26-06-2024, 10:18 AM
(25-06-2024, 03:51 PM)DeepBlue Wrote:(25-06-2024, 03:11 PM)Milkins Wrote: My guess is nothing much further will happen under the Eisner's watch.
If they were going to spend real money on the ground (let's say the sort of money way beyond the Supporters Trust budget, but comfortable for the billionaires among us) to punch the capacity up to say 25k or even 30k they would have done so already. Seven years was time enough for that.
Now that we are finally through their (ahem) consolidation period in division one and promoted, it would be obtuse to start knocking the ground about when demand for, and subsequent pricing of existing seats is likely to grow if we survive and thrive.
I suppose on the other hand, grateful dead fans are not always logical.
Surely 18 million is real money ??
And they made it quite clear they would not expand the capacity significantly before we were in the championship. Given that they have done everything else they said they would do I see no reason to doubt that they will do that too.
I have to say that I no longer get into the weeds of the clubs accounts so you'll need to give me some rope on this and I'll take your number on trust...
£18m is certainly real money when considering if your family has won the lottery or something similar.
However, if you're looking at capital investment in a multi million pound business, (that was bought with the knowledge that lots of work needed doing and that £5m was already budgeted by the Trust to start the work) then divided over their seven years in ownership, then at £2.5m pa, it is not so much "real money".
It's been enough to keep things ticking along, but not enough to fundamentally improve the revenue model for the business. Only more seats, amenities and facilities, outside of tv revenue and sponsorship can do that (and at the say time improve the "eat-what-you-kill" numbers).
For real and major investment in the ground, we are looking at something like (plucking a number out of the wild blue yonder) say £50m. Those sort of numbers are way beyond a Trust owned club, and into the realms of billionaire owners or financial juggernaut businesses. I assume that this is the sort of number kicked around for a new North Stand and extras. But let's get real here. So far the Eisner's have kept things ticking along, but do they really have the appetite for that sort of game changing investment? I'm not sure, and to be honest, wouldn't blame them if they don't.
Next point to consider on this is the timing of any major investment. I am aware of what's been said on timing "we need to be back in the championship before" so it doesn't need to be rehashed.... But let's be honest, most of us are aware that the finances in the championship are eye-watering at best. It seems, many of the players expect quasi premier wages, but the tv money is not good enough (net of parachute payments) to support them, and yet clubs, desperate for promotion indulge.
So with this background, would any sensible business with an aim to make major, game changing capital investment choose that as the time to knock down and rebuild a chunk of the stadium? If it was genuinely part of the plan, wouldn't it have been more sensible to take the infrastructure hit earlier, when operating costs and pressure on survival was less likely to be knife-edge, and then start to reap the benefits in the championship?
Just my thoughts...