Questions for Mr. Lerner Sir

[Risso]

"There is absolutely no current danger of Aston Villa failing the FFP rules or being anywhere close to failing FFP rules."

Thanks Villa'Zawg.
Pretty much what I've discovered this morning.

Indeed, it's a complete red herring.  One of the by-products of Lerner's (in)actions is that we might comply with the new rules by default, but as I posted, there's a grace period for the next 6 years in any case, and despite what Chris says, this new period of austerity is nothing to do with the FFP rules.

[Simba]

I respect what RL, the General and his team have done ( especially recognition of our Euro success) and are now doing within the confines of good Corporate Governance. I understand the current emphasis on fiscal  sustainability especially in regard to the ridiculous percentage of gross revenue that comprises our wage bill.

However, the letter was mis-directed imho. It made sense as a letter to corporate shareholders with a stake in the profitability of the company. It did little however, to address the concerns of the companies customers. Us. As supporters can no longer can be shareholders ST holders MUST be respected as primary customers.

Although we must be mindful of the need for a solid financial base we want to know that there are plans in place to re-invest in the team and improve every year. To seek, or rather demand success as a Club on the field of play so that the virtuous cycle of tangible success drives greater profits via bigger crowds and deeper third party support in the shape of sponsors.  We need to know that management is committed to that.

We only have to look across the City to see how bad it could be and how comparatively lucky we are. We only have to remember Risdale and Leeds to see how a lack of financial control can damage the Club.

I understand all that but where is the plan articulated from Owner/Management for improving our core product? Our Football Team.

(Sorry so long).

[cheltenhamlion]

I have been a staunch defender of the board and was always told that cash is available which is why I have argued with posters here in the past to that end.

That's not what I am hearing from the club now though.

By the way Chris, the Benitez thing didn't fall over on the finances we had available. There was plenty.

It fell down because he wanted MONesque control of salaries and transfer fees.

[ROBBO]

We are not alone though are we? i suppose Tottenham and ourselves are the two clubs who did try to break the monopoly at the top and are now both left with overpaid players who no-one else wants. It is a sad fact that United, chelsea and City will year by year cherry pick the best players from all other clubs in the premiership. Watching Asley Young get Uniteds winner really pissed me off as he is far better that anyone else we have or likely to get. We now have three teams who can win the league year on year, very similar to Scottish football who have two. I blame Randy only for the mismanagement of the club not the amount of money he has put in.
I did think On Saturday that we looked like a side that was pre Lerner.

[Chris Smith]

I have been a staunch defender of the board and was always told that cash is available which is why I have argued with posters here in the past to that end.

That's not what I am hearing from the club now though.

By the way Chris, the Benitez thing didn't fall over on the finances we had available. There was plenty.

It fell down because he wanted MONesque control of salaries and transfer fees.

That's what I said, by wanting full control he would not be working within the new rules. Yes, there might be a period of grace but we still have to get our house in order. We've seen how difficult it is to shift players and it will only get more difficult as clubs try to balance their books coupled with the 25 man squad rule.

I'm still waiting for an alternative to having a wage bill matched to income.

[Simba]

Robbo _ "Watching Asley Young get Uniteds winner "

As an aside I have had the dubious luxury (third world tv) of watching United throughout pre-season, the Com Shield and their Prem game.

In a red shirt our Mr. Young has not fallen over, winced while clutching his ankle after every tackle, remonstrated with the Ref/crowd arms akimbo pleading an injustice AND his crossing has been excellent. As has his distribution, running off the ball and workrate. After seeing Mr. Downings confident run and stunning shot against the bar for Liverpool it makes me wonder what is different?

Off topic. Robbo's fault.

[frankmosswasmyuncle]

Good post Simba!
Exactly the situation and what most of us will be thinking/aware of.
Surely, the team and its performances are the main things that will affect revenue. RL has invested loads. We've come on leaps and bounds as a club and had the respect of most other clubs/fans in the country - good owner, manager, improving team, better facilities, happy supporters etc. We didn't quite break through but surely to come this far and not build upon that improvement/progress or stop/give up/change purpose/intentions makes no sense at all. We seem to have stopped going in the right direction. 

[Lee]

Written by an evictee from here and published on a certain blog...

So people can be banned from here and moderators see fit to use their opinions to provoke response here ?

Written by an evictee from here and published on a certain blog...

So people can be banned from here and moderators see fit to use their opinions to provoke response here ?

What are you going on about? It's a post I read elsewhere that I thought deserving of discussion.

You're a Mod Leeg -  not allowed to have an opnion ;¬)

[Villa'Zawg]

I have been a staunch defender of the board and was always told that cash is available which is why I have argued with posters here in the past to that end.

That's not what I am hearing from the club now though.

By the way Chris, the Benitez thing didn't fall over on the finances we had available. There was plenty.

It fell down because he wanted MONesque control of salaries and transfer fees.

That's what I said, by wanting full control he would not be working within the new rules. Yes, there might be a period of grace but we still have to get our house in order. We've seen how difficult it is to shift players and it will only get more difficult as clubs try to balance their books coupled with the 25 man squad rule.

I'm still waiting for an alternative to having a wage bill matched to income.

I'm not sure why you think we have difficulty moving players on. These are the players that played at least one game for us last season and are no longer on our wage bill;

Carew, Davies, Downing, Friedel, Milner, Osbourne, Pires, Reo-Coker, Sidwell, Walker, Young A

I've got no problem discussing alternatives with you but I can't get replies to even the most straightforward of questions e.g. the gap between revenue and wages was £10.7m in Doug's last year, how much do you think that gap needs to be now? From that we can work out a budget for wages.

[Simba]

We are not alone in the wage bill/revenue issue. And it should be argued that bilionaire owners/investors are ruining the Premier League. In fact it could be argued that the Premier League ruined the traditional competitiveness of English Football. It could also be argued - this week- that paying these young players what we have to has created massive social issues as they flaunt their ridiculous wealth to the dissaffected youth of the land. After all, they are role models. Still, that one is for the sociologists.

What cannot be argued is that the investor/owners are in it to make money unless they see it as a toy and or tax loss. Again I have no issue with the manner in which RL has invested and his expectation of a decent return.

On condition that it does not surplant the target of success for the Club on the field. If it does then change the financial model, let supporters buy shares for eg. OK it possibly dilutes RL's profit (dependant on sahre price in an IPO)  but also his necessary long term investment.

I think that he may be leading to this given the letter.Just a thought.  I love the Barcelona model.

RL loves sport and saw a good investment in a good club. He didn't buy us because we are supported by the Prime Minister, future King, a rather boring violinist and Tom (Forest Gump ) Hanks.

Mind you at the moment Aston Villa IS like a box of chocolates and we don't know what we are gonna get.

[Villafirst]

Missing from the outgoings are the multi millions paid to either release or compensate Lerners managerial appointments.
That probably takes up the remainder.

My question would be simple.
How is Randy using his business accumen to increase revenue at the club ?

He hasn't, simple as. I think he'll sell up before long - the failure to land a top-four slot during MON's tenure has screwed up his 5 year plan. I don't think he's really got any plan now except to keep the money men happy.

[Chris Smith]

VZ, the ratio between wages income is the issue not the amount surely - 60% being on often quoted as an ideal. Manu, for example, are at 46% while at City it is 107%. According to Deloitte it is the mid ranking clubs who have the most to fear with the next TV deal expected to be about a quarter less than the present one.

[Villa'Zawg]

VZ, the ratio between wages income is the issue not the amount surely - 60% being on often quoted as an ideal. Manu, for example, are at 46% while at City it is 107%. According to Deloitte it is the mid ranking clubs who have the most to fear with the next TV deal expected to be about a quarter less than the present one.

The ratio is interesting from an analysis perspective but it is the actual amounts that count in terms of running each individual club. Our Revenue/Wages ratio for the year before Randy was 78%, would that be OK to use for now with a target of 70% or so in the medium term? Or do you feel we need to drop immediately to 50% or something? 

Everything I've read about TV revenue suggest there are likely to be further significant increases, particularly in the overseas contracts. Where did Deloitte say they are likely to drop 25%?

[UsualSuspect]

Missing from the outgoings are the multi millions paid to either release or compensate Lerners managerial appointments.
That probably takes up the remainder.

My question would be simple.
How is Randy using his business accumen to increase revenue at the club ?

He hasn't, simple as. I think he'll sell up before long - the failure to land a top-four slot during MON's tenure has screwed up his 5 year plan. I don't think he's really got any plan now except to keep the money men happy.

I think if RL got a half decent offer tomorrow he would walk.

And as for his business acumen in running a football club, he quite simply has none

[Chris Smith]

In their report published in June. Can't post a link but it was widely reported in the media at the time.