£6m loss 2008/09 season

[FryattFox]

Playing squad valued at £10m :icon_eek:

Where have you found that number?

 

[lazzer]

Where have you found that number?

In the balance sheet.

 

[SJN-Fox]

Where have you found that number?

On the OS ... gives a breakdown of the accounts.

http://www.lcfc.com/page/LatestNews/0,,10274~2055347,00.html

 

[Real Sharapova]

In the balance sheet.

.....or not - the figure in the Balance Sheet is £3 million. The £10 million figure is the Director's valuation.

 

[FryattFox]

In the balance sheet.

On the OS ... gives a breakdown of the accounts.

http://www.lcfc.com/page/LatestNews/0,,10274~2055347,00.html

Ok, thanks - I was looking at the BS and the notes to the accounts and couldn't find it; it looks like they've just plucked it out of the air as part of the Director's report.

 

[Redditch Fox]

So, in those accounts, debt at £35.5 million. Another £10 million injected by our chairman - so that makes at least £45 million in debt. It's not looking sustainable, despite the kind words of Milan.

Hardly rocket science I know, but this is why it was absolutely critical to obtain promotion this season.

It can't carry on with a structural debt like this demonstrating as you say that we aren't sustainable with our current set-up without Premier League income.

The numbers all point to a crisis before long. Maybe, MM lives with it for another season because he doesn't appear to have too many other options but it's a bad, bad situation.

 

[Miles Away]

Hardly rocket science I know, but this is why it was absolutely critical to obtain promotion this season.

It can't carry on with a structural debt like this demonstrating as you say that we aren't sustainable with our current set-up without Premier League income.

The numbers all point to a crisis before long. Maybe, MM lives with it for another season because he doesn't appear to have too many other options but it's a bad, bad situation.

Sorry to be ignorant...but where are we leaking money that puts us in the negative so much?

I know the div 1 relegation was damaging, but beyond that where is our money going?

 

[Dour]

Sorry to be ignorant...but where are we leaking money that puts us in the negative so much?

I know the div 1 relegation was damaging, but beyond that where is our money going?

Turnover £10.9 million
less
Wages £11.2 million
less
Other operating costs £8.3 million
less
Interest charges £1.5 million

= Loss of £10 million a year.

Offset by player sales of £4 million gives the headline £6 million loss.

I'd expect another £10 million loss this year, too.

 

[Miles Away]

Very broad strokes there...

What is turnover? And Other operating costs specifically?

Are we being bent over in regards to payments on the stadium or something? Are our player and staff wages particularly high?

 

[Uncle Connolly]

Playing squad valued at £10m :icon_eek:

So David Villa is worth three times our entire playing squad.

That is totally insane.

 

[Harbro-Fox]

Because he's thick as two short planks

I'm not picking on him. I like Harbs. He's not as daft as some others on here.



What does he do at college?

Cant you leave him alone for 5 minutes?

Do one homer. :icon_roll

Thanks BM nice of you to say that! :icon_bigg

Thanks Cate (if your not being sarcastic?!?!).

Sorry I understand now.

 

[Uncle Connolly]

Very broad strokes there...

What is turnover?

Turnover is the amount of money coming in to the club (or 'revenue') in a specific period of time - in this case a year.

And Other operating costs specifically?

- Electricity bills (both stadium and training ground?)
- Water bills
- Gas bills
- The people who made our pitch incredibly lovely to play on
- Maybe the wages of club staff i.e. stewards, training ground people, the receptionists, tea ladies etc.
- Food and drink within the stadium and training ground
- Insurance, maintanence and fuel of Fox Travel coaches and playing staff coaches (company vehicles).

... to name probably a few.

Are we being bent over in regards to payments on the stadium or something?

Not sure - only had a quick glance at the figures.

Are our player and staff wages particularly high?

I'd imagine so - a comparison of other clubs is needed here of course.

 

[Miles Away]

Thank you for that.

It just seems strange to me that we are operating at such a loss while other clubs aren't. What is different about our club and...say...Bristol City?

 

[Cate Fox]

Thanks Cate (if your not being sarcastic?!?!).

Sorry I understand now.

I wasnt Harbs

 

[Harbro-Fox]

I wasnt Harbs

Thats ok then!!

 

[spionfox]

Are our player and staff wages particularly high?

I'd imagine so - a comparison of other clubs is needed here of course.

I would think most clubs are in this situation.
Dread to think what will become of most clubs when the bubble finally bursts.

 

[Siouxsie]

Very broad strokes there...

What is turnover? And Other operating costs specifically?

If you were looking on the LCFC site I'm not surprised you were confused as it says "turnover is analysed as follows:" and then gives figures that have nothing to do with turnover :icon_roll

 

[RHYDAL]

What is turnover?

Simples.

 

[FryattFox]

Thank you for that.

It just seems strange to me that we are operating at such a loss while other clubs aren't. What is different about our club and...say...Bristol City?

A good comparison for most football clubs is Wages & Salaries vs Turnover. A 'healthy' percentage would be approximately 60%, meaning that for ever £100 of ticket sales, £60 would be paid to the players.

There was a comparison of all the Premiership teams, which I accept is a whole different ball game, but they varied from just under 60% to about 110% iirc.

Ours is 92%, which is very high and, like many clubs, is only sustainable while Milan keeps pumping money in.

As Spion says, it will be interesting (/terrifying) to see what happens in the next 10/20 years, as owners get bored and there is a much higher turnover of clubs.

 

[Dour]

Very broad strokes there...

What is turnover? And Other operating costs specifically?

Are we being bent over in regards to payments on the stadium or something? Are our player and staff wages particularly high?

Broad strokes are here illuminating. The detail may not be - not that we'll see. Wages are scarily high - the question is whether or not that's just players' wages. If it is, players' wages are shockingly out of control. If it isn't, operating costs are unbelievably high. The former is most likely - following the Portsmouth model...

If we drop out of the top 2 next season, I'm counting on the other clubs that will have points deductions from keeping us from a relegation scrap.