Accounts

[Rockford's Love Child]

https://beta.companieshouse.gov.uk/...ExMWFkaXF6a2N4/document?format=pdf&download=0

The club accounts for the year to 30th June 2016 have now been filed and can be viewed on the attachment.

Some headline points seem to be :

-The club made a loss of just under £1 million in the year in question due largely to the loss of FL funding. However, if we return to the League next season we will break even.

-PJ's remaining debt of £2 million has now been written off.

-Our commercial income is approximately 60% of our gross income, emphasising how vital our off the field activities are to our survival.

-Our wage bill increased by £500k despite our relegation from the League, emphasising how paltry our wage budget was in League Two. It is no wonder we went down.

There is a lot of emphasis on the additional revenue streams to come from China etc, but if we don't go up this year I am still unsure how we would break even any time soon, without a significant additional income source.

 

[bring back the cowshed!]

The accounts make interesting reading and thank you, RLC, for interpreting them so succinctly for us. Are you an accountant?

Clearly the club continues to be well managed and they are doing everything they can to generate off-field income to help us survive in the National League. If we go up, the future looks extremely bright. The Football League will provide funds and gate receipts should increase considerably. If we are in the NL next year, we have to hope that attendances remain static and off-field income increases. If not, you have to wonder how long will the owners continue to fund the club.

It makes you realise what a huge blow relegation from the league is and why so many ex-league clubs (without the financial backing and professional management we have) struggle to survive. You see many go to the wall shortly after dropping out of the league but few going out of business while in the league.

 

[Ian]

Thanks RLC, that made interesting reading. It's shows how essential promotion back to the FL is, and you wonder how long a club of this size can continue outside of the FL.

 

[drwhoman]

As Ian says, very interesting. Quite clearly the sale of the Ingleborough land and the Johnson write off were very important. Ironic that a significant reason why we are in the NL is because PJ skimped on player payments which, as RLC says, must have contributed to our demise. Maybe he had personal cash flow (as opposed to asset ownership) issues. Everyone agrees that we have to get out of this league if we are be financially viable going forward. In that regard, we have been very fortunate that we now have owners who have means and are committed to the success of the club. As BBTC says, many other former league clubs have not been so lucky. Let us hope that the players now reward that commitment by gaining promotion for the Palios' and, of course, the fans!!! I can see a seriously large crowd for the home leg of the play offs provided we have a decent chance of getting across the line.

 

[Boz]

The figures are a little alarming to me in terms of how bad the finances are, despite the off-field improvements.Think it's a while since we broke even, the season we sold a couple of players, Andy Taylor being one. The Johnson-Butler strategy at the start of the L2 was of developing your own and selling them on. While we didn't have enough strength in depth or a core of experienced players for that to work, when the Palioi came in there were a few players added on short term contracts. Given the investment in Solar Campus and particularly if we don't regain our FL status in the next year, there is an argument for reverting to that approach but from a stronger base.

 

[bigmart]

The 3 concerts in May apparently will generate income of around £750,000 apparently so that will be a big boost to the finances, but it is vital we get back into the football league sooner rather than later

 

[Rockford's Love Child]

Although player sales are important, with the new elite performance rules introduced by the premier league I don't think they are a reliable enough income stream to sustain the club.
Even under the old system, we would only sell a player every three years, which I believe is why palios places so much emphasis on the suites. I would imagine there must have been additional income in the current year which is not disclosed in the historic accounts, otherwise the outlook would be bleaker. Mart makes a good point about the income from the concerts.

 

[bigmart]

Also £1 million was put into Solar Campus and to finish the club shop/suites off, we are nearly half owners of a football school in china and the loss although around the £1million mark was less than £1.35 million the previous year

 

[Rockford's Love Child]

Also £1 million was put into Solar Campus and to finish the club shop/suites off,

That would not have impacted on the profit though, apart from some depreciation.

 

[Boz]

On reflection, I agree that a model for our future involving developing and selling players would not be viable. However, we could save a little on agents and signing on fees by growing and using more of our own. Otherwise there's a bit of a white elephant feel about Solar Campus.

 

[bigmart]

On reflection, I agree that a model for our future involving developing and selling players would not be viable. However, we could save a little on agents and signing on fees by growing and using more of our own. Otherwise there's a bit of a white elephant feel about Solar Campus.

we have sell on clauses for 7 players who have left in recent years including 3 youngsters going to premiership academies this season

 

[drwhoman]

Today's relegation of Lleyton Orient and their possible demise confirms what has been said about the effect of demotion to the NL. Again showing my age, they were promoted to then Division One with Liverpool in 1961-2.

 

[bring back the cowshed!]

Oh my, drwhoman, even I had forgotten that! Sad indeed for their fans. They were doing well in League One not long ago (Not unlike us. I remember the last time I went there we were top of League One) but once the groundshare with West Ham at the Olympic Stadium fell through, Barry Hearn pulled out and they were stuffed. Next season will be difficult for them.