Club Accounts - Losses of £1.7m in the last year

[matt_magpie]

Just shows how hard it is to run a football club, wouldn’t say we’ve got mad in the transfer market and had very good gates. Can’t say the owners haven’t invested but at the same time I don’t think bar covid they didn’t expect losses in the first few years.

[slack_pie]

These figures tell us what we already know - this football club, like countless others, cannot exist on gate receipts and sale of replica kit alone. Until we cash in on our prize assets, players, we will remain dependant on our owners.

During the Munto year we lost £4.5m. The club lost an average of £1.64m a year during Ray Trew's 7 years in charge. During the 2 years Alan Hardy was at the helm we averaged losses of £2.70m a year. The brothers have for the year to June 2022 reduced the annual deficit to £1.69m, something approaching the loss levels of Ray Trew's ownership.

Check out our main rivals, Wrexham and Chesterfield and I'll wager you'll find a similar story.

Exactly. Most clubs - if not all - are bankrolled by rich owners. It's the same at Forest and Stags. I don't know anything about accounts, but I'd assume the debt is to the Reedtz brothers, who are obviously fine with it. Owners lend clubs the money rather than gifting it, but unless the owners run out of money or need to call in the debt, it's not a problem. Wrexham's owners recently did the same, I believe, but with a larger amount.

We still have no real idea how rich the bros are or where their money comes from (perhaps their family/dad), but they've said time and again that as much as they want the club to be sustainable, the money's there to invest in the club if it's needed.

It just goes to show how ridiculous football has become. We have one of the smaller squads in the league and one of the highest average attendances, and almost all of our recent signings were from the division below. Yet we still can't cover the costs through regular revenue.

[laddo]

Good thread on an always interesting topic

[Chicken Balti Pie]

It's managed to excite a few of the less intelligent Wrexham fans, although most see it as it really is:

http://www.redpassion.co.uk/forums/w...nty-debts.html

Loving the comment that they are being run far more sustainable than us... Such Sustainability in signing that donkey Tozer for £400K and 5k a week wages

[CookieGuy]

It would appear that Notts are so insolvent, that the Bros had spare cash to build a brand new padel court facility and let customers use it for free for the first couple of months.

[slack_pie]

Loving the comment that they are being run far more sustainable than us... Such Sustainability in signing that donkey Tozer for £400K and 5k a week wages

But if the revenue from big sponsorship deals, global merch sales, and the Netflix doc mostly cover that, I guess they are being run more sustainably than us (no idea all that Hollywood stuff is covering the costs, mind).

They certainly aren't using their money wisely, that's for sure. Otherwise they'd be top.

[Old_pie]

Just shows how hard it is to run a football club, wouldn’t say we’ve got mad in the transfer market and had very good gates. Can’t say the owners haven’t invested but at the same time I don’t think bar covid they didn’t expect losses in the first few years.

I'm not (now) a betting man but if I were I would wager that they have budgeted for losses but in the hope that some of their recruitment will yield future returns without harming our ambitions. Wootton's figures for instance will reflect in next year's accounts.

I would doubt that the future value of players can be reflected in the accounts and of course the cost (as well as any deferred payment) will show as a liability.

Anyone like to put a conservative figure on what we could sell say our best 8 players for?

[slack_pie]

I'm not (now) a betting man but if I were I would wager that they have budgeted for losses but in the hope that some of their recruitment will yield future returns without harming our ambitions. Wootton's figures for instance will reflect in next year's accounts.

I would doubt that the future value of players can be reflected in the accounts and of course the cost (as well as any deferred payment) will show as a liability.

Anyone like to put a conservative figure on what we could sell say our best 8 players for?

No idea, but if we sold our eight best players and didn't replace them, we'd be relegation fodder.

[slack_pie]

I've seen other clubs commenting on this story too, including Mansfield. Serious question though: how does a club like Mansfield survive with a higher wage bill than us and lower gates if not through loans/gifts from their rich owner? What about Forest, who have been overspending on signings and wages for decades?

What I'm trying to say is, is our situation any different or worse than any number of clubs out there that are incapable of generating enough revenue through matchday tickets and merchandise to make ends meet? And if so, how/why?

[Jampie]

Yes that's actually insolvent. The only reason it's "technically" insolvent, presumably, is that the creditors are the owners who aren't calling in the debt.

Most clubs are in exactly the same boat, as others have said. Especially the more "successful" ones. No one in their right mind would buy an English football club hoping to make a profit.