Playing budget cuts

[Christies Child]

Looks as though an increasing number of clubs in league 2 are facing the prospect of having to significantly reduce their playing budgets in view of the global financial crisis.

Even clubs with far, far bigger gates are feeling it as well.

No doubt we will cut our cloth etc etc etc, but at least we are one of only a hanful who can claim with justification to being financially secure.

[Posh]

I already posted on the Accy thread but I'll do it again here.

I've talked to a few people at the club and I hope they're happy with me posting this kind of information.

The club has been losing money for years and our success, in part, has been based on our directors, notably our chairman funding those losses personally. As I understand it the loss for the current season will be around £200K.

Realising this is unsustainable the directors have acted very shrewdly with sale of the current ground and the plans for the new stadium, which is intended to enable us to stand on our two feet.

However for season 2009/10 the club is going to be operating, like all other clubs, in the face of the worst recession since the Great Depression. This impacts not just on the club's own generated commercial revenues but on central revenues from the Football League and other sources. So, again like all other clubs, the club has to cut its cloth accordingly, and, as I understand we're looking at a reduction in the playing budget of well over £100,000.

The problem is this still leaves the club facing a similar six-figure financial loss from season 2009/10. As the clubs 'ownership' in its broadest sense is the fans and the town. I know the club want to ensure that people get along to Christie Park in bigger numbers next season for our final year at CP. They are also planning quite a few fundraising initiatives with a big bang at the end of the year plus Family Days, Fun Runs, Sportsman's Dinners and a lot more so we all contribute to giving us the best possible start at Westgate.

I just hope that the fans, the people of Morecambe and beyond will support our club in troubled financial times to give us all the best possible start at Westgate. Personally I think our directors (the people we entrust our club to) need our support as much as we need them. So let's get behind them and our club to make sure we come out the other side in a fantastic position.

[campdave]

People need to realise we're not suddenly rolling in it because we've sold the stadium.

Until we move in and (hopefully - because it might not happen straight away) start generating no match day revenue, we're still quite a small fish in League 2.

Improving on this season would be great, but is far from certain.

[Christies Child]

With what Posh has to say then maybe our expectations of getting significant players in will have to be reduced.

However with the vast majority of clubs being in a similar position, those players who were able to ask for the 'bigger' wages' may have to be realistic.

Better to have some financial secuity than nothing at all.