Financial Loss 2.24 million | Page 5 | Vital Football

Financial Loss 2.24 million

57harry said:
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
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The brains of the outfit has turned up and given us his wisdom.......cheers Harry.
 
is the 514k the final payment on the training ground? or will there be another 500k fixed asset figure in next year's accounts, plus additional ongoing running costs?
 
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.
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Most likely he just can’t add up
 
nlondonimp said:
is the 514k the final payment on the training ground? or will there be another 500k fixed asset figure in next year's accounts, plus additional ongoing running costs?
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Running costs will always be there won’t they.
As to fixed assets this year depends what we’ve done since 30 June
 
I see West Ham reported a £28.2m loss yesterday. Funded by £45m loans from the Porn twins, on which they charge 4% interest.
 
I make the comparison purely to note they are putting interest bearing loans in which they don’t seem to want to convert to equity, compared to our situation.
 
If Clive and his fellow investors have pumped extra funds into the kitty purely to get us into league 1, then obviously it worked and I'm very grateful.

I can also appreciate that level of extra investment was to achieve a specific goal and unsustainable in the long term. So, if we need to adopt a "develop & sell" model to maintain our new status, then I'm comfortable with that too.

I don't believe we are over-committed to back room staff. Indeed this is where our focus needs to be for player-development to bear fruit.

So all in all, I'm not too concerned about the reported £2m loss if it's a one-off and means to an end. When I look around at other clubs, I continue to thank our lucky stars that our board seem to be managing the club in such a sensible and responsible manner

Happy days!

UTI
 
SittingbourneImp said:
If Clive and his fellow investors have pumped extra funds into the kitty purely to get us into league 1, then obviously it worked and I'm very grateful.

I can also appreciate that level of extra investment was to achieve a specific goal and unsustainable in the long term. So, if we need to adopt a "develop & sell" model to maintain our new status, then I'm comfortable with that too.

I don't believe we are over-committed to back room staff. Indeed this is where our focus needs to be for player-development to bear fruit.

So all in all, I'm not too concerned about the reported £2m loss if it's a one-off and means to an end. When I look around at other clubs, I continue to thank our lucky stars that our board seem to be managing the club in such a sensible and responsible manner

Happy days!

UTI
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And let's be clear, it's a trading loss for one year which gets us into the higher division and a jump in turnover hence forward.
And it's a loss, not a debt. Big difference. Club are still perfectly solvent and in the black.
 
buckielugger said:
Yep Akinde's £4k a week, £200k or so a year is massive compared to the money most of us earn. But even then, there are now loads in Premier League who earn that amount and more in just a single week!!
It is insane.

And there will inevitably be a big bursting of the Premier League bubble at some point.
Lots of people I know no longer pay for Sky etc but watch the games via free streaming or other such means.
Sky's (and BT etc) business models are therefore doomed to change significantly and football will next time around get nothing like the TV deal it gets now.
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This won't happen. The TV model has changed significantly over the past decade or so. Premier League is now a very saleable global brand and every year/deal the global rights have increased to the point where they are now nearly as much as the UK rights. Interest in the Premier League is such that in a decade's time global rights will be worth more than the UK rights.

It may well reach a point where the home market deal bursts because of people not paying for it here but the reality is that worldwide there is more and more interest and thus what the PL loses in home market value it will more than gain in overseas value.

so the home TV deal could go down next time round (I bet it won't) but I would expect the overseas deals to bridge that gap or be more than the difference.
 
buckielugger said:
And let's be clear, it's a trading loss for one year which gets us into the higher division and a jump in turnover hence forward.
And it's a loss, not a debt. Big difference. Club are still perfectly solvent and in the black.
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But we are not solvent -certainly not at the year end with net current liablities at £ million 2.3 and long term debt of £ 430,000 on top of that. Certainly the new investment of £m 1.4 after the year-end (ie.this season), plus the Cowley compensation as well as the net transfer income will have helped,but there is still heck of a lot to do IMO.
 
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