Skip to main content

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.

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

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more