Reducing Wages

[sage]

it would seem our annual wage bill is £12m a year or £230k a week.

I would imagine if we are relegated we would need to cut our wages by around 50%. 

What would this look like?

The following senior players are out of contract at the end of the season or January.  Lawrence (30k), CKR (13k) Byrne (11k)  Forsyth (9k) Marshall 8.5k) Shinnie (6.5k) Roos (5k) and Davies Jagielka Allsop Baldock Morrison and Stearman (6 x 4.5k)

Total - 109k - 47%

So if we renewed none of these contracts we would be there or thereabouts. 

 

Our other highest wage earners are 

Bielik (20k) and Jozwiak (15k)  - 15%

So selling Bielik and Jozwiak could allow us to keep, for example, Byrne (on a reduced contract), Shinnie Roos, Allsop, Morrison and Davies. obviously we could get fees but they would be mainly eaten up by outstanding payments, 21/22 losses and offering longer contracts to our younger players.  

 

That would mean a matchday squad of 

                                  Stretton

Sibley                       Morrison          Knight    

                      Bird                Shinnie

Williams      Buchanan*     Davies    Byrne

                                  Roos

Subs - Allsop Cashin Dixon Watson Hutchinson Thompson Ebosele McDonald

 

*Buchanan is out of contract but on a low wage and we would get compensation if he left, but i hope he would stay

 

 

The elephant in the room, ok he hasn't put that much weight on, is Rooney and his wages. How much do we pay? (net of 32 Red)   

 

 

 

[Jram]

I would like to think they’d lean heavily on the academy in League 1 but it’s entirely dependent on the owner and how much they want to invest in the playing squad

I personally think it wouldn’t be terrible timing for the likes of Thompson, Stretton etc who would perform well in league 1 and would get a lot of game time compared to if we stayed up 

[Curtains]

Most would have to go if we don’t get rich takeover 

[sage]

1 minute ago, Jram said:

I would like to think they’d lean heavily on the academy in League 1 but it’s entirely dependent on the owner and how much they want to invest in the playing squad

I personally think it wouldn’t be terrible timing for the likes of Thompson, Stretton etc who would perform well in league 1 and would get a lot of game time compared to if we stayed up 

Looking at that squad, we would need at least 4 senior players (2cCB, CF and 1 WF) to have a chance of finishing top 6. I would agree the younger players would get more time but that would need to be around a platform of  senior players. 

[Ghost of Clough]

9 minutes ago, sage said:

it would seem our annual wage bill is £12m a year or £230k a week.

I would imagine if we are relegated we would need to cut our wages by around 50%. 

What would this look like?

The following senior players are out of contract at the end of the season or January.  Lawrence (30k), CKR (13k) Byrne (11k)  Forsyth (9k) Marshall 8.5k) Shinnie (6.5k) Roos (5k) and Davies Jagielka Allsop Baldock Morrison and Stearman (6 x 4.5k)

Total - 109k - 47%

So if we renewed none of these contracts we would be there or thereabouts. 

 

Our other highest wage earners are 

Bielik (20k) and Jozwiak (15k)  - 15%

So selling Bielik and Jozwiak could allow us to keep, for example, Byrne (on a reduced contract), Shinnie Roos, Allsop, Morrison and Davies. obviously we could get fees but they would be mainly eaten up by outstanding payments, 21/22 losses and offering longer contracts to our younger players.  

 

That would mean a matchday squad of 

                                  Stretton

Sibley                       Morrison          Knight    

                      Bird                Shinnie

Williams      Buchanan*     Davies    Byrne

                                  Roos

Subs - Allsop Cashin Dixon Watson Hutchinson Thompson Ebosele McDonald

 

*Buchanan is out of contract but on a low wage and we would get compensation if he left, but i hope he would stay

 

 

The elephant in the room, ok he hasn't put that much weight on, is Rooney and his wages. How much do we pay? (net of 32 Red)   

 

 

 

The club's non-covid revenue would be about £20m in League 1. Where do you get a figure of a £6m wage bill from?

[sage]

4 minutes ago, Ghost of Clough said:

The club's non-covid revenue would be about £20m in League 1. Where do you get a figure of a £6m wage bill from?

It is currently £12m and we will be at least £6m a year worse off. Sunderland's wage bill is £6m and they are losing money despite having the biggest fan base and revenue in League One. That is just players wage bills. How much does the academy cost to run each year? £5m? £6m? 

Where do you get £20m from?

Edited November 11, 2021 by sage

[Ghost of Clough]

Just now, sage said:

It is currently £12m and we will be at least £6m a year worse off. 

Where do you get £20m from?

It was just over £30m before Covid hit. Loss of £6m from broadcasting, then a little bit more for a drop in sponsorship and decrease in attendances.

[Simmo’s left foot]

I imagine that potential deals to offload Jozniak are already being discussed behind the scenes, and Lawrence will also be in discussion with his agent about moving on too. If Bielik becomes fit I suspect he will be gone too, as we cant afford the wages and future payments either.

That's going to be circa £3 million a year in wages saved, just on 3 players! Wonder who else wont be around next season? Anybody over £10k a week will have to go, or accept a revised contract.

 

[Curtains]

2 minutes ago, Ghost of Clough said:

It was just over £30m before Covid hit. Loss of £6m from broadcasting, then a little bit more for a drop in sponsorship and decrease in attendances.

https://salarysport.com/football/sky-bet-championship/Derby-county/

[Ghost of Clough]

For context, Rotherham's wage bill in League 1 is usually about £6m. They have a turnover of just under £10m which tends to mean they run at breakeven at that level.

We'd have a budget, approx £10m higher, but will spend £4m more on the academy. Other costs will be higher than Rotherham's so a £10m wage bill wouldn't be unreasonable.

[sage]

8 minutes ago, Ghost of Clough said:

It was just over £30m before Covid hit. Loss of £6m from broadcasting, then a little bit more for a drop in sponsorship and decrease in attendances.

What do you think we have to get players wages down to? 

[Alty_Ram]

7 minutes ago, Simmo’s left foot said:

I imagine that potential deals to offload Jozniak are already being discussed behind the scenes, and Lawrence will also be in discussion with his agent about moving on too. If Bielik becomes fit I suspect he will be gone too, as we cant afford the wages and future payments either.

That's going to be circa £3 million a year in wages saved, just on 3 players! Wonder who else wont be around next season? Anybody over £10k a week will have to go, or accept a revised contract.

 

Yep, there is a disproportionate amount of wages tied up in 3 players, 2 of which have struggled to deliver much on the pitch and the other who was quality but has spent the majority of time injured. I'm sure we can find options that can give us far better bang for our buck plus perhaps trade in on one or two that we'd rather not lose plus find a cheaper option than CKR. Lord knows Clough had his issues and limitations but he showed that you can assemble a competent team on a tight budget if you know where to look.

[sage]

13 minutes ago, Ghost of Clough said:

For context, Rotherham's wage bill in League 1 is usually about £6m. They have a turnover of just under £10m which tends to mean they run at breakeven at that level.

We'd have a budget, approx £10m higher, but will spend £4m more on the academy. Other costs will be higher than Rotherham's so a £10m wage bill wouldn't be unreasonable.

alarysport.com/football/sky-bet-championship/rotherham-united/

This website suggests £3.5m. Sunderland's is £6m and they are losing money. 

 

https://www.eadt.co.uk/sport/league-one-salary-cap-to-affect-ipswich-town-2691180

The scrapped League One Salary Cap

Edited November 11, 2021 by sage

[Ghost of Clough]

2 minutes ago, sage said:

alarysport.com/football/sky-bet-championship/rotherham-united/

This website suggests £3.5m. Sunderland's is £6m and they are losing money. 

Edited November 11, 2021 by Ghost of Clough

[sage]

3 minutes ago, Ghost of Clough said:

This years is somewhat less. Around £3.5m 

[Ghost of Clough]

Just now, sage said:

This years is somewhat less. Around £3.5m 

I'll be surprised if it's much less. Rotherham consistently run at the 60% wage:turnover limit at that level.

[nottingram]

I think the big issue is Rooney’s wages. While they are clearly not at the level that is often reported I would imagine that they are still hefty, and therefore will be far too hefty for a League 1 club. I would imagine there is some sort of relegation clause in there (I would hope anyway!) but it may still prove to be too much.

I wonder if the best bet for all parties would be “Sorry for what we’ve put you through and thanks for the hard work. Let’s call it quits and let you get another job” but I don’t know how viable that is.

After that, Lawrence’s wages as of now would be an issue but he is out of contract. He may feel he owes the club and would stay on reduced terms, who knows. I think Jozwiak will go, maybe even in January, but I would doubt Bielik would be worth selling at this point even with hefty wages. It would only be for a minimal fee which would pale into insignificance compared to his on field contribution and transfer value if he can stay fit.

The key will be ensuring wages are reduced enough to get headroom to bring players in to supplement the young lads (if they stay).

[sage]

1 minute ago, Ghost of Clough said:

I'll be surprised if it's much less. Rotherham consistently run at the 60% wage:turnover limit at that level.

https://salarysport.com/football/sky-bet-championship/rotherham-united/

[angieram]

2 minutes ago, sage said:

https://salarysport.com/football/sky-bet-championship/rotherham-united/

Doesn't look like these figures take into account on-costs - NI and pensions, which would push the bill over £4 million. Also, GOC's figures are for all staff, including non-playing staff. Are they part of the 60% rule?

How reliable are this year's figures anyway? I don't buy that there anything more than guesses, really. We only really know previous years' wages bills from the accounts (which is why ours are so difficult to estimate, as we have no accounts!)

[Flying Fokker]

35 minutes ago, Jram said:

I would like to think they’d lean heavily on the academy in League 1 but it’s entirely dependent on the owner and how much they want to invest in the playing squad

I personally think it wouldn’t be terrible timing for the likes of Thompson, Stretton etc who would perform well in league 1 and would get a lot of game time compared to if we stayed up 

League 1 is spit and sawdust.  Tough tackling and no-nonsense football.  It needs tough, established footballers with a mix of academy players.  One thing you may have to get used to is showcasing academy players and selling them for peanuts. 

 

No doubt you have several players on big money but they will have to move on to balance the books or they will be a drain on the club.

You will not come up unless the team strong.  Seen the likes of Southampton and Brentford over the years.  They shone over and above the seasons.     

If your manager is savvy he will know when to sell mediocre players.  Cov City have been doing this for years. Someone comes in for a player and offers a million or more.  Some of them go on to prove their worth. Callum Wilson for example.  The Gael Bigirimana's of the world end up playing in Irish leagues.    You may be a selling club for the next decade or so.