Randy Lerner "State of Aston Villa" Statement

[Rip Van We Go Again]

Now thats a pretty drastic reduction to my mind in wages even with the new arrivals unless Makoun and co are on a 100k a week.

It's been reduced to a sustainable level based on current revenue. If the spend, spend, spend brigade get their way then it won't be. Do you think you have the right to demand Lerner puts more money in when you're not prepared to do the same?

As I said, some suggestions as to how we afford it would be welcome.

Chris.
When Ellis was at the helm, he refused us to loan Eric Bakke for any longer due to the fact that his wages were 'unsustainable to the club' at the time.
Now we hear that we can't sign Hitz (although admittedly he's shit) due to our wage bill.

I know at the time you were seething about Herbert's stance, what's the difference now?

[Chris Smith]

Now thats a pretty drastic reduction to my mind in wages even with the new arrivals unless Makoun and co are on a 100k a week.

It's been reduced to a sustainable level based on current revenue. If the spend, spend, spend brigade get their way then it won't be. Do you think you have the right to demand Lerner puts more money in when you're not prepared to do the same?

As I said, some suggestions as to how we afford it would be welcome.

Chris.
When Ellis was at the helm, he refused us to loan Eric Bakke for any longer due to the fact that his wages were 'unsustainable to the club' at the time.
Now we hear that we can't sign Hitz (although admittedly he's shit) due to our wage bill.

I know at the time you were seething about Herbert's stance, what's the difference now?

Firstly, from a team point of view we're in a much better position, we were struggling that season and he refused to extend the loan. Secondly, the club have tried to explain their position, soothing Ellis never did to the "man in the terraces". Thirdly, we were a PLC. It's clear, in hindsight, that Doug was clearing the decks ahead of selling the club and, probably, trying to force OLeary into resigning but we didn't know that at the time so it seemed perverse.

As I keep asking, if somebody can come up with an alternative to how we fund the wage bill I'm happy to listen but at the moment there's nothing beyond Lerner should put in more of his own money. Our revenue is way behind the top sides.

[brian green]

Chris I do not advocate a policy of spend spend spend.   On this thread at about 6.30 this morning I replied to a comment by Greg comparing Lerner's stance to that of other american owners and concluded that our owner is being cautious.

Where I do agree with Greg is that this policy is as fraught with danger as reckless spending.   If by tightening the purse strings you slide out of the top flight the financial damage is just as great as carrying the debt of over borrowing.

A stockbroker or a bookmaker can hedge.   A Premiership club owner cannot.   We saw last season that two wins from our last two games propelled us up the table and made our April nightmares seem like sweet dreams.   I also agree with Greg when he says if you buy a Premiership football club you cannot manage it like you have bought sixty million quids worth of farmland or forest.   You don't participate in Formula 1 to sell cars you don't buy football clubs to put in your pension pot.

I have no quarrel with what Lerner is doing I just want it to be known for the risk it entails for our club and not morphed into a version of the good fan gets behind the owner/manager right or wrong rationale.

[robbyfvillain]

When you cut away to the crux of the argument what people like Greg, Brian and Risso appear to be saying is that Lerner is rubbish because he won't throw unlimited amounts of his own money into the club.

Apologies if I've missed it but I haven't read an argument for how we fund the wage bill, which appears to be the major issue here. Indeed I'm fairly sure that when MON was Public Enemy Number One they thought that we were paying too much.

The recent letter that season ticket holders received set out their aim to improve revenue which (if successful) should see an improvement in the future. What are the alternatives?

The crux of the argument is that Lerner has wasted the money he has thrown.

The truth of the matter is that money rules the Premier League and to get to the higher eschelons you are going to have to spend an awful lot of money. This is either going to be self generated or come from a sugar daddy.

As Lerner was not in the Abramovich league when he arrived and was never going to throw the sort of money that Chelsea have done, therfore he had no alternative but to generate it from within.

The problem is he hasn't been able to do that but has spentcoccydynia  as if he has.

We are now in the situation where we are loaded with debt and will be saddled with the repayments of this whilst now trying to self generate the income.

The self generating route was always going to be a long and slow route with no guarantee of success but at least we had no debt when Lerner joined.

Now however the odds are even further stacked against us.

I don't think Lerner should be beyond critisism just because he used his own sources of finance as opposed to a bank. Until he writes off the debt then he has simply borrowed against the Villas future earnings.

ll you've done is repeat the same criticism you've made previously. It's not about being beyond criticism, but if that is to be in any way constructive there has to be an alternative. They've offered the improve the revenue approach, what would yours be?

The increasing revenue is and always was the only approach without a suggar daddy. In order to have any chance of succeeding over the long term we need an experienced team in charge. That is precisely the problem with the current management is that their experience is for running a credit card company.

How many times have we all said play a right back at right back, well it's the same for the board and senior management. Randy needs to surround himself with top class managers who know the ins and outs of the football game.

Who understand how important getting shirts on sale on time are. Who have experienced negotiations with local businesses and preferably have many personal contacts etc etc.

We need to grow our fanbase and this will be difficult and take time.

There is no one easy answer to all of this, and it will not be achieved overnight but if the bungling continues I fear for our club.

[Villa'Zawg]

Could anyone post a copy of the letter here or point me to where it has already been done.

Contents below.

Googled a line, in case anyone thinks I'm sad enough to type it all up

As we approach the 2011-12 season, we wanted to express our thanks for your support. The last year was fraught with the unexpected, and was certainly frustrating and at times even disappointing. Throughout this past year, however, and now looking forward to the new season, you have continued your support and commitment to the club, and for that we are very appreciative.

The managerial changes that commenced last August, still less than a year ago, were unexpected, unsettling and certainly took their toll. Despite this, the team came through, finishing with good wins against Arsenal and Liverpool to secure a 9th place finish as we headed into the short summer break.

Looking ahead to this season, we feel that in Alex McLeish we have found a very special football man to manage Villa. Being deeply conscious of the controversy that would at first come along with selecting him as manager, we still felt that his broader and career-long reputation for hard work, leadership and professional enthusiasm, together with his willingness to work with the club, made him a worthy and in fact uniquely god fit for our club. To this end, we wish him every success in his new role and hope others do the same as there is no doubt that the great support of our fans will make a massive difference to the team, whether at Villa Park or away.

As regards our personal ambitions for the Club they remain as they've been from the beginning: to manage the club for growth. More precisely, our focus is to manage the investments we've made at Villa Park to promote strong financial performance in terms of our commercial activities in order that the Clubs revenue can grow and contribute accordingly to player, manager and other football related wages and costs. This approach is at the core of our broader strategy yo create an enduring business model that is stable and yet has the potential to grow, as we feel that the club revenue and player wages are the key to consistent competitiveness. In connection with this strategy, we have targeted being at or within range of a top 20 ranking among clubs in Europe by revenue, which was achieved in the last Deloitte Football report

So again, let us express our appreciation for your support as we look forward with hope and pride to the upcoming season

Yours sincerely

Randy Lerner... Paul Faulkner

[Villa'Zawg]

You have to know what he's aiming for to offer an alternative. If he's looking to cut probably 350k a year in wages and make a transfer profit of 20m every season then i'd say he should sell -up. Bottom line is Ellis' last season when there was no money for transfers and things were kept extremely tight we still posted a lost i think of 9m for 6 months. Not many big clubs do post a profit, probably only the mancs - you don't buy a club like Villa to make a profit unless your a fuckwit.

It's in the letter that prompted this thread. Increase revenue to put us in the top 20 in Europe and use that to fund the footballing side on a sustainable level. Nothing about profit, that's your invention.

Of course that takes time, as stated above it's not sexy and will not satisfy the impatient but MIGHT deliver in the future. I'm not saying that I know it will work, how could I, but it seems to me a better option than just saying Randy has to spend more.

It doesn't take any time at all for us to increase revenue to the level that puts us "at or within range of a top 20 ranking among clubs in Europe by revenue". As the letter points out"which was achieved in the last [2011] Deloitte Football report".

You're right about one thing though, it isn't sexy.

[Chris Smith]

You have to know what he's aiming for to offer an alternative. If he's looking to cut probably 350k a year in wages and make a transfer profit of 20m every season then i'd say he should sell -up. Bottom line is Ellis' last season when there was no money for transfers and things were kept extremely tight we still posted a lost i think of 9m for 6 months. Not many big clubs do post a profit, probably only the mancs - you don't buy a club like Villa to make a profit unless your a fuckwit.

It's in the letter that prompted this thread. Increase revenue to put us in the top 20 in Europe and use that to fund the footballing side on a sustainable level. Nothing about profit, that's your invention.

Of course that takes time, as stated above it's not sexy and will not satisfy the impatient but MIGHT deliver in the future. I'm not saying that I know it will work, how could I, but it seems to me a better option than just saying Randy has to spend more.

It doesn't take any time at all for us to increase revenue to the level that puts us "at or within range of a top 20 ranking among clubs in Europe by revenue". As the letter points out"which was achieved in the last [2011] Deloitte Football report".

You're right about one thing though, it isn't sexy.

Keeping us there might take a little more effort. Anyway, what's the alternative?

[SteveD]

It's a strange letter, because it's more of a vague business statement  than the usual mix of blind optimism couched with platitudes that season ticket holders might expect to receive before the start of the season. "Randy Lerner's Enduring Business Model" isn't much of a terrace song though.

Alex McLeish has to be a "very special football" man indeed to help bring about the "growth" with clearly a limited budget. He's been chosen because he's used to managing on an even tighter budget down the road.

Managing expectation is another thing, and it would clearly be madness to even think of trying to compete financially with the top three and even Arsenal or Liverpool. It's when cautious spending is met with management deficiencies (Houllier's FA Cup boob etc) that it's high-risk, like last season when we flirted with the relegation places for too long.

There's a good article in the new H&V about what McLeish should be looking to aim for and avoid. Certainly a couple of good Cup runs might be the best we can hope for, even with a prudent approach.

[JJ-AV]

Where was the post that someone put on here from VT that broke down our wage and revenue?

I saw it this morning but can't find it now.

[Villa'Zawg]

You have to know what he's aiming for to offer an alternative. If he's looking to cut probably 350k a year in wages and make a transfer profit of 20m every season then i'd say he should sell -up. Bottom line is Ellis' last season when there was no money for transfers and things were kept extremely tight we still posted a lost i think of 9m for 6 months. Not many big clubs do post a profit, probably only the mancs - you don't buy a club like Villa to make a profit unless your a fuckwit.

It's in the letter that prompted this thread. Increase revenue to put us in the top 20 in Europe and use that to fund the footballing side on a sustainable level. Nothing about profit, that's your invention.

Of course that takes time, as stated above it's not sexy and will not satisfy the impatient but MIGHT deliver in the future. I'm not saying that I know it will work, how could I, but it seems to me a better option than just saying Randy has to spend more.

It doesn't take any time at all for us to increase revenue to the level that puts us "at or within range of a top 20 ranking among clubs in Europe by revenue". As the letter points out"which was achieved in the last [2011] Deloitte Football report".

You're right about one thing though, it isn't sexy.

Keeping us there might take a little more effort. Anyway, what's the alternative?

Investment in the playing squad.

[Chris Smith]

You have to know what he's aiming for to offer an alternative. If he's looking to cut probably 350k a year in wages and make a transfer profit of 20m every season then i'd say he should sell -up. Bottom line is Ellis' last season when there was no money for transfers and things were kept extremely tight we still posted a lost i think of 9m for 6 months. Not many big clubs do post a profit, probably only the mancs - you don't buy a club like Villa to make a profit unless your a fuckwit.

It's in the letter that prompted this thread. Increase revenue to put us in the top 20 in Europe and use that to fund the footballing side on a sustainable level. Nothing about profit, that's your invention.

Of course that takes time, as stated above it's not sexy and will not satisfy the impatient but MIGHT deliver in the future. I'm not saying that I know it will work, how could I, but it seems to me a better option than just saying Randy has to spend more.

It doesn't take any time at all for us to increase revenue to the level that puts us "at or within range of a top 20 ranking among clubs in Europe by revenue". As the letter points out"which was achieved in the last [2011] Deloitte Football report".

You're right about one thing though, it isn't sexy.

Keeping us there might take a little more effort. Anyway, what's the alternative?

Investment in the playing squad.

So we're back to demanding Randy spends more.

[brian green]

There is an abstract form of investment in the playing squad which costs very little and can save dozens of millions of pounds.   I refer to the investment of confidence and patience in home grown or cheaply bought players.   How much has it cost the club to dispose of Peter Whittingham, Craig Gardner, Gary Cahill and Darius Vassell for peanuts.

There are two sides to running a successful business - buy as cheaply as you can, sell for as much as you can.   I think this was what robbyfvillain was referring to when he urged the club to gather experienced hard headed football men at board level.   Wheeling and dealing makes money and saves money. 

[Villa'Zawg]

You have to know what he's aiming for to offer an alternative. If he's looking to cut probably 350k a year in wages and make a transfer profit of 20m every season then i'd say he should sell -up. Bottom line is Ellis' last season when there was no money for transfers and things were kept extremely tight we still posted a lost i think of 9m for 6 months. Not many big clubs do post a profit, probably only the mancs - you don't buy a club like Villa to make a profit unless your a fuckwit.

It's in the letter that prompted this thread. Increase revenue to put us in the top 20 in Europe and use that to fund the footballing side on a sustainable level. Nothing about profit, that's your invention.

Of course that takes time, as stated above it's not sexy and will not satisfy the impatient but MIGHT deliver in the future. I'm not saying that I know it will work, how could I, but it seems to me a better option than just saying Randy has to spend more.

It doesn't take any time at all for us to increase revenue to the level that puts us "at or within range of a top 20 ranking among clubs in Europe by revenue". As the letter points out"which was achieved in the last [2011] Deloitte Football report".

You're right about one thing though, it isn't sexy.

Keeping us there might take a little more effort. Anyway, what's the alternative?

Investment in the playing squad.

So we're back to demanding Randy spends more.

No, I said investment in the playing squad. I'm sure Randy could find someone to invest if he wanted to relinquish some of his shareholding, just as Doug did at the end of the 90s.

[Chris Smith]

He could find someone to fund additional wages based on current revenue?

[TheSandman]

Where was the post that someone put on here from VT that broke down our wage and revenue?

I saw it this morning but can't find it now.

Transfer thread.