Finances of all clubs

[Grumpy King of the West]

A thought has occurred and I wonder if I've understood the situation correctly. Other views are invited:

RUFC have refused to sell season tickets until such a time that fans are allowed back into the stadium unrestricted. Until that time supporters have been able to pay £25 (non refundable) flexi ticket which would then allow them to "bid" to buy one of the few match day tickets if/when restricted crowds are allowed back. That's good. It seems logical.

Some clubs, I dont know how many, but some clubs have gone ahead and sold actual season tickets as with past, "normal" practice.

My pondering is what would happen if no fans (or very few (i.e. well below season ticket numbers) are allowed back into stadiums at all this season? Surely those clubs would have to refund vast amounts of cash to supporters who havent had the option to watch their team. It could run into millions, couldn't it?

Am I missing something really obvious here? Have the Millers been prudent and thought well ahead and planned for the worse case scenario whereas others have blindly sought out cash up front? Do those fans of other clubs whose bought full season tickets get free Ifollow access and that will therefore negate any future refunds?

Any thoughts?

[Gainsbro_Miller]

I would have thought that if a seller offers a product or service for a set price but fails to provide the actual product or service, the buyer would be entitled to a partial or full refund.
Depending on the actual T&C’s of the sale.
Maybe the impending threat of the seller going out of business (if the buyer insisted on the full refund) would be used by the seller as an ‘emotional incentive’ ie don’t ask for the money back or YOU will cause YOUR football club to go bust!
As far as financial responsibilities go, I think there is a combination of kicking the can down the lane, while pleading poverty and at the same time paying fees and wages that would appear to be unsustainable under the current climate?!?!
Don’t forget - We all know that football is like no other business and “follows” its own business model.

[MILLERSTALE]

A thought has occurred and I wonder if I've understood the situation correctly. Other views are invited:

RUFC have refused to sell season tickets until such a time that fans are allowed back into the stadium unrestricted. Until that time supporters have been able to pay £25 (non refundable) flexi ticket which would then allow them to "bid" to buy one of the few match day tickets if/when restricted crowds are allowed back. That's good. It seems logical.

Some clubs, I dont know how many, but some clubs have gone ahead and sold actual season tickets as with past, "normal" practice.

My pondering is what would happen if no fans (or very few (i.e. well below season ticket numbers) are allowed back into stadiums at all this season? Surely those clubs would have to refund vast amounts of cash to supporters who havent had the option to watch their team. It could run into millions, couldn't it?

Am I missing something really obvious here? Have the Millers been prudent and thought well ahead and planned for the worse case scenario whereas others have blindly sought out cash up front? Do those fans of other clubs whose bought full season tickets get free Ifollow access and that will therefore negate any future refunds?

Any thoughts?

Rotherham have been rumoured to have sold 3,000 flex tickets at an average of about £20 each which would be about £60,000
Which compared to the £5 million for playing in the championship is peanuts ?
With prudence they will be able to use the rest of the money to finance this season and we should be okay ?
Other clubs are carrying on as normal importing expensive players from all over the place, will they pay any season ticket money back is any ones guess ! Yorkshire Cricket Club refused to offer membership money back this year instead offering a package of mainly useless “perks” so as they say watch this space !

[Grumpy King of the West]

In summary, have we played a financial blinder and will reap the prudent rewards if covid restrictions affect the majority of the season, or have we missed a trick in not blindly selling season tickets as normal with a "worry about it later" attitude? As others have said some clubs really dont appear to understand the concept of financial planning and risk management. I know for a fact (told by someone who is involved in such matters) that we are one of only a handful of championship clubs who insist on inserting relegation clauses into contracts. That policy has actually led to us losing out on player signatures in the past.

[Brin]

Grumps, Tony Stewart and the board have pulled off a major balancing act with these flexi tickets. Maybe other clubs should have been made aware of the set up so as not to put them into possible financial meltdown by having to refund money they may well have already spent.

As for insisting on inserting relegation clauses into contracts, I can't see a problem with that and if any player won't sign because of that, then so be it. It's blatantly obvious they are just in it for the money and care not about their contribution to a relegation. If, in my previous employment, the company under performed, we didn't receive our annual bonus. This is akin to what RUFC are stating contractual wise and good for them for standing their ground.

I wonder how many clubs are truly actually on the brink of collapse? Thank the lord for Tony Stewart and his thrifty business manner.

[pip_y]

I know for a fact (told by someone who is involved in such matters) that we are one of only a handful of championship clubs who insist on inserting relegation clauses into contracts. That policy has actually led to us losing out on player signatures in the past.

That maybe the case but surely it’s a bigger incentive for a player to try harder to keep his team up! With our yo-yo record I would have thought it’s a sensible clause especially now the lower leagues have the salary cap.

[Stovicmiller]

It's only my opinion but lots of clubs are going to be in trouble. If we stay up great, if we go down so be it. But I think we will be in a better position next season which ever division we are in than alot of other clubs.

[Grumpy King of the West]

That maybe the case but surely it’s a bigger incentive for a player to try harder to keep his team up! With our yo-yo record I would have thought it’s a sensible clause especially now the lower leagues have the salary cap.

I agree pip. And for the avoidance of doubt I fully support RUFCs policy.

[Grumpy King of the West]

Grumps, Tony Stewart and the board have pulled off a major balancing act with these flexi tickets. Maybe other clubs should have been made aware of the set up so as not to put them into possible financial meltdown by having to refund money they may well have already spent.

As for insisting on inserting relegation clauses into contracts, I can't see a problem with that and if any player won't sign because of that, then so be it. It's blatantly obvious they are just in it for the money and care not about their contribution to a relegation. If, in my previous employment, the company under performed, we didn't receive our annual bonus. This is akin to what RUFC are stating contractual wise and good for them for standing their ground.

I wonder how many clubs are truly actually on the brink of collapse? Thank the lord for Tony Stewart and his thrifty business manner.

Good points Brinster. It would be interesting to know what percentage of clubs have sold season tickets in full and what, if any, contingency plans are in place if covid rips the season to shreds.

[gm_gm]

It's only my opinion but lots of clubs are going to be in trouble. If we stay up great, if we go down so be it. But I think we will be in a better position next season which ever division we are in than alot of other clubs.

It may only be your opinion but it will be fact come the end of the season, some of the bigger clubs will encounter a mountain of debts.

Thank god for TS