Spend, spend, spend

[Omni]

There's a lot of suggestions about how we spend the Ward windfall on the other thread but it seems to be going around in circles at the minute and there's a lot of misinformation about.

The general consensus and the figures that have been reported by 'the Leader', hardly a bastion of accuracy I know, are that we are due 10% of £12.5m.

I've read most of the suggestions of how we should spend it, from spunking it in one go to buying the freehold and thought I'd put a suggestion out there.

After some thought, I don't think it currently makes sense to buy the freehold. The benefits may be that we save £100k p/a but as was shown last year with BtB, an extra £100k in the player budget guarantees nothing. Furthermore, as this would be a capital acquisition, it wouldn't be tax deductible and we would still be liable to corporation tax on the £1.2m if we turned a profit, costing us circa £240k.

Similarly, paying off the lease would only free up the same amount. Additionally, whilst on paper appearing to save us about £9m over 90 odd years, in reality is nothing like that amount due to the time value of money. For example, the present value of £100k in about 90 years based on the terms of the lease is less than £1k! I'm. not against buying the freehold or paying off the lease, just not while we're still a non-league club.

In my mind, the money has to go toward a structured approach to improving the squad. We have a manager with a three year contract and probably the strongest back room staff we've had in years and they need to be supported to allow us to make a push for league football.

I believe that our chances this year are poor but I would like to see the money invested in three tranches over the next three seasons as follows:

Year 1: 200k plus 100k in case we're challenging in January
Year 2: 300k plus 100k
Year 3: 400k plus 100k

This way we can offer larger 2 or 3 year contracts to a couple of top quality attackers this season, then look to build on the squad in each subsequent season, with the increase in budget ensuring that we can maintain a core of quality while still making quality signings.

If we achieve promotion during this period, then the rewards of league football of circa 900k can then be used to sustain this squad and also go towards acquiring the freehold after a few years.

I know that this involves a lot of speculation and wishful thinking but I think the priority has to be promotion.

[dixienormous]

Amen brother

[Junior Shabadoo]

Fast forward three years and the same people calling for spending now will be doing their "where's the money gone?" speech when it turns out that giving all you have to so called sure things blows up in your face, and brazenly pretending the club hasn't been "going for it" when they have been doing nothing but that. I'm bored of these people.
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[LWR]

And what happens in year 4 if we havent achieved promotion yet?

An unsustainable squad? On unsustainable wages?

You've had a perfect oppptunity to improve the infrastrucutre of the club. And we've spunked by playing roulette and putting it all on a random number.

There needs to be a mix of increasing the budget but also improving the club in the long run.

[krux]

Originally Posted by LWR

And what happens in year 4 if we havent achieved promotion yet?

An unsustainable squad? On unsustainable wages?

Clearly you wouldn't commit those contracts in year 5.
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[Foxy]

Originally Posted by LWR

And what happens in year 4 if we havent achieved promotion yet?

An unsustainable squad? On unsustainable wages?

If we don’t end up paying more for players we will end up in the National League North within four years as interest declines and the squad is further depleted.

[Woody]

Sounds sensible to me, would probably give us a top 4 budget rather than a top 12 budget, better squad, more chance of success, bigger gates, potential cup run etc, it's possible the funds could generate extra income.

[Omni]

Originally Posted by LWR

And what happens in year 4 if we havent achieved promotion yet?

An unsustainable squad? On unsustainable wages?

You've had a perfect oppptunity to improve the infrastrucutre of the club. And we've spunked by playing roulette and putting it all on a random number.

There needs to be a mix of increasing the budget but also improving the club in the long run.

Hardly spunking it if you're spending it over three years.

If we don't achieve it by year 4 and have had no further 'football' fortune then we're no worse off than we were last week.

These aren't hard and fast figures but if we're supposed to be a business, sometimes it means taking a gamble to progress.

I thought I'd read and considered all of the arguments for acquiring the ground but if you have anything further to add that would quantify the benefits I'd like to hear it.

[LWR]

Originally Posted by Foxy

If we don’t end up paying more for players we will end up in the National League North within four years as interest declines and the squad is further depleted.

No evidence of that happening whatsoever, our average attendences and season ticket sales have always held up.

I see you've all been reading the Mark Creighton book of speculating to accumalate. Promotion is not guarnteed. No matter how much money we chuck at it.

Increasing you changes by increasing the budget is fine. But my no means is it a certainity. The chances are clubs like Salford will increase their budget in response. Where does that then leave us?

Wanting to spend spend spend is the equilivent of Mickey Carroll winning the lottery