Finances

[TerryPHELAN]

I'm surprised we couldn't do any better commercially than a coffee chain as our main sponsor.

Surely with the Modric effect we could attract a higher profile sponsor with more incoming investment

And what about touring to say South Korea and the far east? Apparently Eom is a household name there with pop star status similar to Ki. We should really try to tap into that area. Im sure we’d do well commercially out there.

 

[Derwydd]

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.

yes salary cap of 60% in league 1 rules.

Cardiff latest account 23m revenue 22m costs so they are close to 100%.

Add to that they will lose around 8m in tv revenue and probably another couple on attendances/sponsorship etc and their revenue will drop to 14m.

60% of 14m is 8.4m

So they need to get their costs down from 22m to 8,4m, or Tan has to write a big check. There's probably a way around it

 

[exiledclaseboy]

Don’t teams relegated to the third tier like Cardiff (never gonna not enjoy writing that) get some kind of transitionary period or dispensation for a year or so?

 

[Londonlisa2001]

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?

Take what is an average sponsorship deal I guess.

If the average front office shirt for the championship top clubs is £2m (just using any figure) and the Swans suddenly had a front office shirt valued at £10m from the hotel group owned by Tyler Morse it would be disallowed.

 

[monmouth]

yes salary cap of 60% in league 1 rules.

Cardiff latest account 23m revenue 22m costs so they are close to 100%.

Add to that they will lose around 8m in tv revenue and probably another couple on attendances/sponsorship etc and their revenue will drop to 14m.

60% of 14m is 8.4m

So they need to get their costs down from 22m to 8,4m, or Tan has to write a big check. There's probably a way around it

Sorry, totally ignorant of how this works, but if it’s 60% of revenue, Tan writing any cheques won’t help at all will it? Unless he buys 20,000season tickets and shirts…and even then…he must also be linked to the visit Malaysia stuff? Loans won’t increase revenue and turnover, so they might be in a bit of a pickle…

 

[Londonlisa2001]

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.

Both Man City and Etihad are owned by the same family, the royal family of Abu Dhabi. Eithad is owned via the sovereign wealth fund and Man City by Sheikh Mansour.

 

[Cooperman]

yes salary cap of 60% in league 1 rules.

Cardiff latest account 23m revenue 22m costs so they are close to 100%.

Add to that they will lose around 8m in tv revenue and probably another couple on attendances/sponsorship etc and their revenue will drop to 14m.

60% of 14m is 8.4m

So they need to get their costs down from 22m to 8,4m, or Tan has to write a big check. There's probably a way around it

I’m not sure what the other possible answers are. It won’t be administration as the majority of their debt is to Tan. He’s in for an expensive twelve months.

 

[Londonlisa2001]

Don’t teams relegated to the third tier like Cardiff (never gonna not enjoy writing that) get some kind of transitionary period or dispensation for a year or so?

“The rules apply to all clubs and there is no moratorium for clubs relegated from the Championship. However, Transitional Arrangements are in place whereby clubs are allowed to exclude the wage costs of all players that the club signed pre September of the relegation season, if they were signed on contracts in excess of 3 seasons.”

I imagine some (many) of Cardiff’s players will be subject to that rule.

 

[Londonlisa2001]

Sorry, totally ignorant of how this works, but if it’s 60% of revenue, Tan writing any cheques won’t help at all will it? Unless he buys 20,000season tickets and shirts…and even then…he must also be linked to the visit Malaysia stuff? Loans won’t increase revenue and turnover, so they might be in a bit of a pickle…

Equity injections are regarded as turnover for League 1. Loans are not.

 

[Derwydd]

well, not a Cardiff thread but is finance so for anyone thats interested. The league 1 financial rules...

In EFL League One, clubs are subject to the Salary Cost Management Protocol (SCMP), which limits the amount they can spend on player wages and related costs. Specifically, clubs can spend no more than 60% of their turnover on these player-related expenses. Additionally, from the 2025-26 season, investment from owners will also be subject to these restrictions, with a portion of any investment above £500,000 also restricted to 60% of that amount for player-related spending.

Here's a more detailed breakdown:

SCMP:
This is the Financial Fair Play framework for League One and League Two clubs, outlining how much they can spend on player-related costs.

Turnover Limit:
League One clubs can spend a maximum of 60% of their turnover on wages, transfer fees, and other player-related expenses.

Owner Investment:
From the 2025-26 season, clubs will only be able to spend a proportion of any owner investment over £500,000 on player wages and transfer fees, with a limit of 60% in League One.

Additional Income:
Only 60% of extra football income, such as cup earnings or transfer fees received, can be spent on player-related expenditure in League One.

Financial Fair Play:
The SCMP is part of the EFL's Financial Fair Play regulations aimed at controlling clubs' financial losses.

Scrutiny:
Any club that forecasts a wage spend within 5% of the SCMP limit will be scrutinised more closely.

Purpose:
The changes to the rules aim to reduce financial losses that some clubs in the third and fourth tiers make.

 

[JackSomething]

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

Cheers for that, I wasn't aware of the documentary. That will help drive sponsorship deals and having Tom Brady involved is obviously going to help in the States.

That doesn't explain how they have so much coming in already of course, with the documentary not even out yet. This Knighthead group's name is on the stadium now, would be interested to see how much they 'paid' for that. The shirt sponsors are an American trainer company who don't even seem to sell their products in this country, etc...

Be interesting to see if these deals are investigated properly by the powers that be. I won't hold my breath.

 

[Cooperman]

Both Man City and Etihad are owned by the same family, the royal family of Abu Dhabi. Eithad is owned via the sovereign wealth fund and Man City by Sheikh Mansour.

That's a bad example on my part, Arsenal might have been a better option. If the UEFA prosecution lawyers are not able to easily pick through the tangled web of ADUG, ADQ, the complexities of half brothers and extended family, then I'm not even going to attempt to start

 

[AusinIsOurHero]

Are we tied into Reviva Coffee for a number of years? Didn't it come about as it's a subsidiary company of Gulf Oil?
Front of shirt is something that clearly has more potential but where do you get the big money unless it's a betting firm?
I liked the partnership with Swansea University but I doubt that was very profitable with them making cuts left, right and centre.
Same with Joma - I know we have another year to run with them. Could we get more from another supplier?
All comes back to success on the pitch - companies aren't going to be queueing up to sponsor a regular relegation favourite.

 

[Colin-swansea]

Are we tied into Reviva Coffee for a number of years? Didn't it come about as it's a subsidiary company of Gulf Oil?
Front of shirt is something that clearly has more potential but where do you get the big money unless it's a betting firm?
I liked the partnership with Swansea University but I doubt that was very profitable with them making cuts left, right and centre.
Same with Joma - I know we have another year to run with them. Could we get more from another supplier?
All comes back to success on the pitch - companies aren't going to be queueing up to sponsor a regular relegation favourite.

I dare say we could get more cash for front of shirt advertising but would that affect what we pay for sharing Fairwood Training Ground.

 

[100percentjack]

Same with Joma - I know we have another year to run with them. Could we get more from another supplier?

As far as Joma is concerned

Swansea City and Joma extend and expand working relationship | Swansea

Swansea City is delighted to confirm a long-term extension to its partnership with Spanish sportswear brand Joma that provides a significant revenue increase and includes the exclusive naming rights to the club’s academy base.

www.swanseacity.com