Shrimpsvoices

Looks like he is on the verge of joining rotherham united according to there website for 175.000

They are supposed to have increased their playing budget from £1million to £1.5million for next season.

Have they not learned from previous regimes the folly of such action? Particularly in such a financial climate that the game is operating in.

I am led to believe 'if' he signs for Rotherham it will be for a transfer fee of £100,000 + add ons which all depend on how many games he plays, how many goals he scores and ultimatly 'if' they get promoted If they manage all the add-ons then the fee rises to £175,000. They had a fee of £100,000 turned down in January.

Christies Child wrote:They are supposed to have increased their playing budget from £1million to £1.5million for next season.

Have they not learned from previous regimes the folly of such action? Particularly in such a financial climate that the game is operating in.

On the one hand, to be fair, they will still have to play by the same rules re turnover as everyone else so if they want to spend big on a striker and possibly put all their eggs into one basket, without breaking the forecasted budget, then that's up to them.

On the other hand, whilst they're not at their own ground, and possibly don't have the overheads that other clubs do who do have their own ground, it strikes me as cheating the system when they can play somewhere else and spend money on players when other clubs have to spend money on their ground etc. Isn't fair to the rest of the league if you ask me. In fact it takes the p*** and rubs the other clubs noses into it, who can't afford such players.

Rotherham should be subject of some kind of embargo whilst they can't be bothered to have their own ground.

It has cost them £750K to be there tho has'nt it?

http://soccerlens.com/rotherham-take-th ... can/13124/

They were certainly stitched up with the agreement at Millmoor

p.s. I see the.......

...thread soon got zapped

Number 1, the problem is that (like every budget used for control purposes) the Budget can be manipulated. As far as I'm aware, It's based on each clubs income, not just revenue from gate receipts etc. Such income can include loans from directors. What happens when the director wants out like Darlo? Even if he does not want the money back that he has invested, how is this promoting the sustainable running of clubs when they depend upon sizeable injections of cash before each season?

I agree Red.

I don't think 'loans' from directors are allowed in the equation as, as you say, they can be recalled at any time (and that's what the regulations are there to avoid).

But directors can, as I understand it, launch new share issues, where any money pumped in is not a loan but a kind of 'gift'.

I'm not au fait with any kind of financing deals but that's as I understand it from a layman's view.

shrimper wrote:I don't think 'loans' from directors are allowed in the equation as, as you say, they can be recalled at any time (and that's what the regulations are there to avoid).

But directors can, as I understand it, launch new share issues, where any money pumped in is not a loan but a kind of 'gift'.

I'm not au fait with any kind of financing deals but that's as I understand it from a layman's view.

As an accountant myself I can confirm that Directors loans or loans by anyone else are not included in the Wages cap computation.

Share sales are included and after studying our club's accounts this has happened each year for a number of years. Roll on the opening of the new stadium complex and we should be self financing.

I think we need to be careful re the new stadium. I am completely in favour of a new stadium as it will help increase revenue undoubtedly.

All this extra revenue does not mean we will be self financing, on the basis we loose roughly £200kpa (which seems about right based on the accounts I saw) we need to make extra profit of £200k, which would require extra reveniue of well over £1million.

The stadium will help, but we will still be on an extremely small budget compared to our competitors - therefore we still need to be realistic. Take the post above - Fleetwood as a strike option. I agree he is a good player but he is so far over our budget we might as well be talking about Ronaldo.

There needs to be some reality of who we would like compared to who we can afford