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Club Statement


javeajag
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1 hour ago, Woodstock Jag said:

My point here, of course, is that people should at least do their homework on the women’s team, so that they understand what the cost is to the Club of it being run, before calling for it to be scrapped on cost grounds.

This isn’t difficult to do, precisely because under fan ownership there is much more financial information about the Club in the public domain.

Is it perfect levels of disclosure? No, probably not. I still think Morton are doing a better job than us at presenting and explaining their finances to supporters, for example.

But it’s night and day from the era in which fans found out almost nothing about the Club’s financial position unless they were a shareholder or director, or via word of mouth.

Given the level of subsidy that the Club provides - any changes would not result in it being scrapped - thats over dramatic - it might reduce there Playing levels - but its not going to scrap it 

The women's team existed for a number of years before the Club started giving it cash

We do have an issue - we run at a significant loss - reductions have to come from somewhere  

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1 hour ago, Jordanhill Jag said:

If its a separate  organisation with its own Board & its own income stream - and existed as such for a number of Years - why have we suddenly merged the Accounts and who took that decision 

Im assuming TJF were consulted & agreed 

As explained in our reflections piece on the draft annual accounts, the inclusion of the women's team's financial activities in the Club accounts was taken following discussions between the Club Board and the auditors.

The TJF board, very obviously, was not involved in those discussions. It's not our responsibility to prepare the Club's financial accounts. It's the Club Board and auditors.

 

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21 minutes ago, Woodstock Jag said:

As explained in our reflections piece on the draft annual accounts, the inclusion of the women's team's financial activities in the Club accounts was taken following discussions between the Club Board and the auditors.

The TJF board, very obviously, was not involved in those discussions. It's not our responsibility to prepare the Club's financial accounts. It's the Club Board and auditors.

 

Ok noted - I did not say that TJF were involved - I said that I assumed - which left the statement open to be corrected ( as you have done ) 

And given the level of involvement by TJF  in Club finances the assumption was not unreasonable 

obviously I will seek further clarification at the AGM 

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3 hours ago, Jordanhill Jag said:

If its a separate  organisation with its own Board & its own income stream - and existed as such for a number of Years - why have we suddenly merged the Accounts and who took that decision 

Im assuming TJF were consulted & agreed 

What we now have is a separate organisation within the Club - making financial decisions -that could impact on Club Losses which the Club underwrites 

However small - good Corporate Governance does not have a separate Board -making decisions that affect your bottom line - nor is there any valid reason for this to be the case 

 

Don't you mean, more to the point, what is Plan B for the women's team?

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8 hours ago, Woodstock Jag said:

As explained in our reflections piece on the draft annual accounts, the inclusion of the women's team's financial activities in the Club accounts was taken following discussions between the Club Board and the auditors.

The TJF board, very obviously, was not involved in those discussions. It's not our responsibility to prepare the Club's financial accounts. It's the Club Board and auditors.

 

Is it not a significant enough  decision that should have been discussed with the trustees and the financial implications talked through. I know that TJF highlighted the impact on 23/24 results. What about going forward ? What is the worst case scenario eg if they get relegated ? 

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11 minutes ago, erty13 said:

Auditors do not tell you to make the change to incorporate the ladies team.They can only confirm that the change is OK to do, or facilitate the change.

The decision was made by someone on the board.

Which is precisely what WJ said.

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1 hour ago, Lenziejag said:

Is it not a significant enough  decision that should have been discussed with the trustees and the financial implications talked through. I know that TJF highlighted the impact on 23/24 results. What about going forward ? What is the worst case scenario eg if they get relegated ? 

Significant or not -its a change to the structure of the Club - the Woman's Team and the associated potential future debts are now part of PTFC - you don't make changes to the Club without Shareholder Approval 

The Club Board do not Control the expenditure of the Woman's Team - it creates additional risk for no real benefit 

The Woman's Team finances operated fine for years without being merged into the Club 

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Notwithstanding issues related to how we got into a position from breakeven to incurring substantial losses I thought the statement by the chairman was positive.

To me it represents a realistic appraisal of what we need to do to resolve our current financial difficulties while also projecting a way forward.  So dealing with the past and planning for the future. At least it suggests that the club have a handle on things and instead of just stumbling along have a plan to address the issues and move forward.

My only reservation is that I would have liked to have seen some emphasis on increasing our commercial revenue as a means of  clawing back some of the deficit as any success here would reduce the cost cutting requirement of 20%.

Also more emphasis on improving our style of play to a more direct attacking style would I  am sure increase attendance figures which of course results in more revenue.

The fact that we are still in existence and looking forward  is something from which we can all draw comfort 

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7 hours ago, Jaggernaut said:

Don't you mean, more to the point, what is Plan B for the women's team?

No - its about a Plan B for the Club not the Woman's Team - we run at a significant loss 

We just cut the Playing Squad by 8 to save cash - we are left with one keeper - one left back - the cash could help fund an additional player at these positions 

If we don't address the losses & we cant realistically cut the Playing Squad further - then its staff cuts - the Cash given to the Woman's Team  is someone at the Clubs wages & job security 

Its a question of priorities of limited funds - playing squad - club staff job security - or the Woman's Team 

its not about of you support the idea of a Woman's Team or not -its can the Club afford to help fund it 

If not -the Womans Team simply adjust there budget and play at a level they can afford to fund 

Im not sure why this is even being questioned - its simple arithmetic - our finances don't stack up so you need to stop spending money you don't have or you go bust 

 

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The women’s team is a distraction which detracts from the bigger and more important issues. Spend nothing on the women’s team we are still losing money.

why is it with income of £3.2m we find it soo hard to only spend £3.1m ?

it’s not complicated.

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4 minutes ago, javeajag said:

The women’s team is a distraction which detracts from the bigger and more important issues. Spend nothing on the women’s team we are still losing money.

why is it with income of £3.2m we find it soo hard to only spend £3.1m ?

it’s not complicated.

Yet almost every professional club in Scotland ( and England ) is in debt/Does not make a profit. Why? They stretch the budget to compete as best they possibly can, which of course usually means a loss. We all agree it's not sustainable over a period of time, but it happens and has happened for many years. The trick is to remain in the black while being competitive. Few achieve it so.....it is in fact complicated. 

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38 minutes ago, dl1971 said:

Yet almost every professional club in Scotland ( and England ) is in debt/Does not make a profit. Why? They stretch the budget to compete as best they possibly can, which of course usually means a loss. We all agree it's not sustainable over a period of time, but it happens and has happened for many years. The trick is to remain in the black while being competitive. Few achieve it so.....it is in fact complicated. 

I’ll start by getting you to provide your evidence that almost every club in Scotland and England is in debt or doesn’t make a profit. 

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44 minutes ago, javeajag said:

The women’s team is a distraction which detracts from the bigger and more important issues. Spend nothing on the women’s team we are still losing money.

why is it with income of £3.2m we find it soo hard to only spend £3.1m ?

it’s not complicated.

Because the income is highly dependent on results, both in terms of prize money and (to a lesser extent) gate receipts. Reducing the expenditure has a direct effect on perfromance and therefore income. Finding the right balance is indeed rather complicated and largely involved an element of guesswork (i.e., will the expenditure on a striker yield at least an improvement of one league place and therefore be cost-neutral or will he get injured in his first match).

 

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4 minutes ago, Duke Gekantawa said:

Because the income is highly dependent on results, both in terms of prize money and (to a lesser extent) gate receipts. Reducing the expenditure has a direct effect on perfromance and therefore income. Finding the right balance is indeed rather complicated and largely involved an element of guesswork (i.e., will the expenditure on a striker yield at least an improvement of one league place and therefore be cost-neutral or will he get injured in his first match).

 

I think that’s called budgeting …. You make assumptions and if they are out you adjust your costs… funnily enough just what we have done .

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3 minutes ago, javeajag said:

The ability of people to make the simple complicated is endless.

I’ve always found the opposite to be true- the propensity of people to believe that the complicated is simple is all too prevalent. The rise of  populism politics and anti-expert/anti-science opinion bears this out sadly.

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31 minutes ago, Duke Gekantawa said:

I’ve always found the opposite to be true- the propensity of people to believe that the complicated is simple is all too prevalent. The rise of  populism politics and anti-expert/anti-science opinion bears this out sadly.

I think the current AI situation proves my point. As do Brentford , Bournemouth etc 

breaking a business even with a turnover of £3.2m and literally 2,3 or 4 variables … that’s easily doable 

 

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11 minutes ago, javeajag said:

I think the current AI situation proves my point. As do Brentford , Bournemouth etc 

breaking a business even with a turnover of £3.2m and literally 2,3 or 4 variables … that’s easily doable 

 

The fact that something can be done does not make it easy. For every Brentford and Bournemouth, there are many clubs making an arse of it. Maybe Brentford and Bournemouth have real talent in their boardroom, who are able to do the complicated well?

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2 hours ago, javeajag said:

I’ll start by getting you to provide your evidence that almost every club in Scotland and England is in debt or doesn’t make a profit. 

Don't have that particular spreadsheet to hand, but it's fairly well documented....that the vast majority of clubs struggle financially. Do you have evidence to the contrary ? 

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1 hour ago, Duke Gekantawa said:

I’ve always found the opposite to be true- the propensity of people to believe that the complicated is simple is all too prevalent. The rise of  populism politics and anti-expert/anti-science opinion bears this out sadly.

I tend to agree although returning to the management of our club I find the number of bodies involved and company structure a little more complex than I would have thought necessary for something of this size.

I suspect some of this will simplify over time now as fan ownership should provide a longer term framework for improvement but from my limited view it does appear that we are setup more like a public body rather than a small/medium sized company. 

 

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6 hours ago, Jordanhill Jag said:

Significant or not -its a change to the structure of the Club - the Woman's Team and the associated potential future debts are now part of PTFC - you don't make changes to the Club without Shareholder Approval 

The Club Board do not Control the expenditure of the Woman's Team - it creates additional risk for no real benefit 

The Woman's Team finances operated fine for years without being merged into the Club 

I don’t think we are out of sync on this issue.

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