View Full Version : Financial Results to 30th June 2015 Published today

22-12-2015, 12:41 PM
For those interested here goes, with percentage comparisons to last year :-

Just before I repeat the figures, the following remarks were made in the accounts :-

"These financial statements are for the 6 months ended 30th June 2015 and the comparatives shown are for the year ended 31st December 2014. The directors shortened the company's accounting year end in order to align it with the end of the football season".

Interestingly, "if a full year's accounts had been prepared, the directors would have expected to report further growth in all revenue streams". The company has recorded a loss of 732,000 for the period, in contrast to a profit of 167,000 in the previous year".

The point is also made that only 4 months of games occurred during the 6 month period.

So in 6 months we have lost 732,000 v a profit over previous 12 months of 167,000.

"Next years accounts will show a full year's financial results instead of six months".

******** Remember figures are for 6

22-12-2015, 01:12 PM
At first glance the figures do appear a little worrying but it's very difficult trying to draw comparisons between the 2014 calendar year and the first six months of 2015 and any conclusions could be way off the mark. For example, 2014 includes the play-offs and Wembley, the figures to June 2015 include two months in the close season when income would be at the lowest. When are season ticket sales for 2015/16 recorded? Presumably after June 2015. 'Other receipts' I assume are tv revenues but again how and when are these distributed?

Overall, we'd like to see percentage increases instead of decreases but there are too many uncertainties to suggest we're in any financial difficulties (but the huge player turnover won't have helped).

22-12-2015, 02:20 PM
The OP is interesting but it is a bit like comparing apples and pears in that we have different accounting periods and timescales.
I'm not really sure what the figures tell us to be honest as I doubt if season ticket sales revenue is included in the 6 months' figures and that would be a significant number in itself.
The only true comparison of financial performance would be over an equivalent 12 month period so we'll be better able to judge how things are going when those numbers are available.

22-12-2015, 08:58 PM
"Match receipts and commercial receipts look on par but I wonder if anyone can shine a light on the figure for "Other" receipts?"

It could be pooled money that comes from the Football League and F A. Many many years ago clubs only kept 50% of their gate receipts and 50% went to the Football League who shared it out among all clubs. The last time I saw how much it was the levy was just 4% so that's one of the reasons clubs like ours find it much harder to compete financially than we did in the 50s and 60s.

As far as I know, there is still quite a large chunk of F A Cup money after the first couple of rounds which goes to the F A to share out to F A members. So if I'm right that's why Other Receipts are down from about 1.6 million to 200k. There aren't any F A Cup matches between July and December.

22-12-2015, 09:16 PM
Appreciate the explanation - thanks

23-12-2015, 05:15 PM
As mellowmiller has implied on Millers Banter, the results over 6 months v previous period of 12 months is sort of comparing apples with pears though I don't necessarily agree with him entirely. Perhaps if we gauge the figures on 50% basis we get nearer to the truth.

For me, the areas of concern are :-

Gross Profit

Operating Loss

Net Current Liabilities

The plunge in Reserves. A loss is a loss and has to be financed whenever it raises it's ugly head.

We cannot make a proper judgement over these figures in isolation and all will be revealed when we have a full set of accounts to 30/06/16. But I have always been wary of any business I have been looking at that decides to change its' accounting year end for no logical reason. OK they say it is to tie in with the football season. Really? Since when did a football season finish in June? Perhaps we can stretch to play off finals but we will not be appearing in those year on year so I don't buy that one at all. This sort o

23-12-2015, 08:49 PM
Pete, don't be cynical about changing the year end to 30th June. You're quite right that the season finishes much earlier than that; more importantly football players' contracts run for years ended 30th June and it makes sense to have the year end then so that year's accounts bears the cost of the contracts you negotiated for that year.

Also a December year end makes no sense at all for a football club. Season ticket money has to be apportioned over two accounting years, cup runs would always come after the year end but the salaries and overheads carry on regardless. June 30th makes much more sense.

What we don't know, unless there's a note in the accounts about related party transactions is how much TS has actually put in. To comply with Fair Play rules, TS has to put in money by way of sponsorship so it shows in the accounts as income that qualifies for the salaries cap. What I am sure annoys him is that although the money he puts in is taxable for RUFC, it is not tax deductibl

23-12-2015, 09:30 PM
Figures can be interpreted and manipulated to tell just about any story so for me I take my views from solid items I can see and touch and those signals don't fill me with confidence. For example:-

Retail units at NYS still unoccupied so earning nothing.
Guest & Chrimes still the shameful wreck it's always been since the ground opened.
Bawtry Road site project hasn't moved on.

If you add to these the "soft" signals of Evo going, Revs, Morgan, Arnasen and Pringle going plus a very large number of cheap option players including two "last chance saloon" signings coming in to me it all signals that cash is tight and overall the club is heading into the red on the balance books.

Fragile times and maybe we as a club have peaked and should expect a bit of belt tightening by TS and his backers.

24-12-2015, 07:18 AM
Don't forget there is a big prize coming in significantly increased tv revenue for Championship clubs next season.
I'm sure Tony Stewart will see it as a priority to avoid relegation as this extra income will be a huge benefit to the bottom line.

24-12-2015, 09:13 AM
Problem is Mellow the parasites that are football agents are well aware of the increased revenue going to Championship clubs so will suddenly be demanding thousands of pounds a week more or there players won't sign.

We've seen it in the Premier league where some very average players are being paid silly money way above their ability deserves.

If we choose not to pay it we'll end up with a squad worse than this years and will go down like Blackpool did last year.

Don't forget that we are currently playing in a league where the vast majority of teams don't seem to care about how much debt they get in chasing the Premiership dream, so the decision we have to make is do we join them or do we struggle year on year until the inevitable return back to league 1.

As it has been said above TS on his own does not have the financial clout to run a successful Championship club and as a result needs either additional support in the boardroom by more investors coming on board or we need t

24-12-2015, 09:39 AM
a123 I think you make a very valid point about parasitic agents and their malign influence on football.
I still think though that the increased tv revenue will make a significant difference to a club like Rotherham but I completely agree that additional revenue streams have to be exploited for us to have a hope of competing at Championship level.
Developing more of our own players will also be a key factor and presumably that was one reason for appointing Neil Redfearn. This won't be a quick fix though and has to be viewed as a medium term project at best.
There are some decent players in League 1 who could be decent additions to our squad and who should fit within our seemingly tight budgetary constraints. Joe Newell is a good example of what can be obtained.
It may be that Tony Stewart has done as much as he can (or wants to) financially and will seek additional investment. The thing is though, are the Millers an attractive enough proposition for someone else to put their money

24-12-2015, 09:55 AM
As has been said many times, the future must lie in the academy and for that reason alone, Redfearn may be and probably is a very sound decision. TS has recognised the need to build for the future and I applaud him for the approach we are now taking to blooding young players of our own.

As fans though, we love the idea of doing this in the Championship. In itself, that makes everything more attractive. Not the end of the world if we go down but certainly the "Dream again" notion may need to be parked for some years if we slip into League 1. As many of us have said, League 1 is hellishly difficult to get out of and there will always be a handful of much bigger clubs finding themselves in there. That makes getting out of their an added menace.

Play like we did against Hull and we have a better than average chance of getting out of this mess. Loss of loan players in recent weeks and in January could derail the efforts. So January is key, even if it is only to renew those loanee con