Here is an interesting question to ponder,in that Katrien has told everyone prepared to listen that we are not going down and that there is no plan for relegation to third tier , does Duchatalet have any idea what he is in for financially. Assuming 5000 people turning up at best at an average price(lets be generous) of £300 a season ,thats £1.5m add to that £700k in T.V money , what other Sponsorship and Beverage and Food sales will they make 5000 people spending £10 a game for say 25 games is another £1.25mn ,Sponsorship £250k what have I missed? So thats about £3.5mn of Gross Income before costs of running Club and Training Ground and paying Huge Council Tax,same as in Premier League I heard (£1mn a year).
Thats without Manager and Squad costs, 22 man squad average of only £2000 a week is £2.25mn plus coaching staff and support at least another £1mn so call it £3.25mn conservatively. Then add Travel costs for team,hotels,all their food and drink,all the costs of administration and managements wages,advertising,match day stewards,policing etc etc etc
Mr Duchatalet get ready to make an annual loss of at least £5mn ,breakeven strategy was at best marginal in Championship and is getting you relegated, in Division 1 it is completely impossible.
Katrien if you think this season has been difficult you are about to enter a Management Nightmare, explain that to your boss.
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What might not have been so easy to factor into their equations is the "CARD" effect. A fan base unwilling to spend on season tickets, merchandising and hospitality plus a reduction in sponsorship revenue could not easily been foreseen.
Business rates are the same whatever division, although interestingly it says in the accounts they have got them reduced. Player costs will be much higher than £2,000 a week by virtue of existing contracts alone.
I suspect their answer would be around selling more players for profit, plus they won't have a clue about the ticket revenue impact.
Also having just taken a look at figures £38mn of unsecured debt by owner is crazy,why didn't he pay off Ex Directors £7mn and get his hands on all the assets, he is going to lose the lot and more if he hangs around in lower divisions,there is no way to get that money back, just ask Murray,Chapple,Hatter,Whitehand,Sumners,White etc....
A club in the Championship is only one good season away from the Premier League, a club in League One is nowhere, especially to foreign investors.
We've seen from the annual report that Charlton "owe" Roland £38m so that's what he'll be wanting as a minimum asking price, that's before you consider that we are still losing over £4m a year despite the harshest of cut backs and a further £7m is owed to former directors. I'm not sure anyone would be willing to buy us in the Championship, do you really think anyone (worth their salt) would buy us in League One ?
Also rather excited as it forces him to maximise the cost cutting (he enjoys that part) and he can put more emphasise on the production and selling of academy players...who will mostly probably be in the 1st team showroom by the age of 12.
Just ask Chappell,Hatter,Hughes,Sumners,White and Whitehand why they all wrote off their equity and bonds and resigned last time we were in Third Division, because as self made millionaires who had lost best part of £25mn between them they could see the only way back was to keep throwing money at it, and they were too smart to play that game.Is Duchatalet that stupid,maybe for one year but when he is looking at year two stuck in Third Division or worse in Fourth,he may just say enough is enough.
Duchatelet said in his recent interviews that it is stupid to make the same mistakes again, despite also admitting we had done so. But the joy of League One is that even if we have learned from previous mistakes, there are a whole new collection of potential mistakes for us to make. And looking how the club has been run for the past 2 years plus, how can we expect us to do anything other than make them! It is quite depressing. Only Charlton could have ended up with this shower of incompetents. Well it feels that way to me.
Principle risks and uncertainties
The key performance indicators detailed above are linked to the on-field performance and therefore the principal risk facing the group is the performance and divisional status of Charlton Athletic Football Club. This has significant impact on the level of revenue streams generated by the group and its ability to trade profitably.
K Meire
Director
The concern is that a group of English players used to playing on mud or icy mud might do better than a group of mainly European overseas players used to playing on either better surfaces or where the play is slower and more technical (rather than robust).
We don't have the coldest country in Europe in the winter but it can be wet.
As Roland won't buy English players because the same numbers appear on championship manager for foreign players but at much lower cost, we will probably be in league 2 within 2 years if he is still around, particularly if we lose:
Hendo, Solly, Teixara (6 year contract was it?), fox, cousins, Bauer
as well as those certain to go some of whom will not be missed
JBG, Lookman, Vetokele
The players who didn't make it (who we may have to suffer again)
Bergdych, ba, sarr
And the loans/end of career:
Diarra, Makienok, Fanni, sanogo, Motta, suk-Young, JJ (may do a season in league 1), poyet
And those we will be glad to see the back of:
Johnson