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wage bill reduction

I said on May 17th on the Chris Ilewumo thread:

'With the reduction in our income, i estimate our wage bill will have to more than halve. That will mean taking something like 15m off the wage bill.'

Looks like i was pretty close

http://www.kent-online.co.uk/sport/default.asp?article_id=32559&startrecord=-1.

Comments

  • Have a gold star ;-)
  • Go one better and work out how much we'll save by shipping out the dead wood, free transfers, sales, etc?
  • [quote][cite]Posted By: CharltonDan[/cite]Have a gold star ;-)[/quote]

    gold star ? worthy of 5 panini stickers i reckon, including an Aberdeen badge
  • Getting rid of Fattybank, Herman, Luke, Lisbie, El Kak, Darren Bent, Kish and a few of the youngsters will probably cut the salary bill by c£8m
  • If the likes of Walker, Weston, John, etc can't get into a league 2 side when out on loan is there really any mileage in keeping them?

    Individually they may not earn megabucks but cumulatively you could probably get a decent player who has first team ability for what we are paying them.

    Or am I being harsh?
  • so where's the rest gonna come from?
  • I am guessing most of the £16m of savings will come from the playing staff; otherwise, at an average employment cost of say £50,000 per head, you are looking at losing 320 members of staff. I doubt that Charlton has anything like that number of staff.
  • [cite]Posted By: Red_Pete[/cite]I am guessing most of the £16m of savings will come from the playing staff; otherwise, at an average employment cost of say £50,000 per head, you are looking at losing 320 members of staff. I doubt that Charlton has anything like that number of staff.
    i think its close to 100 people being sacked at the club.
  • edited May 2007
    [cite]Posted By: WSS[/cite]
    [cite]Posted By: Red_Pete[/cite]I am guessing most of the £16m of savings will come from the playing staff; otherwise, at an average employment cost of say £50,000 per head, you are looking at losing 320 members of staff. I doubt that Charlton has anything like that number of staff.
    i think its close to 100 people being sacked at the club.

    christ, i didn't realise it was to that extent.

    How though ? The club will function in exactly the same way as before, it will still have the same amount of supporters and crowds to cater to. Hospitality at the Valley on a non-matchday shouldn't really change.

    It can only be on matchday staff - in the suites, that i can only really see how dramatic cuts can be made.
  • and on the community scheme, but i thought the community scheme was largely paid for out of grants ?
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  • Part of the problem I suspect is that high earners like Marcus Bent are still in contract so we can't get rid even if we want to unless THEY want to leave.

    As a result the innocent non playing staff, who had nothing to do with the Dowie fiasco or the incompetence and poor attitude of the players, end up paying the price for the mistakes of others.

    It happens in all walks of life. A few years ago the place where I work acquired a company which proved to be a pig in a poke. It wasn't the people who made the bad decision that got sacked though but the "plankton" at the bottom of the food chain.
  • [cite]Posted By: AFKA Bartram[/cite]and on the community scheme, but i thought the community scheme was largely paid for out of grants ?

    As I understand it the community scheme is self financing.
  • i may have plucked that number out of thin air but i thought it was that, if not i'm sorry.

    There is one particular poster on this board who may know a bit more than me, if he's allowed to tell everyone.

    if not, take my ramblings as crazy rumours.
  • but if the club can functionally operate without these people, was there a definate need for them in the first place ?
  • WSSWSS
    edited May 2007
    [cite]Posted By: AFKA Bartram[/cite]but if the club can functionally operate without these people, was there a definate need for them in the first place ?

    I think that like in any business (i hate using that word when talking about football) if you strive to be better then you take on more staff, open more departments etc to become that little bit better. If there is a downturn (i.e. relegation) then you have to make cutbacks. Alternatively you could ride out the downturn (hope we come straight back up) but thats a bloddy big risk.

    You never know, if we do come back up a lot of these staff may be offered their jobs back but it would seem unlikely that they would still be looking 9 months down the line as the majority of them i would suspect would have families and mortgages to think about.

    Vicious circle really because if we do return the CAFC will have to spend a hell of a lot of money on recruiting staff to start competiing at a Premiership level, not just on the pitch but off it as well.

    Also, there is usually stuff listed here:

    http://www.cafc.co.uk/vacancies.ink

    Not any more!
  • Some of it is exponential I guess. For example because of the greater media exposure in the Premiership they could justify opening more than one club shop (sorry retail outlet!). Now we are inthe Championship it is arguable we won't shift as much merchandise therefore they may decide that we only need one shop.

    We had bigger squads in the Premiership which in turn meant more support staff like coaches, physios etc. I suspect that cuts may be made there.

    Turnover (and therefore probably his workload to some extent) virtually doubled overnight when we first got promoted so Reg got an assistant. If things are being scaled down Reg will probably "lose" his assistant.

    I could go on but hopefully the point is made.
  • I imagine intially some of the shortfall would have to be met by players sales as well as wage savings until the bigger earners can be shipped out.
  • i just went to the chippy and was flicking through The Sun.

    Our wage bill was the third biggest increase in the Prem last season, 5.3m i think it said.
  • That is right WSS, the club was spending more in wages in 06/07 than it was taking in in income. Absolutely ridiculous.
  • [quote][cite]Posted By: EGAddick[/cite]That is right WSS, the club was spending more in wages in 06/07 than it was taking in in income. Absolutely ridiculous.[/quote]

    Where did you get that from?
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  • [cite]Posted By: WSS[/cite]i just went to the chippy and was flicking through The Sun.

    Our wage bill was the third biggest increase in the Prem last season, 5.3m i think it said.
    That wouldn't have been helped by Young and D Bent signing new deals in the summer (plus the signings).
  • I thought we'd just broken the '100% barrier' wages/turnover ratio over this last season? (Fulham have been doing it for years but then they've got debts of £172m!) Maybe I got a few figures wrong but wasn't it in the programme last season that our wage bill was £35-36m (for 05/06) with a turnover of £42m? I would guess our turnover would have decreased for 06/07 and our wage bill risen thus both figures equalling roughly the same amount?
  • agree on the wages, but why would our turnover of decreased ?
  • Some big assumptions there EG and based on something you may have read in the programme but aren't sure about.
  • [quote][cite]Posted By: Henry Irving[/cite]Some big assumptions there EG and based on something you may have read in the programme but aren't sure about.[/quote]


    Only because I haven't got the copy on me! ;-)

    Wouldn't turnover have decreased though? We've finished lower in the league, surely we were live on Sky less times this season than previously and if anything our turnover has been pretty stagnant of the last 2 seasons so maybe estimating our income to be around £42m isn't an unfair assumption?
  • [cite]Posted By: AFKA Bartram[/cite]but if the club can functionally operate without these people, was there a definate need for them in the first place ?

    I think backroom staff will go as a result of players leaving. For example JFH's burger chef and Mars bar runner, El Karkouri's ball retrievers, Diawara's official glove knitters and Dennis Rommedahl's pansy suppliers.

    Joking aside, really feel for the real people losing their jobs - as Pardew alluded to before the season ended - the players are alright, despite it being their fault they will come out of it smelling of roses with big signing on fees for other clubs or contracts that can't be cancelled where they continue to pick up 1 backroom staff's annual wage every single week.
  • [cite]Posted By: PassItToLeaburn[/cite]
    [cite]Posted By: AFKA Bartram[/cite]but if the club can functionally operate without these people, was there a definate need for them in the first place ?

    I think backroom staff will go as a result of players leaving. For example JFH's burger chef and Mars bar runner, El Karkouri's ball retrievers, Diawara's official glove knitters and Dennis Rommedahl's pansy suppliers.

    Quality
  • yes, ROTFL... good one
  • bumped
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