Two weeks ago, I devoted most of the column to the day in 1977 that Graham Taylor took over as manager of Watford FC. Having done so, I wondered what the Watford Observer wrote about the man a year later – after Taylor had, in his first year as manager, taken the club up from the old Fourth to the Third Division.

In fact, it was discussed in the paper on July 14, 1978 – and the general feeling was that it was expensive, but worth it.

The story reads: “Watford FC won promotion to Division Three last season – at a price!

“Their adventurous policy of employing top name management personnel and paying staff and players record-breaking salaries and bonuses brought success on the field but landed the club with its worst-ever balance sheet. Watford Football Club lost £115,226 in the year ended April 30, 1978 – by far their worst ever deficit. Added to losses from previous years, the club is £236,000 in the red.

“But for the Watford Board of Directors the huge loss was inevitable and weighed against promotion appears to be a small price to pay.

“Club vice-chairman Mr Muir Stratford said: ‘The loss was only to be expected. We decided to invest in a big way last season so it was obvious there was going to be a large deficit. The manager in particular was an expensive investment – it is generally known that we bought the manager. But that has proved to be an extremely good investment."

“Salaries, bonuses, transfer purchases and compensations cost the club £268,000 in 1978 – compared to £151,000 in 1977. The largest single wage earner at the club last year was manager Graham Taylor who was paid between £17,500 and £20,000, accounts reveal.

“Mr Stratford said: ‘The single most important section in the accounts for the Watford Board is the income from gate receipts.’ The club took £229,000 through the turnstiles and season ticket sales last season, a massive increase on the 1977 figure of £94,000.

Although the club have a deficit of almost a quarter of a million pounds ‘on paper’ the accounts do not take into account two very important assets – the playing staff and club property.

“‘We have a playing staff that through transfer fees would realise at least £200,000,’ said Mr Stratford, ‘and our properties are assessed at cost price not market value.’

“Programme sales and ground hire brought the club £32,000 last season and they also received £24,000 from the football league fund. Against that, there was a £23,000 bill for hotel and travelling expenses, up £8,500, and home match expenses of almost £20,000.

“Club chairman Elton John made a £50,000 loan during the year, making his investment in the club £90,000.”

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