Finances

[JackSomething]

The addition of Modric is a really interesting one, and there are apparently some commercial deals on the horizon. That is a real area of opportunity for us, and it follows the likes of Brum and Wrexham with their big name associations.

It's probably been shared already but one of the Birmingham owners recently said:

“If our revenue progresses as we expect into next season, which is basically a certainty, we will be the highest revenue-generating club in the Championship ever not receiving parachute payments — and we will be on a par with those receiving parachute payments.

“If we then progress one year further, and we’re fortunate enough to end up in the Premier League, we’ll be a mid-table club or better in total revenue, first year in"

Look at the types of companies they and Wrexham get sponsorship from (Amazon, Tik Tok etc) - huge global companies that other teams couldn't even dream of. I guess that's a route we might benefit from if everything pays off and falls into place.

At least with Wrexham the sponsors make sense because of the documentary and wanting to be associated with a Hollywood A-Lister like Ryan Reynolds. If Birmingham City are generating that much revenue, surely it's a Man City style way of stealth putting their own money into the club and giving them an advantage over other teams?

 

[bytholwyn]

At least with Wrexham the sponsors make sense because of the documentary and wanting to be associated with a Hollywood A-Lister like Ryan Reynolds. If Birmingham City are generating that much revenue, surely it's a Man City style way of stealth putting their own money into the club and giving them an advantage over other teams?

That's a good point. It's not as if there's a Welcome to Birmingham documentary driving all their commercial deals.

 

[monmouth]

Sorry Mon, I answered before I’d seen this. We obviously agreed…

I’d forgotten about the holding company structure, just being Johnny (or Robert) Generic.

 

[Londonlisa2001]

At least with Wrexham the sponsors make sense because of the documentary and wanting to be associated with a Hollywood A-Lister like Ryan Reynolds. If Birmingham City are generating that much revenue, surely it's a Man City style way of stealth putting their own money into the club and giving them an advantage over other teams?

Actually, that’s worth mentioning in addition to my previous answer.

If the owners, or companies associated with owners, put in money via inflated sponsorship / naming deals etc, that’s disallowed for PSR as well even though it may show up in the company’s own profit and loss account (disclosed as a related party transaction in the notes to the accounts).

 

[Londonlisa2001]

I’d forgotten about the holding company structure, just being Johnny (or Robert) Generic.

Don’t mention that prat…

 

[Neath_Jack]

Actually, that’s worth mentioning in addition to my previous answer.

If the owners, or companies associated with owners, put in money via inflated sponsorship / naming deals etc, that’s disallowed for PSR as well even though it may show up in the company’s own profit and loss account (disclosed as a related party transaction in the notes to the accounts).

How do they decide if for example, Wrexham’s current shirt sponsor are paying the club too much? Bearing in mind sponsorship deals increase all the time. Is there a set formula for working it out, or just a load of suits around the table tutting and shaking their heads?

 

[Molbys_pie]

That's a good point. It's not as if there's a Welcome to Birmingham documentary driving all their commercial deals.

They do actually have a big Amazon Prime documentary coming out in the summer focusing on Tom Brady and the story of the season. Again I don't expect us to get one of those, but it may open doors to bigger sponsors for front of shirt / stadium etc

New Birmingham City Football Club documentary coming to Prime Video

The new documentary goes behind the scenes at Birmingham City FC following the players and ownership figures like American football legend Tom Brady as the team are promoted

www.aboutamazon.co.uk

 

[Dr. Winston]

How do they decide if for example, Wrexham’s current shirt sponsor are paying the club too much? Bearing in mind sponsorship deals increase all the time. Is there a set formula for working it out, or just a load of suits around the table tutting and shaking their heads?

I'd assume that they're looking for connections.

If Wrexham were heavily sponsored by say, Aviation Gin then that's one thing. United Airlines as far as I'm aware don't have shares in Wrexham so it's a hell of a lot harder to prove that it's more than a purely commercial deal.

 

[Cooperman]

How do they decide if for example, Wrexham’s current shirt sponsor are paying the club too much? Bearing in mind sponsorship deals increase all the time. Is there a set formula for working it out, or just a load of suits around the table tutting and shaking their heads?

It doesn’t matter in the case of Wrexham because the owners are not linked to United Airlines. Whereas Leicester were bound by the fact that the the now deceased owner was also the chairman of King Power International Group.

 

[Neath_Jack]

I'd assume that they're looking for connections.

If Wrexham were heavily sponsored by say, Aviation Gin then that's one thing. United Airlines as far as I'm aware don't have shares in Wrexham so it's a hell of a lot harder to prove that it's more than a purely commercial deal.

So in theory, UA could agree the biggest sponsorship deal in football history, and that would be passed? I didn’t know it was only for sponsors with links to the club / owners.

 

[Cooperman]

The rules are different in league 1.

The championship uses rules that are almost identical to the premier league (owners can’t affect things) but the total loss allowed over three years (rolling) is different. It’s about £110m from memory for the premier league but that may well be different now.

The League One FFP rule will surely kill Cardiff next year; from memory the salary cap is 60% of revenue. That won’t go very far if they are unable to offload the likes of Chambers and co.

 

[Cooperman]

So in theory, UA could agree the biggest sponsorship deal in football history, and that would be passed? I didn’t know it was only for sponsors with links to the club / owners.

The Man City deal with Etihad is something like £75m per year, and the only link between the airline and the ownership group is the fact that they all hail from Abu Dhabi.

 

[Dr. Winston]

So in theory, UA could agree the biggest sponsorship deal in football history, and that would be passed? I didn’t know it was only for sponsors with links to the club / owners.

UA wouldn't gain anything from it other than publicity. They wouldn't benefit from Wrexham being promoted or increasing in value as a result. I think it's to stop club owners dodging FFP by subsidising their teams artificially and calling it sponsorship.

Like say if a business that the Saudi PIF owned a significant stake in also sponsored Newcastle United. They'd check to see if it was a reasonable spend and not an inflated one.

 

[Dr. Winston]

The League One FFP rule will surely kill Cardiff next year; from memory the salary cap is 60% of revenue. That won’t go very far if they are unable to offload the likes of Chambers and co.

I'm not sure if they've got any breathing space to cut costs but they're already spending well above it and I can't see teams queuing up to take Calum Chambers off their hands, nor him rushing to leave if he is on what is claimed.

 

[Cooperman]

I'm not sure if they've got any breathing space to cut costs but they're already spending well above it and I can't see teams queuing up to take Calum Chambers off their hands, nor him rushing to leave if he is on what is claimed.

Hmm, there won’t be many after Chambers and if I was him I would be digging my heals in. That invariably means Tan reaching deep into his pockets for more loans.