When football eventually returns, it looks like City can expect a right royal kicking, metaphorically speaking at least.
Maybe not so much when it first begins, given that it’s almost certain to be behind closed doors, but with the stadiums full of fans we look set to be the pariahs and be given the full treatment by opposing fans.
I refer of course to the club’s insistence that there will be no Tottenham/Liverpool/Bournemouth style U-turns with regard to the furloughing of non-playing staff and, in doing so, the use of the government’s job retention scheme.
Whether or not that kicking is fully justified is for you to decide but it’s coming; so much so when we eventually we resume we’re borrowing Millwall’s song.
Given the flak that has already been flying, the club clearly felt the need to highlight how and why the decision was taken and, to be fair, were clear in their reasoning when they spoke to Archant and the BBC this week.
Ben Kensell: “Ultimately, if we had the available cashflow to not have to take up schemes then, like other football clubs have, we would.”
This was met with derision by those who couldn’t be bothered to read the detail or who were sucked in by BBC Sport’s tweeting of the piece:
For those who could be bothered, Kensell said it’s a case of the club, which has neither rich owners or cash reserves, having little option but to use the scheme. Unpalatable alternatives would have been to not make up the staffs’ pay with the additional 20 per cent that the government scheme didn’t cover or to instead opt for redundancies.
It’s worth noting too that the players and management have contributed £200,000 towards local initiatives and the players have, separately, joined forces with their Premier League counterparts to raise money for the NHS during the pandemic.
I suspect from an accounting perspective, it’s not as easy as simply transferring sums from the players’ pot to that of the non-playing staff but, equally, it’s impossible to contest that any pay cut taken by the players – which, as I understand it, has yet to be forthcoming – would positively impact the bottom line.
Maybe that’s on its way.
But what the naysayers also fail to grasp is that taking a hit of up to £35 million is seismic for a club that operates on a self-funding model. For City, there are no multi-millionaire or billionaire owners, or global corporations or Middle Eastern countries to fall back on.
Compared to the other 19 teams in the top flight, ours is a hand to mouth existence. The fine margins under which we operate are rarely understood by those outside the Canary Nation.
But that potential black hole of £35 million won’t fill itself. We will have to manage it ourselves – and I suspect we all know how. Money from the sales of our bright young things originally destined for the pot marked ‘reinvest’ will now have to likely be used in a James Maddison/Josh Murphy style.
Definitely not part of the plan. But equally, the fault of no-one.
Never has health before wealth been more important – even if those of a certain strand of society appear unable to grasp that concept.
And the waters are not just choppy for Norwich City FC.
Hopefully, when the dust finally settles – and goodness knows when that will be – football will have done some not-before-time naval gazing and will be an industry that has reinvented itself for the better (I can dream).
Sadly, it will also be an industry that will have lost some of its own along the way, and I’m not just talking about clubs who may struggle to emerge safely from the wreckage.
Whether City’s self-funding ethos will be a blessing or a curse will only become clear much further down the track. But, either way, it’s unfair right now to align the club’s financial difficulties with those of the other 19.
These are crazy times. Please stay safe.
Hi Gary
I was expecting to see a lot more flak from our near neighbours
Yet again Sky reporting city have signed the free transfer no mention that the negotiations have been ongoing since January but it just another way to shiw city up.
Onwards and upwards
OTBC
Stay safe and well
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Hi Alex.
Spot on re Sinani.
And yes I did check out the Wildschut figures you mentioned. All too true 🙁
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It seens in times past we over paid for limited talented players but can you blame a novice manager who had an experienced boss in Moxley or were they both trying to prove a point with both Naismith and Wildschut we will never know the full or truthful story
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A very well-presented summary of the situation.
Not that it’ll probably help us much…
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Crazy times? Oh yeah.
We can go from the Dutch FA’s decision to write off their season as of two days ago to the current chaos within the National League [ask Kings Lynn Town] to the greed of the Premier League and the media associated with it without drawing breath.
The Premier League will keep pushing and shoving to somehow get this season finished but even they cannot fly in the face of concerns over public health. They’ll try until their last stinking breath though, believe me. As much as I love Norwich City to be part of the PL there is so much of the ethos of that body that disgusts me.
NCFC are well within their rights to implement the furlough options.
A great article that hits the right spots – my only additional thought is that it should be 18 not 19 – Burnley are in a bigger boat than us, but a similar one nonetheless.
The last time I went naval gazing I was accused of being a Russian spy [gets the sack].
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Sorry to be the lone voice once again, but it’s a role I’m getting used to. There are so many holes in the club “statement” it’s worth pointing out a few.
Firstly we don’t make anywhere near £1.5m income every home game. Look at the accounts. Secondly no one yet knows what the loss of TV income will be, if indeed there will be any. Thirdly, our executive have yet to make their own salary sacrifices – and looking at the figures in the accounts if they did that would make up almost the sum we are claiming from the government. Fourthly if this is just a cashflow issue, will the club be paying back the taxpayer when we can?
The figures issued don’t equate to anything previously mentioned and I’m afraid it’s just getting the supporter base ready for the next pauper period in a “self-funded” hell. It’s really garbage you know – we haven’t spent £125m or anywhere near it – and what financial period is he referring to anyway?
Sorry – I don’t buy it. The club are treating us all like we are numpties and unfortunately lots of people are swallowing it hook, line and sinker.
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I’m not 100% convinced either. Clearly I didn’t make that clear in the piece, Steven. I attempted (and clearly failed) to strike a balance.
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Got to agree with Stephen here, some of the figures just don’t line up with previous numbers coming out of the club.
The decision to use the furlough scheme is despicable and the £200,000 ‘player whip round’ really should have been used to help pay non-playing staff if the club really can’t afford to do so.
As for the £125M they have spent – well no-one knows if that is the case or not. as we are unaware of player/staff salaries. However, if that level of spending has left the club coffers it hardly comprises of money well spent!
All looks like setting the scene for an easy ride for Delia and MWJ as we once again sell our playing assets, fail to increase capacity at Carrow Road and stagnate in the Championship. The Delia/self-funded model will only take the club so far and this current scenario is further proof.
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I think one of the good things to come out of this [if there is anything at all] is that absolutely nobody I know is clamouring for a ST refund just now but if this season does not somehow stutter to an end with us inside Carrow Road we all will be.
Financial loyalty only stretches so far, after all. <£50 pcm and all that.
As I've said before I don't blame NCFC for utilising the furlough scheme but equally other aspects should be considered.
I know Stuart, Zoe, Ben and the Board [the latter surely rewarded through dividend] have yet to embrace a deferment.
Perhaps they should do so as, when and if the players agree such a thing.
It's not as if they cannot afford it.
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Have the club released accounts for the current premier league campaign?
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Accounts are usually closed end of June and reported in Oct time.
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I wish that we hadn’t had to use the furlough scheme but I fully understand why. We are a business that is suffering a cash flow issue so we are fully entitled to use it.
Also, I am not a great supporter of players being forced into taking wage cuts at this time. They haven’t been laid off and, as I understand it, they are still training and so are, technically, still at work. It’s far too an easy target I’m afraid. And while wages are, of course, far too high, that’s a separate conversation. If they want to volunteer such a gesture, I am sure that any half decent accountant could make that work. As for taking the flak when we do resume, that’s fine. I cannot see a scenario that does not see us in the Premier League next season and that’s fine too. We’ve had enough bad breaks over the years, it’s about time we caught one that went our way.
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Southampton live hand to mouth, yet don’t fill the need to cheat the government out of money. The system wasn’t meant businesses that pay staff 70k a week. Then to have the cheek to announce a signing. You deserve everything you get coming
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Southampton owners have a reported wealth of £4b hand to mouth might be a bit of stretch!!!
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The Southampton owner who never put a penny in the club. Saints have had to sell to buy for the last decade.
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What utter nonsense Neil. Southampton have had years of Premier League riches to fall back on. And what’s this about cheating? NCFC are perfectly entitled to claim government funds to pay their match day staff and office staff up to 80% of £2,500 per month as any other business which currently has the devastating effect of loss of match day income. We have no staff paid anywhere near £70k a week, and the signing we announced was a free transfer negotiated in January for a player from Luxembourg.
Southampton don’t live hand to mouth, apart from that everything else you say is true, assuming that your name is actually Neil.
I guess that prior to lock-down you’d be the bloke down the pub who thinks he knows everything – but actually knows nothing..
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I’m a saints supporter and can guarantee that saints live with in their means. We have a dodgy owner that has no interest in the club. He bought the club most likely to get his money out of China. He failed the fit and proper test ffs. Our winter business was to ship out or right back on loan to Arsenal and replace him with spurs reserve. Try researching next time.
You have players on 10s of thousands of pounds a week, cut here pay before going begging to the tax payer. Frankly your club is an embarrassment. Free transfer still costs money, agents fees, signing on fees etc. Don’t sign players if you can’t afford them.
Mike you are the guy in the pub that bores the crap out of everyone, hence you would be sat on your own.
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Southampton’s wage bill is more than double Norwich’s. Not exactly hand-to-mouth.
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I wonder what the loss will really be as i cant see this season be finished even behind closed if social distencing being mentained will there be no tackling .if bars and resturants to remain shut as has been mentioned then we wont be visiting the carra this side of xmas be lucky not to excdeed £35mill .keep well everyone
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Interesting piece Gary.
I was initially against us using the furlough scheme and I still wonder if there was another way the club could have found in-house to tackle tis problem. But it must be said we are very different to nearly all the other Premiership clubs in terms of finance.
So rather reluctantly it is understandable they have gone down this road.
I would love football to come back tomorrow but with the appalling death rates in the country can we honestly say it would be safe to do so ? I have criticised players for their lack of agreement to reduce their wage packet ( top players only, not some poor bloke at Fleetwood etc) but asking them to play now while social distancing is in effect is just plain crazy. And all for Sky’s millions.
What about players whose partners are pregnant or ones who have asthma ? also is it right football get thousands of covid testing kits while health and care workers still cannot get them ? There would still have to be around 150-250 people in and around the ground for a behind closed doors game.
Myself and 2 friends who are avid city supporters have all agreed that if the season was to stop now and we would be relegated based on point-per-game we would all accept it.
However for what its worth here is my idea as the fairest way to deal with this season.
Firstly end the season now on points per game in all 4 main leagues, no relegation from any of the leagues.
Promote Leeds & WBA to the Premiership ( they would be way ahead on PPG) So there will be 22 teams in the Premiership for 20/21 and run it for 2 years as 4 going down instead of 3.
As I say no relegation so add to the Championship say Coventry and Rotherham or whoever comes out on top on PPG )and the Championship has the usual 24 teams. Repeat that with leagues One & Two and again (apart from having to replace Bury ) both leagues will then have their normal 24 teams.
with Barrow coming up from the National League.
The only teams who will moan are the possible playoff clubs but who is to say who would have gone up, and surely clubs wouldn’t sue. If they did it would be scandalous.
We can then look to October or sooner if the situation improves to consider games behand closed doors and start the new season. Hopefully by that time the NHS isn’t overwhelmed, testing is so much more available and treating the disease has also improved.
The truth is all clubs are going to take a massive hit on this and for example Max Aarons is now worth say 25% less but the players we will be looking at to buy will also lose some of their value.
Finally say football starts in June behind closed doors while social distancing is still in effect and kiddies watch the game and then decide to go to the park and have a kickabout with their pals, how do you tell them that it is not allowed when the have just seen it live on TV ?
Talk about a mixed message. OTBC
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I’m perfectly happy for any club to use the furlough scheme.
Clubs are regulated as businesses, pay business rates, pay employer’s national insurance (lots of it too), charge, collect and handover VAT, are expected to file accounts on time, and somehow or other need to stay solvent. Etc. etc.
The furlough scheme is open to businesses, and that includes NCFC, and there’s no reason not to use it in my view.
Much more pertinent: how many of the senior civil servants who couldn’t run a bath, let alone a procurement service, will be handing back a few quid? I’ll bet there will be a few quietly taking early retirement later in the year with a nice pay-off, a gong, and a convenient excuse to be well out of sight when their incompetence is brought to the fore at the inevitable inquiry.
I don’t like FIFA, UEFA or the Premier League very much but using the consequences of a pandemic as an excuse to jump on a bandwagon about top football clubs is just crass.
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I love that comment Keith [I really do] but:
The incompetence of senior civil servants will never be brought to the fore.
Never has been, never will be. After all, they rule the roost.
And as for any form of enquiry – don’t put your bricks and mortar on it. No chance.
My daughter is a senior NHS procurement manager so for once I know what I’m talking about.
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Oh there will be an enquiry Martin, seriously there will.
Unfortunately “Sir Humphrey” will be running it…
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When I hear calls for Premier League players to take an x% pay cut, I wonder if people appreciate the different levels of pay in different clubs.
City’s total wage bill is approximately £50m. The average PL wage bill is £150m. The two Manchester clubs and Liverpool are over £300m; Chelsea not far behind. Even allowing for larger squads and staffs elsewhere, the average wage is clearly very different between ourselves and many other PL clubs.
Equating the earnings of City players with those other clubs is false. We’re probably much more similar to clubs in the Championship. The calls for them to take pay cuts are much less strident.
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