Skip to main content

Derby County owners prepared to pay the prices of success

The owners of Derby County want to see the club established in the top half of the Premier League and are prepared to spend to achieve that objective. They have injected £96m over the last two years, including £15.6m this season. The loss of £7.9m in the 2016/17 financial year is considered by the Board to be 'of a level of spend and investment that is required in order to build a sustainable club in the long term'. However, 'The EFL profit and sustainability regulations continue to provide a significant challenge. The Club needs to balance success on the field together with the financial imperatives of this regulatory framework.' It is noted that 'dependency on parent company support is critical to remaining a going concern'.

Turnover was up by £6.4m to £29m. TV and broadcasting revenues increased by £2.3m to £7.9m, predominantly due to the EFL broadcasting deal. Ticketing and commercial revenues were up by £0.9m to £8.7m and sponsorship by £2m to £5m.

The commercial and sponsorship rights increases are largely attributed to a new joint venture between the club and Delaware North Companies UK Ltd called 'Club DCFC Limited' who from July 2016 have operated all of the hospitality, events and concourse activities at Pride Park.

The club lost £450,000 a week before player sales. The operating loss was £23.3m, but this was offset by a profit on player sales of £16.2m, principally those of Jeff Hendrick, Lee Grant, Will Hughes and Tom Ince.

At £34.6m staff costs amounted to 119 per cent of turnover. Such high figures are not unusual in the Championship, called by the club 'the world's most competitive league'.

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day ...
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...
Post a Comment
Read more