Short version
As you can see I have used 5k for everyone except McCulloch. The 10k figure is a reduction of 50% on his reported wage pre administration of 20k. He is quite possibly still on 20k as he TUPE’d across, and this allows him to keep the same contract terms. This gives a squad average wage of 2568 a week. Over a year for the 22 players it would be just over 2.9M. We then need to factor in pension, accommodation and other costs as detailed in the admin reports. There is also a large backroom staff and office staff, accountants etc on the payroll, which we have estimated below. This is probably a low ball estimate, as McCoist and Durrant are also included in this figure, which also needs to include ticket staff, ground staff, office, directors pay amongst others. So, how does this affect the bottom line? Well, we’ll put together the full accounts now, and show you where it leaves Sevco.
Match income £ 8,712,500.00
Sponsorship £ 1,500,000.00
TV £ 50,000.00
Programme sales £ 150,000.00
Hospitality £ 1,500,000.00
Others £ 800,000.00
Total income £ 12,712,500.00
Expense
Player salary £ 2,938,000.00
Pension/accomadation £ 550,000.00
PAYE/NIC £ 1,469,000.00
office staff/coaches £ 750,000.00
Total wage £ 5,707,000.00
match day costs £ 400,000.00
Security/Police £ 1,000,000.00
Programme costs £ 45,000.00
AV/Media costs £ 250,000.00
Medical costs £ 20,000.00
facilities cost £ 550,000.00
catering costs £ 2,500,000.00
lease/hire agreements £ 850,000.00
utilities £ 640,000.00
waste disposal £ 120,000.00
software/licenses £ 250,000.00
football community £ 100,000.00
misc costs £ 150,000.00
Total expense £ 6,875,000.00
Total costs £ 12,582,000.00
Minus VAT £ 2,351,812.50
Profit/Loss -£ 2,221,312.50
As you can see… we have a big red figure there. Sevco simply can’t afford the players. But I’m not finished. The eagle eyed will have noticed that a few players, notably the Americans are missing. Now, while reports say they will be leaving, they have not left yet. They are under no pressure to leave, as they have valid contracts. So let’s factor them in.
So another million loss, unless they can move them on. Lets now look at what they need to do to breakeven.
Total income £ 12,712,500.00
Expense
Player salary £ 1,683,791.67
Profit/Loss £ -
Av wage to breakeven £ 1,471.85
The questions that need to be asked:
Did the SFA ask to see these numbers? Did they sign off on them?
How did Sevco show they were a sustainable business without audited accounts? Have they posted a financial guarantee they will see out the season?
Who is funding all this? Who are the shareholders? Are they fit and proper?
In the words of Ally McCoist himself… I demand to know who these people are…
As usual, full figures are available here – feel free to suggest improvements to the model.