Another half million loss!
Posted: Fri Feb 27, 2015 8:20 amThe club accounts have just been filed for y/e 31/5/14 and show another loss of £445k. That's over £2m losses for the last four years now.
I think the most worrying aspect is that sales only increased by £100k despite this being the year in which we had the two televised matches (Wolves/Newcastle) which everyone was hoping would bring in at least £200k. If they did, then "normal" income was down by £100k and will almost certainly be down again for the current year.
Despite all the claims of Jim's budget being slashed, player numbers only fell by one, and total wages only fell by just over £100k - a reduction of only 6.7%. The way Jim and others were talking, made it sound like he'd suffered a much higher reduction. What I can't understand, though, is why "other football related staff" numbers increased by 10 from 15 to 25 - who are these extra 10 people who are football related but aren't players nor management? The accounts now show 26 players and management and 25 "other football related" - that proportion doesn't look right at all?
The loss has again been covered mostly by the directors who have paid in £241k to buy more shares and advanced another £187k in loans. When people say on here that the directors should chip in a little more to buy/loan a new player, they need to remember that the directors are already paying in £400k plus per year just to keep the club ticking over as it stands. Can they really be expected to put even more in, especially when they've already paid in over £2m over the last four years?
This was the first year of the 3 year plan to break even. Personally, I think that's a pipe-dream. If they still make a £400k+ loss in a year with 2 televised cup matches, the loss can only be bigger for the current year. I've seen nothing change over the past couple of years to reduce costs or increase revenue to the tune of turning an average £500k p.a. loss to achieve break even. Promises of new income streams seem hollow as there's no evidence shown in the accounts - however busy the function rooms become, the profit generated will never come even close to bridging a perpetual £500k loss. We'd need to increase all income by at least 20%, that's advertising, attendances, function rooms, etc which is just not going to happen!
Rather than moaning at the Board for not putting more money in, I think we all have to be grateful that they are keeping it afloat and at least attempting to make it self-sufficient. It's more clear than ever why Jim didn't have funds to get new players during the transfer window. I think where we are today is the future for several years to come, i.e. Jim on a shoestring budget!
I think the most worrying aspect is that sales only increased by £100k despite this being the year in which we had the two televised matches (Wolves/Newcastle) which everyone was hoping would bring in at least £200k. If they did, then "normal" income was down by £100k and will almost certainly be down again for the current year.
Despite all the claims of Jim's budget being slashed, player numbers only fell by one, and total wages only fell by just over £100k - a reduction of only 6.7%. The way Jim and others were talking, made it sound like he'd suffered a much higher reduction. What I can't understand, though, is why "other football related staff" numbers increased by 10 from 15 to 25 - who are these extra 10 people who are football related but aren't players nor management? The accounts now show 26 players and management and 25 "other football related" - that proportion doesn't look right at all?
The loss has again been covered mostly by the directors who have paid in £241k to buy more shares and advanced another £187k in loans. When people say on here that the directors should chip in a little more to buy/loan a new player, they need to remember that the directors are already paying in £400k plus per year just to keep the club ticking over as it stands. Can they really be expected to put even more in, especially when they've already paid in over £2m over the last four years?
This was the first year of the 3 year plan to break even. Personally, I think that's a pipe-dream. If they still make a £400k+ loss in a year with 2 televised cup matches, the loss can only be bigger for the current year. I've seen nothing change over the past couple of years to reduce costs or increase revenue to the tune of turning an average £500k p.a. loss to achieve break even. Promises of new income streams seem hollow as there's no evidence shown in the accounts - however busy the function rooms become, the profit generated will never come even close to bridging a perpetual £500k loss. We'd need to increase all income by at least 20%, that's advertising, attendances, function rooms, etc which is just not going to happen!
Rather than moaning at the Board for not putting more money in, I think we all have to be grateful that they are keeping it afloat and at least attempting to make it self-sufficient. It's more clear than ever why Jim didn't have funds to get new players during the transfer window. I think where we are today is the future for several years to come, i.e. Jim on a shoestring budget!
