The Financial Situation (59 Viewers)

[Bjerknes]

Yes, the author makes a lot of good points. But he fails to address that some of the money we already spent has not been invested wisely. Moreover, we have some players who we can't sell for one reason or another, part of which has to do with the wages we already agreed upon. People can't stand Quag but we offerred him those wages, so it's our fault. He should have never been bought in the first place.

 

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[swag]

Great article, btw.

 

[Ronn]

This is a fantastic thread.
I have a question from financial gurus. How much do we get from winning Serie A? I think it's around 13-14m? Is there even a big incentive, financially, to win rather than just finish on top 3?

 

[Vlad]

I remember something like 6-7m, not that much, but with better results teams get more money from TV rights.

 

[Ronn]

I read here that it is in the order of 13m
http://fedenerazzurra.com/2013/07/21/serie-a-prize-money-to-increase-next-year/

So you have any links on how TV money is distributed?

 

[JCK]

Yes, the author makes a lot of good points. But he fails to address that some of the money we already spent has not been invested wisely. Moreover, we have some players who we can't sell for one reason or another, part of which has to do with the wages we already agreed upon. People can't stand Quag but we offerred him those wages, so it's our fault. He should have never been bought in the first place.

That's basically the entire issue yet the author talks about every other point except this.

 

[Vlad]

I read here that it is in the order of 13m
http://fedenerazzurra.com/2013/07/21/serie-a-prize-money-to-increase-next-year/

So you have any links on how TV money is distributed?

This was for 2012/13:

Equal share, number of fans, city's populace, last year's results, last 5 years, historical results/importance.

http://simonesalvador.blogspot.com/...one-2012-2013-confronto-altri-campionati.html

 

[Ronn]

This was for 2012/13:

Equal share, number of fans, population of the city, last year's results, last 5 years, historical results/importance.

Thank you

 

[Hydde]

That's basically the entire issue yet the author talks about every other point except this.

I would like to think otherwise.... but the amount of Islas, Pelusos, Padoins, Martínez, Ogbobbans, Borrielos keep just pilling up year after year

Lets cross fingers that this time something will change and we bought the correct unknowns

 

[Sir Miss-A-Lot]

Thank you

Another thing that is influenced by results are the value of our brand, how much mechandise we sell etc. etc.
It's hard to measure and even harder to guess for us, and it's hard to split it up between each year, but no doubt about the last three seasons have given us more in these parameters because we won than if we finished 3rd for three consecutive years. The price money themselves aren't massive, getting another round of CL action means a lot more in comparison, but there are so many other great benefits of winning titles ;-)

 

[Ronn]

Another thing that is influenced by results are the value of our brand, how much mechandise we sell etc. etc.
It's hard to measure and even harder to guess for us, and it's hard to split it up between each year, but no doubt about the last three seasons have given us more in these parameters because we won than if we finished 3rd for three consecutive years. The price money themselves aren't massive, getting another round of CL action means a lot more in comparison, but there are so many other great benefits of winning titles ;-)

Agreed. Though a great showing in CL will boost our brand outside of Italy a long way. Not many people around the world sit and watch Serie A games every week, but they sure follow CL games more.

 

[italiacalcio10]

in case anyone is interested, here is a side-by-side between Roma and Juve. Juve doesn't have LTM CF number because its latest quarter didn't include a cash flow statement. I'll do a more thorough one when both teams release full year results.

I agree with most of the post above, however, I don't agree with the notion that Roma is much leaner from an expense standpoint. If you look at the last few years, Juve injected equity once in 2012, and hasn't since. Roma has consistently diluted equity holders in order to fund their operating losses. Also, Juventus is breakeven on an cash operating basis, Roma is only breakeven if it sells players. The fact that Juve spends ~60% of revenues on wages, while Roma ~77% really highlights that Juve is a much healthier club financially.

That being said, Roma's owners are engaging in an aggressive growth strategy, and are more than willing to take modest losses to grow the club going forward. This isn't limited to:
-A stadium
-Champions League Income
-Growing the Brand
-More sponsorship agreements

Pallotta calls Roma the most undervalued asset in sports and I tend to agree. We're talking about a city which has double the population of Milan and a metro area of ~4.2 million people. It's also a top tourist city. Sure GDP in Milan is a bit higher but ultimately, if these owners play their cards right, they should be able to grow revenues nicely.

 

[Ronn]

This may be a stupid question, but are we paying 60%*283m=169.8m in salaries every year? this is a huge number. Am I missing something in here?

 

[italiacalcio10]

This may be a stupid question, but are we paying 60%*283m=169.8m in salaries every year? this is a huge number. Am I missing something in here?

The line item is wages and technical staff, so this would include players and management, as would the same number for Roma. But yeah, in the last 12 months, that figure is ~166 million.

For example, for the 2013 FY when the wage cost was ~20 million lower, this was the breakdown.

And given that the Italian press expresses salaries on a 'net' basis, that would mean that in our books, you'd have to gross them up because we're paying that full amount.

 

[only-juve]

Sorry but that article hardly said much !

It's clear that the guy is pro-Marotta, why didn't he even mention all the shiit players on high wages that Marotta got and he himself had a very tough time to sell, to say the least.

 

[Ronn]

The line item is wages and technical staff, so this would include players and management, as would the same number for Roma. But yeah, in the last 12 months, that figure is ~166 million.

For example, for the 2013 FY when the wage cost was ~20 million lower, this was the breakdown.

And given that the Italian press expresses salaries on a 'net' basis, that would mean that in our books, you'd have to gross them up because we're paying that full amount.

Thanks mate.

 

[juventino320]

Sorry but that article hardly said much !

It's clear that the guy is pro-Marotta, why didn't he even mention all the shiit players on high wages that Marotta got and he himself had a very tough time to sell, to say the least.

i cant deny that marotta doing some crapy deals, but some deals must be made with some clubs to keep the relation alive,such as udinese we are some time helping them financially by buying some of there player ( i guess ).

 

[Hydde]

i cant deny that marotta doing some crapy deals, but some deals must be made with some clubs to keep the relation alive,such as udinese we are some time helping them financially by buying some of there player ( i guess ).

lol, sorry but this is so wrong. We are not a charity organization. Business are businesses.

 

[juventino320]

yep and this a part of business, i work in mitsubishi corp u cant imaging how much shit we do to keep a relationship alive with a customer not with a club

 

[Hydde]

yep and this a part of business, i work in mitsubishi corp u cant imaging how much $#@! we do to keep a relationship alive with a customer not with a club

I understand that, but you do it when the customer is so important that you can maybe lose a lot of money.
I work in a marketing agency and one of the clients is so important that no matter what they ask, the dudes here need to run amok to please them. But thats understandable because the paychecks they give to this company practically keeps it afloat.

But,I dont see Juve bending over to the point of buying their rejects and risking our sporting plans just to keep Udinese happy. We do not depend on them. of course a healthy relationship is good... but to buy losers just to keep them happy? dont think so.