BFC accounts 19-20

Invipai

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I read our strategy as both, try to be a Premier League club, but have a financial plan that supports us if we don't go up. The Championship is obviously plan B but the player sales are designed to allow us to be sustainable here.

Two years without any major sales would not be good...
 
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HaylingBee74

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As I understand it, while in the Championship, the new stadium should reduce our losses, but by no means eliminate them - at least if we want to pay even moderately competitive player and staff wages etc.

Meaning that without PL parachute money, we have four broad responses open to us.
1. "Go for broke" and spend money we don't actually have (eg half the promoted clubs in recent years, most notably QPR and Villa);
2. Engage in dodgy creative accounting ruses eg stadium sale and lease-back (eg Derby or Sheff Wed), or suspiciously high transfer "sales" to, or cheap purchases from, connected clubs (eg Forest);
3. Just accept that we have a very low budget and hope to survive somehow for another season on that (eg Wycombe or Rotherham);
4. Enhance our budget by profiting from a sophisticated player transfer strategy and hope that that will be enough to get us over the line to "The Promised Land".

BFC have clearly and consistently gone for Option 4, since it offers hope that Option 3. lacks, while maintaining our integrity in a way which Options 1. and 2. don't.

Unfortunately, it's also the hardest of the four to pull off, by some distance.
I relish the option we have chosen, and I certainly wouldn’t want us to ever go down routes 1 or 2, and if we struggle to find those undiscovered gems of players from whatever footballing sphere I would understand us going with option 3
Thanks for your answer
 

AB

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Maybe those that continually demand additional players should take a long hard look at these figures
They just want Matthew to sell his yacht.
 

trevallyjack

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Comparables season-to-season are kinda worthless with this set of accounts as it only includes 5/6th of a season. And a pandemic.

Got sh*t loads of cash though.
Bit beyond me to fully understand the accounts, but wonder if the cash part contains large chunks of those EFL covid loans.
 

hanworthbee

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Our wages to revenue income is a shocker.... but some teams who go up then come down seem no better off at all perhaps even worse off like hudds or muff
 

westendbee

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That does not look at all good. Any idea how much it would change if we had pretty full attendances next year in the Championship?
That’s why the business model is dependent on selling players for hefty fees!
 

Twickenhamben

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That’s why the business model is dependent on selling players for hefty fees!
Exactly.... and that’s what slightly worries me. From what I can see our ability in the transfer market (which has been brilliant) is difficult to sustain, especially as now we are seen as “the club” that does brilliantly in buying low and selling high.... so expect us to have a LOT of competition when we try and sign players this summer.
Without this income stream (which will be further hit by Brexit) and without promotion we are a heavily loss making club.
 

rebus

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Exactly.... and that’s what slightly worries me. From what I can see our ability in the transfer market (which has been brilliant) is difficult to sustain, especially as now we are seen as “the club” that does brilliantly in buying low and selling high.... so expect us to have a LOT of competition when we try and sign players this summer.
Without this income stream (which will be further hit by Brexit) and without promotion we are a heavily loss making club.
Which goes back to the model of getting promoted. Our recruitment must stay ahead of the rest to keep this going outside the Premier League.
 

Ealing Bee

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Puts in context our season 2018/19, when even by Xmas, it seemed pretty obvious we weren't going to be in with a shout of the play-offs (hovering around 18th), so we cashed in on selling Woods, Judge, Mepham and Yennaris all in January to bolster the balance sheet.

Good stewardship. :sorted:
 

maddogging

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Just a depressing read really and shows the utter madness football has got itself into.
 

AB

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Puts in context our season 2018/19, when even by Xmas, it seemed pretty obvious we weren't going to be in with a shout of the play-offs (hovering around 18th), so we cashed in on selling Woods, Judge, Mepham and Yennaris all in January to bolster the balance sheet.

Good stewardship. :sorted:
We effectively sold Woods in September, the sale was only structured as a loan for timing reasons. When he went we were doing well (and briefly McEachran looked like finally starting to deliver on his promise). Judge was sadly past it at this level. Yennaris’ move must have taken a lot of planning given it tied in with becoming a Chinese citizen. Only really Mepham was a cash in and in retrospect probably near the top of his value as a Championship player of potential.
 

West Wilts Bee

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I wish some of the uneducated fans we have out there could read and realise just how tough it is to compete at this level.
Some many think we have a bottomless money pot due to our players sales.
Well your wasting your time on that point mate, most of our fans turn up . and think they have done their bit. “That’s ok we are lucky we have a really good owner”. I look further down the line and think one day Matthew will say f*** this I ain’t doing it any more.i have put enough into this club. New ground , championship football, i have left it in a better place than i found it. Think i said it before that when i was shaking buckets it was unbelievable how many of our fans did not realise just how skint we were. Somehow we have to gear up to the fact, that at some point we will have to manage without Matthew. Christ that will be hard as he has made my life supporting the bees as the best decade ever.
 

Doovster

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Just looking at the accounts in a bit more detail. Our total salary costs, including national insurance and pension contributions jumped by a whopping £7M from the previous year.

That's £25M per annum now so even if moving to LR sees our natural operating revenue jump to say £20M per annum, that's still a £5M shortfall on wages alone, without all of the other associated operating costs of running a professional football club.
 

jlove

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Just looking at the accounts in a bit more detail. Our total salary costs, including national insurance and pension contributions jumped by a whopping £7M from the previous year.

That's £25M per annum now so even if moving to LR sees our natural operating revenue jump to say £20M per annum, that's still a £5M shortfall on wages alone, without all of the other associated operating costs of running a professional football club.
It's a difficult call as I'd assume that a part of that jump was marketing staff for ticket sales and stadium rights, etc., that would then drop down to a lower level. You'd need to know the forecast 'steady state' administrative staffing levels, really.
 

ITK

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The assets outweigh The expenditure and funding doesn’t seem to be a problem. It seems quite a good place to be if that’s the sort of business you like running
 

Twickenhamben

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Just looking at the accounts in a bit more detail. Our total salary costs, including national insurance and pension contributions jumped by a whopping £7M from the previous year.

That's £25M per annum now so even if moving to LR sees our natural operating revenue jump to say £20M per annum, that's still a £5M shortfall on wages alone, without all of the other associated operating costs of running a professional football club.
I wonder if the salary side is inflated as we got the likes of Watkins and Henry to sign new deals (assuming with big pay rises) during the period, but in essence that drives up the value (and therefore future income of these players) as they are on longer contracts.
That said the days of having one of the lowest wage bills in the league is no more.
 

Barry Paul

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I'm wondering whether these figures reflect the reality. For example do player loans show up as wage expenditure, presumably not as even if wages are covered they would be recorded as expenditure not wages? For example QPR numbers are very surprising until it's remembered they apparently spent huge amounts on Hugill and others
 

SmiffyBee

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It’s crazy clubs not making profit but agents are. Interesting article and figures in Bristol newspaper. Bees spent over 2.5 million


But without agents, we wouldn't be able to recruit players of the levels we need......
We, like all clubs of our level, need to work with football agents and that means paying them.
 

Isleworth_Bee

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I'm wondering whether these figures reflect the reality. For example do player loans show up as wage expenditure, presumably not as even if wages are covered they would be recorded as expenditure not wages? For example QPR numbers are very surprising until it's remembered they apparently spent huge amounts on Hugill and others

The QPR numbers dont surprise me that much. Its why they have found their level and been pretty pony for years now.
 

Banana

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I'm wondering whether these figures reflect the reality. For example do player loans show up as wage expenditure, presumably not as even if wages are covered they would be recorded as expenditure not wages? For example QPR numbers are very surprising until it's remembered they apparently spent huge amounts on Hugill and others
It's fair point, but we haven't loaned players in, so unlikely to be a material number.

For players loaned-out, this is shown in the accounts as a line item.
 

Banana

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It’s crazy clubs not making profit but agents are. Interesting article and figures in Bristol newspaper. Bees spent over 2.5 million
Disgusting.
:unsure: Yeah and that Phil Giles makes a profit too where as club's don't

DISGUSTING!
 

GABS

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On seeing these numbers I'm glad I froze my season ticket, along with many others, it all helps eh.
 

hobbsy

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On seeing these numbers I'm glad I froze my season ticket, along with many others, it all helps eh.

That cash flow loss will show up eventually though.
 

North Northants Bee

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I meant the figures for other clubs appearing better than ours
I think you have a good point on this one, also it makes you wonder if this is also in part due to our set up of not having a youth team but a “B” team. I imagine that the B team are paid a lot more than what youth players are but in reality the benefit should be in the future sales proceeds of these players which should be much greater than if we still had the costs of a youth set up!!
 

Twickenhamben

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So the automatics now look beyond us and I suspect our best opportunity in the next 5 years for promotion will come in the play offs. Looking at these financial results and the hangover of Covid finances there is no way we can afford another promotion push next season by keeping the wage bill we have and the losses we are incurring... it’s feels like failure to get promotion this season will result in a pretty fundamental change in our spend.
 

Shamrock_Bee

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So the automatics now look beyond us and I suspect our best opportunity in the next 5 years for promotion will come in the play offs. Looking at these financial results and the hangover of Covid finances there is no way we can afford another promotion push next season by keeping the wage bill we have and the losses we are incurring... it’s feels like failure to get promotion this season will result in a pretty fundamental change in our spend.

I said before mate our model is unbelievable in it takes us so far and allows us to compete in the championship. It is business first, football team second and looking at the figures it's hard to argue against that.

It does result in us developing B team players who lets be honest might not start for Wycombe at the bottom, with the ultimate aim of getting them up to the standard required for either profit or a sustained run in the first team, but that takes time.

It's very difficult to do whilst trying to win promotion. My theory is there won't be big investment this summer, there'll be sales but a lot of the replacements will come from the B team with a few signings with "potential". We gambled the summer we signed Pontus and told Benrahma he wasn't being sold for another year. We had a break last season which suited our model perfectly and that showed when we returned, we should have finished it off. The final defeat could well prove to be significant in our future. This season's play off's are so important to where Brentford can go in the next 5 years because looking at the figures and having no ST money coming in, it looks a challenge both for Matthew and FFP rules.
 

LingfieldBee

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I said before mate our model is unbelievable in it takes us so far and allows us to compete in the championship. It is business first, football team second and looking at the figures it's hard to argue against that.

It does result in us developing B team players who lets be honest might not start for Wycombe at the bottom, with the ultimate aim of getting them up to the standard required for either profit or a sustained run in the first team, but that takes time.

It's very difficult to do whilst trying to win promotion. My theory is there won't be big investment this summer, there'll be sales but a lot of the replacements will come from the B team with a few signings with "potential". We gambled the summer we signed Pontus and told Benrahma he wasn't being sold for another year. We had a break last season which suited our model perfectly and that showed when we returned, we should have finished it off. The final defeat could well prove to be significant in our future. This season's play off's are so important to where Brentford can go in the next 5 years because looking at the figures and having no ST money coming in, it looks a challenge both for Matthew and FFP rules.
I think yourself and previous post spot on. I can't see us continuing our spend unless we know we have players coming through or in the next two years can be sold on for large sums. We're lose 4/5 if we don't go up and can see only few coming in but not large sums and relying on clever team B production.
 

A Real Mysteron

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I think the people who say, “I’ve paid my money, I can say what I like” should bear these astronomical figures in mind.
Your ticket money has all the impact of buying a packet of biscuits in Sainsbury’s.
 

Twickenhamben

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I think the people who say, “I’ve paid my money, I can say what I like” should bear these astronomical figures in mind.
Your ticket money has all the impact of buying a packet of biscuits in Sainsbury’s.
Absolutely. When ticketing revenue only pays for about 14% of the wage bill you know the footballing world has changed.
 

Twickenhamben

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I said before mate our model is unbelievable in it takes us so far and allows us to compete in the championship. It is business first, football team second and looking at the figures it's hard to argue against that.

It does result in us developing B team players who lets be honest might not start for Wycombe at the bottom, with the ultimate aim of getting them up to the standard required for either profit or a sustained run in the first team, but that takes time.

It's very difficult to do whilst trying to win promotion. My theory is there won't be big investment this summer, there'll be sales but a lot of the replacements will come from the B team with a few signings with "potential". We gambled the summer we signed Pontus and told Benrahma he wasn't being sold for another year. We had a break last season which suited our model perfectly and that showed when we returned, we should have finished it off. The final defeat could well prove to be significant in our future. This season's play off's are so important to where Brentford can go in the next 5 years because looking at the figures and having no ST money coming in, it looks a challenge both for Matthew and FFP rules.
You’re right, it’s an incredible model which allows us to sustain a promotion pushing championship team with just 6k season ticket holders. Sadly I think our reliance on transfer revenue will be harder to sustain (Brexit makes the European market tougher) and I think other clubs will try and hijack our signings, (given our track record).

I am not complaining, the last decade has been a joy to watch but I suspect we will end up in a new phase at the club in the summer if we don’t go up, one which makes saying in this league the priority with more limited resources.
 
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I agree that if we stay down then there will be major sales of most of our prime assets in terms of Raya, Henry, Dasilva and Toney.

Hopefully we can buy astutely as normal but what also worries me is that it’s hard to think of prime saleable assets in a couple of years time.

God knows how much value Mbeumo has lost and I’d be surprised if we hadn’t banked on doubling or maybe even tripling our initial investment in him. That’s not on the cards unless he somehow recovers his form next season.

I’m also hard pressed to think of many who might command a large fee in the future.

Maybe Forss, Gunnarsson and Sorensen but not many others.
 

Herbert

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Is that the only financially viable working model, or can we succeed by being top 8 or top 6 each season in the Championship work too?

Not if you want attendances to go up and stay up
 

Twickenhamben

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I agree that if we stay down then there will be major sales of most of our prime assets in terms of Raya, Henry, Dasilva and Toney.

Hopefully we can buy astutely as normal but what also worries me is that it’s hard to think of prime saleable assets in a couple of years time.

God knows how much value Mbeumo has lost and I’d be surprised if we hadn’t banked on doubling or maybe even tripling our initial investment in him. That’s not on the cards unless he somehow recovers his form next season.

I’m also hard pressed to think of many who might command a large fee in the future.

Maybe Forss, Gunnarsson and Sorensen but not many others.
I guess ultimately we need the club to break even; we will probably grow turnover to £17m (from
I agree that if we stay down then there will be major sales of most of our prime assets in terms of Raya, Henry, Dasilva and Toney.

Hopefully we can buy astutely as normal but what also worries me is that it’s hard to think of prime saleable assets in a couple of years time.

God knows how much value Mbeumo has lost and I’d be surprised if we hadn’t banked on doubling or maybe even tripling our initial investment in him. That’s not on the cards unless he somehow recovers his form next season.

I’m also hard pressed to think of many who might command a large fee in the future.

Maybe Forss, Gunnarsson and Sorensen but not many others.
I do think Brexit will be a big issue for us..... it will be harder to sign the Scandinavian and French players we’ve signed, we will be a lot more reliant on scooping up some of the British young talent.... which feels more difficult to achieve. Agree, after this crop (Toney, Rico) I’m not sure we have some big fees in this squad. Time will tell.
 

Matty D

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I’m also hard pressed to think of many who might command a large fee in the future.

Not Watkins / Benrhama money but we might get a bit for Janelt. If Baptiste can get and stay fit then you there's still some unrealised potential there. But yeah agree, the cupboard looks a bit bare. Can't imagine post-Covid losses the money will be there for adventurous acquisitions this summer, just a few lower division punts to flesh out the squad.
 
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