Analysis of Saints books.

http://swissramble.blogspot.co.uk/2015/11/southampton-with-or-without-you.html
Analysis of our finances using the latest reported figures (by Swiss Ramble). Detailed and interesting for those of us unable to fully understand a balance sheet.

 

Finally finished reading it...posted it when half way through. I would hope it would help fans to become more patient when they see players leave...their sales help us to compete and is an unavoidable part of our model. We must ready ourselves for the loss of loved players, but the club are seeking a balance as success on the field is the raison d'etre of the club. We are well run, but also rely on the benevolence of an owner not rushing to get her money back. Our commercial income needs to be improved as it is the only area in which we are really underperforming. There is not much that can be done about matchday income and it looks unlikely that any money will become available for a new/improved stadium in the near future....just not cost effective.

This article helps us to see how complicated running a business is and how much better it is to leave it to the experts than to crazed fans who would sell no one, buy everyone, and cut ticket prices to the bone. All about balance.

 

It also clearly shows something we already knew, that we are hugely reliant on TV revenue. 74/75%.

Palace at 82% are the highest.

You are spot on Fran that we need to improve other commercial incomes. The more we can increase this, the less we would have to sell (in theory). We won't be Man Utd, but when you consider that they generate more income from shirt related deals than our entire turnover (approx 130%), then you see how well we do to compete at all.

 

All clubs are hugely reliant on TV income....let's hope the bubble doesn't burst. Clubs are making long term plans on the premise that this will continue forever.

 

In some respects, I'd love to see the bubble burst. There should be more to a sport than money, money, money. On the other hand who knows what model would replace it. Perhaps the gulf between rich and poor would be even greater.

 

I think the TV money has made the EPL more exciting...even small clubs can have good players. The top clubs can't have everyone and good players from abroad are attracted to any EPL club as a way in to an exciting and lucrative league. Even teams who don't stay up can benefit financially when they drop down again...if they are financially sensible.

 

Interesting read. Backs up what the club have been telling us and shows how lucky we are to have an owner like Katharina who's willing to write off £38m of the £70m she invested. We should remember this next time we sell an 'irreplaceable' player and panic as clearly it's only the owner (and Les) leaving who should cause any panic. The others can be replaced, which I think we all finally realise. Although Ronald leaving will be hard to stay calm about!

 

Would certainly panic if Les or Kat left us, but then I also thought losing Nicola would be the end of the world....but we survived the Apocalypse. However, all things considered, best not risk it

 

Great read. I understand substantially more about our finances than I did before. Agree with above that we really have to get the commercial aspect to improve. Hopefully next shirt sponsor will be a big financial improvement.

 

How do Saints increase their commercial income? One avenue might be through increased shirt sales, but that is unlikely to happen really outside the Hampshire area unless we start becoming serial winners of cups, and sign players who might be huge in their own country. Are there any outstanding Kazaks, for example? One possible avenue could be to use the city's links with the cruise ship industry and link into Cunard and P&O for example.

 

to go up to the next level and significantly increase revenue we need to target a big global market / region and aggressively expand.

My preference would be to target Cornwall which is a big region / area - Padstow citizens in particular are footy nuts and are crying out for a big club to follow.

 

Not going to happen there!! If we could sign an Iranian who was anywhere near good, that might help our overseas profile. Don't know how well we are doing in Senegal or Japan but probably very difficult to expand there. I think Russia has potential but due to Chelsea's Russian links, one only sees Chelsea shirts on sale there from the EPL. And maybe United, Liverpool, and Arsenal. The rest of the EPL are unheard of.

 

If we could undertake a tour of South America in preparation for the new season, it might help there. When was the last time, a top European club played in any South American country? And line up a mini tournament with two South Americans clubs and another top European one and who knows what the benefits are. Asia to my mind is already saturated with the big boys playing there pre-season.

 

how about sign someone from the Isles of Scilly (which would ignite the cornish passion for saints)

The trouble with Iranian footballers is they are not as good as Cornish footballers - skill wise.

 

Usual good analytical blog from Swiss Ramble. Do wish sometimes that I could understand it to the 'nth degree, but then if I could I possibly wouldn't be sitting here, but out doing it.

Obviously there were some interesting points revealed, which posters have commented on above, but one that interests me is an explanation for why the middle clubs of England are starting to make competitive inroads on the glamour clubs [not among the subjects of the article]. The fact that glamour club reliance on new TV deals is less, [in certain cases, far less] than on the middle clubs in the PL means that those smaller clubs have a much bigger injection potential of improvement, should that new money be used efficiently and correctly. I'm not suggesting that we can overtake those clubs who would consider themselves year-in, year-out Champions League clubs [yes, we can give them a huge bloody nose on the pitch occasionally], but be among those who just aspire, like us, which include Liverpool, Spurs, Everton and almost certainly now, West Ham. There are now 6 clubs [7 if you include Chelsea as a chaser now, with apologies to Leicester, Crystal Palace and the like, I still don't think so this season] vying to join the established top 3-4. Then there are the 2 [or 3] Europa places to chase. The bigger improvements from those new 6 aspirers seem to be from the clubs where the new TV money would make the biggest difference.

 

That's a bit risky, they're all a bit 'Bodmin' down there.

 

I feel that this post requires some serious explanation.

 

Bodmin / Padstow rivalry is fierce. Makes Pompey v Saints look like a gay orgy

 

Is there any difference between a football match between gays and none gays? As we know guys play sport, go to the gym regardless of their sexuality!!

 

There's zero panic, period. Writing off some of the debt is sound business, because we are a sound business. With the jump in TV revenue next year, the value of the club could reach £200m+ pretty easily...KL would never just pull out of the club and leave us in financial peril, not when she could sell on and make a fortune.