Financial Accounts for 2022/23 | Vital Football

Financial Accounts for 2022/23

PHOENIX 2021 LIMITED PUBLISH ACCOUNTS FOR 2022/23 ​

FINANCIAL YEAR ENDING 30 JUNE 2023.​

The Key Performance Indicators for the year include:

Turnover: £15.9m

Staff Costs: £23.2m

Operating Loss: £13.7m

Profit on sale of players: £0.4m

Net Loss before Tax: £13.4m
 
Key points from the Accounts
£3.3m paid in PAYE 14 June 2023
£ ? PAYE paid in June a few days later
£2 m for 2 old management teams most falling due 23-24

several players on contracts by the previous ownership group, that only expire in June 2024 and beyond... significant costs... take at least 12 months to expire, until we can reduce the losses to a more significant level

the previous ownership entered into many long term contracts that may hinder ambitions to improve some areas of the club in the short term. Steps have been taken to address some of these arrangements, it remains a priority.

Aim to operate a sustainable cost structure

They recognise they are only the custodians of the club, their ambition is to grow and flourish to eventually pass the club onto the next owner and generation of fans.

Decisions are being made with the best intentions of the club for long term stability and growth

They are disappointed with the loss. Operating losses were broadly in line with those budgeted. The ability to fund this was assured with the EFL. The loss was increased above budget by £2m by management and executives termination costs

Operating losses would have been £17.5m save for the write back of £4.1m in owner loans, giving a financial loss of £13.4 (the £4.1 in owner loans is credited to the P&L account)

In the Championship clubs get £4.8m in Premier League solidarity and £3.7 from the EFL (L1 £12m & £0.94m respectively)

In the year:
salary costs for players and staff went up £10.2m (146% of turnover)
Turnover was £15.9 compared to £8.3 the previous L1 year
Season Ticket sales £2.6m compared to £2.2 the previous year

The club retains all contingent income rights for players sold prior to the 14 June 2023 takeover

The Future
Use resources at its disposal at any point to achieve the highest possible league position and cup success
Whilst employing prudent financial management for a stable future
Investment in the Academy is a crucial element of the strategy
Invest in player recruitment resources to ensure we attract and retain the best football talent within an agreed budget

The ultimate holding company is Community Holdco 2023 one share owned by Mr Danson

Mr Danson has confirmed he will support the club financially for a period of at least 12 months from the 30 June 2023

There is a lot more in the financial statements about player values and amortisation of their values which appears to place a very low book value on the players that left in the year. (signing on fees are counted in wages and salaries)

Stadium hire / rent £890k
Academy grants £850k
Directors renumeration in 2023 was £332k + £15k for pension (highest paid director was £195k)
Payoff for Directors and football management staff £2.1m (in 22-23)

We have performance related contractual obligations of £178k should players fulfill certain specific conditions in the future
 
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It’s how he now goes about making the club better. Some times you do have to spend something to get greater rewards. Some tough decisions to be made in the next few mths
 
They better follow through with that little player trading comment. Because I’m telling you there is enough young talent in Non League for example who would more than hold their own at Latics, but for far cheaper wages.
 
These accounts are for the Championship season when the previous ownership were in charge. So we knew they were going to be truly awful due to the herculean levels of incompetence and mismanagement but they really are brutal reading.

The new ownership have kept all sell on fee's. So if Robinson goes for big money we will get any sell on.

The overall club wage bill was a mental 13m which included signing on fees, bonuses the previous year in L1. But that inexplicably jumped up by 10m to a bat shit crazy 23m after promotion despite us barely signing anyone and not having many Championship quality players . It appears the players pretty much got a double your money pay increases for winning promotion despite them already being paid over the odds in L1 - the level of spending for the quality of player we had was beyond ridiculous. It's beggar's belief the contracts they were giving out.

The above figures don't count 2m paying off Brannigan, Richardson, Toure plus their coaches. Most of that hasn't been paid yet and falls on Danson.

Brannigan appeared to be getting nearly 200k.

While the club did lose over 13m I don't believe all of that is debt still against the club. But Danson did inherit and pay off HMRC and player wage debts he needed to pay off in the first couple of weeks which probably came to something like 6-7m before other future payments he'll need to cover.

There was a line saying Danson is committed to covering costs 'for at least a year' after these accounts are published. And there was a reference to handing over the club down the line to another owner in a much better state. You could read something or nothing into those statements.

It's just a reminder to us all how fortunate we were to have Danson come in as we were in such a bad place financially we couldn't even go into administration!
 
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Looking at the funding differences its obvious that Prem to Championship is massive so can understand parachute payments but there's now a large difference between Championship and League 1 so maybe a smaller parachute payment is needed here.
 
hindleymonwafc said:
Looking at the funding differences its obvious that Prem to Championship is massive so can understand parachute payments but there's now a large difference between Championship and League 1 so maybe a smaller parachute payment is needed here.
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I think we need mandatory contract reduction clauses for all clubs in the event of relegation.
 
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