VIDEO: A Must-See Analysis Of Crystal Palace’s Current Finances

1 Posted by - July 19, 2018 - News, Video

Crystal Palace’s (lack of) transfer activity during the current window has been the source of much discussion within the Eagles fan-base but when you examine the current financial picture in SE25, it’s not hard to see why the purse strings are being tightened this summer.

Thanks to the delay in Palace filing their accounts, an analysis of them has taken longer than first expected but the excellent “Tifo Football” have produced a fantastically informative video breaking everything down piece by piece.

Whilst it’s easy to moan about the lack of incoming signings at Selhurst Park, it’s worth highlighting just how much has been spent on player recruitment over the last couple of years. Whether you’re looking at Benteke, Milivojevic, Sakho, Van Aanholt, Schlupp, Townsend or Sørloth, it’s fair to say that the club have spent big when compared with their direct rivals over the course of the last 24 months.

Sadly for those of a red and blue persuasion, it seems as though we’ve reached the upper limit of our spending power; a fact which led directly to the plans for improvements to Selhurst Park, allowing for more match-day revenue. Whilst television remains the biggest factor in our financial picture (roughly 80% of our income comes from it) there is no denying that changes need to be made to the stadium for us to progress in the long-term, regardless of anything you hear to the contrary.

With wages having grown at a rather alarming rate since we regained a place in the Premier League in 2013, this summer is being looked upon by those in the club’s hierarchy as a time to tighten our belts and reverse the increase that has been steadily taking place for half a decade. Fans will understandably be anxious about the plans but it is quite simply unsustainable in the long-term to carry on splashing the cash at the rate we have after hitting a glass ceiling in terms of our annual income.

Other clubs often make up for their transfer outlay with sizeable chunks being made back in player sales but since selling Yannick Bolasie to Everton, Palace haven’t really received a decent chunk of cash for any departing member of the first-team, which was always bound to have an impact on our financial wiggle room in the market.

The above video takes a subject which could be seen as extremely complicated and simplifies it wonderfully. If you’re a Palace fan with even a passing interest in the club’s financial health, it really is a must-watch.

Enjoy.

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8 Comments

  • terence carter July 19, 2018 - 7:00 am Reply

    i understand their plight.but u have to have a long term view.do u think this currant squad as it stands,will keep us in the prem next season.because unless benteke hits form i think we will be relegation fodder.and come january parish will panic and overspend.finances may not be great but then where do we go.im not optermistic,but will hold fire untill transfer window closes.

  • Spiceboy July 19, 2018 - 7:11 am Reply

    Good find Hoppo. So basically any article you write relating to a potential transfer is a waste of time for you writing it & us reading it as we simply don’t have the funds to invest in them. I think we need a new approach on transfers & buy some up & coming players with a sell on fee. I’m hoping we have enough in the pot to at least loan a couple of players 🤞

  • Jose Fonte, baby? Jose Fonte, oh, oh, oh July 19, 2018 - 10:04 am Reply

    Tifo is a great site and their videos are fantastic but i don’t buy it. We have a record tv deal, an 11th place finish, 6th season of PL football and have trimmed Damo, Chungy, Sako and Cabeye off the wage bill (200k per week). We also supposedly received a cash injection form wealthy american owners. How is there no money?

    West Ham have a bigger stadium but the transfer fees, wages, location and ownership are of a similar size. How can they drop 60m yet we struggle to spend anything?

    The stuff in there about tripling the rent to Parrish buildings and how he uses Palace as a business client is also a bit too Mike Ashley for my liking.

    • admin July 19, 2018 - 10:25 am Reply

      I think it’s more a case of FFP limiting us, rather than cash itself being the problem JFB. West Ham have the free use of a stadium with double the attendances and loads of corporate seating too. It’s all revenue streams these days.

      • Jose Fonte, baby? Jose Fonte, oh, oh, oh July 19, 2018 - 11:34 am Reply

        If corporate seating is the difference between signing Guatia on a free and Felipe Anderson, Diop, Wilshere, Fredericks, Fabianski and Adreiy Yarmolenko then I am amazed. It’s not like West Ham have had tight belts and low net spend the past 2/3 seasons.

        Even teams with the biggest stadiums don’t generate that much through match day revenue. Most do it through partners and sponsors; training ground, training kit, third kit, official watches etc.

        • Gordon July 19, 2018 - 3:53 pm Reply

          I haven’t seen the stats on W Ham transfer spending, but recall the ugly scenes at one of their home games late last season as their fans protested about the lack of spending. The flamboyant opening of the purse strings in this transfer window is no doubt a public recogntition that they had underspent. There’s no way we can be said to have underspent.

  • Gordon July 19, 2018 - 10:10 am Reply

    Fascinating insight into a complex subject.
    We could buy, but would need to sell as well. The trouble is that the sought after players in our squad (Zaha, Townsend & van Aanholt) are too valuable to us. Sakho, Tomkins, Milivojevic are also indispensable. The big name we might like to cash in on & reduce the wage bill (Benteke) is damaged goods atm due to his disastrous record last season.
    There’s no doubt that Allardyce signed 4 excellent players in Jan 17, but he didn’t sell any. 6 months earlier Pardew traded players, bringing in Benteke, Townsend & Tomkins for a net outlay of just £8.5m and in so doing selling players that were at or past their peak.
    I don’t want to lose Townsend but I can see it happening and us ending up with Antonio and a few £m spare to add to the couple of £m we probably have in the kitty to try to fill the creative midfield role. Loan deals are going to be so critical. And we need to get some value out of our development squad. And, of course, we need Benteke back in form.

    • admin July 19, 2018 - 10:26 am Reply

      Agree with all of that, Gordon. It’s easy to get swept up in things but compared to the rest of the division, we’ve been heavy spenders over the last 2 years.

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