SCMP (Financial Fair Play Rules).

[Billy bodger]

I don’t want to bore people, (I usually do), but the Salary Cost Management Protocol (Financial Fair Play Rules), are an important aspect of the game and what impact those rules have on Morecambe FC restricts what the Club can do.

The SCMP requirement is whereby a Club’s Player-Related Expenditure shall not exceed the sum of 60% or 50% of the Clubs Relevant Turnover for League 1 and League 2 Clubs.

The assessment is made on the 12 month period of the last relevant Clubs recorded Annual Accounts.

Charlie Appelyard alluded to this in Freez’s podcast and what it means to Morecambe FC. He was saying even if JW sold the Club it would not alter what the Club has as a budget to spend on bringing in players as it is restricted by the rules.

So as for any new owners, they could therefore not throw mega amounts of money at the Club over and above the assed amount that was calculated for Morecambe FC.

Hopefully I have understood the situation regarding the SCMP rules as explained in the podcast, however this begs the question, what will the budget be next year if it is based on our Annual Accounts we file for this year?

Charlie was clear getting rid of JW will not will not change that and would rather the fans continue getting behind the team rather than thinking about protest.

I suppose you can say he would say that and that is a fair point but as the relationship between the BoD’s collapsed (apparently they are back working together in the pursuit of selling the Club), the relationship between the fans and JW is still fractious.

I think most would agree the BoD’s compared to many other Clubs they do a good job considering their operating restriction they work under.

[black morse]

Interesting one this. Whilst we have not the lowest income we are still near the bottom of the EFL clubs. So with a fairly small ground and small fan base the only way we can increase our player costs is by increasing admission prices whoever owns the club? Is that right? In which case what was DA talking about working our way into the championship in a few years? And what was the talk about Morecambe being a good investment for someone as we had plenty of room for growth? We have done extremely well to hold our gates up after relegation but have we really got much room to grow our fan base?

Or am I missing something?

[nobbyshrimp]

I’m pretty sure there are ways and means altho yes it all revolves around turnover hence why the attendance figures, season tickets and the sponsorship packages the club offers along with the club shop and banqueting suite are all very important to us but if someone says purchases a sponsorship package over and above the standard asking price or a shirt for £1million is that not income revenue? Interesting

[Billy bodger]

Interesting one this. Whilst we have not the lowest income we are still near the bottom of the EFL clubs. So with a fairly small ground and small fan base the only way we can increase our player costs is by increasing admission prices whoever owns the club? Is that right? In which case what was DA talking about working our way into the championship in a few years? And what was the talk about Morecambe being a good investment for someone as we had plenty of room for growth? We have done extremely well to hold our gates up after relegation but have we really got much room to grow our fan base?

Or am I missing something?

Well apart from DA being DA those question do arise, if as I say, I have understood him properly I think there could be other factors like the money Morecambe FC get from not just season ticket sale but on the day gate receipts. Within the pot I would think the money off the League, Cup competitions, and I’m sure money there is money off the Premiership. Then maybe there will be money if we have generated anything from merchandise, hospitality, in our corporate the boxes, event etc etc will all be factored in.

It is something at the fans forum that could be asked about and that BoD’s or one of the Clubs executives could explain, to give fans a better understanding of how Football Clubs have to be run.

[Dave (Barra)]

“However the Football League use a is broader definition of Turnover. Crucially, the FL Turnover figure includes donations from the owners to the club and injections of equity.”

So, new owners could boost your budget if they donated money or bought shares. That’s what our owners do.

[Billy bodger]

Dave (Barra) I must go back and listen to what Charlie said to check if what you say and he said is the same thing. I’m sure he said a new owner would change anything. I’m off to check.

I’ll be back!!

[Billy bodger]

Dave (Barra) I must go back and listen to what Charlie said to check if what you say and he said is the same thing. I’m sure he said a new owner would change anything. I’m off to check.

I’ll be back!!

Charlie only says new owners will be restricted by the rules. He pointed out a new owner would have to work within them, it would not mean we could suddenly be bringing in Lionel Messi.

If I’ve worked that out, thou is not a great example by Charlie, new owners could inject money into the
Club say before the Annual Accounts have been put in this year to boost next years budget.

Does that sound right? I’m not well up on the regs and I’m not a hundred percent sure, so if anyone know how it works let us know, but it can be a question to ask at the forum.

[Dave (Barra)]

Page 437 of the EFL handbook Billy, clause 2.9-2.11

As I say, we’ve been running at a loss for a few years but it’s covered by the owners - including the Trust to the tune of about £350k - throwing in money in return for shares.

[marky No.1]

A new owner could build a new stand on the berlin wall , create office space for themselves and rent it off the club for £5M, simples

[Gone_Shrimping]

A new owner could build a new stand on the berlin wall , create office space for themselves and rent it off the club for £5M, simples

Derek Adams mentioned a new stand to increase the ground capacity when he seemed optimistic about new owners back in October. Presumably the potential new owner(s) that had that in their plan must have been rejected by Jason leading to him looking for an escape route and a return to Dingwall.

[fulwoodshrimp]

I understand the ex-Fleetwood chairman based his energy company at their ground and his rent boosted their income massively. There are ways any new owner could boost the club’s income. It sounds like we are a bit naive compared to other clubs.

[mfc8]

Can be a fine line between creative thinking and breaking the rules then facing penalties.

[Morecambe Jack]

I understand the ex-Fleetwood chairman based his energy company at their ground and his rent boosted their income massively. There are ways any new owner could boost the club’s income. It sounds like we are a bit naive compared to other clubs.

I think the Board would find that a bit insulting - there is nothing naïve about it. The Club know fully well what the options are - but you need a willing and able owner to be able to put that additional income in whether it is through schemes such as that, or further share capital. I don't think we should be holding Andy Pilley as a beacon of inspiration given that he currently resides at HMP Kirkham.

[Billy bodger]

On Dave (Barra’s) advice I’ve looked at SCMP paragraph 2.9-2.11

Interesting!!

CASH INJECTIONS significant cash injections from companies or benefactors must be evidenced by a bank receipt…….the club has to confirm there is no interest linked to the ‘donation’ or any requirement for future repayment by the Club of the cash injection!!!

So can it be given back? The wording does not say it MUST be paid back by the Club, but I take it they could choose to do so, or just simply keep it. If they keep it, is it then included in the Turnover?

I suppose the Club could just give the amount back to the benefactor. (then it could be used to get a Club out of say, short term difficulties?).

The Club thou could choose to keep the significant cash injection as a ‘donation’ from the benefactor.

So if the Club keep the ‘donation’ that raises the Clubs income? Then under the SCMP rules they could spend more??

Is it that simple/easy? Or is it too easy as Premiership teams are finding out, that they have broken SCMP rules (though there rules are a bit of different). IE ‘putting in to much money to build a new stadium’.

Now Equity Injections are a different story.

Does that sound right Dave? Or anyone else with knowledge of how these things work.

I would expect most fans would envisage a new owner or owners would want to inject money into the Club because Morecambe could really do with that, even if it only helps with the long term stability and security of the Club. (I think that is one of the things the fans want and rightly or wrongly, they just don’t see that with an owner desperate to sell).

Perhaps at the proposed fans forum it can be discussed to enlighten us fans, it was a bit deflating to hear a new owner would not be in any different position than JW.

The ownership and how well the Club runs (by the good people day by day) or performs well on the pitch, to me anyway, two different topics.