Pretty simple really. You need to invest to make money. You can keep slashing costs all you like, but if there is no expenditure , there is no growth so no increase in revenue. Critical mass will retreat & you have just killed a business.
I get the drift of the post totally. its a fine line.
Irvine the master of slash and grab.
Where is the inspiration, where is the drive and where is the passion?
I agree he has been seen to look good in comparison to the previous admin.
This was never the challenge.
I hear massive grumblings amongst the cost cutting.
I have also heard complaints from within the organisation about the cost cutting by operational staff who are having a hard time with it. Irvine has to be the master of the slash and grab because he has little choice and we all have to live with it. When he got the top job the bank actually called him in and they were prepared to shut the joint down. Ultimatums were given. There was no cash flow, little income and the debt was actually unservicable.
That little nugget gets conveniently forgotten. The club was forced into providing the bank with a plan that allowed them to at least service the debt and through alot of good work by Craig Douglass they came up with a plan that kept the wolves away from the door temporarily.
Until March rolls around and we get the result of the development application we are still on that program and if it changes, the bank will call us in again. I also agree that you have to spend a dollar to make a dollar, but when you dont have any money in the bank and nobody will lend to you, how do you do that? Serious question. How?
So currently the plan is thus:
- Cut the arse out of every cost: Pretty much done. Obviously this places pressures on other elements of the business.
- Improve operations in the Leagues Club: Not quite as good but baby steps are being made. I see that they have Pool Tables in the Sludge bar now and a big buck hunter machine and to me, this makes alot of sense. They have moved the bistro around, made it slightly more family friendly. There have also been upgrades in the gaming area.
- Try and turn a profit through some innovations: So far we have seen Waters Fights, Outdoor Cinemas, Music Festivals and a few other events that have worked to varying degrees. They have been trying with limited resources.
The reality is that staff are flat out runnning a football club and then putting most of their energy into the development. I know its an "all eggs in one basket" approach, but the professionalism of the development app has led me to believe that this is the best possible plan in the circumstances. If it gets through (and I believe it will) and we get a cash injection and then the real prospect of ongoing revenue streams from retail, residential AND a brand new club that is much smaller and modern, we will hardly be able to talk about "viable external revenue streams".
