Salary Cap

I did some basic maths in working out the salary cap vis our season tickets and the cap is way too low for me;
ST @ £150 and City need to sell just 10,000 to make 1.5 mill.
So ground would be less than half full with the club getting less from punters spending in the stadium and probably sponsors (especially during a recession).

Put aside the current pandemic and imagine 14,000 ST @ £150 = 2.1 mill.
So what would the club do with the extra half a million?
rupp says danke schoen.
Dummkopf.

I would not trust this club to re-invest all the extra monies from ST's between 10,000 to 14,000.
Would you?
* i do expect this seasons take-up to be far less but this new cap is doing City no favours long term.
Why do you need more scouts etc if the squad size is coming down as well as the wages being sharply reduced.

 

In theory I guess the excess could be invested into the stadium/infrastructure or to some kind of youth team/academy structure.

Would be interesting to understand it in more detail though at the end of the season.

 

I suppose you would have to look at all other costs as well, management, juniors, other staff, ground rent and running costs. All that could easily eat up the left over cash.

Then look at it from other clubs point of view, we are probably one of the largest turnover(income) clubs in the league so all those others £1.5m salary cap plus other running expenses may not even be covered by their income.

 

That's exactly why I'm in two minds about buying a season ticket. Am I helping the club or paying back Rupp?

 

There was a recent article in the Yorkshire Post on this. A sports finance expert based at Hallam University was heavily critical of Bradford City, Portsmouth, Sunderland and Ipswich for voting against the salary cap

 

https://www.yorkshirepost.co.uk/sport/football/bradford-city-selfish-voting-against-efl-salary-cap-claims-football-finance-expert-2947441

 

I would have thought at the time of that forum the club would have been aware of Vaughans position and I do believe Stuart when he said maybe getting him back on the training pitch and involved again in day to day football and the banter that usually goes with it Vaughan might have had a change of mind.
I believe they could have possibly worded their replies better but as a club we knew once again the player had all the aces, and when someone says you might pick me but you'll get zilch from me there is only one option and like it or not Tranmere were laughing all the way to the bank, not merely getting a potential 20 goal striker but maybe not paying a fee and quite possibly getting money from Bradford City to help with the last two years of his salary.

 

Perhaps you missed the point about rupp not investing any money into the club, the point about fans taking the cheap ST's in big numbers was to fund the player budget NOT fund the whole club.
Even making a very small profit, whose pocket do you reckon it will go to?

 

I've checked the website and Companies House, can't see a Registered Charity Number anywhere.

 

Did Not realise Jack Tordoff and Mark Lawn are on the main board of directors, Along with Rhodes as CE its like back to the future!!

 

So does the salary cap mean we no longer get any income from sponsorship, shop sales, catering deals TV revenue. Only asking as people seem to think that all the ST money is meant to cover all the club's outgoings.
All these other sources of income are still there, yes some are reduced at the moment but in future seasons when we are back to normal then where does that money go?

 

I doubt our overheads are anywhere near zero, we’ll need to sell far more to break even, even with a cap.

 

And also forgetting there is VAT to pay.

 

To pay rent rates utilities non playing staff wages etc etc

 

Our rent overheads and costs of running and staffing VP must be massive and be well in excess of £500k, i doubt we will be quids in with the salary cap it might have given us a bit of extra headroom to make signings bit weve seen that gets us no where fast throwing big bucks at signings