Popular Post OwlWednesday Posted August 15, 2018 Popular Post Share Posted August 15, 2018 (edited) With all the talk at the minute of the current financial situation the club find ourselves in, I decided to do some quick comparisons of how the club's finances have changes over the last 6 seasons since our promotion to the championship in 2012. The latest accounts for the last season have not yet been released so this only goes up to the end of the 2016/17 season when we lost to Huddersfield in the playoffs. Team Performance Since gaining promotion in 2012 the club improved on it's league finish every season, up until last year. It's worth noting the considerate improvement in finishes from the first full season under Chansiri/Carlos onward. Average attendance was steady, with the exception of our first season back in the championship which would have increased season ticket sales numbers. The playoff final season also played an obvious role in the huge boost to average attendance the following season with record season ticket sales. Losses Current FFP rules allows the club to lose a total of £39m on a 3 year rolling basis, with the third year being a financial forecast for the next season. With a combined net loss of around 30m for the two previous seasons we would have needed to not lose more than 9m last season in order to stay within the guidelines. It's important to note that since it's on a rolling basis, FFP will be harder to keep in check given the first years net loss will change from the 9.7m in 15/16 to the 21m in 16/17. Although, the this has to be taken with a pinch if salt as FFP has certain rules on costs which can be excluded from this, but it's unlikely to have a significant impact. The players amortisation figure has now grown to be higher than the overall net loss of the club in any of the previous seasons before Chansiri came in. For anyone unfamiliar with the concept, this is how the buying/selling of players is accounted for. The amounts paid for players are capitalised and the cost is spread over the length of the contract. For example a £10m purchase on a 5 year contract would mean £2m amortisation per year for this purpose. Wages Increased investment by Chansiri as of late has also dramatically increased the club's wages cost. They are now more than 3x more than they were when we got promoted. This combined with the above amortisation figures are the main bulk of our costs which are playing against us with FFP. Worth noting that although our wages are very high, they are nothing in comparison to some clubs who have recently been relegated from the premier league, but they are covered by the parachute payments they receive. These are the wages & salary figures from the three clubs who played in the championship in the year we got to Wembley, after the getting relegated the year before: Turnover A controversial topic lately with current pricing policies. Since coming in, Chansiri has been able to drastically increase the club's revenue, which as shown, is vital to allow us to compete. Match receipts increased by around 60% from the last year under Stuart Grey, despite only a 3% increase in average attendance during that season. This will have been helped by the additional ticket revenue from the playoff final game. Commercial revenue which includes sponsorship and kit sales etc also increase significantly, with reported record breaking kit sales year on year. I hope this helps clear some things up and people found it as interesting as I do... Edited August 15, 2018 by OwlWednesday 2 21 Link to comment Share on other sites More sharing options...
@owlstalk Posted August 15, 2018 Share Posted August 15, 2018 That's great work @OwlWednesday - THANK YOU for doing that This bit worries me massively Quote Current FFP rules allows the club to lose a total of £39m on a 3 year rolling basis, with the third year being a financial forecast for the next season. It's important to note that since it's on a rolling basis, FFP will be harder to keep in check given the first years net loss will change from the 9.7m in 15/16 to the 21m in 16/17. And that's before we signed Jordan Rhodes too right? Genuinely dont' know how we're going to break out of this one even if we sell players Lets hope the chairman can help us out of it Owlstalk Shop Link to comment Share on other sites More sharing options...
adelphi1867 Posted August 15, 2018 Share Posted August 15, 2018 I am more confused than I was before Link to comment Share on other sites More sharing options...
Hitcat Posted August 15, 2018 Share Posted August 15, 2018 So to summarise, we're doomed. Link to comment Share on other sites More sharing options...
Maddogbob Posted August 15, 2018 Share Posted August 15, 2018 Thanks for putting the time and effort into the post. Good read. 1 Link to comment Share on other sites More sharing options...
S36 OWL Posted August 15, 2018 Share Posted August 15, 2018 Up the creek without a paddle springs to mind. Link to comment Share on other sites More sharing options...
Inspector Lestrade Posted August 15, 2018 Share Posted August 15, 2018 Can't we move the decimal point a couple of places to one side? Whose to know? 1 Link to comment Share on other sites More sharing options...
Guest HillsboroughOwlNI Posted August 15, 2018 Share Posted August 15, 2018 (edited) Excellent work OwlWednesday! Don’t forget that with regards to P&S, some costs such as youth development are excluded from the £39m total. But on the flip side, related party transaction revenues that exceed fair value eg. D Taxis and Elev8 are also excluded... Edited August 15, 2018 by HillsboroughOwlNI Link to comment Share on other sites More sharing options...
Box_Man Posted August 15, 2018 Share Posted August 15, 2018 Based on the above...which is a great read, more simplistic than trying to buy a matchday ticket in fact... Why after losing 21million did DC sanction the signing of Fletcher on a 4 year contract and Jordan Rhodes.....Mental 2 1 Link to comment Share on other sites More sharing options...
Box_Man Posted August 15, 2018 Share Posted August 15, 2018 One thing I would say is the increase in revenue from ticket sales despite only a 3% rise in attendances over the last couple of seasons kind of vindicate DCs strategy, i’m amazed it’s that high...clearly he thinks this is the way to get us out of this mess. Link to comment Share on other sites More sharing options...
OwlWednesday Posted August 15, 2018 Author Share Posted August 15, 2018 4 minutes ago, HillsboroughOwlNI said: Excellent work OwlWednesday! Don’t forget that with regards to P&S, some costs such as youth development are excluded from the £39m total. But on the flip side, related party transaction revenues that exceed fair value eg. D Taxis and Elev8 are also excluded... The related party transactions for the sponsorship are noted in the latest financial statements in some of the later auditor notes. It says that all of them come to £1.2m and are at arms length, so they should be allowed under the FFP regulations. Also maybe worth noting that there was also a comment about substantial bonuses and other payments which would become liable if we were promoted to the premier league which add up to about 9m. But I suppose that's nothing in comparison to the extra revenue which would be generated. Link to comment Share on other sites More sharing options...
Junglejay Posted August 15, 2018 Share Posted August 15, 2018 Some great detail there and well explained - but wow that's depressing. Given the loss in 16/17 was circa £20m, I can only assume the 17/18 loss will be at least this figure, if not substantially more. On the back of that our rolling loss over three years is likely to be in excess of £50m! Also, as you've rightly pointed out, that's only going to get worse next year when we can't use 15/16's lower figure of £9.7m loss. Holy poo! Link to comment Share on other sites More sharing options...
Owl Be Back Posted August 15, 2018 Share Posted August 15, 2018 Looks like we're f*cked. Well done Chansiri. 1 Link to comment Share on other sites More sharing options...
Morepork Posted August 15, 2018 Share Posted August 15, 2018 I see this as a metaphor for SWFC. You can cast the protagonist accordingly....but in my version, DC is speeding through the intersection, the car that gets hit is the club and the miraculous escapers are the fans. In classic Hollywood style, the ultimate ending is left to your imagination. 1 2 Link to comment Share on other sites More sharing options...
Lee Davies Posted August 15, 2018 Share Posted August 15, 2018 1 hour ago, HillsboroughOwlNI said: Excellent work OwlWednesday! Don’t forget that with regards to P&S, some costs such as youth development are excluded from the £39m total. But on the flip side, related party transaction revenues that exceed fair value eg. D Taxis and Elev8 are also excluded... What do you think the news is we have been waiting to hear? Basically, it is a case to prove that 'related transaction' are not actually related transactions. The courts will overrule the F.A. This means that DC is trying to get around the rules to fund us. The F.A know this and trying to stop this happening. The case will be announced soon I'm sure...... If we lose then its a fine (and maybe the points DC is worried about for trying to srew their rules) Link to comment Share on other sites More sharing options...
prowl Posted August 15, 2018 Share Posted August 15, 2018 I can only see 2 ways out of this, one is promotion which I think is very unlikely and the other is the sale of a number of our top players. Sad but if that is what we have to do we will have to do it eventually. Link to comment Share on other sites More sharing options...
Bigblueowl Posted August 15, 2018 Share Posted August 15, 2018 We need promotion. Link to comment Share on other sites More sharing options...
sonofbert2 Posted August 15, 2018 Share Posted August 15, 2018 Brentford for some contrast: https://www.getwestlondon.co.uk/sport/football/football-news/brentford-slash-operating-losses-full-12877178 Link to comment Share on other sites More sharing options...
sherlyegg Posted August 15, 2018 Share Posted August 15, 2018 1 hour ago, Box_Man said: Why after losing 21million did DC sanction the signing of Fletcher on a 4 year contract and Jordan Rhodes.....Mental Most gamblers insist, just one more big bet, also poor gamblers are easy to persuade. DC should have got rid of his trainer and his 'tipster' much earlier than he did. Link to comment Share on other sites More sharing options...
BARMYARMY2010 Posted August 15, 2018 Share Posted August 15, 2018 2 hours ago, Box_Man said: Based on the above...which is a great read, more simplistic than trying to buy a matchday ticket in fact... Why after losing 21million did DC sanction the signing of Fletcher on a 4 year contract and Jordan Rhodes.....Mental I might be mis-reading/mis-understanding theses figures,but if stephen fletcher was signed in july 2016,he was signed after the first years losses announced of £9.7 million from june 2016 to may 2016 ? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now