General chat room. Pompey related or not, but PLEASE keep it reasonably clean.

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By Jack_Tinn
#890347
An interesting titbit was shared in the recent monthly fan update interview with CEO Mark Caitlin and KJ. They explained that the Board has agreed that once a player is sold then the proceeds of sale are split between a transfer fee budget and the budget for players wages.

Not surprisingly they did not explain what the percentage split would be between these two budgets but they did reveal that KJ had come up with the formula and it had been approved by the Board and that the wage increase is prorated over three years being the contract length that Pompey tend to give players.

As a pure guess I would think that the split would be 65% for transfer fees and 35% for players wages.

Using this ratio and looking back over last season and this you can hypothetically come up with what might be left in the transfer kitty. Pompey have sold Chaplin for £500k, Clarke for £4m and received sell on money for Webster and Chaplin. Each sell on was 20% of the profit made by the clubs and the profit for Webster was rumoured to be £1.75m and Chaplin the profit is about £250k. That means that 20% of £2m is £400k. So total money in is £4.9m.

If 65% of 4.9m stays in the transfer kitty (and assuming it was £0 to start with) then this would generate £3.185m for the kitty.

Pompey have spent money on players in the last two years paying £450k for Harrison this year and I would guess a similar sum for Harness this week. Cannon and Curtis cost £150k each and Morris £100k. That's £1.3m spent on transfer fees which would broadly leave about £1.8m in the kitty.

I accept that free transfers may want signing on fees that would eat into the transfer kitty and some loans were likely to have cost Pompey money too but as a guesstimate I would suggest Pompey have about £2m to spend if they choose to but it has to be on players who are likely to improve the team/squad and go on and generate a higher transfer fee in the future - hence why Harness is a cracking signing imho as he is only 23 and has the ability to play at a higher level or generate a substantial transfer fee in the future.

Using the same 65:35 formula selling Lowe for £3m would generate £1.95m to the kitty using this formula and increase the wage pot by a sum of £350k or £6,730 per week overall. (not that I want Lowe to be sold you understand).

If the split was 50:50 (and I can't imagine its less than this) then this would result in a remaining transfer kitty of approximately £1.15m. Pompey therefore should be believed when saying that they don't need to sell anyone and explains why the club can sign a young player like Harness and still have enough in the kitty to sign one or two more if their targets become available.

A nice place to be.......please don't tell Arry because I don't think the Roly Poly business is going to work out.
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By New Forester
#890348
How do we get from these kind of figures to the sums that will be needed if we ever get to the Championship? As to the Premiership, it seems as far away as Neptune.
By Berkshire Blue
#890349
One thing that might help is that TV income would increase substantially in the championship, and exponentially in the premier league.

I seem to remember Pompey Penguin doing an excellent post some time ago, which iirc suggested that we would be able to afford a wage roll of somewhere around £15 million in the championship if we used the extra money on wages.
By BlueinPLtwenty
#890354
You forget that most transfer fees are paid on the "drip". Therefore it is not quite as it seems in mathematical terms.
By Jack_Tinn
#890357
BlueinPLtwenty wrote:
Mon Jul 22, 2019 9:35 am
You forget that most transfer fees are paid on the "drip". Therefore it is not quite as it seems in mathematical terms.
but that equally is true of transfer fees Pompey pay. So in mathematical terms it evens it self out - or at least it should do in the structuring by Pompey of any transfer deal (in or out)
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