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Wage bill pushes Imps into losses

Lincoln City have published their first set of accounts since promotion back to the EFL. Income was up 13% compared to 2017 mainly due to solidarity payments from Premier League (worth about £650k) and EFL TV deal (£450k) which makes up for less progress in FA Cup than previous year.

Lincoln lost £20,000 a week in League 2 compared to a profit of about the same in the National League, the previous season helped by promotion and FA Cup run. They had mainly lost money in the National League. Most clubs in the EFL are loss making.

Making losses most years means either borrowing or shareholder investments to bankroll the losses. Lincoln have relied upon shareholders, including supporters, to buy shares each year to keep the club going. The absence of external loans is good news.

Lincoln's overall costs up by 88% in 2017/18 which was the main cause of losses made. Player costs key issue but other overheads seemed to shoot up too. Lincoln paid out £84 in wages for every £100 of income, significantly above the recommended 50 per cent level, although few clubs achieve that.

Even so, Lincoln's wage bill up by 73%, due to (a) 13 months of accounts instead of 12 previous year (b) League Two wages higher than National League (c) employee numbers up from 169 to 246. Imps wages reasonably high by League Two standards.

Other main player cost is in terms of player signings and Lincoln board backed the Cowley brothers in this respect. Over half of League Two clubs rely on free transfers, loans and academy, whereas Lincoln were big spenders at nearly £800k.

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