the club wanted they would get £75M+ for Vuskovic & Gray. £50m+ for Bergvall. Spence, Danso, Udogie, Gallagher, Xavi, Solanke would be £25M+. Bentancur, Maddison, Richarlison could go on frees to get off the wage bill. Bunch of youngsters would bring no bring in to cash too.
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£200m of transfer fees yes (though I don't see anyone paying £60m for VDV, nor £50m for Kudus but we'll all have our own different valuations)

The issue is that it is not £200m of profit as we would have to write off their current net book values, which for the players you mention are about: Vicario: £10m , Romero: £20m, Porro: £15m, VDV: £17m, Kudus: £46m, Veliz: £6m, Solomon: £0

So the £200m of transfer fees actually only cuts our loss by about £85m. Some of those players are also on long contracts and have high loyalty bonus payments that we would need to pay if selling them, therefore cutting our loss by even less (by at least £10m I'd say and probably more).....

I don't think selling/releasing those players get anywhere near bringing the wage bill down below £100m either. Those players you list as being sold or leaving probably make about £40m to £45m of difference to the wage bill versus this season. In year 23-24 we had wage costs of £222m. The wage bill this season is rumoured to be around £268m. Even if we take the lower, known, number of £222m from 23-24 we're only down to around ~£180m if jettisoning those players you mentioned.
 
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Muttley said:
Interesting that nobody is talking about loans. Surely there is a small quota of loans we can make to get salaries off our books. Take Romero as an example. He can F off to Real Madrid for a loan fee and a high summer 27 release clause. If they don't want to convert that into a permie deal in a year's time, then our asset will still be saleable if we don't go up. Romero has just signed a new contract so we don't need to panic at all.

@thfcsteff was talking about c£400m sales. I think we protect ourselves from the bargain basement bids by doing a few clever loans.
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Just coming back to this having thought about it a bit more. It probably doesn't make sense for the player you mentioned but actually could make sense for some of our other players

We have a bunch of players that we have purchased recently and paid some quite big fees for. If selling those players then we would likely book little to no profit and perhaps even losses. Loaning these types of players out would be a good idea to get the wages off the wage bill and then in a year's time their net book value would've dropped (and if they have a good loan their value might have risen) making them easier/more profitable to sell then, or, if we've gained promotion, then retain them as part of the better squad we'd need for the PL.

The likes of Dragusin, Gallagher, Xavi, Kudus and Solanke fall into this bucket. Selling them would make us negligible profit but their wages are too high for the Championship (far too high in some cases).
 
Finney Is Back said:
£200m of transfer fees yes (though I don't see anyone paying £60m for VDV, nor £50m for Kudus but we'll all have our own different valuations)

The issue is that it is not £200m of profit as we would have to write off their current net book values, which for the players you mention are about: Vicario: £10m , Romero: £20m, Porro: £15m, VDV: £17m, Kudus: £46m, Veliz: £6m, Solomon: £0

So the £200m of transfer fees actually only cuts our loss by about £85m. Some of those players are also on long contracts and have high loyalty bonus payments that we would need to pay if selling them, therefore cutting our loss by even less (by at least £10m I'd say and probably more).....

I don't think selling/releasing those players get anywhere near bringing the wage bill down below £100m either. Those players you list as being sold or leaving probably make about £40m to £45m of difference to the wage bill versus this season. In year 23-24 we had wage costs of £222m. The wage bill this season is rumoured to be around £268m. Even if we take the lower, known, number of £222m from 23-24 we're only down to around ~£180m if jettisoning those players you mentioned.
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What you're not factoring in (and none of us will know the true figures/impact for this) is that our squad will be on reduced wages should we go down...
 
harr1984 said:
What you're not factoring in (and none of us will know the true figures/impact for this) is that our squad will be on reduced wages should we go down...
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We hope! But we don't know yet.

The sweet spot would be us having great relegation penalties in our player contracts and no relegation penalties in our commercial deals
 
Finney Is Back said:
We hope! But we don't know yet.

The sweet spot would be us having great relegation penalties in our player contracts and no relegation penalties in our commercial deals
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If we have wage reduction clauses (that I think is highly likely) it protects us financially on one hand BUT I'd guess, on the other we get a few players on the blower to their agent.
So we'll end up with some players that want to stay. Some that we want to shift (as either still big wage earners but deemed not worth it). Some that want to move as their wages have been slashed but still rate themselves. We'll probably have some we want to keep but they want to leave and get arsey about it.
 
Finney Is Back said:
We hope! But we don't know yet.

The sweet spot would be us having great relegation penalties in our player contracts and no relegation penalties in our commercial deals
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Perversely, we would probably be a BIGGER international football story for a season if we were in the EFL, thus sponsors would really get their buck-bang! Honestly, the potential of resurrection from such a wilderness would be huge! In this day and age they'd be insane not to strike a documentary deal to have such a season televised. We are 'box-office' anyway, I hate to say it, but I think we'd be huge box-office for a season in this scenario!
 
thfcsteff said:
Perversely, we would probably be a BIGGER international football story for a season if we were in the EFL, thus sponsors would really get their buck-bang! Honestly, the potential of resurrection from such a wilderness would be huge! In this day and age they'd be insane not to strike a documentary deal to have such a season televised. We are 'box-office' anyway, I hate to say it, but I think we'd be huge box-office for a season in this scenario!
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It would definately make for a great fly on the wal doco of our season.
 
SteveAWOL said:
Something to look forward to if our negative spiral continues...

www.bbc.co.uk

Leicester City report losses of £71.1m for 2024-25 relegation season

Leicester City report a pre-tax loss of £71.1m from their season back in the Premier League in 2024-25.
www.bbc.co.uk www.bbc.co.uk

Who would have thought 10 years on from winning the Premier League the club would be fighting relegation from the Championship and have been docked six points for breaching financial rules.
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Hardly a surprise, Leicester were running something like 90% wages to turnover from what was posted awhile back. They also had no where near our earning potential outside of football.

To be honest I don’t think there is another club out there we can look at as a comparison, maybe if Utd went down but that’s about it.
 
demotw said:
Hardly a surprise, Leicester were running something like 90% wages to turnover from what was posted awhile back. They also had no where near our earning potential outside of football.

To be honest I don’t think there is another club out there we can look at as a comparison, maybe if Utd went down but that’s about it.
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Our wages to turnover ratio being sensible is another thing we should always have been thanking Levy for..
 
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lurker of old said:
Our wages to turnover ratio being sensible is another thing we should always have been thanking Levy for..

On the contrary, if DL had been less tight, we would have signed better players and not been in this mess...
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That’s an unstandable assumption undermined by empirical data.

We have a much better ROI from modest purchases.
 
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