Darlogramps wrote: ↑
Tue Apr 09, 2019 10:53 am
spen666 wrote: ↑
Tue Apr 09, 2019 10:36 am
Firstly, the budget is set before the season began, so DJ unless he is Mystic Meg could not have based the budget on attendances at the start of this season.
Secondly, DJ himself has said that previous seasons attendances were used to help set the budget.
You might want to look up the word "projection". So actually, yes DJ does have to do a Mystic Meg routine.
Darlington don't have an Uncle Brad to throw millions at the club. We actually have to use money from fans through the door to fund our season. Obviously we don't know exactly what they'll be, which is why DJ has to work out roughly what the attendances will be. And if they're lower than projected, he adjusts the budget accordingly.
Previous season's attendances will be part of his thinking. But it's not the sole factor. Anyone who thinks - we got X in 2017/18, therefore we'll get the same in 18/19 is a moron, as attendances fluctuate.
It's no surprise the idea of funding a club with attendance money causes difficulty for a Spennymoor fan.
2.We will have a reduced budget for next season based on the current attendance profile. This is reality.
This is the opening statement from the directors quoted in the recent Netcafe
Shame that the Directors seem to be disagreeing with you
DJ would obviously want to blame the budget cuts on lower attendances because it diverts attention from his mistakes inincluding in the budget forecasts income that had not been received and was not certain to be received this season (the legacy and the money from the 2 BMW cars).
Conspiracy theory with no evidence to support it.
DJ has admitted the two items you mentioned have caused an impact, but unless you know the precise value of them (which you don't), saying they're the main factors and that DJ is now covering it up to divert attention is a stretch. Pretty poor for such a respected member of the legal profession to be cooking up these allegations without a scrap of evidence to support them.
You mean apart from DJ saying this himself at the netcafe... Is DJ making it up as well?
We have hard evidence of attendances declining through the season, which tallies with us needing to trim the budget. So who to believe - DJ who has a good reputation with us and has kept the club on an even keel financially, or a Spennymoor fan who lives down south and is a known stirrer when it comes to Darlington? Tough one that.
Get the chip off your shoulder. This is nothing to do with a comparison between the two clubs.
Its to do with the fact that an unrealistic budget was set. DJ himself has said all that I have said at various times over the season.
If you think a 3% drop in attendances is the cause of significant budget cuts, requiring the sale of several players to cut wages and bring in lump sumps in transfer fees, then you mustbe accepting that DJ got the crowd income massively wrong
From David Collinge
Based on the evidence from the last 2 seasons of football, do we have a figure in mind for average crowds for 2019/20 on which to underpin our financial forecasts? I fully appreciate the difficulties in calibrating these figures but would 1100 be about par?
Answer: Yes I would say 1100 is about right….obviously winning games attracts greater crowds but from a budget perspective we will be far more prudent this year
If you think setting budgets that are unrealistic, then having to sell star players to survive is good budgeting, then so be it.
If you think including in the budget income that is not realised or even certain to be realised in the season ( the legacy & the sale of 2 BMW cars the club don't even possess), then you are sleepwalking into further financial problems.
From Josh Egglestone
First of all thank you for your continued hard work behind the scenes and for organising this event to take on fans questions.
David - during the last netcafe you mentioned one of the reasons we were behind budget was that two commercial opportunities the club was expecting, had not materialised. Can you give any further details as to the nature of these opportunities, the level of income they represent and if/when they are likely to be realised?
Chris / David - we have seen that budgeting for next season is already underway. Most fans understand this incredibly difficult and we acknowledge sustainability is key. With that in mind, what are your current expectations for the budget next season in comparison to this in % terms?
Thank you again for your time and continued efforts.
The 2 issues in question were;
•A legacy payment via a will that unfortunately moved into probate and is currently going through process
•I was offered the opportunity to purchase 2 brand new BMW vehicles from sponsorship at a very low cost (these cars were on the golf pro circuit – the ones you see at the tees advertising the BMW brand) and then re-sell them to a BMW dealer at trade price. I was going to pay the cash on behalf of the club and then give the net receipts to the club. We are still waiting on this but to be honest this opportunity may now have gone although they last contacted me 2 months ago to say the paperwork was progressing. I have discounted this now so any progress would be an upside.
This is nothing to do with interclub rivalry, it to do with looking logically and with an accounting mind at finances and budgets.
Even JW at the netcafe is accepting crowd figures were set at wrong level in budget
From Barry Thompson
Firstly, a huge thank you for all you do. Your hard work is massively appreciated.
My question relates to stability. It seems like Craig Morley and John Woolnough are excellent additions to DFC, with their input, do you think we will get to a place of a sound financial footing without having to strip the squad of our better players halfway through the season.
Answer from John Woolnough
We are focused on working within a sustainable framework.
Our efforts have been focused on increasing commercial income and reducing costs where appropriate.
We will be setting a tighter financial playing budget where we do not anticipate player transfers mid-season being forced upon us. Budgets will be prepared around different attendance levels with the final budget reflecting a cautious approach to the anticipated attendance.
If we see attendances increase or enjoy a cup run we will reinvest this money back into the playing budget
Anyway, I will leave it to you. If you want to continue with financial issues and reducing budgets then its entirely up to you.
If you were prepared to look objectively at what is being said and done, then lessons can be learned and mistakes avoided in future. It would be far better for everyone if monies raised by fans are used to further the club and help it advance, not to bail it out and keep it afloat
In the words of the Dragon's , "I'm out" on this debate