In the Spotlight
For the past week you have been emailing in your questions to club chairman Mike Rance. Subjects were wide ranging and we put the best of them to him yesterday.
So without further ado we hand you over to Mike.
Question 1
For the past 3 seasons the owners have funded a budget at the beginning of the season, only to have to dig the club out of a crisis and pay off a manager and hire a new one in order to avoid relegation. This has cost the club a considerable amount of money and I assume cost the owners more than they had committed at the beginning of each season. Why not fix a somewhat higher budget in the first place to hire a better/larger squad and the overall cost will come out less at the end of the season?And we retain a manager for a few seasons rather than a few months! My rough calculations would indicate that 300 on the average crowd could generate towards £100,000 over the season, so finishing in the top half rather than the bottom would probably pay back at least £100,000 of a larger budget in the first place?
(Graham)
Answer
The budget set at the start of each season at Moss Rose has to take into account assumptions on income and costs. Just like any other business we need to live within our means. Pre-season it's always attractive to build the impact of success into the equation (a bigger spend will generate better results which will lead to higher income) but bitter experience both here and elsewhere suggests that the risks are high. The playing budget made available to managers in recent seasons has been set at a level that should make us competitive at this level and it's obviously a disappointment that we've struggled in the last three years.
Though no final budgets have yet been finalized for next season, it remains our intention to be competitive in Coca-Cola League Two. At the same time we're setting out to improve the commercial performance of the club across all its activities. Success in our off the field activities can only contribute positively to our performances on the pitch.
It would be fantastic to be in a position by Christmas to be looking for opportunities to push on in 2009 rather than for options to ensure survival.
Question 2 (along similar lines)
We are a small club with very limited revenue. Our underlying financial strategy seems to be to live within our means. Therefore, our expectations have to be realistic & modest. Any relative success comes as a bonus & survival is the first target every season. The other approach would be to temporarily live beyond our means in the pursuit of success. Which approach do you favour? Is it ever justified to risk financial stability? If we gained success on the pitch through this approach do you think revenue would increase sufficiently to maintain the increased expenditure? Or will we always have a finite amount of interest from the local community?
(Andy)
Answer
I can say categorically that it would never be sensible to put the club's financial stability at risk in pursuit of success - the risks are too great and the League (and non-league!) is littered with others that have made this mistake. If we are going to progress we have to do it in a sustainable way. Football is changing. Its historical structure was set in the first half of last century and reflects the economy of those times. I believe we're relatively well placed to succeed in today's world. The game's supporter base is changing, as is the match day experience they're looking for. If we can meet the needs of the many people interested in football in East Cheshire we can progress in a sustainable way without taking unnecessary risks.
Question 3
Is there any more money due to Macc Town from the transfer of John Parkin? Was there a clause in the sell on fee if he got to the Premiership?
(Paul)
Answer
Transactions like this are dealt with by the Football League as it would be a clause in Hull City's contract with Stoke that would be relevant. Any payments to us via this route would be modest but welcome.
Question 4
How will you support KA during the summer and season 08/09?
(Ciaran)
Answer
Keith obviously has the full support of the Board after the great job he did in the final 12 games of last season. Keith's playing budget for this season will be in line with our intention to be competitive in Coca-Cola League Two. It would be fantastic to be in a position by Christmas to be looking for opportunities to push on in 2009 rather than for options to ensure survival.
Question 5
Is it tricky balancing the act between fan and chairman at times?
(Sarah)
Answer
It certainly is tricky because, self-evidently, I'm both!Being a fan is about passion and commitment not about rationality and common sense. Chairmen can be just as passionate as the most committed of fans but they lose touch with reality at their peril. Being Chairman of any business is challenging but being Chairman of a football club is special simply because fans care so much about their team. I have to get used to parking my "fan head" at the door when we're addressing the business. So far I can tell you that it's every bit as difficult as I thought it would be!















