The Cost of Relegation

[javeajag]

18 minutes ago, potty trained said:

Let's hope so. To continue to pay Premiership wages would be financial suicide.

And we won’t be able to ... as we are debt free we will spend around 50-60 of our income on the playing side 

[Mr Bunny]

As was said above, we get less money but the teams we play against have less also and with the exception of Ross County none of the other teams have the money we earned this season (C. £1m I think) so we have a slight advantage.  Not that we should blow all that extra cash at once - keep some back in case we don't get immediate promotion.  At all costs only spend what we have, avoid debt.

Upsides to this.  

Our youth policy is financed for another 2-3 years from money donated by the Weirs.  So we can blood more youngsters - and this is easier to do in the lower league.

Dundee Utd - unless their fan base has collapsed recently are probably the biggest club.  After that Falkirk, Morton (?), Dunfermline and Inverness are about the same size as we are, though apart from Alloa the rest have a reasonable support.  Potentially there's nothing much between most of the clubs and impetus and drive are as important as the quality of the players you can afford.  That makes it tough but also competitive with no team a lot bigger  than us  as in the SPL.

We are financially sound and there is no sign of panic at the club.  In the previous times when we went down and down there were problems with the board and the finances.  We are financially secure with no debt.  This takes a lot of p[pressure off.   This makes it more likely we will challenge rather than struggle (though of course a decent managerial appointment is required) but of course promotion is not guaranteed.

The play off system works in our favour in that if you're not looking the best bet for promotion (but playing OK) you're still in with a bit of a chance and this is good for team and fan morale and can keep an interest up till the end of the season.  In the top league the play-offs are something you want to avoid - there's great pressure on the teams trying to avoid it there whereas in the lower league the play-offs are something you want to aim for as a second prize.  It can create enthusiasm.

Run out of things to add, add your own.

Edited May 22, 2018 by Mr Bunny

[jlsarmy]

3 minutes ago, Mr Bunny said:

As was said above, we get less money but the teams we play against have less also and with the exception of Ross County none of the other teams have the money we earned this season (C. £1m I think) so we have a slight advantage.  Not that we should blow all that extra cash at once - keep some back in case we don't get immediate promotion.  At all costs only spend what we have, avoid debt.

Upsides to this.  

Our youth policy is financed for another 2-3 years from money donated by the Weirs.  So we can blood more youngsters - and this is easier to do in the lower league.

Dundee Utd - unless their fan base has collapsed recently are probably the biggest club.  After that Falkirk, Morton (?), Dunfermline and Inverness are about the same size as we are, though apart from Alloa the rest have a reasonable support.  Potentially there's nothing much between most of the clubs and impetus and drive are as important as the quality of the players you can afford.  That makes it tough but also competitive with no team a lot bigger  than us  as in the SPL.

We are financially sound and there is no sign of panic at the club.  In the previous times when we went down and down there were problems with the board and the finances.  We are financially secure with no debt.  This takes a lot of p[pressure off.   This makes it more likely we will challenge rather than struggle (though of course a decent managerial appointment is required) but of course promotion is not guaranteed.

The play off system works in our favour in that if you're not looking the best bet for promotion (but playing OK) you're still in with a bit of a chance and this is good for team and fan morale and can keep an interest up till the end of the season.  In the top league the play-offs are something you want to avoid - there's great pressure on the teams trying to avoid it there whereas in the lower league the play-offs are something you want to aim for as a second prize.

Run out of things to add, add your own.

Agree with most of that but teams like Dunfermline , Falkirk , Inverness , Morton , Q O S have had a least a couple of years on us trying to build a team to gain promotion , not many teams go straight back up after being relegated .

[Fawlty Towers]

Maybe a good time to revisit this and for those who are good at interpreting these to offer their thoughts:

Accounts

Also, if we are lucky Liam Lindsay might get a move which would result in some cash coming our way as well.

[potty trained]

Close the thread.

[Auld Jag]

5 hours ago, potty trained said:

Close the thread.

Why ? We got relegated and it will cost us money.

[potty trained]

Is there more to discuss after todays statement? 

[javeajag]

It is a little difficult to work out how we can operate as a premiership club on championship revenue ? 

[allyo]

Saved our pennies

[javeajag]

2 minutes ago, allyo said:

Saved our pennies

I guess ‘ not slashing budgets ‘ might mean some budget reduction ?  

[allyo]

To be honest I think the statement is positive but I wouldn't read too much into much of it. They want the fans on side, so they're going to talk about ambitions to bounce back, supporting the manager but demanding better. But they're not going to publicise the details of their business model. You could call it modern communication; or bllsht. 

There are important messages though. Manager staying, no redundancies, we're financially ok for the moment, the academy will continue as planned. At least three of these things are good news and sound pretty solid.