Football Club Finances and Coronavirus (incl Brentford!) (1 Viewer)

Banana

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It seems eminently fair given the circumstances, everyone should share the pain.

The key is that the club comes through this the other side and the cancellation of the Euros will obviously harm Matthew Benham's cashflow.

Hopefully a sliding scale can be agreed that affects the lowest paid the least.
 

BFC1997

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Many football clubs teeter on the brink as a norm and I suspect the effects of the virus on these clubs may be severe and in the next few months some horror stories may unravel.

Re: Brentford

I guess for us in the short to medium term it's really most important that any clubs that owe us instalments of transfer fees continue to make these payments. From my understanding of things it's mostly the profit on player trading that covers our losses and matchday revenue is only ever a small % of total revenue as GP is hardly a money making machine.

So we could do with Villa and Brighton in particular not suffering too badly from all of this as they will owe us money for Konsa and Maupay.

I guess another factor will be for what duration this delays us getting to the new ground (and subsequently how this affects our forecasted matchday revenue). We may need to tighten our belts FFP-wise if we need another 6-12 months at GP because whether or not the keys to the new stadium are handed over on time, I'm guessing there's little chance that any test events will go ahead or safety certificates will be awarded for a while yet. I don't know how any delay to the flats being built adjacent to the new site, or any delay to handing GP over to developers will affect us but I'm sure it wouldn't be ideal either.

Presumably a large proportion of our staff will be put on furlough, with the government footing 80% of their salary until such time as the EFL is able to resume normal activities.
 

Invipai

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There was talks of scrapping it for next season by Fifa/Uefa (can't remember which). It does just make sense though at this point.
 

ruislip bee

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Would be great if fans could consider not asking for ticket refunds to help MB.
Just think of it as chucking a few quid into a bucket like when we fought for our clubs future.
Yep agree with that. All the prepaid STs for next season must help too.
 

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Given that the stadium was due to be finished quite soon I'd say it's financially ok. However the developer might have a problem as the flats might be delayed and the GP development.
 

Herbert

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It seems eminently fair given the circumstances, everyone should share the pain.

The key is that the club comes through this the other side and the cancellation of the Euros will obviously harm Matthew Benham's cashflow.

Hopefully a sliding scale can be agreed that affects the lowest paid the least.
Why does cancelling the euros harm Benham?
 

Ealing Bee

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Presumably a large proportion of our staff will be put on furlough, with the government footing 80% of their salary until such time as the EFL is able to resume normal activities.
Aiui, there is a cap (£30k p.a.?) on the 80% governement subsidy, meaning that while that will help with non-playing staff, it won't make much of a difference to players' contracts.

Beyond that, this must have a serious effect on BFC, in two respects. Mr. Benham's companies depend on sports betting and data provision, so if there is no sport going on (and the Euro's will only be a part of it), then his companies must be seriously suffering.

Second, while LR will surely be completed sooner or later, I'd guess that there is now no chance of BFC seeing any premium from the developer after the enabling development is completed. For even if the flats are all built (must be seriously in doubt), then there's no way they're going to command the selling prices envisaged pre-virus. In fact I reckon a lot of builders/developers will go bust as a result of this, with the economy taking decades to recover.

All that said, if anyone can/will see his football club through this, inc stadium-related, it must be Mr.Benham.

How lucky are BFC to have him!
 

Invipai

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While we will be really badly affected, we're probably in a better position than most to take the hit...many clubs were up against the wall before this all happened, I struggle to think of how many League One and Two clubs (let alone non-league) will cope. We can guarantee that we'll come through this, I can't say the same about others...
 

amersfoort bee

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While we will be really badly affected, we're probably in a better position than most to take the hit...many clubs were up against the wall before this all happened, I struggle to think of how many League One and Two clubs (let alone non-league) will cope. We can guarantee that we'll come through this, I can't say the same about others...
How can this be guaranteed? Supposing there is no football for a year? No football for two years?
 

nathanbee

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Thank god the stadium's nearly done
Surely FFP becomes even more important. Clubs have to be better run to protect the ordinary workers on ordinary wages.Players (generally) will be ok. A big wake up call to all clubs to get their finances in order or disappear.
 

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Birmingham have asked players earning over £6,000 a week to take a 50% pay cut
I thought Birmingham were proposing paying salaries up to £6k per week and then asking for anything over that to be reduced by 50% and deferred until the situation reverts to “normal”?
 
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I thought Birmingham were proposing paying salaries up to £6k per week and then asking for anything over that to be reduced by 50% and deferred until the situation reverts to “normal”?
I think we are saying similar things, but you are being more accurate without your prose :sorted:
 

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No but if MB wanted to then he can especially if we can't sell players like we have done recently to easily pass ffp
I'm sure he's glad you are being so generous with his money.

It won't happen anyway as after this clubs will need to be more sensible with their finances not less.
 

Mr Tree

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hmm, tricky situation here. so basically the clubs are all "on the hook" for the player salaries - i wouldn't know what's in the standard contract for "exceptional circumstances" or what sort of arrangement the PFA have, but the likes of Jonny Half-Decent here will be expecting his 10k a week for now, regardless of any short-term action (and regardless of any way to realistically spend that much money, plus regardless of any way for the clubs to be generating income).

that, excuse the obvious, seems massively unsustainable - there must be clubs who have huge monthly expenditures who'll "run out" of money very quickly.

the government scheme, as mentioned above, has a cap, because you simply don't need much money at this time. hopefully some sort of deferral scheme in football can be arranged, otherwise there could be some big problems here. i really don't see how @Invipai can say we can "guarantee" we can get through this - even with a wealthy backer, his income streams are being affected too so :shrug:
 

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I would imagine it would be handled by administrators wouldn’t it ?
 

ruislip bee

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hmm, tricky situation here. so basically the clubs are all "on the hook" for the player salaries - i wouldn't know what's in the standard contract for "exceptional circumstances" or what sort of arrangement the PFA have, but the likes of Jonny Half-Decent here will be expecting his 10k a week for now, regardless of any short-term action (and regardless of any way to realistically spend that much money, plus regardless of any way for the clubs to be generating income).

that, excuse the obvious, seems massively unsustainable - there must be clubs who have huge monthly expenditures who'll "run out" of money very quickly.

the government scheme, as mentioned above, has a cap, because you simply don't need much money at this time. hopefully some sort of deferral scheme in football can be arranged, otherwise there could be some big problems here. i really don't see how @Invipai can say we can "guarantee" we can get through this - even with a wealthy backer, his income streams are being affected too so :shrug:
I think the Bees will be OK for a while. All the remaining games for this season have been sold out and paid for (except Barnsley perhaps) plus they have a lot of money already in for next seasons STs sales. As someone else said our exposure will be to player sale installments I guess.
 

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Does anyone know what happens to Lionel Road if the developer goes bust before it's handed over to us?
In 3 words I would expect it to be messy, contractual and protracted. As the ground itself is so close to completion there would be various options to 'get it over the line' but the contractual side of things like warranties, bonds, guarantees, insurances, final accounts, payments, damages etc leading up to the actual handover/transfer of the stadium in to Brentford's ownership I suspect would take a very time. And that's in 'normal' circumstances without the backdrop of what is currently going on.
 

Beezy

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In 3 words I would expect it to be messy, contractual and protracted. As the ground itself is so close to completion there would be various options to 'get it over the line' but the contractual side of things like warranties, bonds, guarantees, insurances, final accounts, payments, damages etc leading up to the actual handover/transfer of the stadium in to Brentford's ownership I suspect would take a very time. And that's in 'normal' circumstances without the backdrop of what is currently going on.
They won't go bust.
 
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Does anyone know what happens to Lionel Road if the developer goes bust before it's handed over to us?
They have to disassemble the stadium and sell it for scrap.
 

Ealing Bee

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Does anyone know what happens to Lionel Road if the developer goes bust before it's handed over to us?
Do BFC not already own the stadium site, with the Developers contracted to build/hand over the stadium upon completion (in return for being allowed to build/sell the flats)?

So that if the developer went bust today, BFC would still be entitled to receive the almost complete stadium?

Or is that not how these things work?:scratch:
 

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IIRC, from what I read, as part of the CPO to get all the land, ownership of the whole land package passed to L B Hounslow. LBH are to relinquish ownership when the project is completed. I might be wrong and a "stadium expert" could clarify. Whatever happens, it looks very complex, especially if the developer wants to start on Griffin Park before this season is settled.
 
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IIRC, from what I read, as part of the CPO to get all the land, ownership of the whole land package passed to L B Hounslow. LBH are to relinquish ownership when the project is completed. I might be wrong and a "stadium expert" could clarify. Whatever happens, it looks very complex, especially if the developer wants to start on Griffin Park before this season is settled.
It's been on here before and was in the last accounts of BFC

BFC (or rather a subsidiary company thereof) own the land the stadium sits on.

The freehold of GP (and other non-stadium land at LR) have already been transferred to EcoWorld

Work cannot start at GP until BFC have a safety certificate at LR.

That is all we know.
 

GP200

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It's been on here before and was in the last accounts of BFC

BFC (or rather a subsidiary company thereof) own the land the stadium sits on.

The freehold of GP (and other non-stadium land at LR) have already been transferred to EcoWorld

Work cannot start at GP until BFC have a safety certificate at LR.

That is all we know.
............... excellent............more good news...............
 
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https://www.theguardian.com/footbal...yer-contracts-and-transfer-windows-be-changed


Fifa suggests player contracts and transfer windows be changed

  • Internal document says contracts should end when season does
  • Fifa also urges clubs to find solutions to salary payments

Current contracts for players and coaches should be extended until the end of the delayed domestic football seasons, according to an internal Fifa document presented to its Coronavirus Working Group.

The confidential document, seen by Reuters, also recommends allowing transfer windows to be changed in accordance with new season dates and urges clubs and players to work together to find solutions to salary payments during stoppages.


The document is due to be discussed by members of Fifa’s Working Group later on Thursday. No decision on the issues has yet been taken by, which set up the working group on 18 March and said in a statement that it will “assess the need for amendments or temporary dispensations to the Fifa Regulations on the Status and Transfer of Players” to protect contracts for both players and clubs and adjusting player registration periods.

“This work has already started and will be conducted in consultation with all key stakeholders, including confederations, member associations, clubs, leagues and players,” Fifa added.

Most domestic and international football competitions around the world have been suspended because of the pandemic and national team tournaments such as Euro 2020 and the Copa América have been postponed.

While domestic leagues are hoping to resume when the threat from the virus has receded, concrete start dates have yet to be fixed. That leaves the issue of expiring player contracts, which are usually timed to finish at the end of a given season, as a potential headache.


The key suggestion to the working group in the document seen by Reuters is that “where an agreement is due to expire at the original end date of a season, such expiry be extended until the new end date of the season”.

The same approach would apply to deals for next season, with their start date delayed in accordance with the shifting calendar. The risk of some domestic divisions starting and finishing earlier or some national leagues having a different start date to other countries is also tackled in the document.

“In case of overlapping seasons and/or registration periods, and unless all parties agree otherwise, priority be given to the former club to complete their season with their original squad, in order to safeguard the integrity of a domestic league championship”.

Transfer payments between clubs, scheduled around league start and end dates should also be delayed until the new start date of a season or its first registration period, the document states.


The working group will also examine the issue of clubs’ responsibilities to pay their staff when leagues are suspended. The document states that clubs, players and coaches should be encouraged to work together to agree on salary reductions and deferrals.

Yet they should consider the alternative, where possible, that agreements between clubs and employees are suspended when teams are not playing or training. It is also recommended that Fifa uses its newly-created ‘Fund for Professional Players’ to help ease any difficulties that clubs are facing.

Transfer windows, fixed around the end and start of the seasons, will also need to be adjusted to fit in with altered season dates and the document suggests such changes should be allowed, so long as they do not exceed the maximum 16-week period.
 

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https://www.theguardian.com/footbal...yer-contracts-and-transfer-windows-be-changed


Fifa suggests player contracts and transfer windows be changed

  • Internal document says contracts should end when season does
  • Fifa also urges clubs to find solutions to salary payments

Current contracts for players and coaches should be extended until the end of the delayed domestic football seasons, according to an internal Fifa document presented to its Coronavirus Working Group.

The confidential document, seen by Reuters, also recommends allowing transfer windows to be changed in accordance with new season dates and urges clubs and players to work together to find solutions to salary payments during stoppages.


The document is due to be discussed by members of Fifa’s Working Group later on Thursday. No decision on the issues has yet been taken by, which set up the working group on 18 March and said in a statement that it will “assess the need for amendments or temporary dispensations to the Fifa Regulations on the Status and Transfer of Players” to protect contracts for both players and clubs and adjusting player registration periods.

“This work has already started and will be conducted in consultation with all key stakeholders, including confederations, member associations, clubs, leagues and players,” Fifa added.

Most domestic and international football competitions around the world have been suspended because of the pandemic and national team tournaments such as Euro 2020 and the Copa América have been postponed.

While domestic leagues are hoping to resume when the threat from the virus has receded, concrete start dates have yet to be fixed. That leaves the issue of expiring player contracts, which are usually timed to finish at the end of a given season, as a potential headache.


The key suggestion to the working group in the document seen by Reuters is that “where an agreement is due to expire at the original end date of a season, such expiry be extended until the new end date of the season”.

The same approach would apply to deals for next season, with their start date delayed in accordance with the shifting calendar. The risk of some domestic divisions starting and finishing earlier or some national leagues having a different start date to other countries is also tackled in the document.

“In case of overlapping seasons and/or registration periods, and unless all parties agree otherwise, priority be given to the former club to complete their season with their original squad, in order to safeguard the integrity of a domestic league championship”.

Transfer payments between clubs, scheduled around league start and end dates should also be delayed until the new start date of a season or its first registration period, the document states.


The working group will also examine the issue of clubs’ responsibilities to pay their staff when leagues are suspended. The document states that clubs, players and coaches should be encouraged to work together to agree on salary reductions and deferrals.

Yet they should consider the alternative, where possible, that agreements between clubs and employees are suspended when teams are not playing or training. It is also recommended that Fifa uses its newly-created ‘Fund for Professional Players’ to help ease any difficulties that clubs are facing.

Transfer windows, fixed around the end and start of the seasons, will also need to be adjusted to fit in with altered season dates and the document suggests such changes should be allowed, so long as they do not exceed the maximum 16-week period.
It makes perfect sense but will the agents and their lawyers see it that way, they will be bleating in about human rights and employment law etc etc as they desperately try to unsettle the players.
 
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It makes perfect sense but will the agents and their lawyers see it that way, they will be bleating in about human rights and employment law etc etc as they desperately try to unsettle the players.
Er...contracts are a bilateral agreement between the player and the club. Not sure how some unrelated, event-organising company can decide it can change them,
 

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Er...contracts are a bilateral agreement between the player and the club. Not sure how some unrelated, event-organising company can decide it can change them,
Also who'd want to sign or sell players when there is no known structured timeline yet of when we all get going again. The bigger issue is EFL clubs down the pyramid who will want players off their books
 
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Also who'd want to sign or sell players when there is no known structured timeline yet of when we all get going again. The bigger issue is EFL clubs down the pyramid who will want players off their books
Yep. Indeed.
 

Ealing Bee

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Also who'd want to sign or sell players when there is no known structured timeline yet of when we all get going again. The bigger issue is EFL clubs down the pyramid who will want players off their books
True, and it's not just a matter of timing.

Even after all this virus business is resolved, such clubs as remain in existence simply aren't going to have the money or credit lines to pay big transfer fees or wage for years to come. Quite a few (currently) wealthy owners will be more stretched, too.

And thinking about it, many supporters won't have the money for expensive match tickets either, thereby further hurting clubs revenues.
 

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True, and it's not just a matter of timing.

Even after all this virus business is resolved, such clubs as remain in existence simply aren't going to have the money or credit lines to pay big transfer fees or wage for years to come. Quite a few (currently) wealthy owners will be more stretched, too.

And thinking about it, many supporters won't have the money for expensive match tickets either, thereby further hurting clubs revenues.
Yep it will revert your Gunnersbury Park with anyone who turns up with their boots getting a game.
I think your meltdown scenario will not happen. The commercial house of cards might wobble but too many vested interests need it to survive.
 

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Er...contracts are a bilateral agreement between the player and the club. Not sure how some unrelated, event-organising company can decide it can change them,
Exactly what i said, if the contract ends in July the EFL and PL can do what they want with the window, players can still sign for someone else.
 

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I think your meltdown scenario will not happen. The commercial house of cards might wobble but too many vested interests need it to survive.
I don't imagine that the current capitalist economic model will collapse after this, or anything like it.

But it is hardly inconceivable that countries will be, say, 10% poorer than they were previously, having taken out borrowing which will take years to pay off (eg it was nearly half a century before we finally repaid our lend lease loans from WWII back to the Americans).

So that while most could withstand a 10% loss, that will still spell the end for the most vulnerable businesses, e.g. lower league football clubs. Additionally, if as punters we lose 10% of our income/savings, that needn't be critical for most of us, but it should cause us to have to tighten our belts. And when that happens, it is discretionary spending like football match tickets which are amongst the first economies to be made.
 

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I don't imagine that the current capitalist economic model will collapse after this, or anything like it.

But it is hardly inconceivable that countries will be, say, 10% poorer than they were previously, having taken out borrowing which will take years to pay off (eg it was nearly half a century before we finally repaid our lend lease loans from WWII back to the Americans).

So that while most could withstand a 10% loss, that will still spell the end for the most vulnerable businesses, e.g. lower league football clubs. Additionally, if as punters we lose 10% of our income/savings, that needn't be critical for most of us, but it should cause us to have to tighten our belts. And when that happens, it is discretionary spending like football match tickets which are amongst the first economies to be made.
Are there really people for whom football math tickets are discretionary? Glad I don't know anybody like that :)
 

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West London Sport, Lyall, reporting that the Squad have agreed to defer 50% of their wages

https://www.westlondonsport.com/bre...Z15UHNLpwui9P1eaEQj5_g5nbxNj9i3YBEcikihQ8hWfk

Total and utter gloomsville this bit:

"The club are making contingency plans to go as long as 12 months or more without matches, although the English Football League hope the Championship season will resume some time this summer."
Well done, chaps. We all hoped we’d never have to talk about needing measures to keep the club financially stable again but what this group of players have agreed to do to safeguard the club’s future shouldn’t ever be forgotten. Fair play to them.
 

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Well done, chaps. We all hoped we’d never have to talk about needing measures to keep the club financially stable again but what this group of players have agreed to do to safeguard the club’s future shouldn’t ever be forgotten. Fair play to them.
Obviously , other things are more important at the moment but the group we have are a credit to their sport and their families.

I really hope they get the success they deserve.
 

Judio1999

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agreed to consult their players regarding a combination of conditional reductions and deferrals amounting to 30 per cent of total annual remuneration

Despite the headline , anything including the word "Deferral" is NOT a cut in wages

They will just get it back later....
 

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