Financial Loss 2.24 million | Page 4 | Vital Football

Financial Loss 2.24 million

Adds a bit more perspective to the decisions made by people associated with the club earlier in the season and again this month
The extra investment did work as we got promoted and as long as we establish ourselves in League 1 it can be counted as a success.
One thing it does reiterate is that footballers at all levels in the professional game are overpaid.
 
Casperimp said:
I think you are misunderstanding the point. Last season we were paying out League 1 wages but in League 2 that's why we have lost so much money. We can see now why Danny and Nicky were unhappy that they were going to have the same budget as last year and they kept saying it! Take a look at the price of football we payed out more wages an bonuses last season in League 2 than half of League 1!

Our income will be more now and as Clive has said we have moved onto a model of younger players to develop. Why is it absurd to dream of the championship. Clearly we have a model going forward that they believe will achieve it the point being we aren't going to buy it like we bought promotion out of League 2 becasue it isn't sustainable!
Click to expand...
Clive indicated exactly what you have said and it went along the lines that our budget in league 2 was higher than that of Shrewsbury who were at the time in the playoff positions in league 1.
The model of employment will change from signing high cost experienced players with little opportunity of recouping that investment in the future to a more speculative scenario where added value come into the club through research,development and investment in these young recruits and we have started to reverse that old process which is economically not viable going forward
If non footballing revenues do not materialise in the short term then this is the only way of sustaining us in league 1.
I am sure that this matter is an agenda item for the Lincoln directors as in any business you need to be operating on many fronts to maximise at the margins with regard for growth and sustainability in the mad world of football.
 
Last edited:
tell_it_like_it_is said:
Adds a bit more perspective to the decisions made by people associated with the club earlier in the season and again this month
The extra investment did work as we got promoted and as long as we establish ourselves in League 1 it can be counted as a success.
One thing it does reiterate is that footballers at all levels in the professional game are overpaid.
Click to expand...

You may consider players to be over paid, but they not. They are paid the going rate as determined by the market. The market is arguably skewed, but you cannot blame the players for that.
 
Mattytindraws said:
You may consider players to be over paid, but they not. They are paid the going rate as determined by the market. The market is arguably skewed, but you cannot blame the players for that.
Click to expand...
Artificially inflated by Debt. Sustainable for us but sadly not for a number of other clubs.
Certainly wouldn't blame the players themselves. Unless you are Tom Brady you are certainly going to try and maximise your income.
 
NewburyImp said:
For clarity I was mentioning a new ground purely from a cash generation on non match days point of view, not just additional capacity. Look at the grounds that do it well, Reading, Coventry, MK, Stoke they have great retail, hotel and conference offerings which all generate significant income.
Click to expand...

My post wasn’t directed at any previous comment just my opinion on the capacity and City supporting footfall when we are not sold out.

However, I think you can delete Coventry from your list.
 
tell_it_like_it_is said:
Artificially inflated by Debt. Sustainable for us but sadly not for a number of other clubs.
Certainly wouldn't blame the players themselves. Unless you are Tom Brady you are certainly going to try and maximise your income.
Click to expand...

It's why salary limits exist in other major leagues. Even then that's not proved infallible.
 
I’m sure Chesterfield was mentioned as an example for non football revenue. Not sure how it stands with it now.


Likewise, I’m not sure the revenue streams from non football related will be that great either. Maybe a good add on but not significant bearing in mind any new ground is a long way off. Add to that the number of hotels in the City offering conference facilities with accommodation thrown in at a discount rate. In addition, the location of Lincoln to prime transport links does not suggest it will be used as a convenient stop off point.

You may get the odd Yoga class at a revamped LNER and a spinning class but don’t hold out for big bucks non Matchday revenue.
 
German Imp said:
I’m sure Chesterfield was mentioned as an example for non football revenue. Not sure how it stands with it now.


Likewise, I’m not sure the revenue streams from non football related will be that great either. Maybe a good add on but not significant bearing in mind any new ground is a long way off. Add to that the number of hotels in the City offering conference facilities with accommodation thrown in at a discount rate. In addition, the location of Lincoln to prime transport links does not suggest it will be used as a convenient stop off point.

You may get the odd Yoga class at a revamped LNER and a spinning class but don’t hold out for big bucks non Matchday revenue.
Click to expand...

You make a good point - 10 years ago a new ground close to town with hotel and conference facilities may have been a real goer commercially. I get the feeling with other developments in the City that that ship may have sailed.
 
once that new by-pass gets finished on the east of the city, South Park Avenue could open up to be the new Tritton Road area. We need an access road to the ground and erect a retail park on the practice pitch.
 
Croozey said:
once that new by-pass gets finished on the east of the city, South Park Avenue could open up to be the new Tritton Road area. We need an access road to the ground and erect a retail park on the practice pitch.
Click to expand...

Access road needed for certain. Retail park ? only viable on matchdays. look at St. Marks...and if/when Debenhams closes it will be even worse.
 
SAToffeeImp said:
Perversely Ed we wouldn't be making anywhere close to those losses if it hadn't been for our "magnificent home support". Without the significant increase in our supporter base there wouldn't have been any point for I and my friends in Sportvest to invest significantly more money than we had initially intended, nor I expect would all that additional investment have materialised. It's because of that increased support that has encouraged the board to adopt an ambitious strategy to try capitalise on this rare opportunity we have at the moment. Without that increased fan support there would of course been no chance in any event of being able to fund the type of journey we have been on so far.

Shrewsbury as you say is a very well run club but it has taken time for them to have got to a point where they can rely on realising good sums from the sale of players including those that have come through their Academy. Last season alone they realised around £2million. Despite those attributes and having finished 3rd two seasons ago, three of the last four seasons have seen them narrowly avoid relegation.

After 6 years in non-league we are still in an investment phase if we hope to compete at this level let alone look higher.
Click to expand...

Wow, very few supporters will have had the Chairman reply to a post on a fans forum. We do all appreciate the effort you have put in to "our" club Clive, you have changed things exponentially for the better.

At the end of my post I should have written: thank goodness for our magnificent home support and our Chairman. I got back home tonight to find in the post the address to shareholder/supporters. The succinct explanation of the "momentous" year and aims and objectives for the future, shows just how far we have come with you at the helm.
 
Last edited:
City made a loss of £ 2,237,719 in season 2018-19 compared to a loss of £ 1,089,485 in 2017-8 (13 month period). The primary reason for this is a huge increase in wage costs from £K 4,429 to £K 5,334 an increase of £K 905 (20%.) There was a much smaller increase in sales income from £K 5,285 to £K 5,390,an increase of £K 105 ( 2%).

The training ground cost so far has been capitalised, and there has been no depreciation charge so far, so having no impact on the profit and loss account.

The liquidity position of LCFC is a concern at the year end with net current liabilities showing a negative figure (£k 2,236) .This has been subsequently partly financed by large new investment in the current season. The club has also relied as a source of finance ,the use of part of the following campaigns season ticket money, both last season, and I would argue, a knock-on effect to the current one.

There was a cash outflow of £K 1,937 for the year,even though there was an injection of £K 1,206 from new share investment.This cashflow figure has been adjusted for the £K 2,300 held by Impfinity at last year end.While this technically was a debtor,I have treated this as cash for this analysis,which for all intents and purpose it is. In addition to the underlying trading loss,the biggest cash outflows were £K 1,313 on fixed assets. This includes £K 546 on players (Transfer fees/signing on fees ect ). Also included is £k 767 on other fixed assets which includes another £K 514 on the training ground as well as £K 253 other assets.

The Board is trying to reduce the wage bill in an attempt to reduce the underlying loss. This includes the recruiting and development of younger players that can be sold on for a profit
 
One advantage to being a Division 1 team, and what would make the outlay of the promotion worthwhile, is that we are now more of a market for Championship clubs to buy players. So our better players will be worth more than they were in Division 2. So our assets should be worth more. Something we need to get more savvy on.
 
Hortin said...."Add on top of that around 1/2 a million in player sales this month "

I do hope that was just an off the cuff remark and not based on fact. Rumour was we got just under £500,000 for toffs which means we got pretty much sod all for Andrade ,o'conner and Akinde despite rumours to the contrary.
 
Croozey said:
One advantage to being a Division 1 team, and what would make the outlay of the promotion worthwhile, is that we are now more of a market for Championship clubs to buy players. So our better players will be worth more than they were in Division 2. So our assets should be worth more. Something we need to get more savvy on.
Click to expand...
yes, for instance... if walker were our player, as second top scorer in the league, how much would he be worth. as a comparison, how much is toney worth?
also, as a league one club, higher quality raw materials (young players like toff) are more likely to sign for us.
 
Long suffering Imp said:
Hortin said...."Add on top of that around 1/2 a million in player sales this month "

I do hope that was just an off the cuff remark and not based on fact. Rumour was we got just under £500,000 for toffs which means we got pretty much sod all for Andrade ,o'conner and Akinde despite rumours to the contrary.
Click to expand...

If nothing else, it got them off the wage bill though and has potentially given MA some wiggle room to get in ‘his players’. Just got to hope we don’t miss them for the remainder of this season and get sucked into a relegation battle.
 
You must log in or register to reply here.