Wharton estimates United face £4m deficit following relegation
SCUNTHORPE United chairman Steve Wharton estimates relegation from the Championship will cost the club in excess of £4million.
And though there will inevitably be financial cut-backs next season, he insists new manager Alan Knill will be given a budget that will make the Iron competitive again in League One.
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BALANCING THE BOOKS: United chairman Steve Wharton.
"Being relegated is a big disappointment," said the United chairman.
"I believe it is harder to win promotion back to the Championship than it is to stay there.
"Going down to League One is a financial setback that cannot be over estimated.
"There is a huge drop in revenue of about £3.7million from what we would receive as a Championship club.
"Added to that is the loss of income from away supporters which will take the figure to £4million.
"Obviously we will have to make savings where we can, but we cannot put ourselves in a straight jacket which gives us no chance of challenging for promotion again."
When United last went down to League One level three years ago, they bounced straight back through the play-offs.
But despite two visits to Wembley within the space of seven weeks (the Johnstone's Paint Trophy final being their first trip), they still made a loss of more than £1million.
That was cushioned by the return of Championship revenue going into the club's coffers – and last summer's sale of Gary Hooper to Celtic for a fee believed to be in excess of £2million.
"The intention last time was to make cut-backs, but not to do it too savagely," the chairman continued.
"The reality was we did end up spending more money than we had anticipated."
That involved the signing of players like David Mirfin, Sam Togwell, Martyn Woolford and Hooper to strengthen the United ranks.
Wharton insists he and the board will do everything they can to back Knill as he tries this summer to rebuild the squad he has inherited at Glanford Park.
And he will be looking for the Iron to return to their policy of flushing out young talent from the lower divisions.
"When you get into the higher league, if you are not careful you forget how you got there and try to start bringing in experienced players who you have got a job in trying to persuade to come to Scunthorpe," said the United chairman.
"We went through that learning curve with Nigel Adkins and have now been through it again with Ian Baraclough.
"I think Alan Knill has got more experience and a greater knowledge of players in the lower divisions."
Wharton insisted that on top of the budget already set, United would always look to find room for young players they can develop.
One thing that will be reduced next season is the club's wage bill, which now stands at a record £5miilion plus.
Under the terms of their contracts, the players' wages will reduce in League One.
It will make a difference – though not a significant one compared to the revenue loss.
Wharton confirmed that United will be reducing their ticket prices for next season. The new price list will be announced later this week.
7 Comments
by 1500club, World of Soul
Thursday, May 05 2011, 8:18PM
“A) Return to the 2D badge/Iron Fist.
B) Allow supporters to stand/sing in the GWS corner.
C) Expand the Iron Bar outwards with outside decking.
D) Allow pay on the gate and advertise it.
E) Sign a full squad before the season ticket deadline - rather than in September/January and stick with it.
F) Promote away tickets at GP to away fans - larger away crowds (££) also bring in more home fans (££).
G) Confirm that a new stand will replace the DRE regardless of division - why keep Scunny standing when it's behind a stancion, in LAZER BEAM-ESQUE SUNSHINE, directly into the wind with abysmal acoustics.
H) Bin the mic man and all music up till kick off.
I) Re-launch the 'Iron Babes'.
J) Arrange interesting friendlies that capture the imagination.
K) Commit to build the JB statue in town.
L) Encourage open training sessions at GP.
M) Play a full stregnth side against Grimsby with cash incentives for every goal over a score of ten.
N) Stop bleating at every opportunity, grow some hair around the clubs nackers and strive to be the best plus one.
O) Announce a series of summer concerts at GP - none of that Rod Stewart/Elton John nonsense either.
P) Charge OAPS the same as everyone else. Give these moaning parasites something to really cheese them off.
Q) Either play at 3.15pm of return to Friday night games.
R) Demand that the coouncil install a train platform at GP in the name of the 'Iron Carbon Footprint'.
S) Open from 8am to 8pm seven days a week over the summer.
T) Choose an away kit that actually works and has tradition - WHITE.
U) Scrap the directors box, ensure all directors must stand and sell these seats off as VIP packages.
V) Have next years kit available to buy from this Monday.
W) Offer £5 away coaches to every game, even if that means a small loss.
X) Launch an Exec club alongside the new exec bar - also, demand it is strictly shirt, tie, monicle for entrance.
Y) Advertise in town on a billboard and aggresivley in the provincials.
Z) Give Knill the funds to sign one marque signing like Graham Alexander.
Net result - 5,000 season ticket holders, 1,000 pay on the gate and (with some graft) 2,000 away fans....other clubs have gone down and progressed like Norwich so why cant we?
In all seriousness, the new media centre (which needs re-naming/re-branding before it's opened it's doors...wtf does that name inspire other than 'page 135 Ikea catologue'...'media centre' indeed..zzz) is QUALITY, the club has built three new bars (SET, GWS, AMS) and we've binned Hobot etc for Nike...progress has been made but it's been far to slow, we need REVOLUTION not EVOLUTION.
Up the Iron!”
by dazza, scunny
Thursday, May 05 2011, 4:05PM
“you only have yourself to blame mr wharton”
by Eddie Murphy, Beverley Hills
Thursday, May 05 2011, 3:26PM
“Adequate replacements for those that left last summer, and we might not now be moaning about the loss of TV money. Most supporters knew where we were lacking, but the happy clappers accused them of wanting the club to fail and now look where we are. That has to be the worst Championship, in quality terms, in years - it was a real chance to improve on the achievements of the season before, yet the club blew it. Not to bang 1500's drum for him, but what have we got to show off the pitch for 3 seasons at this level? Anyone? The club have to make some sign of intent, or attendances next season will be even worse than this.”
by d, at work
Thursday, May 05 2011, 12:37PM
“it was said by Beeby at Fans forum that both Adkins and Barahoof had the backing of the board to purchase ANY player they wanted. Knill said as well that in this day and age it is the players who hold the power whereas in previous years, the teams had the power. Let's be realistic no 'big' names wants to play at Scunthorpe United. point in case..Sammon, he opted for a premier league team over SUFC.
I will not be surprised that we will struggle to go back up to Championship league, we'll be lucky to finish mid-table next season.
But I'll still support the IRON!
UTI”
by Marlow traveller, Marlow
Thursday, May 05 2011, 12:29PM
“Doesn't sound good does it? It looks like AK will be on a strict budget looking at Conference players. I cannot see a swift return to the Championship with this attitude. There has been no mention of the parachute payment, not sure how much that is from the FA but it all helps the financial situation.
We can all bang on about poor management and signings over the last 9 months, but whats done is done, sell what little talent we have that AK doesn't want, we have a reduced wage bill and there is now no need for a new stand. Priority is now to have a good standard football team and increase the attendance, thats the bread and butter of any club. UTI”
by GRAHAM, SCUNNY
Thursday, May 05 2011, 10:27AM
“HERE WE GO.. I KNEW THIS WAS COMING....YOU CAN'T HAVE IT BOTH WAYS WHARTON...IF WE HAD STAYED UP IT YOU WOULD OF BEEN MOANING ON ABOUT WAGES AND THE NEW STAND !! YOU SPENT NOTHING LAST YEAR AND RAKED IN MILLIONS.. I AM ONE OF THE SO CALLED ALIENATED FANS ... I STAYED AWAY THE LAST 6 MONTHS BECAUSE OF THE WAY YOU HAVE MIS-MANAGED THE CLUB AND I USED TO BE YOUR BIGGEST FAN..IF KNILL DOESNT HAVE THE SAMMON MONEY ... AT LEAST YOU WONT SEE ME FOR DUST...”
by P.Doff, Preventionsville
Thursday, May 05 2011, 9:41AM
“Prevention would have been better than cure. It's OK bleating about it now but why did the club fail to see that the previous management set up was stifling players and having an unhealthy level of fallings out with key players.
We could see it, we could see Parkin especially was killing the team so why couldn't you.
Knill was three months too late, you failed to act, you alienated too many fans allowing the style of play and management to remain in place.”