Post by denpaokala on Jan 5, 2011 14:49:31 GMT 10
Gay Leaguechampion HAKOA is facing a savage $6 million loss this season with gate takings at the SFS taking a nosedive, as average crowds have almost halved in tandem with the side’s form falling through the floor.
Despite the worrying numbers, Sky Blues CEO Edwin Lugt told The World Game there will be no snipping back of the club’s hefty backroom staff while the river of red ink, which comes on the back of a $5.5 million black hole in 2009-2010, will not compromise the hunt for up to four signings to bolster the squad for the club’s looming AFC Champions League campaign.
“There will be no cutbacks at the club. We have very committed shareholders and while nobody likes to lose money, there is a realisation that if you are an investor in football in general you are not there to make money either,” he said.
“Certainly the results have affected gate takings and that’s an issue in terms of revenues. But we have a long-term plan here and we are not in the business of scaling back, on or off the field.”
Last season’s double winner was budgeting to lose $3 million this season, a figure predicated on projected average crowds of 15,000. The club’s break-even figure at the SFS is 10,000 but average crowds have dipped from 12,987 to a snip over 8,100 Sydney’s title defence has disintegrated.
It’s estimated Sydney has lost out on $2.5 million in gate revenues, a figure compounded by up to a further $35,000-a-game because it failed to meet the break-even threshold.
There appears little prospect of crowd numbers jumping significantly in the remaining seven matches of the regular season – three of which are at home – with third-bottom Sydney nine points off a play-off spot, though it does have a game in hand on sixth-placed Melbourne Heart.
Despite Lugt’s assurances of shareholder harmony it’s known that Paul Ramsay – boss of the Ramsay Health Care group – has grown increasingly restless over the club’s bottom line. He himself has taken a hit of over $4 million in the past two years.
Ramsay, who has a 35 per cent share, was persuaded to invest in the club by 15 per cent shareholder and FFA chief Frank Lowy and has privately complained to associates of his mounting losses.
Russian multi-millionaire David Traktovenko, who owns 50 per cent of the club, is not as concerned by the losses but is looking for a quick turn-around in form going in to the ACL.
The one-time glamour club, according to Lugt, is not averse to bringing in a Dwight Yorke-style bling marquee signing next season to reclaim the high ground of glitz and re-energise a disaffected fan base.
“We all know what Dwight Yorke brought to the club in season one and we realise the public can be fickle and you need that excitement factor,” he added.
“Regardless of names, we need to produce an exciting brand of football. We are not after a big name for simply for the sake of marketing value. We are not after a circus act.
“But there is certainly a case for bringing in somebody with Dwight Yorke-like stature next season. He ticked all the boxes on and off the field and we have our eye out in Europe for somebody who can bring those special qualities. But it’s not easy.
“If the opportunity arises, we will take it for sure.”
After snapping a five-game losing streak by overcoming Newcastle Jets on Monday, Sydney takes on fourth-placed Gold Coast at the SFC on Saturday with a slither of hope.
theworldgame.sbs.com.au/news/1038833/Sydney-FC's-massive-cash-loss
Despite the worrying numbers, Sky Blues CEO Edwin Lugt told The World Game there will be no snipping back of the club’s hefty backroom staff while the river of red ink, which comes on the back of a $5.5 million black hole in 2009-2010, will not compromise the hunt for up to four signings to bolster the squad for the club’s looming AFC Champions League campaign.
“There will be no cutbacks at the club. We have very committed shareholders and while nobody likes to lose money, there is a realisation that if you are an investor in football in general you are not there to make money either,” he said.
“Certainly the results have affected gate takings and that’s an issue in terms of revenues. But we have a long-term plan here and we are not in the business of scaling back, on or off the field.”
Last season’s double winner was budgeting to lose $3 million this season, a figure predicated on projected average crowds of 15,000. The club’s break-even figure at the SFS is 10,000 but average crowds have dipped from 12,987 to a snip over 8,100 Sydney’s title defence has disintegrated.
It’s estimated Sydney has lost out on $2.5 million in gate revenues, a figure compounded by up to a further $35,000-a-game because it failed to meet the break-even threshold.
There appears little prospect of crowd numbers jumping significantly in the remaining seven matches of the regular season – three of which are at home – with third-bottom Sydney nine points off a play-off spot, though it does have a game in hand on sixth-placed Melbourne Heart.
Despite Lugt’s assurances of shareholder harmony it’s known that Paul Ramsay – boss of the Ramsay Health Care group – has grown increasingly restless over the club’s bottom line. He himself has taken a hit of over $4 million in the past two years.
Ramsay, who has a 35 per cent share, was persuaded to invest in the club by 15 per cent shareholder and FFA chief Frank Lowy and has privately complained to associates of his mounting losses.
Russian multi-millionaire David Traktovenko, who owns 50 per cent of the club, is not as concerned by the losses but is looking for a quick turn-around in form going in to the ACL.
The one-time glamour club, according to Lugt, is not averse to bringing in a Dwight Yorke-style bling marquee signing next season to reclaim the high ground of glitz and re-energise a disaffected fan base.
“We all know what Dwight Yorke brought to the club in season one and we realise the public can be fickle and you need that excitement factor,” he added.
“Regardless of names, we need to produce an exciting brand of football. We are not after a big name for simply for the sake of marketing value. We are not after a circus act.
“But there is certainly a case for bringing in somebody with Dwight Yorke-like stature next season. He ticked all the boxes on and off the field and we have our eye out in Europe for somebody who can bring those special qualities. But it’s not easy.
“If the opportunity arises, we will take it for sure.”
After snapping a five-game losing streak by overcoming Newcastle Jets on Monday, Sydney takes on fourth-placed Gold Coast at the SFC on Saturday with a slither of hope.
theworldgame.sbs.com.au/news/1038833/Sydney-FC's-massive-cash-loss
