We spend 25m in interest payments, a few millions in taxes, and around 20m in dividends. Everything else stays in the club, so I guess roughly 600m or so.
Corona has affected us badly. Cash reserves are under 100m (they were 300m last summer, though we spent big since then) and last quarter we reported losses (and in total 30m less than same quarter last year). The projected revenue for this year is likely going to be more than 100m less than last year. People who think that this won’t affect transfers are fooling themselves (though on the other side we got a debt of 150m pounds, but no idea if we will use money from there for new signings or only for club’s expenses).
We still have wages to consider, as you say, second highest in the world, expenses such as maintenance etc.
People look at revenue and completely dismiss expenses
I think you guys make valid points.
I‘d been thinking in my head how the coming couple years may seriously impact our spending on transfers due to the spending departments like wages etc. The pandemic has essentially abolished ways to be able to calculate what our aggregate revenues could look like on a year to year basis and hence plan ahead. Pessimists like me wouldn’t even be surprised if spending on Sancho causes our transfer spending to not even go beyond 50m next two windows or something like that.
Our wage bill will most likely remain the same or a tad bit higher with Sancho & Pogbas new contract. Sure getting rid of wages from players like Lingard, Rojo, Smalling etc may reduce it but there will be other replacements brought in as well.
The club obviously plans a couple years in advance and they must surely know they need to keep substantial reserves on hand just to guarantee the coverage of essential expenses for at least the next 5 years.
When clubs like Arsenal are letting go of staff, it’s a very alarming situation in regards to how much they’ve cut down on their annual expense budget. Makes me wonder where is our club taking into account the impact of COVID and offsetting any resulting losses that we’ve incurred.
Moreover, until fans are allowed back in, and I’m not talking socially distanced audiences, I’d imagine full stadium audience revenues is what would allow us to maybe dip in our reserves again more comfortably. And until that happens I’d assume our transfer budgets may even be redirected towards other expenses instead of utilizing reserves if need be.
But at the same time I think being back in the CL along with avoiding a deduction in our Adidas income as a result of our return to the competition will also go a long way.
I also think our academy is truly helping us A LOT at the moment. We’ve had players like Rashford, McT, Greenwood and Williams save us critical outlays and the emergence of players like Mengi, Laird, Mejbri etc may also allow us to limit our outlays next few years.
On a side note - keeping all this in mind, what are your opinions on bringing in players this summer. It’s clear our squad needs reinforcements but I think Sancho being a generational talent does justify having to spend an impractical amount despite the current pandemics’ effect. As well as despite the fact that it’ll be at a cost of foregoing other acquisitions. Sacrifices will have to be made somewhere. Should it be quality over quantity or vice versa?
We’d also again have to rely on our academy to provide reinforcements but not sure if the players I mentioned are ready to come into the fold right away. If they can be then that’s basically avoiding buying new players and redirecting those funds towards other obligations.
For instance Greenwood & Williams have literally helped avoid a sum equivalent to what a player of their caliber would’ve cost us in today’s market while also taking into consideration an ongoing pandemic. Mind-boggling! But a blessing no doubt.