Finney Is Back
Luka Modric
Cost of finance is also having a big impact. If I were a developer, at present I'd just sit on any developable land I had as pretty much everything is against you right now.
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Daniel Levy - Chairman
- Thread starter Howard Webb
- Start date
Grays_1890
Chris Jones
Material cost and labour is through the roof ey, def wiser choice to sit on developments now
Bedfordspurs
Mark Falco
That’s what we’re doing
We are stuck with what was started a few years back but holding fire for now with the land we have
Lemonade Money
Les Medley
So if u was interested in an auction fixer-upper property for me to live in, good time to buy as developers are hesitant?
Bedfordspurs
Mark Falco
Developers shouldn’t go for fixer uppers unless you can split the property
We brought a bungalow, demolished it and built 3 houses
That’s development
ricky2tricky4city
Steffen Freund
Probably. If it's for you.
Look at the hammer prices over, let's say the last year, and see if there's a trend downwards. There might also be a period where the percentage that don't make reserve goes up...that's a sign that an adjustment is coming. Realism on prices then steps in or alternatively a raft of repossessions appearing will send prices south.
ricky2tricky4city
Steffen Freund
Then the government starts moaning at housebuilders for sitting on their landbanks.
But you can't blame them (house builders), for the reasons given. And this is consequences of where we have ended up. Construction is a massive industry and employer in this country, with endless associated supplier networks and sub contractors...a drop off in this will be painful.
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Bedfordspurs
Mark Falco
It’s painful already
We lost about £600k
For a small business it’s basically all out profit gone
Covid caused it and now we have everything else
Banks don’t turn around and say pay us later without punitive charges
Crab.C.Nesbitt
Bobby Mimms
It’s doubtful that’s fully accurate I can’t t believe our net spend is less than chelski for example. Nonetheless we have wasted a hell of a lot of money over the last 5 seasons
Not sure how accurate that is but apparently Levy doesn't back his managers.
Chrissivad
Dean Austin
Chelsea have made a profit in 3 of the 5 seasons.
We just don't get enough in from sales like other clubs do.
ricky2tricky4city
Steffen Freund
It's all ins....with little outs.
Not sure how accurate that is but apparently Levy doesn't back his managers.
DeanoAustin
Jimmy McCormick
Not sure how accurate that is but apparently Levy doesn't back his managers.
He spends his share on transfer fees I think but where he is ultra cautious, in my view, is wages. We’ve constantly had the lowest wages to revenue ratio in the league…by a distance. And that’s a big blocker in us competing for top players.
As a business strategy, what’s he’s done is brilliant and incredible. As a strategy for football success…not so much.
Which player have we not signed because we didn’t offer enough wages?
DeanoAustin
Jimmy McCormick
No clue. I'd imagine it's more a case we don't even compete for players who we know will want a massive salary. When your wages to turnover ratio is consistently the lowest in the league, there is clearly a concerted effort to keep wages under very tight control. From what I understand, Levy ties as much as possible to performance. So you get CL, you get paid a nice fat bonus and the ratio isn't adversely hit. You don't, you won't. Other clubs pretty much just pay the wages and if you're a player, that's infinitely more attractive. Who is the last top player we really competed for in the market? I'm not condemning Levy, it's an outstanding way to run a business. But it also limits us in terms of who we can compete for.
Here's 21-22 when we were at 57% and still the lowest - we brought that down to 47% the following year (https://www.statista.com/chart/22002/premier-league-wage-burden/). Even in a European context, we have a very low wages to turnover ratio ( )
Bedfordspurs
Mark Falco
Out turnover has increased year on year which keeps that number sensible
Grays_1890
Chris Jones
I will have to dig it out but the benchmark a few years back but there was a financial article about the business mix In the PL and that any club within its means should be at 50% capped without the need for investment or risk
I imagine we are are now the lowest % because of people pushing their limits and topping up, but what's important, well more important is that we are high up in the number spent which means we are earning more therfore spending more.
ricky2tricky4city
Steffen Freund
The amount spent on wages has grown as income has grown. You have to bare in mind that our income growth has been way ahead of most other teams, but that still has only been locked in in recent times. What we are prepared to pay has definitely gone up BUT we are still competing with some big fish in this league. As we know, some with money on tap.
With the financials all ironed out and stable I'd expect DL to allow the wages to drift towards 60%, while keeping in mind the new upcoming rules. I'd guess the wage bill has probably grown over the Jose and Conte periods BUT actually think we might see a drop as Lloris Ndombele Persic Moura's disappear.
Young players from the continent don't tend to arrive on big wages.
And the bigger challenge is to pick the right players....I'm sure many of Brighton's recent signings, for example, are on something like 20k a week.
If the rumours are true that we're willing to offer Harry 400k a week to sign a new contract, Levy seems willing to pay more for the right player now.
Unlikely that we do get another player in the same bracket in the near future though to test that though.
