yesbutno wrote:Thank You Large Hat for your info. If true it's outrageous that a company the size of Burnden Leisure (or what name they go by) a failing company, should pay the chairman (CEO) whatever, £650,000pa.
I wonder what other 'Boards' Gartside sits on and if he pays his full amount of tax.
Just for clarity -
Mr Gartside is the Chairman of the board - the board is appointed by the shareholders (the owners in effect) in the business to oversee that their investment is being run properly.
Eddie Davies of course more or less is the sole owner and appoints the board and its chair - ie Gartside and the others.
There is also a Chief Executive Officer who is paid to run the business (who iirc received more than Gartside does). The CEO being a full time employee of the business, whereas Gartside role as Chair (I very much doubt) would be a full time (ie 40 hours per week, or whatever it may be).
Mr Gartside, the CEO would appoint the club manager Owen Coyle.
(Probably by following out the instructions of Mr Davies).
Mr Davies as brought in investment of about £100 million to the club and receives interest payments from the club on these investments.
Some fans of the club think the interest repayments are scandalous.
Maybe they would like to give the club an interest free loan of £100 million instead then?
From a business point of view two basic things matter - the return of the money you have invested and improving your business so that it is worth more if and when you may want to sell it.
If the club is not looking to be sold then as long as the return of the money invested is secure then it matters not if we are in the Premier League or the Conference.
Ok that is massively over simplified but as long as the club remains solvent, can meet the interest payments on the loans and repay them in full once they fall due, then that is basically all the owner requires the club to do.
If the club returns to the Premier its income is greatly increased - but so to is its expenditure. If the club stays in the Championship or lower - its income is much less - but so to are its costs.
A business objective for the club and a fans desire for it may not necessarily always be mutually compatible.
I am not saying the club wanted to get relegated, nor am I saying it does not want to get immediately promoted but as long as the bottom line figures of the business are agreeable to the owner, then in theory it (in the short term) it should not matter too much to him which division we actually do play in.
Therefore - and here is the punch line - Coyle's job is secure as long as Mr Davies is happy in the direction he is taking the club in.
Young side, successful, with players to sell on seems to be the model we are going for - which in theory is better achievable outside the Premier.
Trouble is up to now Coyle's 'buys' whilst being young don't seem to be successful or accumulating in value.
Will Mr Davies still give Coyle time to turn things around?
I think reading between the lines that he will be given up to Christmas or else he's gone.