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Does Duchatalet know what Division 1 will do to his finances?

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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Comments

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    He may not at the moment - but he soon will and that is our biggest weapon. No season tickets, no sponsorship
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    Factor in, too, that the taxman gets 16.67% of gross ticket prices.....
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    There is incompetence and utter stupidity. I can't believe that the owners havnt been aware of the financial implications of a relegation since they bought the club. Anything else would be practically criminal.

    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.
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    edited March 2016
    You're overstating the average ticket income a bit, while the catering is outsourced and won't generate anything like £10 per head even in net revenue before cost of sale. CAFC would do well to get £1 a head per match, IMO.

    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.
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    Airman ,you probably have better feel for figures than most as have been close to them for a long time,mine are just guesses, what do you think their running losses will really look like?
    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....
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    The logical reason is because it's another £7m down the drain
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    redman said:

    The logical reason is because it's another £7m down the drain

    No advantage to him to pay it, I agree.
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    Agree,but if I am a new buyer I want all the assets without charges or mortgages over Stadium and Training Ground, so first people I want to do a deal with are Ex Directors to get those Charges removed, especially if I am a Billionaire with Premier League plans and maybe plans to move to the Peninsular and do a deal with Greenwich Council on Valley useage? So that done £7mn paid back to release charges what do you think I am going to offer Roland? as Div 1 club with losses of £5mn minimum a year, I think very little indeed.
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    edited March 2016

    Agree,but if I am a new buyer I want all the assets without charges or mortgages over Stadium and Training Ground, so first people I want to do a deal with are Ex Directors to get those Charges removed, especially if I am a Billionaire with Premier League plans and maybe plans to move to the Peninsular and do a deal with Greenwich Council on Valley useage? So that done £7mn paid back to release charges what do you think I am going to offer Roland? as Div 1 club with losses of £5mn minimum a year, I think very little indeed.

    I agree that a new buyer would want to buy the old loans out. There's some doubt that the current chief executive even understood the effect of the charge.
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    Can I be a pedant, it's League One, "Division One" is the Premier League. Not sure why but people getting that wrong winds me up.
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    I love this club with a passion ,since I was 6 years old,a very long time,but I am convinced our only way rid of this guy is Relegation, if we stay up,his stupid model continues,going down will be a shock to his arrogance and his wallet that he never expected and if we all refuse to buy season tickets and spend money in stadium and if sponsors disappear he has two options,keep throwing money at it or give in and write off his investment.Without the assets he has only a Football Team ,and once best players and kids are sold his asset base has gone.
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    I am convinced our only way rid of this guy is Relegation

    Maybe 2 relegations if he digs his heels in, which is quite possible.

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    I am convinced our only way rid of this guy is Relegation

    Maybe 2 relegations if he digs his heels in, which is quite possible.

    I think relegation makes a takeover less likely
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    Considering the third tier has never been referred to as Division One, probably not.
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    se9addick please explain why less likely? because he will keep spending money and building up debt to clamber back to Championship? there will certainly be more buyers around thinking price will be lower.
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    se9addick please explain why less likely? because he will keep spending money and building up debt to clamber back to Championship? there will certainly be more buyers around thinking price will be lower.

    I think there will be fewer buyers and Roland doesn't just have to be inclined to sell, someone has to want to buy at his price.

    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 ?
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    He is probably quite relaxed about relegation.

    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.
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    se99addick All good points but he will have to invest another £5mn minimum a year to stay in Third Division on top of £38mn he is already owed, with no way of getting that back in Championship let alone Third Division, who is going to pay minimum £43mn for the Club when there are still charges over main assets owned by 7 Ex Directors? which will cost a further £7mn to buy back!
    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.
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    se9addick said:

    se9addick please explain why less likely? because he will keep spending money and building up debt to clamber back to Championship? there will certainly be more buyers around thinking price will be lower.

    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.

    This to me is the key point (see Palarse two years ago for the conclusive evidence) and I still can't quite work out why he's allowing us to go down without a fight
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    They completely misread how to approach a high profile league like the Championship, so I expect them to have even less clue about the drop to League One when we are hosting teams like Shrewsbury or Accrington Stanley.
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    Once we go down Roland will begin selling off any star players we have still on our books.Then replace them with some players from his other clubs in europe.Double edge sword is STVV could be in same position as us at end of season.It is going to cost Roland millions to get out of this hole he has dug himself into.Only way out of this mess is to SELL.
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    Quote from accounts:
    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
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    Quote from accounts:
    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

    No shit Sherlock.

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    se9addick said:

    Can I be a pedant, it's League One, "Division One" is the Premier League. Not sure why but people getting that wrong winds me up.

    It's the Third Division.
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    another problem in L1 is playing on poorer pitches
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    And after seeing some of the shit players we have seen this season, can you imagine what we will have to watch next season
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    Given some of the quality we will be left with, playing in poorer pitches would be a leveller.

    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
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    Will our gates go as low as 5000? We're averaging 15,000 at present - I'd have thought 10,000 per game on average, factoring in away support.
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    edited March 2016

    Will our gates go as low as 5000? We're averaging 15,000 at present - I'd have thought 10,000 per game on average, factoring in away support.

    We're not averaging anywhere near 15,000 except on paper. I suspect that the club will do well to get 5,000 season tickets (but that's very hard to predict). The average away turnout is about 600. We are currently selling about 1,000 match tickets, I should think. If we average 10,000 without being successful I should think it will only be because of a very high number of giveaways, who in turn will often not be there either.
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Roland Out Forever!