Tim Fisher : CCFC worth £930K to Wasps

[Heathen]

Apologies for posting here as well as on the DW site.

Coventry City Chairman Tim Fisher has said that the Sky Blues are worth more than £930,000 to Wasps over the course of a season.

Using the programme v Blackpool, for his latest piece of avoiding any reference to the legal action that the two companies that he is a main director of, are taking against Wasps, Arena Coventry Limited and the City Council, Mr Fisher wrote:“There is seemingly one point of confusion upon which the club would like to add clarity.

“We have all seen published statements that the Club contributes around £100,000 each year to the landlord's stadium finances.

“However, for the avoidance of doubt, during the 17/18 season, the club contributed somewhere in the region of £930,000 to the landlord’s stadium finances.

“This included the £80,000 (this was League 2 – in League 1 it is £100,000), ACL matchday costs (e.g floodlights, undersoil heating etc), payments made to IEC (the stadium catering Joint Venture company) and revenue from Food & Beverage sales on our matchdays.

“This does not include other stadium related income such as car parking, for example, and secondary revenue such as fans drinking in the café and Bar in the atrium, booking hotel rooms or the value our matchdays with fans frequenting the on-site casino.

“On top of this figure, there was also non-matchday events we held at the stadium such as Evenings with Kevin Keegan and Harry Redknapp.

“Outside of the stadium there is a financial ‘halo effect’ with local pubs and shops benefiting from match day attendance.

“The Club directly employs a total of nearly 400 full-time and part time staff, which includes matchday stewards and employees, and indirectly employ many more local people, including over 200 each game at the stadium in catering.

“Beyond a substantial financial contribution to the City, Coventry City is a significant part of this City’s history and culture and is undoubtedly a cornerstone institution.

“Indeed, there is no price or value put on the feelings that the supporters have for their club and that is why it is imperative that the Club continues to push for a solution and a resolution to the current impasse.”

[wasps]

So is he in a roundabout way saying that the rent probably is £100k per year.

But that other stuff adds up to nearly £900k per year?

[NellyWellyWaspy]

A lot of numbers and ifs, buts and maybes. I doubt that it is anywhere near half that number. Still a lot of money though. But a lot less than the lawyers bill racked up so far by Wasps, and I doubt they will get any of that back.

[Neils]

So - Nick says it is £100k and the guy taking us through the courts says it is nearer £1M. I know which one I tend to believe. I suspect there is a bit of hidden gain but nothing like his figure. Fisher is Otium so has to spin for his audience. They have cost Wasps at least £500k in increasing legal fees so if they want to negotiate put that figure on the table to start negotiations and then look at a considerable increase per annum - say £500k to £1m. That footy game is wrecking our pitch!

[Raggs]

Match day costs aren't actually that useful to us, but likely form a very large sum of that figure.

[JB]

Match day costs aren't actually that useful to us, but likely form a very large sum of that figure.

Just a rough calculation using CCFC's attendances and average spend on food and drink (extrapolated from the last available figure I can find in 2015 of £1.97 per head, changed in line with Wasps' fluctuations in F&B spend per head - £6.16 last season) gives a contribution towards revenue of ~£472k last season and ~£430k the season before. That's revenue, there are associated costs with it obviously.

Add the rent and match day costs on top of this and you could easily get to the £930k figure quoted I suspect. But that's revenue, whether or not it's profitable (enough) is another matter.

[Raggs]

Is food and drink revenue? Does that not all go straight to Compass, rather than us? And then Compass give us our 50% share of the %agreed upon.

[JB]

Is food and drink revenue? Does that not all go straight to Compass, rather than us? And then Compass give us our 50% share of the %agreed upon.

Valid point, but Wasps owned 70+% of Compass (71, 72, I don't recall the exact figure) so the large majority of it came to us. Wasps, as of last year, now own 100% of Compass so going forward it is all ours. 

[JB]

Slight correction, Wasps own IEC which was the joint venture between ACL and Compass. They never owned any part of Compass.

[BG]

Slight correction, Wasps own IEC which was the joint venture between ACL and Compass. They never owned any part of Compass.

Thanks for the clarification. I was getting confuggled as I was sure Compass were a national catering company so wondered how Wasps could own them? But weren't compass ditched during the summer for an American based catering company who also do the catering at Twickers, or did that all fall through

[BlackCountryWasp]

If I recall correctly. The catering is now with Delaware North. As with most stadia, it's outsourced and then we get a share of the profits made.

CCFC won't get anything from food and drink sales unless it's been specified in the tenancy agreement that they would.

[Neils]

You recall correctly and it is a bit improved from Compass days.

[BG]

Has the service in The Clubhouse improved since the new company took over? I wouldn't be at all surprised if the catering compny use the same staff as Compass did behind the bars etc.. they will most likely be agency staff

[RBB]

Service is the same, I am not sure I have noticed any difference at all. The offering is distinctly average at eye-watering prices!

[JB]

If I recall correctly. The catering is now with Delaware North. As with most stadia, it's outsourced and then we get a share of the profits made.

CCFC won't get anything from food and drink sales unless it's been specified in the tenancy agreement that they would.

A couple of years back CCFC negotiated to receive 50% of the concourse F&B relating to their games. This was reported by the football club as £75k one year, profit being 30% and CCFC receiving half of that, which would amount to a revenue of £500k so is reasonably consistent with my numbers above. Corporate/hospitality is bought by CCFC on a match by match basis and sold on.

I think it only fair that CCFC reap some of the dividends from the footfall that they generate. Perhaps what they get may be thought of as a little generous since they've invested nothing and take none of the risk.

I haven't noticed much in the change to Delaware North other than new uniforms. I have noticed a couple of older staff who seem to be a bit more clued up in serving people (not the lass in the Mill who went off to change a barrel and then forgot to come back to finish my order). Hopefully this new deal will give Wasps a better return.