Another half million loss!

[underbank]

The 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!

[marky No.1]

No surprises there..... maybe the extra staff are in Shanghai?

[Heysham_Shrimp]

The loss is much reduced on the 2012/2013 accounts.

I think PMG said it was a 3 year plan to get down to break even so a step in the right direction.

[Wild Bill]

Think you have summerised the situation quite well. Its not going to be a good year financially as we have had no cup runs, no TV money, no player sales and attendances look like they are dropping slightly too. Increase in ticket prices might cover this though?

I think Jim probably also had a bit more money in the budget (perhaps on the assumption that the Chinese investment/revenue streams were coming?) and I think the club has bought in more staff to increase revenue (media guy, new commercial manager etc) but these will take time to show improvements in the balance sheet.

Fair play to the board. We take for granted the £10,000s-£100,000s they put in year on year. Yes they are wealthy people, but they could easily spend that money elsewhere.

Things might not be amazing financially but I imagine we are still in a better position that most L2 clubs. Anyone know how we compare to the rest?

[Seasider9601]

The AGM for Shareholders must be due any time ??

[Shrimpy]

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?

Staff for the youth setup / football in the community maybe?

The club have made noises about improving the youth setup and you will need coaches for that at all age groups obviously.

[halftimeresults]

Are we losing more money than we did at Chrstie?

[Shrimpy]

Are we losing more money than we did at Chrstie?

Losses were around £350k a year in our final few years as a Conference club I believe.

Funnily enough we used to break even or in some cases post a small profit before we went full time / the introduction of the playoffs.

Would be interesting to hear whether fans would have prefered us to just keep plodding along as a part time mid to lower half table Conference side comparable to someone like Altrincham (who don't run at a loss) or run up the kind of debts we are doing being a full time League 2 club with the potential to go into administration / out of business in the not to distant future.

[underbank]

Would be interesting to hear whether fans would have prefered us to just keep plodding along as a part time mid to lower half table Conference side comparable to someone like Altrincham (who don't run at a loss) or run up the kind of debts we are doing being a full time League 2 club with the potential to go into administration / out of business in the not to distant future.

It's shame we don't have the third option of having spent/saved the Sainsbury money more wisely rather than going on a spending binge and blowing the lot. We've ended up with a compromise of a stadium that went well over budget, artificial pitches that are barely used, a gym that failed almost before it began, etc. I thought the plan was to save some of the Sainsbury money to invest in players etc? By the time the ground opened, the money had all gone and we were still reliant on the directors pumping in more. Quite a turnaround - someone didn't do the budgeting very well did they?

[black morse]

Would be interesting to hear whether fans would have prefered us to just keep plodding along as a part time mid to lower half table Conference side comparable to someone like Altrincham (who don't run at a loss) or run up the kind of debts we are doing being a full time League 2 club with the potential to go into administration / out of business in the not to distant future.

It's shame we don't have the third option of having spent/saved the Sainsbury money more wisely rather than going on a spending binge and blowing the lot. We've ended up with a compromise of a stadium that went well over budget, artificial pitches that are barely used, a gym that failed almost before it began, etc. I thought the plan was to save some of the Sainsbury money to invest in players etc? By the time the ground opened, the money had all gone and we were still reliant on the directors pumping in more. Quite a turnaround - someone didn't do the budgeting very well did they?

[black morse]

Would be interesting to hear whether fans would have prefered us to just keep plodding along as a part time mid to lower half table Conference side comparable to someone like Altrincham (who don't run at a loss) or run up the kind of debts we are doing being a full time League 2 club with the potential to go into administration / out of business in the not to distant future.

It's shame we don't have the third option of having spent/saved the Sainsbury money more wisely rather than going on a spending binge and blowing the lot. We've ended up with a compromise of a stadium that went well over budget, artificial pitches that are barely used, a gym that failed almost before it began, etc. I thought the plan was to save some of the Sainsbury money to invest in players etc? By the time the ground opened, the money had all gone and we were still reliant on the directors pumping in more. Quite a turnaround - someone didn't do the budgeting very well did they?

I seem to remember Sammy having quite a bit of money to spend!

[Heysham_Shrimp]

Not had a chance to analyse the accounts yet but how much was written off in the accounts for depreciation ?
That amount would need to be taken out of the loss to find how much cash outflow of funds was in the year so it maybe wasn't too bad a year.

[underbank]

Not had a chance to analyse the accounts yet but how much was written off in the accounts for depreciation ?
That amount would need to be taken out of the loss to find how much cash outflow of funds was in the year so it maybe wasn't too bad a year.

Only £90k depreciation. Cash flow statement shows "cash" outflow was £303k!

Most of the depreciation was plant, equipment and vehicles, so very real "costs" over the medium to long term as these items will need replacing and are losing value.

[marky No.1]

Quite a turnaround - someone didn't do the budgeting very well did they?

I think most of the world got caught out with the financial crash.. money was no doubt projected to be invested at 7% p.a. and ended up getting close to zilch... meanwhile cost of building work was going up plus a years delay on top... Globe Construction have suffered ever since

[Shrimpy]

Globe Construction have suffered ever since

They don't exist any more do they? Heard they had gone bust?

Speaking of which, the sponsorship deal should be up in the Summer shouldn't it?

[Seasider9601]

At least we will be able to rename "The Globe Bar and Grill" to something half decent sounding !!!

[underbank]

At least we will be able to rename "The Globe Bar and Grill" to something half decent sounding !!!

I hope the mixed messages and confusion re marketing and branding of "The Globe" can be properly addressed when the builder's sponsorship/naming contract ends (this summer is it?).

To me, the club's grounds should have a name to cover the club, training facilities, youth section, etc., and the function rooms and bar should have a completely different branding, different name, etc. to effectively distance itself from the club for the long term to try to get more "none football" business.

I'm sure that damage will be caused to the function suite when it's name has to change at the end of the current contract. That's a lot of marketing effort to rename and rebrand it. New website, new facebook page, etc. And then they'll probably have to do it again every five years. Far better to call it something completely different - a name that it can use in perpetuity that will help retain goodwill etc.

By using the same name, we have confusion, even simple things like which facebook page is for the football club and which is for the function rooms. One of the main principles of branding is not to cause confusion or give mixed messages. We can live with the stadium changing its name as sponsors change every few years, but the functions rooms and bar need an identity of their own.

[MFC-Manc]

Morecambe FC made a loss of £445,465 last season according to the club’s official accounts.

The figure for the 12 months up until the end of May 2014 is down nearly £350,000 from £793,776 for the previous year.

According to the report the club are looking to be in a position to break even in April 2016 as part of a three-year plan outlined in April 2013.

It also states loans from directors, particularly chairman Peter McGuigan, are being used to maintain the cash flow of the business.

Staff and player wages went down from £1,799,949 in 2013 to £1,678,884 in 2014 despite the club employing six more people, 76.

The 2013-2014 season saw the Shrimps host televised cup ties against Wolves and Newcastle as they finished 18th in League 2.

[Seasider9601]

http://www.thevisitor.co.uk/news/local/ ... witterfeed

[Christies Child]

I'd prefer to highlight the £350,000 saving from the previous year and compliment the Board and its continuing efforts to reduce the running costs even further.

With The Globe Arena set for a new sponsorship package this close season I have every confidence that the Board is on track with its 3 year master plan which would be a significant achievement and one that as shareholders and fans we should be proud of.

[Kendalshrimp]

It worked out if we could pull in another 750 fans per home game then that would break us even most seasons with the current outgoings we have these days. As mentioned on radio Lancashire pre match saturday, we haven't sold a player for a while now either. If Redshaw or Edwards move on this summer then that would be another boost financial wise for the club !

[marky No.1]

http://www.insidermedia.com/insider/nor ... ing-losses?

[Christies Child]

It would be interesting to see what departments the 76 employees belong to?

On the face of it, it would appear to be a large number of employees with an additional 6 over the last 12 months whilst Jimbo has had to take a cut in his playing budget.

[underbank]

It would be interesting to see what departments the 76 employees belong to?

On the face of it, it would appear to be a large number of employees with an additional 6 over the last 12 months whilst Jimbo has had to take a cut in his playing budget.

Players and management 26 (27)
Other football related staff 25 (15)
Shop staff 1(1)
Hospitality staff 17 (20)
Support & admin staff 7 (7)
Total 13/14 76 (12/13 70)

So ten more "other football related staff" - who are these people and why do we need 66% more than the prior year?

[Shrimpy]

It would be interesting to see what departments the 76 employees belong to?

On the face of it, it would appear to be a large number of employees with an additional 6 over the last 12 months whilst Jimbo has had to take a cut in his playing budget.

Players and management 26 (27)
Other football related staff 25 (15)
Shop staff 1(1)
Hospitality staff 17 (20)
Support & admin staff 7 (7)
Total 13/14 76 (12/13 70)

So ten more "other football related staff" - who are these people and why do we need 66% more than the prior year?

I can only think they are youth coaches / football in the community.