Striker move and Derby County losses cause concern for supporters
Derby County fans give their reaction to the club's latest financial statement:
SO Nigel Clough has decided to let Nathan Tyson go out on loan to fellow Championship club Millwall for the remainder of the season, with a view that it could be a permanent move.
I suspect this has a lot to do with “wages” and Tyson probably being promised the opportunity of first team games every week. However, it does lead me to question: Why has this happened ?
We do not truly have a recognisable forward. You may think of Theo Robinson and Conor Sammon but we cannot rely on them to deliver every week. What happens if one gets suspended or injured. Who then? Jamie Ward isn’t fully fit and we can’t expect a 16-year-old to step up.
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I pay over £420 every year for a season ticket (which I fully understand is my choice to do). However, I feel Nigel and the board need to justify why we are letting our good players go.
They say they are not under any pressure financially to get them out, it’s just to get them some games and still not weaken the squad.
We have five goalkeepers – surely it’s some of these that should be going out on loan and not our recognised strikers.
It isn’t going to wash any more.
The new chief executive, Sam Rush, wants to know why tickets sales are down. This is partly why, along with the new futile ticket-purchase scheme.
Not everybody knows, whether due to employment, personal circumstances or finance issues, if they can purchase a match ticket in advance. Some may not know until the day before a game if they are able to attend and are therefore penalised. Yes, I agree that no ticket should be cheaper than the price of what a match would cost for a season ticket holder but there must be a better solution.
I’VE been quite happy with the way GSE have been running the club up until now. I’ve looked at it fairly realistically and never expected them to keep pumping in multi-millions on new signings.
My concern now is that for the last two years, we have lost nearly £8m a year, which for a business which turns over between £17m and £18m per year is extremely poor.
The emphasis seems to constantly be on Nigel Clough to cut the wage bill but it would be interesting to know what their plan is to halt the slide other than just cutting wages.
They’ve been fairly up-front about their long-term plan to get Derby promoted and in a healthy financial state and then sell, which I don’t have a problem with.
The difficulty is that, currently, their plan isn’t working and unless something changes, the best they can realistically hope for is to be finishing somewhere between 10th and 12th in the Championship.
OUR turnover in year 2006-2007, just prior to promotion, was £13.9m.
Turnover was then inflated by payments from the Premier League and the £11m parachute payments.
Turnover in 2009-2010 was £29.7m (the last parachute payment), then it dropped to £18.1m last year when the parachute payments ended.
In 200-2007, salaries rose to a huge £26.9m because we were paying Premier League contracts. Last year they were £13.2m.
Since our year in the Premier League, income has fallen by £30m but salaries have only fallen by £13m.
In reality, the loss of income from gate receipts has been a drop in the ocean compared with the loss of the parachute payments and the fact that in last year’s accounts our salary bill had only dropped by half from our Premier League year, while income was down two thirds.
In other words, the biggest single factor in our financial decline has been wages, hence it has been totally necessary to get to grips with them.
All this “speculate to accumulate stuff” is nonsense. A million quid a season on gate receipts is nothing if the wage bill is double what a Championship club can afford.
Wages and out-of-control transfer fees have been the biggest single factor in the decline and subsequent administration, of a host of clubs.
At clubs like Derby, decreased attendances have been offset by increased TV revenues and commercial income, so the effect has been overplayed.
Look at the wage bill last year – £13.2m. That left us with just £5m to run Pride Park and Moor Farm, pay transfer fees, policing costs, stewards, advertising, goods, services etc. Is it any wonder that clubs make a loss?
And yet fans ask why we aren’t bringing in more signings or more loan players.
SOMETHING’S not quite right here. Derby are working to a budget, have got rid of the high-earners but by my calculation, if they played in front of a full house every home match, they would not break even ...
AS much as we’d all want to keep the young talent, I’m pretty sure the club will view the way in which clubs like Southampton have sold on their brightest players in the past (like Gareth Bale and Theo Walcott) as the way to prop up finances.
That may well be the reality for Derby and even I, as one of GSE’s loudest critics in years two to four of their tenure, would not disagree with that reality.
With regards to these figures, debts now are back to where they were after the LOG came in and restructured the finances after the Amigos’ ill-fated tenure.
It will be interesting to see how people respond to that, given constant claims of GSE’s financial prudence and how the club won’t be burdened with the debt of loans that many of our rivals are.
I would like to see how turnover now compares to our first two years in the Championship under GSE. It’s OK saying that it’s only £300,000 down on the year before – but that year we lost £7m.
THE timing of this doesn’t bode well for the sale of Will Hughes and John Brayford, I feel. With debts of £34m, the board will surely be looking to offload them for a decent price to eat into that deficit. Let’s hope not.