Part 99: Interlude: Profits and losses

Interlude: Profits and losses.
May 11, 2020

BOARD VOTE

(Bedroom Eyes Engaged) I'm so pleased that we were able to come to an agreement on my contract. While I am intrigued by the escalator clauses that were on offer, I feel that a more straightforward contract serves the purpose of the club the best and am glad that it was the majority opinion of the board.

(Mellifluously) Now that we have reforged our commitment to the club, it is time to set the budget for the coming season. As always, our financial details:



As you can see, we made absolute bank. In the 2018-2019 season we saw total turnover of £17m. This year we made more than £87m. There are almost no categories of income that did not see double digit increases, and beyond our £45m share of the television rights contract we saw our gameday gate receipts almost double. We were at 97% capacity last season, we might have to think about building a larger stadium or adding seats to the Racecourse Ground in the not too distant future.



We also spent a lot more money as well, with almost £60m flowing from our coffers. The biggest jump comes in our transfer expenditures, we spent £16m on new players this past year. But just about every category saw big increases, two of the biggest coming in the opaque “Non-Soccer Staff” and “Other” line items. We're also going to get whacked with a big tax bill that has yet to be levied on our £27m profit.



Our tight control over the budget has lead to the club finishing with £27m in the bank, and that amount is likely to grow even greater as our season tickets and membership dues roll in over the next two months, though as mentioned the tax man yet cometh. So with no further ado, to the matters before the board.

QUESTION 1: Transfer and Wage Budget

(Didactically) We went into last season with £17m to split between transfers and wages, and increased that sum to £30m at the winter window. We ended the season with a wage budget of roughly £17.7m a year (£340k/wk) and spent a net £8m on transfers. Despite the winter window infusion we still had the lowest Premier League wages by over £12m pounds.

Our wages would actually have put us middle of the pack in the Championship, behind 9th place Huddersfield. I would like to see our combined wage and transfer budget bumped to £40m so that we can continue to improve the club. Based upon this past year's result we would still turn a profit of approximately £7 million at that level of expenditure.

A) (Miserly) Spin that gold out of straw, Rumplestiltskin! (Combined Transfer/Wage budget set at a combined £25 million)
B) (Conservatively) Strengthening the first team is important, but so is building a financial safety net that will prevent us from going the way of so many other recently promoted clubs. (Combined Transfer/Wage budget set at a combined £32 million)
C) (Supportively) We agree with your plans, and we think that you have shown prudence thus far in building the team. (Combined Transfer/Wage budget set at a combined £40 million)
D) (Graspingly) We want Bayern Munich visiting Wrexham for Champion's League action. That's not going to happen with penny pinching. (Combined Transfer/Wage budget set at a combined £50 million)

QUESTION 2: Upgrade Youth Facilities

(Schoolmarmish-ly) The Tom Cannon Memorial Youth Barn is a fine facility for the lower leagues, but they're distinctly average overall and look decidedly poor compared to the facilities of even the midtable strivers in the Premier League. Therefore, I propose that we honor our longtime captain Stuart Simpson by inaugurating the Stuart Simpson Commemorative Youth Shack and Paddock. This will cost £2m.

A) (Agreeably) We like the cut of your jib, and we can't wait to see what Kais Rouissi can do with even better facilities. (Youth Facilities are improved, £2m spent)
B) (Dubiously) Players like Scott Shirra didn't need no fancy shack, next thing you'll be telling us that we shouldn't have our youth players building their own housing out of pine boughs and sod out in the woods at the edge of town and instead be put up in dormitories. Stuart will understand, he still lives in that wigwam he built after we got promoted to League Two. (No improvements are made, a blow is struck for how things were in the olden days)

QUESTION 3: Upgrade Youth Academy Level

(Simile-ish-ly) Just as we need to keep up with the Evertons and Swanseas as to our youth facilities, it would do our youth program a world of good to reach the Level 2 categorization. This will cost £2m, and give us a youth academy on par with Stoke and Derby. That will still leave us behind every other Premiership club, but it will increase our chances of developing good, local talent.

A) (Musingly) Why should we spend money on our youth academy when you're just going to go run off and sign teenagers from around the world for the youth squad? (No advance in Youth Academy level)
B) (Rubber-Stampingly) Yes, yes, beyond getting the best talent from around the world we should also be sure to bring in the very best young Welshmen so that we have local boys made good to cheer on. (Youth Academy improved to Level 2, £2m spent)

QUESTION 4: Improve Youth Recruitment Network

(Thematically) Lastly, in order to get the best Welsh talent into our academy and prevent them being poached by other clubs, we need to improve our youth recruitment network. Presently we have merely average youth recruitment, leading to Cardiff and Swansea producing more talent out of their academy because we're too slow on the uptake. This will result in a permanent bump in our junior coaching budget.

A) (Wearily) Ok, fine, fine. Can we stop making decisions yet and get to the serious drinking? (Youth recruitment increased from average to above average)
B) (Blearily) No, stop. I can't make this many decisions without a drop of aqua vitae. No more, requests, let us imbibe! (Youth recruitment remains at average)

Voting will close on Friday, May 2, at Noon EST.