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League 1 v league 2 finances


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What are the financial advantages of being in league 1 to league 2?

 

Presumably league 1 get more TV money? Prize money greater? Lower wages in league 2

 

I am just guessing. Does anybody have a reasonable estimate of the financial implications for a club which gets relegated from league 1 to league 2?

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Lower gate receipts

Lower prize money

Lower commercial income (sponsorship deals for the club, players, etc)

Lower media receipts (including share of TV rights)

Lower income from player sales

Lower solidarity payments (not sure if that is the same as the TV rights share)

Edited by Crusoe
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Lower gate receipts

Lower prize money

Lower commercial income (sponsorship deals for the club, players, etc)

Lower media receipts (including share of TV rights)

Lower income from player sales

Lower solidarity payments (not sure if that is the same as the TV rights share)

Also 55% of turnover to be spent on wages rather than 60% in L1

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The main problem for us should we get relegated is that it's virtually L2 south these days. And if you think about the OEC next season, Johnny Corporate will love all the local fixtures (which will likely include Bolton) but trying to sell a box for Crawley at home on a Tuesday night is a more difficult job! I would imagine all the budgeting around the new stand was based around us keeping our L1 status, it could have a dramatic effect dropping to L2.

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So league 2 clubs get £120k less in payments........a top of the head sum suggests that is the equivalent of 275 extra fans at each home game?

Would we get 275 more at top of league 2 vis a vis bottom league 1

 

- Why do you assume we'd be top?

- Only needing 275 more assumes nobody stops going after relegation - unlikely

- There would be less revenue per ticket (unless there was an insane pricing decision, which would likely drive more away)

- That gap in payments would probably be small beer compared to the loss of sponsorship income

 

I can't see any compelling reason to think relegation would somehow have a silver lining or do anything other than hammer another nail into the coffin.

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I am assuming nothing! I hope the club is doing the same thing only in a more sophisicated way.....ie business modelling to inform decision making. Eg is the return on a January investment worth the risk etc.... should the return of the investment be expected over 6 months or 18 months....does an investment make business sense

 

To make decisions ignoring the distinct possibility of relegation anyway is close to saying....all on black?

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I am assuming nothing! I hope the club is doing the same thing only in a more sophisicated way.....ie business modelling to inform decision making. Eg is the return on a January investment worth the risk etc.... should the return of the investment be expected over 6 months or 18 months....does an investment make business sense

 

To make decisions ignoring the distinct possibility of relegation anyway is close to saying....all on black?

 

Can't argue with any of that. I just hope they're that clearsighted.

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The main problem for us should we get relegated is that it's virtually L2 south these days. And if you think about the OEC next season, Johnny Corporate will love all the local fixtures (which will likely include Bolton) but trying to sell a box for Crawley at home on a Tuesday night is a more difficult job! I would imagine all the budgeting around the new stand was based around us keeping our L1 status, it could have a dramatic effect dropping to L2.

^^^^^^^^^^ THIS ^^^^^^^^^^

 

Saved me pointing out how massively detrimental to off-the-pitch relegation will be.

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This year has been one thing after another though.

 

A decent (normal) year in this league next year with the teams that will be in the league would see a few hundred on that average no doubt. Dropping would see AT LEAST a few hundred off it.

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This year has been one thing after another though.

 

A decent (normal) year in this league next year with the teams that will be in the league would see a few hundred on that average no doubt. Dropping would see AT LEAST a few hundred off it.

Did Rochdale, Southend, Bury all have lower crowds in League 2 then? Bet theres little in it, it depends if we had success if we went down any success would see crowds rise.

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Did Rochdale, Southend, Bury all have lower crowds in League 2 then? Bet theres little in it, it depends if we had success if we went down any success would see crowds rise.

There seems to be quite a lot in it actually.

This is average for each season. The caveat for this season it is obviously not complete.

 

 

09/10...Promoted...79,189...3,443...

 

10/11......................81,351...2,162...3,537.......2.7%

 

11/12...Relegated...71,507..-9,844...3,109….-12.1%...

 

12/13......................56,097..-15,410..2,439-21.6%

 

13/14 Promoted….66,70010,60….2,90018.9%

 

14/15......................76,1079,407….3,30914.1%

 

15/16......................74,175...-1,932….3,225….-2.5%

 

At £407 per season ticket for Adults that would be £160,000 in season ticket alone the year they dropped (11/12) or at £297 for Concession would be almost £120,000.

Some, arguably more if seaon tickets remained stable, would be Pay on the Day tickets.

The actual would be somewhere in the middle I suspect.

I think £150,000 in tickets alone is a fair estimate.

Edited by singe
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So I've looked at the numbers too (beat me to it Singe) and it's not quite as I'd expected.

 

I took the last 12 clubs relegated from L1 to L2 (last 3 seasons). Looked at change in attendance. Actually averaged out at 104%, i.e. attendances went up on average 4% in the first season in L2. At a quick glance it doesn't seem to be related to how well you do in that season either - the biggest rises were Portsmouth (finished 13th), Scunthorpe (2nd), Bury (12th), Stevenage (6th) and Orient this season (11th).

 

I tried looking at what happens if you don't go up, but there's not enough data - only 5 out of 8 clubs made it to L2 into a second season (have to exclude the 4 who went down last year).

	L1 att	L2 Y1	Change	Posn	L2 Y2	Change	Posn	L2 Y3	Change	Posn
Scunth	3465	4013	116%	2						
Bury	2749	3139	114%	12	3774	137%	3			
Hartle	3613	3723	103%	19	3736	103%	22	3803	105%	21
Portsm	12232	15458	126%	13	15242	125%	16	16046	131%	5
Tranm	5113	5192	102%	24						
Carlis	4243	4376	103%	20	4735	112%	10			
Shrews	5581	5343	96%	2						
Steven	2964	3191	108%	6	3275	110%	19			
Notts	5351	5193	97%	16						
Crawl	2709	2447	90%	15						
Leyton	5042	5433	108%	11						
Yeovil	4346	3598	83%	23						

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So I've looked at the numbers too (beat me to it Singe) and it's not quite as I'd expected.

 

I took the last 12 clubs relegated from L1 to L2 (last 3 seasons). Looked at change in attendance. Actually averaged out at 104%, i.e. attendances went up on average 4% in the first season in L2. At a quick glance it doesn't seem to be related to how well you do in that season either - the biggest rises were Portsmouth (finished 13th), Scunthorpe (2nd), Bury (12th), Stevenage (6th) and Orient this season (11th).

 

I tried looking at what happens if you don't go up, but there's not enough data - only 5 out of 8 clubs made it to L2 into a second season (have to exclude the 4 who went down last year).

	L1 att	L2 Y1	Change	Posn	L2 Y2	Change	Posn	L2 Y3	Change	Posn
Scunth	3465	4013	116%	2						
Bury	2749	3139	114%	12	3774	137%	3			
Hartle	3613	3723	103%	19	3736	103%	22	3803	105%	21
Portsm	12232	15458	126%	13	15242	125%	16	16046	131%	5
Tranm	5113	5192	102%	24						
Carlis	4243	4376	103%	20	4735	112%	10			
Shrews	5581	5343	96%	2						
Steven	2964	3191	108%	6	3275	110%	19			
Notts	5351	5193	97%	16						
Crawl	2709	2447	90%	15						
Leyton	5042	5433	108%	11						
Yeovil	4346	3598	83%	23						

 

How do Tranmere compare in the Conference now?

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