Finance & The Championship

[Ericsladkilnhurst]

Looking at the financial report that Nottingham Forest have released for year ending May 31st 2015, showing a loss of £21.5 million, down from £24 million the previous year.
Turnover increased to £17.4 million from £15.3 million, but the net debt has risen to £82 million from £37 million
The owners are owed £67 million, which has risen from £37 million, but will only expect any repayments if & when the club will be able to do so.
Attendances at the City ground are up to 23,492 from 22,630, season ticket sales up to 15,482 from 14,853, not forgetting the club have a financial fair play embargo on them, which they are hoping to emerge from this summer, after selling Michail Antonio to West Ham for £7 million.
When you look back at Nottingham Forest F.C. a famous club, but struggling like other clubs, the debt will never go away, but fair do's the fans have stuck with the club, even attendances going up.
It is said the Millers are not in financial debt to such a degree, but our clu

[wrinkly]

So Forest, despite an average attendance of more than twice ours, a much higher turnover than us, additional investment of £30 million by the owners and increased debt of £45 million, are not exactly a roaring success.

I'm not sure how we will be better off by taking on more debt in the form of "investment".

I just can't see what the business plan would be.

If someone wants to give us say £30 million to do with as we please - great.

If someone gives us an interest free loan until we are swimming with cash - great.

Otherwise ploughing money in to create a debt we can't service is the road to ruin. In my opinion of course.

I'm not trying to be disrespectful here. The call for more investment is a common one. I'd just like to know how people proposing such a move see it working.

[PeteWaller]

It would maybe mean an equity stake which in turn means a dilution in value for the Stewart family. I don' t see them chancing this. I wish they would. Other than that it would have to be a complete sale of all shares to an interested and wealthy buyer/consortium of buyers. I don't see that either.

So it is inevitable that we will struggle to maintain our Championship status.

[leedsmiller]

And relegation will see the financial gulf grow even wider. Can't see how we can ever compete in the Championship (or the Premier League!) without the benevolence of a Russian oligarch or an Arab prince - or a loan of Aladdin's lamp!

[jolly_roger]

Bottom dollar is ( no pun intended) football is in a mess at all levels.

The simple fact of life of not spending more than you earn has been ignored for decades.

It's got to catch up sometime.

[great_fire]

I think there should be a salary cap like other sports.

[LesHiboux]

Modern football is about investment. Twenty years ago Wednesday and Chelsea were neck-and-neck. Compare the two clubs now, if it bears comparison. Chelsea had an owner, Wednesday didn't. That meant Chelsea could sell out to a mega-rich oligarch, Wednesday couldn't. For Rotherham to progress, they desperately need investment. In the modern game the fortunes of a club are often dependent on its neighbours. We need look no further than City to see that. For Rotherham to get the required investment two things need to happen. Firstly Rotherham need to stay up and secondly Wednesday need to go up. The footballing spotlight has to be attracted back to this part of the world, and without a team in the PL that's not going to happen. What I've said about Rotherham applies equally to Sheffield United.

[1960smiller]

That's why an academy for us is *****,yes it takes time but we have to bring good younge players through and yes I am afraid sell.Thats what Crewe ,Peterborough have done for years.Nobodys going to put big money into RUFC who the hell are we,a little club in a god awful town.Lets start to walk instead of going for the sprint,yes it was nice but this could be the slow back to where we came from if we are not very careful.

[LesHiboux]

Well, all clubs need academies, but I would argue it's even harder to develop players than attract investment. I mean, how hard is it to develop McGeady, Forestieri, Hooper and Bannan, all at the same time? And Wednesday are far from guaranteed promotion in my opinion. Rotherham and Sheffield are a dump because we chose that. We keep electing the same people. Forget the traditional industries, because they went along with the empire. As with sport, so with the local economy. You've got to be able to attract investment in, and the policies of our councils will never do that.