Category Archives: Financial

Have issues relating to the DW Stadium been holding up the Garrido group takeover?

Posted by JJ (Tony) in Financial, Specials and tagged with , , ,

Lisa Nandy put the cat among the pigeons in her interviews with Jay Whittle and the PWU Podcast a couple of days ago. Her suggestion that the exclusivity rights for the Garrido group should not be extended was a bombshell. The prospect of other bidders coming into play at this stage of the proceedings was something that split opinion between fans on the message boards and social media.

“We are pleased to report that substantial progress has been made with the Council regarding the assignment of the lease.  In addition further discussions have taken place between the EFL, the bidder and ourselves and, in our opinion, all information requested of the bidders has been supplied including but not limited to proof of funds for the next two seasons.In the light of this progress, the exclusivity period, which expires today, has been extended.  We now await a final answer from the EFL, and no further comment will be made until that is received.”

The administrators’ communique yesterday put the ball back firmly into the hands of Jose Miguel Garrido and his associates.

But what was surprising was to learn that there had been issues involving the Council. Has the issue of the lease been a sticking point in the drawn-out takeover bid by the Spanish investors?

When Dave Whelan built the DW Stadium in 1999 he made a deal with Wigan Council over the lease of the land it was built upon. The agreement contained a requirement that “two sporting clubs be granted a licence for use of the stadium by the tenant.” Wigan Warriors were given a sub-lease for the use of the stadium until 2025. When Ian Lenagan bought the rugby club in 2007 the lease was extended for another 25 years.

Whelan’s ownership of Latics involved him setting up different companies to control the various operations of his purchase. The company that controls the stadium – Wigan Football Company Limited – is currently under administration. Wigan Council owns 15% of its shares.  If the Garrido group are to purchase the remaining 85% of the shares they need to come to an agreement with the Council over the lease. This necessitates the Spanish group coming to an agreement with Ian Lenagan over stadium rental.

Whelan’s agreement with Lenegan involved the Warriors paying rent according to their attendances. Reports have suggested that they contribute around 10% of their attendance money. Local journalist, Phil Wilkinson, estimates the figure to be around £300,000 per annum, although it can hover above or below that figure depending on attendances.

Mudhutter’s revealing tweet – click here to see his analysis on Twitter – reveals the extent to which the stadium is a white elephant to Wigan Athletic.

The figures Mudhutter has compiled show the stadium company losing some £1.5m for the 2018-19 season. With only £800,000 coming in rent from the Warriors and the separate company that runs the football club the stadium company was struggling to meet its expenses of over £4m.

There has been concern among Latics fans that Ian Lenegan might be intent on buying the stadium for the Warriors. However, the administrators have made it clear that the stadium was part of the overall package, although they did sell off the Euxton training facility separately. Moreover, why would Lenagan want to buy a stadium that cannot break even financially? Better to continue to pay rent, especially if it is pitched at such a modest level.

With spectators not able to attend games at the DW due to the Covid-19 crisis the stadium stands to make even greater losses this season. With no share of gate receipts and no income derived from food and drink sales on matchdays there is minimal income coming in. One wonders if the Warriors are getting off virtually rent-free during this period. Or is there a proviso in the agreement that covers such instances?

The administrators’ statement suggests that the bidders have now provided the EFL with the necessary information requested. In the meantime, the terms of stadium lease by the Warriors will need to be finalised between Garrido and Lenagan so that Wigan Council can give approval.

When Dave Whelan made the agreement with the council more than 20 years ago would he have envisaged that the stadium would become a veritable millstone around the club’s neck?

Advertisement

Wigan Athletic: why is there still so much uncertainty?

Posted by JJ (Tony) in Financial, Specials and tagged with , , , ,

The uncertainty about the future of Wigan Athletic has posed a challenge for us all: both supporters and those within the club. The message boards and social media have been awash with concerns about the impending takeover with performances on the field of play getting progressively worse. The loss to Chorley was a bitter pill to swallow and the probability that John Sheridan will be taking over at Swindon this week adds to the uncertainty that prevails.

Last night I had watched an excellent first half performance at Tranmere by the youngest side in memory fielded by Wigan Athletic. They scored two cracking goals: a Will Keane header from a cross by Tom Pearce and a rasping drive from outside the box by the 18-year-old Charlie McHugh. The performance was slightly tainted by a schoolboy error that gifted the home team a goal, but the level of movement and accuracy of passing was way above what we have seen in recent weeks. During the half time interval I checked Twitter to see if anyone had posted an opinion on the game so far.

However, the tweets from Latics fans were almost exclusively related to a communique from the EFL regarding the takeover. They once again indicated the concerns of the fans over the stalling of the takeover process that the EFL need to ratify.

The conspiracy theories suggested that the Garrido group’s bid was contingent on Supporters Club (SC) funds helping them to meet the asking price for buying the club. Another train of thought was that the EFL was being careful to be seen that it is doing due diligence and did not want to exclude the possibility of supporter representation on a new board of directors. The cynical line was that the EFL will do whatever it can to make things difficult for Latics.

Discerning the truth of what is happening is very difficult. However, communications over the past couple of months provide some indicators.

On September 30 the SC indicated that:

“We are pleased to share the news that an unnamed bidder has now progressed to the next stage of exclusivity with the joint administrators. Although there remains a long way to go in this process, the Supporters Club has made contact with the bidder and we are currently in discussions regarding the future involvement of the supporters at Wigan Athletic, should their bid be successful.”

On the same day the administrators stated that:

“We are pleased to announce that we have reached agreement with a preferred bidder from Spain. The offer that has been accepted deals with not only the sale of the club but also allows the payment to non-football creditors to avoid the 15-point penalty this season. In addition, a substantial deposit has been received. We are now working with our lawyers and the bidder to produce all of the necessary paperwork to submit to the EFL so that successful transfer of the football share can be made at the earliest opportunity. The preferred bidder who has experience in football has made it plain that they do not wish for their details to be made public until such time as the sale is completed and we are respecting this anonymity. No further details will be released until EFL approval has been obtained.”

Over the next month the paperwork was being put together by the bidders and administrators, although no definitive statement arose regarding the use of the crowdfunder monies in the Spanish consortium’s bid.

The Garrido group representatives and the administrators were to meet with the EFL to clarify the takeover bid on November 3. However, on that same day the SC put out another communique indicating that the bidders had invited them to invest crowdfunder monies as part of the bidder’s purchase of the club but that they felt “unable to move forward with the proposed deal at this time.”

The SC had met with the EFL on October 29, being advised on November 2 that afinal decision was needed regarding the investment by no later than 12noon on Tuesday 3rd November. They added:” The timescales have been insufficient to enable us to investigate the outcomes of that meeting and to hold the proper discussions with our wider committee.”

The SC also stated that:

“We are keen to invest the funds in order to secure equity in Wigan Athletic and a voice for the supporters. However, we must be sure that the proposed bidders have the wherewithal to purchase and fund the operations of the club and stadium successfully independently of our funds based on acceptable financial forecasts. We have been assured by the bidders that this is the case, however we feel it is important that proof of sufficient funds is confirmed by the EFL prior to any supporters’ funding being committed.”

Given these statements it appears that the Garrido group and the administrators went to meet the EFL on November 3 knowing that they could not count on the crowdfunding monies could be used in the purchase of the club. They would have gone into the meeting knowing that they had to provide sufficient proof of funding in their own right for the takeover to be confirmed.

Prior to the EFL communications yesterday evening the administrators had issued an update on the club’s site:

“We have not as yet had a final decision from the EFL regarding the transfer of the Football Share. Both the bidders and ourselves together with our legal team have had regular and ongoing discussions with the EFL regarding their requirements.  Our exclusivity agreement with the bidders, which runs out on the 11th November, has been extended for a further period to try and ensure that we reach a satisfactory conclusion. At this stage we cannot say when that will be as matters rest with the EFL. Whilst we fully understand the fans frustration and the effect generally on the club we must adhere to the procedures set down if we are to be successful.”

The exclusivity agreement has been extended to allow further time for the bidders and administrators to iron out what the EFL describes as “outstanding issues” that need to be resolved.

Jose Miguel Garrido has made his intentions clear through the local press as to what to expect if the takeover is approved. Some fans brought up in the days of the Premier League and Dave Whelan’s patrimony might be less than enthusiastic about the takeover by the Spanish consortium. The club would not rack up the debts that were incurred in recent years in the reigns of David Sharpe and Darren Royle. Money would be invested but with caution, with some £4m-£5m invested into the academy over a period of years to bring it to category 1 status.

For those fans who are concerned about the long-term sustainability of the club Garrido’s plans have great credibility. Latics could remain in the lower divisions for some years. In order to get out of League 1 on the last two attempts the club put itself in financial difficulties through paying player salaries that were hugely disproportionate to the norm in the third tier. However, if the academy continues to grow and a manager is appointed who will nurture young players the club can more than make ends meet.

Let’s hope that this saga ends up in a more satisfactory end result than what happened at Prenton Park last night where we witnessed a penalty shootout in which both teams performed as poorly as I can remember. The final shootout in the takeover proceedings needs to go in Wigan Athletic’s favour!

The turnover continues: will Latics have a 20-goal striker this season?

Posted by JJ (Tony) in Financial, Reflections, Social Media and tagged with , , ,

It was not Alan Nixon this time, but another journalist putting the cat among the pigeons on Twitter. Wilson Whitefield’s tweets certainly caught the imaginations of both Wigan Athletic and Queens Park Rangers fans.

Twitter comments can certainly be controversial. Sometimes their statements never come to fruition, but sometimes they can prove to be accurate. We await confirmation from the club regarding the veracity of Whitefield’s comments.

A couple of years ago Gary Caldwell signed a 20 goal per season striker in Will Grigg. Grigg had done it at both Walsall and MK Dons and he was to do it again at Wigan in 2015-16, spearheading Latics’ League 1 title triumph. Omar Bogle exceeded the 20-goal mark last season. He scored 22 goals in 44 league appearances for Grimsby Town and Latics.

The more optimistic of Wigan Athletic fans have been relishing the prospect of both Bogle and Grigg being at the club this season, together with the hugely talented Nick Powell who can play either at centre forward or in midfield. The presence of the three would surely provide the momentum to push Latics back into the Championship

But economic factors cannot be ignored and the realists will say that at least two, or possibly all three of them, will be gone over the coming weeks. Put simply, despite the PR and propaganda that emanates from the club and local press, the huge drop in revenue due to relegation and loss of parachute payments will cause continued turnover at the club.

Both Grigg and Michael Jacobs are in the final years of their contracts. Latics could conceivably offer them contract extensions, but that could prove tricky not knowing which division the club will be in a year from now. An alternative is to cash in on their value in the transfer market this summer or in the January transfer window. Another option is to allow them to run their contracts down and decide on whether to offer them extensions later in the season. Being a proven goal scoring centre forward Grigg will continue to attract a considerable transfer fee, despite his disappointing season at Championship level. The likelihood is that he will be leaving in the coming weeks.

Powell is reputably the highest paid of the current squad and that added to his injury record would prove a very expensive luxury for a club looking to cut its budget by 60-70%. His inspiring cameo appearances at the end of last season certainly whetted our appetites, but his departure seems almost inevitable, providing he is fit.

So, given a scenario where Bogle, Grigg and Powell all leave, can we expect a centre forward of such qualities to come in and propel the promotion push?

The media rumours continue to link manager Cook to ex-players of his at Portsmouth. It seems that the signing of 34-year-old free agent Noel Hunt appears imminent. Hunt has scored 8 goals in 70 appearances over the past four years for Portsmouth, Ipswich and Leeds United. The names of Eion Doyle, Gary Roberts and Michael Smith have also been mentioned, together with Whitefield’s tweet about Chaplin.

In the meantime the turnover appears to be continuing with not only the speculation on Bogle, but the message below from Max Power that was tweeted in the last hour.

Despite the utterings of keeping the nucleus of the squad together on Paul Cook’s arrival it appears that this will hardly be the case.

The financial side of keeping a nucleus for League 1

Posted by JJ (Tony) in Financial and tagged with , , , , , , , , , , , ,

“Que sera sera…..whatever will be will be….we’re going to Shrewsbury….que sera sera”

So sang a group of Wigan Athletic supporters. It certainly took the wind out of the sails of the “going down” taunts of home fans at the Madejski Stadium last Saturday.

Shrewsbury is certainly a pleasant place to visit. Its football team has competed in each of the three EFL divisions. Their New Meadow stadium holds 9,375. Shrewsbury Town met Manchester United in the FA Cup in February 2016. They lost 3-0, which is not surprising given the fact that the Shrews had a wage bill of £2.5 m compared with £210 m of United.

In fact the Shrewsbury wage bill is typical of many clubs in League 1. According to an interesting article on the Daily Mail site, the average salary of a League 1 footballer in 2014-15 was £69,500. It compared with £324,200 in the Championship. The ratio of the average salaries is 1 to 4.7.

There are strong arguments to suggest that the league positions of clubs in the Championship division correlate to their wage bills. In their first season back in the Championship Wigan Athletic finished in a playoff place. The wage bill was around £30 m. Clubs in mid-table would typically have wage bills averaging £20 m.

Latics’ reputed wage bill for the current season is around £17 m. Assuming they were to trim next year’s wage bill according to, say, that previous ratio of average salaries between the two divisions, it would give a figure of around £3.6 m. In 2015-16, still buoyed by parachute payments, Latics had a wage bill of around £6 m in League 1, reportedly second highest after that of Sheffield United.

So at what level will David Sharpe pitch the wage bill for the coming season? As in the Championship there is some degree of correlation between wage bills and success on the playing field in League 1. If the club is to break even financially next season what kind of wage bill would be realistic? Moreover will the club be able to slash its wage bill as successfully as it did in the summer of 2015, when faced with a drop down to the third tier?

In 2015-16 Latics finished top of League 1 with an average attendance of 9,467. Shrewsbury Town finished in 14th place with an average of 5,407. The average attendance for the division was 7,163. Wigan’s cheapest adult season ticket cost  £250 while Shrewsbury’s was £285.

David Sharpe took a bold step in reducing season ticket prices for the club’s return to the Championship. Renewals were pitched at £179, with a price of £199 for new purchasers. The levels were uneconomic compared with those of competitor clubs, but Sharpe was clearly hoping to not only hold on to the core support, but to attract others. With just one match to go in the Championship season Wigan’s average home attendance is 11,560 up by more than 2,000 from the previous season in League 1. However, the bigger clubs in the Championship have brought sizeably larger away support than had those in League 1.

Rumour suggests that the club will maintain the levels of season tickets prices for the coming season. If this is so the £179 price would be almost 40% less than the figure of £295 to be offered by Shrewsbury Town for the coming  season. Moreover should Latics not be as successful as they were last time in League 1 attendances will surely fall. The match day revenue differentials between Wigan and Shrewsbury could merge closer.

Put simply potential match revenues for Wigan Athletic will in no way suffice to give them a competitive advantage over most of their rivals. Some would say that under Gary Caldwell Latics had bought their way out of League 1, having a wage bill twice that of most of their rivals. That was made possible by the parachute payments they were receiving at the time. However, now that the parachute era has come to an end, how can Latics get a financial advantage over most of their competitors in League 1?

One solution is to sell off assets. The second is for the ownership to provide the necessary funding.

The saleable assets Latics have are their players. The club’s main asset, Yanic Wildschut, was sold in January for a hefty premium. Early in the season Will Grigg would have been another major asset: he was scoring goals and looking comfortable in the higher division. It was sad to see how the player later found himself either warming the bench, playing as a lone centre forward with a derisory lack of support, or being played out of position. A player who could have probably drawn a transfer fee in excess of £5 m is now not such an attraction on the transfer market. Better to keep Grigg who has a superb record of goalscoring in League 1.

Nick Powell will surely be on his way. After months out through injury he roared back with spectacular performances as a super sub. In doing so, Powell put himself in the shop window. Dan Burn is another player who has caught the eye and will surely be of interest to Championship clubs. Burn was already an experienced Championship level player when arriving on a free transfer from Fulham. He has since developed a level of self-confidence  previously lacking. Between the two, Latics could possibly raise around £5 m on the market.

Omar Bogle was the most exciting of the January signings. Having scored a lot of goals for Grimsby he arrived brimming with confidence and style. But after a promising start Bogle was to wilt under  a horrible burden put on him by Joyce: that of being the lone striker in a 4-5-1 formation. Injury too was to hold him back. Like Grigg, his potential transfer value has plummeted. But the likelihood is that either Grigg or Bogle will be sold, albeit at a discounted price.

Max Power was almost sold to Birmingham City in January. Although he did not have the season he would have liked, Power remains one of the more saleable assets. Sam Morsy too is a player who could be sought by Championship clubs.

Last weekend Jonathan Jackson stated that “There will be some changes in the squad, but we want to keep the core there.”

Goalkeeper Matt Gilks and ex-captain Craig Morgan will be two of those core members who continue. Gilks was only signed in January on an 18 month contract and Morgan recently signed a two year extension to his contract. The long-term injured players – Donervon Daniels, Reece James, Andy Kellett and Shaun MacDonald – will also be staying. Alex Gilbey is another who has not been able to play in recent games after coming back from long-term injury. Latics will be hoping at least some of those players will be available for the beginning of next season.

It is difficult to predict who else will stay to provide a core for the coming season. The club is going to have to slash its wage bill some 60-70% to be financially viable. Put simply more than half of the players currently under contract are likely to depart over summer, many on free transfers. Others will be sent off on loan.

The players currently under contract for the coming season are:

Goalkeepers: Matt Gilks, Dan Lavercombe

Full Backs – Luke Burke, Reece James.

Centre backs: Dan Burn, Jake Buxton, Donervon Daniels, Jack Hendry, Craig Morgan.

Midfielders: Jack Byrne, Alex Gilbey, Andy Kellett, Josh Laurent, Shaun MacDonald, Sam Morsy, Max Power, Danny Whitehead.

Forwards: Nathan Byrne, Omar Bogle, Ryan Colclough, Will Grigg, Michael Jacobs, Mikael Mandron, Sanmi Odelusi, Nick Powell, Kaiyne Woolery.

The amount of turnover at the end of the 2015 season was remarkable, with 31 incomings and 44 outgoings, including loan players.

Latics currently have seven whose contracts are due to expire – Jordan Flores, Jussi Jaaskelainen, Billy Mckay, Gabriel Obertan, David Perkins, Andrew Taylor and Stephen Warnock. There are another eight players whose loans are coming to an end.

In 2015 Gary Caldwell had already been installed as manager to oversee the massive turnover that took place over the summer.

At this stage we do not know who the next manager is going to be and there have been mutterings about taking the time to choose the right man for the job.

But given a mountain of a task ahead we might well see an appointment made sooner rather than later.
Like us on Facebook, or follow us on twitter here.

The finances facing Joyce

Posted by JJ (Tony) in Financial and tagged with , , , ,

Photo courtesy of Wigan Athletic FC.

Photo courtesy of Wigan Athletic FC.

Just nine days ago Warren Joyce left a comfortable position at Manchester United to join a club struggling to avoid relegation whose budget ranks them at 19th in the Championship division.

Why would Joyce sever the link with Manchester United, a giant club where he had been held in high standing for more than eight years, to take over Wigan Athletic? How did David Sharpe sell the move to him?

A three and a half year contract probably helped, but what vision did Sharpe give him of where he expected the club to go in that time? What financial backing would the chairman be willing to provide to help Joyce compete for new players on an even keel against other clubs in the division?

Joyce has a fine reputation for developing young players, but it was at a club where funding was plentiful. If Wigan Athletic’s wage bill is already low compared with the majority of clubs in the division, what is it going to be a year from now when the inflow of parachute payments will have dried up?

It was Jonathan Jackson who mentioned the budget ranking at a recent Fans Advisory Board meeting, according to a reliable source. But how can this be the case when Latics are still receiving parachute payments?

Getting accurate financial data from football clubs is never easy and what you can get applies to years well gone by. But Jackson’s alleged statement certainly gives food for thought.

If a business were run like a typical Championship club it would soon find its way to bankruptcy. In 2014-15 Bournemouth spent lavishly on their ascent to the Premier League, making a loss of £39 million. From a financial point of view it could be said that the Cherries’ gamble came off and that the loss could be written off by the huge increase in revenue in the Premier League. But Fulham lost £27 million in finishing in 17th position, with Nottingham Forest losing £22 million and Blackburn Rovers £17 million only to hover around mid-table.

In fact 18 of the 24 clubs made losses that year. Of those in the black, Birmingham City and Wolves used their £10 million parachute payments to keep their heads above water, each making a profit of around £1 million. Three other clubs showed profits through transfers, revaluation of assets and owners writing off debt. Only Rotherham United, who made a tiny profit, did so without such inputs. They did well to narrowly escape relegation.

Wigan Athletic are one of 8 Championship clubs receiving parachute payments. The clubs that are newly relegated from the Premier League will receive around £28 million in their first season, whereas Latics are in their final parachute season and will receive around £10 million. Next season they will receive a solidarity payment of around £2.5million due to clubs in the division who are not in receipt of  parachute payments.

Last season in League 1 the parachute payments gave Latics a huge advantage over the other 23 clubs who did not have them. They were able to pay out major transfer fees and offer lucrative salaries to players who had completed their contracts at other clubs. The result was a squad too strong for the third tier.

However, the tables have now turned. Wigan Athletic find themselves in a division loaded not only with other clubs buoyed by parachute payments, but others whose owners are splashing out major money in a bid for promotion. In contrast Latics’  recruitment policy has had to be adapted according to the constraints of its finances.

Five players have been brought in on loan, another nine for either economical transfer fees or on free transfers. When Latics last started a Championship season under Owen Coyle the salary budget was around £30m.  The current budget could be as much as 40% less. The main factor is the reduction in the parachute payments from around £25m in the first year and £20m in the second to £10m in the third and fourth years. However, knowing that there will be a major drop in revenue next season, the club has had to be careful in offering long term contracts with lucrative salaries. One half of the players recruited this summer have contracts that expire before and or at the end of the season.

In a recent visit to Brentford to watch Latics fight I spoke at length with a group of their fans about their chances of reaching the Premier League. On paper it does not seem impossible. On coming up from League 1 the Bees finished 5th in 2014-15, reaching the playoffs. Last season saw them finish 9th. However, the Brentford fans were not optimistic about their club’s ability to reach the top division. They pointed out that they have a salary cap for individual players and have to sell off their top assets if realistic sums are offered. They surmised that owner Matthew Benham has put in over £90m into getting the club where it is today. Without his support they would surely flounder.

Brentford provides a model for comparison. Their average crowd last season was 10,700 which is close to what we can expect at Wigan this season. But in gaining promotion they made a loss of £7.7 million, which rose to £14.7 million that first season back in the Championship, with wages going from £10 million to £17.7 million.

The reality is that, without major input of funds from the owners on par with those of competitor clubs, Latics will not be able to compete on an even keel in the division.

Following a dire 3-0 home defeat to Reading, Wigan Athletic’s place in the Championship remains in jeopardy. There were always going to be questions over the ability of players from last season’s squad to replicate such form in a higher division. Moreover a more cash-strapped  recruitment process involved  a number of the players brought in have been short of first team exposure in the past year. This is not to suggest that those players do not have sufficient quality for the division, but it was always going to take them time for their match sharpness and overall fitness to reach a competitive level.

It is once more a period of transition for Wigan Athletic. For so many years Dave Whelan’s  financial backing, together with good management and terrific spirit, helped the club eclipse so many of the others currently in the Championship division. But times have changed and we will have to wait and see how the club will cut its cloth over the coming 12 months.

The first priority is for Joyce to get his new club out of the relegation zone and consolidate its place in the division. Should that happen we will then be looking at how the club is going to stay competitive in a division when the financial odds will have turned against their favour.

In his first full season David Sharpe brought back vitality and optimism to Wigan Athletic. His positivity shone through in his communications with the media and in his willingness to spend big in bringing players into the club who could help ensure promotion back to the Championship. When he appointed Gary Caldwell he talked about bringing back football played “The Wigan Way”, suggesting that the Scot would be there long-term. The chairman’s positivity was to be rewarded with a League 1 championship title.

But times and circumstances have changed.

In the summer of 2015 Sharpe had splashed out close to £1 million to bring a central striker, a hefty fee for a club about to begin anew in League 1. Moreover in the January transfer window he finalized the transfer of a player on loan for around £600,000. Without Will Grigg and Yanic Wildschut Latics would have been hard pressed to get promotion, let alone win the division.

This summer saw players brought in for modest fees, others being free agents or loanees. Granted Sharpe did stick his neck out to offer contracts which one assumes were close to the market rate for players like Jordi Gomez, Adam Le Fondre, Nick Powell and Stephen Warnock. Moreover a three year contract was offered to the 31 year old Jake Buxton who arrived on a free.

Sharpe’s recent comments about Joyce’s appointment and the club’s immediate future suggest that the Whelan family is unwilling to put in the kind of financial investment that is the norm in so many other clubs in the division. The chairman has made it clear that he is not going to throw money around in the style of clubs like Derby County, whilst emphasising the new manager’s skills at developing players. Put simply there is not the same vibe coming from the young chairman that we had a year ago.

The main aim for the current season must be consolidation in the Championship. It is to be hoped that Sharpe will avoid the kind of fire sale that we witnessed in January 2015 that led to relegation. It was an exercise based on cutting the wage budget by at least 30%. Significant money was saved in the short term, the club eventually losing £3.9 million for the season, substantially less than it would have been. But relegation was to mean that the club would only have one more year of a parachute buffer even if it were to regain Championship level status. With hindsight the scale of the clear out was a major mistake. But will history repeat itself this coming January?

In the meantime Joyce will try to get the best out of a squad that has enough quality to get out of the relegation zone. In the long-term, assuming he is given the longevity denied to Caldwell, he will most likely be working on a budget that will be dwarfed by those of the vast majority of clubs in the division. The strategy will involve selling off the pick of those young players the manager has developed in order to stay afloat.

Joyce’s immediate task of consolidation in the division is his most immediate challenge. Should he manage to do that he will face a more difficult task: that of achieving miracles on a shoestring budget.

Like us on Facebook, or follow us on twitter here.