Post by Rovergrant on Mar 6, 2019 8:22:14 GMT
There has been talk by some on this message board about `negativity` from supporters in the Club`s attempts to avoid bottom place in the SPL2 and the subsequent lottery of the Play Offs. Let us look at the scenario should Rovers avoid the drop, given the financial restrictions that will inevitably follow. How will the current BOD, which appears bereft of the ability to create income (except via the usual small – but very welcome - fundraising events organised by the Trust) and be able to provide the manager with a war chest to make a fist of next season`s Division 2 battle.
The problems are, as I see them;
1) The likelihood is that there will be no spare, or at least very little, money available by the end of this season.
2) There will only be a small pay out from the SPFL after the end of this season, due to ending up in 41st/42nd place. This season`s share of the money, given out in 3 staged payments throughout the season have already been received, and due to the way the SPFL calculates the staged payments during the season, the bottom clubs have a very small amount to come with the final balance due to them.
3) Will the Bank restrict the overdraft further, which is not out of the question given the failures of the past 2 years and a further likely reduction in income ?. Banks are not benefactors and protect themselves in the first instance!
4) Further reduction in income as a result of the short term fix that came from selling off the future income from the telephone mast. That can no longer be built into annual finance projections. The savings accrued from not having the Shawbrook loans to repay (which would have run to 2020) is acknowledged
5) The level of support at recent matches suggest that supporters have had enough of failure and season ticket sales for next season will drop and gate receipts will continue to fall unless there is a change of fortune on the pitch.
6) If Clyde do get promotion and are replaced by any of the bottom three in Division 1, it will be a significant further blow to gate income, as Clyde is the only club in the bottom 13 that has a large travelling support.
7) Will sponsors continue to back a club in such a downward spiral ?. Businesses dislike being associated with failure!
8) The Community Trust, which was supposed to generate funding is effectively dormant. The current BOD has gone quiet on this subject.
9) Current Directors, who donated money to the club before the Celtic cup tie, recently indicated at the AGM that they now want that money back. That will further erode the clubs financial position. There seems no possibility that one, or a number of current Directors, are in a position to, or willing to, bankroll a drive for promotion or even just to avoid the current struggle for a second sucessive season . Sponsors who become aware of the Directors decision to take their money back might reconsider their commitment to ARFC.
10) It is fair to assume that a significant number of the current playing staff, and possibly the management too, will leave if there is no sign of improvement on the pitch. What funding will be available to entice a decent standard of player and, if necessary, a capable management team?
11) Does anybody envisage a change of fortune on the pitch without significant new finance? If not, there is a likelihood that income from the cup ties at the start of the season (Challenge and League Cups) will be minimal. As with this season, failure to progress in either will result in the lowest payouts available from the SPFL.
12) The ongoing need to ensure that the Stadium is compliant with North Lanarkshire and Stadium Green Guide standards as well as meeting SFA Licencing requirements will be a further drag on Club resources. With no avenue for additional funding available, a serious floodlight failure for instance could well spell the end of the road at Cliftonhill. I recognise the sterling efforts that Terry Gillooly and others make to ensure the ground is kept fit for purpose, but there is only so much `magic` they can do.
Of course, should the Club fail to retain SPFL status, all of the above will apply, with the exception that income will be further (drastically) reduced, even allowing for the SPFL `parachute` payments given to ease the club`s loss of status.
The problems are, as I see them;
1) The likelihood is that there will be no spare, or at least very little, money available by the end of this season.
2) There will only be a small pay out from the SPFL after the end of this season, due to ending up in 41st/42nd place. This season`s share of the money, given out in 3 staged payments throughout the season have already been received, and due to the way the SPFL calculates the staged payments during the season, the bottom clubs have a very small amount to come with the final balance due to them.
3) Will the Bank restrict the overdraft further, which is not out of the question given the failures of the past 2 years and a further likely reduction in income ?. Banks are not benefactors and protect themselves in the first instance!
4) Further reduction in income as a result of the short term fix that came from selling off the future income from the telephone mast. That can no longer be built into annual finance projections. The savings accrued from not having the Shawbrook loans to repay (which would have run to 2020) is acknowledged
5) The level of support at recent matches suggest that supporters have had enough of failure and season ticket sales for next season will drop and gate receipts will continue to fall unless there is a change of fortune on the pitch.
6) If Clyde do get promotion and are replaced by any of the bottom three in Division 1, it will be a significant further blow to gate income, as Clyde is the only club in the bottom 13 that has a large travelling support.
7) Will sponsors continue to back a club in such a downward spiral ?. Businesses dislike being associated with failure!
8) The Community Trust, which was supposed to generate funding is effectively dormant. The current BOD has gone quiet on this subject.
9) Current Directors, who donated money to the club before the Celtic cup tie, recently indicated at the AGM that they now want that money back. That will further erode the clubs financial position. There seems no possibility that one, or a number of current Directors, are in a position to, or willing to, bankroll a drive for promotion or even just to avoid the current struggle for a second sucessive season . Sponsors who become aware of the Directors decision to take their money back might reconsider their commitment to ARFC.
10) It is fair to assume that a significant number of the current playing staff, and possibly the management too, will leave if there is no sign of improvement on the pitch. What funding will be available to entice a decent standard of player and, if necessary, a capable management team?
11) Does anybody envisage a change of fortune on the pitch without significant new finance? If not, there is a likelihood that income from the cup ties at the start of the season (Challenge and League Cups) will be minimal. As with this season, failure to progress in either will result in the lowest payouts available from the SPFL.
12) The ongoing need to ensure that the Stadium is compliant with North Lanarkshire and Stadium Green Guide standards as well as meeting SFA Licencing requirements will be a further drag on Club resources. With no avenue for additional funding available, a serious floodlight failure for instance could well spell the end of the road at Cliftonhill. I recognise the sterling efforts that Terry Gillooly and others make to ensure the ground is kept fit for purpose, but there is only so much `magic` they can do.
Of course, should the Club fail to retain SPFL status, all of the above will apply, with the exception that income will be further (drastically) reduced, even allowing for the SPFL `parachute` payments given to ease the club`s loss of status.