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Town Lose £14 Million
Town Lose £14 Million
Monday, 15th Nov 2010 15:58

Town made a loss of more than £14 million in the year to June 2010. The significant loss was not unexpected with Marcus Evans’s cash funding last season’s transfers and increased wage bill.

The figures are revealed in an information sheet sent to shareholders in the PLC, which owns 12.5% of the club, outlining Town’s overall financial position. It was sent along with the PLC’s annual report and accounts ahead of its AGM, which will be held in the Sir Bobby Robson Suite in the South Stand on Tuesday 7th December.

During the year to June 2010, the Blues’ loss on ordinary activities before taxation was £14.18 million. The equivalent figure in the year to June 2009, Marcus Evans’s first full year at the club, was £12.67 million.

Player and coaching staff costs rose from £12.03 million in 2008/09 to £13.45 million in 2009/10. As a percentage of turnover player and coaching staff costs rose from 82.1% to 85.3%.

Overall staff costs were up to £17.05 million from £16.10 million, that’s 108.1% of turnover, compared with 109.9% in the previous year.

Turnover was up from £14.66 million in 2008/09 to £15.77 million in 2009/10 with commercial income down from £6.02 million in 2008/09 to £5.4 million and income from the Football League, including TV and radio fees, up to £4.01 million from £1.94 million a year earlier. Gate receipts were down from £6.70 million to £6.36 million.

The club’s direct costs were up from £18.7 million to £19.4 million due to additional player wages. Administrative costs were down £600,000.

The information sheet says the following regarding Town’s current debts: “At 30th June 2010 the club had… [a] total interest-bearing debt of £38 million (intra-group debt £36 million, external debt £2 million). The external debt is the balance owed to the remaining loan note holders. ITFC is not in debt to any financial institution.”

Regarding players, the sheet reveals that the six players coming in during the year to June 2010 cost £7.2 million, while the four players sold brought in £1.1 million. Since the end of the current set of accounts, another £800,000 has been committed on transfer fees with £3.3 million realised from sales.

At the PLC’s AGM shareholders will vote on whether to re-elect PLC board members David Sheepshanks and Richard Moore.


Photo: Action Images



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Weekender added 16:06 - Nov 15
So Keane has incurred a £3.2m loss in the transfer market.

For what improvement?
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Rorschach added 16:06 - Nov 15
Clearly this is all Roy's fault.
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WadzillaBhoy added 16:08 - Nov 15
I seriously doubt ME cares about this loss, most tycoons that run football clubs use them as tax losses. Thanks to this ME has got 14 mill in his bank tax free.
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whoppit added 16:10 - Nov 15
And we are in about the same place in the table as when Keane took over 2 seasons ago. Progress or what??
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WeWereZombies added 16:21 - Nov 15
WadzhillaBhoy - I don't think the offset of tax losses wroks quite how you think it does. If ME does have £14M in the bank it will be whatever he had in the first place less £14M but without corp tax to pay on £14M (maybe £3.5M) = £14M. He may be able to accomodate the loss but I bet he is steaming about not having a firm prospect of Premier League football next year. The question is whether it should be Keane who pays with his job or Clegg.
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WadzillaBhoy added 16:34 - Nov 15
No its not with whats already in the bank, he is an entrepreneur so Im guessing he makes millions every month the 14 mill is tax deductable with what he earns this year.
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ITFC_Budapest added 16:37 - Nov 15
This clearly demonstrates why we do not have the luxury of giving keane more time. We need a manager who can get us promoted now!
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foster added 16:41 - Nov 15
well done roy money wasted ,lee martin £1.5 really apart from leadbitter who has he brought in thats looked pritty good
sack him for wasting your money marcus evans
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northants added 16:45 - Nov 15
As an accountant, comments like this make me shudder :

Overall staff costs were up to £17.05 million from £16.10 million, that's 108.1% of turnover

The phrase "unviable on an ongoing basis" springs to mind....
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kerryblue added 16:45 - Nov 15
How much of this is paid to The Great Clegg?Get him out to move the club forward
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Ipswich24 added 16:57 - Nov 15
Would save a lot more money if Keane quit his 3 million a year job for O Driscoll who would cost peanuts but would get us playing the football we all crave!
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Keaneish added 16:59 - Nov 15
O Driscoll - GREAT shout Ipswich 24 although more cost in paying up his contract at Donnie.
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brian_a_mul added 17:05 - Nov 15
A lot of the increase on staff wages is probably Keanes + Cleggs wages. Im guessing at this.
Figures are from July 09- June 10 and the reason why ME was not going to throw cash around summer 2010. He off loaded some players on decent wages (R Wright, etc) and brought through the youth players to supplement the squad. The aquisitions of Kennedy, Scotland and Fulop were very shrewed and sensible.

Back to an earlier comment, Delaney, Murphy, Shane O Connor were good signings while Priskin is starting to repay some of his fee. Also Edwards is decent and I wouldnt consider him a flop. I agree that Martin was an expensive signing on apparently good wages to boot. Martin may surprise us next season (more hope than expectation really) Leadbitter is a solid workhorse with pleanty of more years left in him.

Im delighted we diddnt spend £4-5m on Chopra!

Im sure we will see a different balance sheet this time next year.
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muhrensleftfoot added 17:09 - Nov 15
Well, Joe Royle said that if he had been able to spend just £2m, then he would have got us promoted. Sadly he never had the chance to prove it. Lots of money spent since Evans took over by both Magilton & Keane, & absolutely no progress has been made. It has to be down to bad management, when clubs with far less resources have done so much better.
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jas0999 added 17:09 - Nov 15
No more money for transfers then and perhaps more importantly, little money to relieve Roy of his duties. People can have their own opinion on whether Roy gets sacked, but in the end it will boil down to ME and finances.
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Acen added 17:12 - Nov 15
Shiit
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BlooooCD added 17:18 - Nov 15
These costs will be significantly reduced at the end of the season - Keano gone along with the main stay of players we have in our stable.. Am I right in thinking I read somewhere that we have 21 players out of contract at the end of this season? Perfect time to bring in a new manager to work with this squad and add one or two more quality players...
Also get rid of 'Smegg' - I wouldn't let the man 'run a bath'!!!!
COYB's!!!
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purplesprouting added 17:33 - Nov 15
KEEAAANNNOOOO.........
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Guthrum added 17:41 - Nov 15
northants

That's why football clubs are playthings for rich people with money to spend, not normal ongoing businesses. I'd be willing to bet that hardly any clubs in the Prem/Football League manage to break even on a regular basis, let alone making a profit.

A lot of it down to the rocketing costs of running a football team nowadays (especially wages) - much like many aspects of business in this country.
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Keanos_Barmy added 17:44 - Nov 15
O Driscoll wouldn't be a bad appointment, but I'd prefer Poyet and Taricco. My fear is that Evans and Clegg will look for another high profile manager that will, like Keane, do nothing to advance this football club.
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Mark added 17:45 - Nov 15
At one point I thought we had players' wages down to £5M, but now we're spending £13.45M on players and coaching staff wages! I seem to remember we were not far short of the play-offs at the time Marcus Evans came in, so he must me massively disappointed that all this spending under Magilton and, especially, Keane has come to nothing.

This makes me wonder how we can afford four goalkeepers at the club, and to keep bringing in loan players when they keep out perfectly good players such as Hyam, Peters and O'Connor (who also have to be paid).
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brian_a_mul added 17:47 - Nov 15
Muhrensleftfoot

Big Joe did say something like that but than again we were in administration and that almost drove the club to the wall. That is the last thing any of us want to see happen again. These days the most important thing for any club is financial stability, look at Sheff Wednesday!! They could be gone in a matter of weeks.
Joe also had home grown players like Naylor, Westlake, Ambrose + Bent up front who had a few seasons under their belts. Again your right when you say they made the most of their resources. We can see that ME believes the acamedy can be of great benefit to us long term and if we can keep the current lads together for a few seasons (Wickham, Murray, Lambe, Hyam, Eastman, Smith etc) there is no reason why we cant still achieve. There is a spine of a decent team there added to players like Leadbitter, Peters, Priskin, Fulop who have many years left in them!

@ BlooooCD: Im not sure if its 21 players but your right in saying there are a good few. There are not so many clubs willing to hand out long term deals and large wages anymore. Kennedy took 2 years offered by us rather than one year at Cardiff. This is happening at alot of clubs and players need to earn new contracts. This might motivate some players and not others. Delaney seems really up for the challange though going by his statements and eagernees to get back in the team. He for one deserves it.

Every one wants success now but its important to be realistic. Keane set very high expectations when he came and diddnt help his cause with his "2 year plan".

The future is bright, we have a solid owner with cash behind him and a good set of young lads that can serve the team for years to come or provide financial support if required in the times ahead. I think Keane sees this and has changed his initial plan and maybe we should change our initial expectations.
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Ipswich24 added 17:54 - Nov 15
O Driscoll would be relatively cheap and would bring in proven lower league players with that fight and determination to show what can do at this level the brand of football donny produce is exceptional on the eye plus it gets results look at Healey two games two goals and he aint fit its about being in a good environment with the right players and right style of football
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superblues9 added 17:56 - Nov 15
O if only royle was still our manager like said on other posts 2 million and he would of got us up we would be premier league at least by now bring back joe
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adampasty added 18:42 - Nov 15
Good Bye Connor Wickham!! 10million to pay some of that loss!
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