The Bitter Truth?

[selassie]

Gents Business 101. You never pay salaries from your savings. Its non sustainable. Salaries are considered recurrent expenditure and will be paid from annual income such as matchday revenue and other commercial income

HCZ s proposal that we saved up 120m over 5 years just to pay Ozils wages is not the way businesses are run. Yes you could buy a player from your savings as that could be considered an investment but again you would prefer to include it in your expenses, for accounting reasons, especially if the payments are instalments.

We have 120m and yet to hear some people on this forum it makes as a poor outfit. That is more than almost all the other EPL clubs combined, If we are in dire straits then everybody else must be functionally bankrupt. A football club does not need to make a profit, unless either it wishes to satisfy shareholders or it is investing in something...eg a stadium. We have not declared a dividend in years so no shareholder has taken a dime out of the club except maybe sitting fees for directors. In a publicly listed company you cant just do what you want even if you own 67% of the shares like Kroenke does

The facts are available. Just visit AST instead of posting hooey

[Globalgunner]

Again posting profits isn't about being rich, it's saying that we can sustain ourselves financially but we cannot compete with clubs at the top that don't run like a business like Chelsea, city and Liverpool.

Athletico Madrid are competing with everybody right now, they have no benefactor and their wage bill I an certain is probably half ours. The difference is that they as a club wish glory for their fans and they have found a manager that is doing the right things, so please stop with the balderdash about competing being impossible.

[Herbert_Chapman's_Zombie]

We spend between 150million and 200 million a season on wages how is it possible for us to spend that much and still according to you be flush with cash. It's just not possible. I repeat you cannot compete and run a financially sustainable operation it is not possible.

QUOTE=Globalgunner;386662]Gents Business 101. You never pay salaries from your savings. Its non sustainable. Salaries a
re considered recurrent expenditure and will be paid from annual income such as matchday revenue and other commercial income

HCZ s proposal that we saved up 120m over 5 years just to pay Ozils wages is not the way businesses are run. Yes you could buy a player from your savings as that could be considered an investment but again you would prefer to include it in your expenses, for accounting reasons, especially if the payments are instalments.

We have 120m and yet to hear some people on this forum it makes as a poor outfit. That is more than almost all the other EPL clubs combined, If we are in dire straits then everybody else must be functionally bankrupt. A football club does not need to make a profit, unless either it wishes to satisfy shareholders or it is investing in something...eg a stadium. We have not declared a dividend in years so no shareholder has taken a dime out of the club except maybe sitting fees for directors. In a publicly listed company you cant just do what you want even if you own 67% of the shares like Kroenke does

The facts are available. Just visit AST instead of posting hooey[/QUOTE]

[Herbert_Chapman's_Zombie]

Athletico Madrid are competing with everybody right now, they have no benefactor and their wage bill I an certain is probably half ours. The difference is that they as a club wish glory for their fans and they have found a manager that is doing the right things, so please stop with the balderdash about competing being impossible.

Again why are you assuming I'm
Defending Wenger?. He has grossly overspent by putting average players on wages they don't deserve. But as admirable as stories like Dortmund and Atletico Madrid are, neither club has the finances to do anything other than challenge once in a blue moon

[Globalgunner]

Again why are you assuming I'm
Defending Wenger?. He has grossly overspent by putting average players on wages they don't deserve. But as admirable as stories like Dortmund and Atletico Madrid are, neither club has the finances to do anything other than challenge once in a blue moon

Dortmund won 2 titles in a row only 3 seasons ago, so hardly a blue moon. I agree with you that our salary structure is ridiculous but again it all boils down to one man. If your opponent is bigger than you then what you need to do is box clever, rather than give up.

[Power n Glory]

Gents Business 101. You never pay salaries from your savings. Its non sustainable. Salaries are considered recurrent expenditure and will be paid from annual income such as matchday revenue and other commercial income

HCZ s proposal that we saved up 120m over 5 years just to pay Ozils wages is not the way businesses are run. Yes you could buy a player from your savings as that could be considered an investment but again you would prefer to include it in your expenses, for accounting reasons, especially if the payments are instalments.

We have 120m and yet to hear some people on this forum it makes as a poor outfit. That is more than almost all the other EPL clubs combined, If we are in dire straits then everybody else must be functionally bankrupt. A football club does not need to make a profit, unless either it wishes to satisfy shareholders or it is investing in something...eg a stadium. We have not declared a dividend in years so no shareholder has taken a dime out of the club except maybe sitting fees for directors. In a publicly listed company you cant just do what you want even if you own 67% of the shares like Kroenke does

The facts are available. Just visit AST instead of posting hooey

It's crazy talk. We've had more than £120m if we're talking about paying including wages and other fees in on transfer budget.

[Herbert_Chapman's_Zombie]

Dortmund won 2 titles in a row only 3 seasons ago, so hardly a blue moon. I agree with you that our salary structure is ridiculous but again it all boils down to one man. If your opponent is bigger than you then what you need to do is box clever, rather than give up.

Three seasons ago and now they are 25 points behind Bayern.

Boxing clever will allow you to compete for trophies maybe once every two or three years and my beef with Wenger is that he hasn't made the most of those opportunities. But in terms of competing every season, it cannot be done. Atletico will be back to square one like Dortmund because it will have to sell its best players to the bigger teams because they won't be able to afford the wages the players agents will demand for their performances

[Globalgunner]

As a follow up. If you read the report by Swiss Ramble, we accumulated the 120m over a period of over 5 years, from our surplus. That is profits. Now if you imagine that we kept our wage bill reasonable and paid players like Djourou and bentner what they are worth 15k pw instead of 50k. we could reasonably have added maybe 40m per year as that has been the gap between us and Spurs wage bill. a team that has finished mostly right behind us. Over 6 years we would have an additional 240m in the bank. a total of almost 400m. Which player in the world could we not buy with 400m in the bank.

[Globalgunner]

Three seasons ago and now they are 25 points behind Bayern.

Boxing clever will allow you to compete for trophies maybe once every two or three years and my beef with Wenger is that he hasn't made the most of those opportunities. But in terms of competing every season, it cannot be done. Atletico will be back to square one like Dortmund because it will have to sell its best players to the bigger teams because they won't be able to afford the wages the players agents will demand for their performances

It would be nice to have a track record of failure as bad as Dortmunds, but I agree with your sentiments.....we need change

[Herbert_Chapman's_Zombie]

It would be nice to have a track record of failure as bad as Dortmunds, but I agree with your sentiments.....we need change

Dortmund financially almost went bust eight years ago, but I agree in the sense that they created a team by spending sensibly and having a brilliant youth academy. Our youth academy has been disgracefully neglected, but with their best players both going to be wearing a Bayern shirt next season (Gotze this season, Lewandowski next) they just cannot compete with the Bavarian club to be challenging them year in year out for the title.