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March 5 2024 11.28am

Something needs to happen..!!

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View Lanzo-Ad's Profile Lanzo-Ad Flag Lanzarote 27 Jan 23 9.05pm Send a Private Message to Lanzo-Ad Add Lanzo-Ad as a friend

Originally posted by Gribbo

3 wins and 3 draws gives us 36 points and safety, job done. Anything else is a bonus. Why spend more? That is the limit of our ambition.

If you want to support a Premiership winning team, switch to City - they look good. If you want to scrape into a minor European berth, switch to West Ham - although they don't look so good.

Chelsea spent £285m in the summer, £350m target in this window = £635m. Everton up for sale for £500m = total value less than Chelsea's spending in the last 2 windows. Chelsea are a few points above us, and think they should be higher. If you prefer that, then switch to them. You can watch Koulibaly, Sterling, Aubameyang and Cucarella.

You pays your money, you takes your choice.

Realism at its finest

 


You can only accomplish your object in life by complete disregard of the opinions of other people. The key of joy is disobedience.

Aleister Crowley

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View sydtheeagle's Profile sydtheeagle Flag England 27 Jan 23 9.12pm Send a Private Message to sydtheeagle Add sydtheeagle as a friend

Originally posted by hythemaceagle

What’s happened to all the money they’ve undoubtedly earned during this ten year period?

It's important to understand that there is no free cash flow in football. Clubs do not make an operating profit; revenues simply cover expenses. So there is no "cash money" at the end of each year that the owners can simply withdraw from the club, rather than re-investing it.

Football club owners make a return on their investment not year-to-year, but by increasing the value of the club over the longer term, then selling it for a profit because its revenue streams are greater and the club is, therefore, worth more than it was when they bought it.

To put it in very crude terms by way of an example:

Let's say Harris and Blitzer buy Palace for £2 million pounds (and Palace's annual revenues at the time of purchase are half a million pounds a year).

Every year following their purchase, the club generates 2 million pounds in revenue, and spends 2 million pounds to operate (wages, etc.) It breaks even.

But one year Harris and Blitzer rebuild the old stand (and the academy). As a result of the rebuild, with lots of shiny new hospitality facilities and better retail opportunities, annual turnover increases from 2 million to 3.5 million pounds.

The value of a club is a multiple of its turnover. Suddenly at, say, 5x turnover (a typical valuation of a club today), Palace is worth 5 x 3.5 million, or 17.5 million. Harris and Blitzer, who've taken no money out of the club during their period of ownership, walk away with a 14.5 million pound profit.

This is just an example, but it's broadly accurate regarding how things work. Nothing has happened to all the money the club has generated, other than it's gone to pay everyone from the bog cleaner to Wilfried Zaha. After the bills are paid, at almost every club, there is no money left.

Edited by sydtheeagle (27 Jan 2023 9.16pm)

 


Sydenham by birth. Selhurst by the Grace of God.

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View saveloy's Profile saveloy Flag carmarthen 27 Jan 23 9.14pm Send a Private Message to saveloy Add saveloy as a friend

Hopefully some good news as McArtur is back in training and looked lively too,also Ferguson too.Video up on the Palace website.

 

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View southnorwoodhill's Profile southnorwoodhill Flag 27 Jan 23 9.14pm Send a Private Message to southnorwoodhill Add southnorwoodhill as a friend

Having to sign players in the January window is a sign of poor continuity planning, it's not like the board haven't been here before to learn the lesson. Roy's final season's achievement was to keep us up and oversee those players who were soon to be out of contract. Pat's achievement in his first season was to take what was left of Roy's squad, add some promising newcomers and keep us up, whilst keeping an eye on academy developments with the ultimate aim of introducing them into the first team. In theory. But here we are in his second season, once again with players soon to be out of contract, and to be frank, not good enough for the PL, plus academy players not quite ready yet either.
What gets me is the deja vu aspect, the board failing to plan for continuity. PV's rebuild was always going to take a few seasons anyway.

 

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View sydtheeagle's Profile sydtheeagle Flag England 27 Jan 23 9.20pm Send a Private Message to sydtheeagle Add sydtheeagle as a friend

Originally posted by Plaistow Eagle

To my mind Parish and his perceived insistence on being the face of Palace is a problem with other investors.

You are plain and simply wrong. Parish is the face of the club now because the majority of our present investors (Harris and Blitzer) want him to be. If they woke up tomorrow and decided they didn't want Parish running the club, he would be out of a job whether he liked it or not. If the club is put on the market and sold, it will be entirely up to the new owner whether he (or she) wants to retain Parish's services. Parish can insist all he likes; doing so would be utterly meaningless.

 


Sydenham by birth. Selhurst by the Grace of God.

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View sydtheeagle's Profile sydtheeagle Flag England 27 Jan 23 9.33pm Send a Private Message to sydtheeagle Add sydtheeagle as a friend

Originally posted by Gribbo

Why spend more? That is the limit of our ambition.

All of us here (including me) have written acres of speculation about what we think might be going on. But what you've said above is pretty much a naked fact. Those two lines accurately state where the club is standing now.

 


Sydenham by birth. Selhurst by the Grace of God.

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View HesHereHesThere's Profile HesHereHesThere Flag Beckenham 27 Jan 23 9.34pm Send a Private Message to HesHereHesThere Add HesHereHesThere as a friend

Didn’t someone once say that standing still in this league means you go backwards…

 

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View sydtheeagle's Profile sydtheeagle Flag England 27 Jan 23 9.41pm Send a Private Message to sydtheeagle Add sydtheeagle as a friend

Originally posted by HesHereHesThere

Didn’t someone once say that standing still in this league means you go backwards…

Yes, they did. And I think they were right. The next four days will tell us a great deal about Harris and Blitzer's determination to divest themselves of Palace, and their appetite for risk along the way to doing so.

I can't help but wonder if they have some sort of hedge against relegation in place which may be encouraging their lack of ambition. Since structured products are essentially a dark market and also one of their areas of expertise, there's no reason to think they couldn't find a counter-party if they wanted to and if they were funding such an instrument, they certainly wouldn't be making it public knowledge.

Edited by sydtheeagle (27 Jan 2023 9.44pm)

 


Sydenham by birth. Selhurst by the Grace of God.

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View YT's Profile YT Flag Oxford 27 Jan 23 10.01pm Send a Private Message to YT Add YT as a friend

Originally posted by saveloy

Hopefully some good news as McArtur is back in training and looked lively too,also Ferguson too.Video up on the Palace website.

Great! They'll be fit just in time to get injured on the pre-season tour.

 


Palace since 19 August 1972. Palace 1 (Tony Taylor) Liverpool 1 (Emlyn Hughes)

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View HesHereHesThere's Profile HesHereHesThere Flag Beckenham 27 Jan 23 10.08pm Send a Private Message to HesHereHesThere Add HesHereHesThere as a friend

Originally posted by sydtheeagle

Yes, they did. And I think they were right. The next four days will tell us a great deal about Harris and Blitzer's determination to divest themselves of Palace, and their appetite for risk along the way to doing so.

I can't help but wonder if they have some sort of hedge against relegation in place which may be encouraging their lack of ambition. Since structured products are essentially a dark market and also one of their areas of expertise, there's no reason to think they couldn't find a counter-party if they wanted to and if they were funding such an instrument, they certainly wouldn't be making it public knowledge.

Edited by sydtheeagle (27 Jan 2023 9.44pm)

You’re a broker the are you Syd?

I seem to remember Parish himself saying about standing still….

 

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View doombear's Profile doombear Flag Too far from Selhurst Park 27 Jan 23 10.15pm Send a Private Message to doombear Add doombear as a friend

Originally posted by YT

Great! They'll be fit just in time to get injured on the pre-season tour.


Can we afford one?
Do we need one?
Just play a few local London teams

 

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View martin2412's Profile martin2412 Flag Living The Dream 27 Jan 23 10.27pm Send a Private Message to martin2412 Add martin2412 as a friend

Originally posted by sydtheeagle

It's important to understand that there is no free cash flow in football. Clubs do not make an operating profit; revenues simply cover expenses. So there is no "cash money" at the end of each year that the owners can simply withdraw from the club, rather than re-investing it.

Football club owners make a return on their investment not year-to-year, but by increasing the value of the club over the longer term, then selling it for a profit because its revenue streams are greater and the club is, therefore, worth more than it was when they bought it.

To put it in very crude terms by way of an example:

Let's say Harris and Blitzer buy Palace for £2 million pounds (and Palace's annual revenues at the time of purchase are half a million pounds a year).

Every year following their purchase, the club generates 2 million pounds in revenue, and spends 2 million pounds to operate (wages, etc.) It breaks even.

But one year Harris and Blitzer rebuild the old stand (and the academy). As a result of the rebuild, with lots of shiny new hospitality facilities and better retail opportunities, annual turnover increases from 2 million to 3.5 million pounds.

The value of a club is a multiple of its turnover. Suddenly at, say, 5x turnover (a typical valuation of a club today), Palace is worth 5 x 3.5 million, or 17.5 million. Harris and Blitzer, who've taken no money out of the club during their period of ownership, walk away with a 14.5 million pound profit.

This is just an example, but it's broadly accurate regarding how things work. Nothing has happened to all the money the club has generated, other than it's gone to pay everyone from the bog cleaner to Wilfried Zaha. After the bills are paid, at almost every club, there is no money left.

Edited by sydtheeagle (27 Jan 2023 9.16pm)

You've forgotten the small detail of the cost of building the new stand and academy. Circa £120m.

There's no way they're making a profit anytime soon after forking out for that.

 

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