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Level of debt haunts Chesterfield

The chairman of Chesterfield FC states in his introduction to the 2016/17 accounts, filed online at Companies House: 'The level of debt continues to haunt us, although the loan interest payable has been significantly reduced.' (It went down from just under a quarter of a million pounds to just under £100k). Total loans owed to the owner and former owners amount to £9.1m. The club continues to be supported financially by Dave Allen who has provided further finance for the club during the year despite no longer being part of the board.

Turnover fell by nearly £900,000 (£7.5m to £6.6m) compared to the previous year, mainly due to a reduction in transfer fees receivable in the year following some significant sales in 2016. The amount received fell from just over £2m to just over £900k. The business review notes, 'To continue to try and balance the books we must remain a development club, that is able to sell players for a value in the future.'

Gate and season ticket money fell by £290,000 to £1.35m. This was balanced by TV and football awards increasing by £280,000 to £1.47m. Commercial income fell from just over £2m to £1.9m. 'The conference and banqueting facilities continued to receive great praise, but the performance of the first team had a knock on effect on the business as a whole.' The overall operating loss was £506k.

Staff costs were two-thirds of income. In overall terms the club reduced costs by over £200,000 compared to the previous year, despite the cost of replacing the management team and without significant reduction in the player budget.

Many League One and League Two clubs present abridged accounts, but Chesterfield offer a level of detail on costs that is not available even from Premier League clubs. Even with a modern stadium, repairs and maintenance and ground upkeep cost £350k. Hotels, travel and subsistence cost £177k. The light and heat bill was just under £100k. The rates bill came to £114k. Medical supplies cost £113k. £32k went to the Football League as the gate levy. £239k was spent on the Centre of Excellence which is key to the club's strategy.

If Chesterfield fail in their bid to avoid relegation, it will be difficult to reduce many of these costs but revenues will fall.

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