I have now had a brief read through the May 2012 accounts which were available for download when I logged in this morning , and these are some of the key points. Despite an increase in income for the year to £20.2m (2011 £15.9m) , the annual loss for 2011/12 went up to £13.5m (2011 £12m). The increase in turnover was due to a £1m increase in gate receipts , £2.4m in extra advertising and sponsorship (inc. £1m in shirt sponsorship from one of VT`s Malaysian businesses) and nearly £1m extra from TV money etc. The extra £4m in income was more than overturned by big increases in expenditure , the main elements of which were a) nearly £2m of extra administrative expenses (a rise of over 30%!!) - I dont know why such a big increase as the accounts don`t have to reveal a breakdown of this b)an exceptional item of £1.6m relating to compensation for the dismissal of Dave Jones and others c) an increase in interest payable of £1.2m to £3.3m - all related to the interest on the VT loans d) an increase in cost of sales (mainly the wage bill) of a net £1m. The wage bill actually went up by £3.9m after the exceptional item in b) above , so some other costs in this category must have come down by £2.9m. As a result of the above losses , the balance sheet position got worse by £13m or so , and the asset and liability position was as follows at 31 May 2012 The main asset in the balance sheet was the stadium at £48.4m. There is a note in the accounts suggesting it was going to be revalued in the current financial year to its "replacement cost" - I presume to give a value increase and help with the Financial Fair Play Rules. Players were shown at a total value of just £2.3m (so undervalued because of the way clubs value them for accounts purposes). There was cash at bank of £0.5m and some debts due to the club of £2.2m. On the liabilities side , there were debts recorded as due and payable before 31 May 2013 of £51.9m and debts recorded as payable after 31 May 2013 of £31.2m. So total recorded debts of £83.1m , but this actually overstates the reality of the position. Included in the £51.9m is £37.4m due to VT and associates. If he sticks to his promise to convert this to shares ,then all of this liability disappears. There is also about £3m relating to the fact that season ticket holders had already paid in advance for the following season - none of this repayable in cash - and £3.6m due to PMG (was £7.7m the year before) which is being paid off in instalments. Included in the £31.2m is £19.2m due to Langstone (£15m plus 4 years interest at £1m a year)and £9m re stadium naming rights , plus £2.9m due to Player Finance fund (was £3.4m the year before). There has been much talk of settling the Langstone debt at or around the £10m or £12m mark (including SH suggesting he would accept the latter) , so the £19.2m seems greatly overstated. Also , none of the £9m re naming rights will be paid out of club assets as , to the extent they will ever be paid for , it will be paid by the buyer of those rights , not the club itself. Player Fund are only paid as and when the club sells a player , and no interest is accruing on the debt. I expect it to be paid off in the Summer , either from selling players we deem not good enough for the Premier or (god forbid) we sell because we don`t get promoted. So the headline level of £83m of total debts is not as worrying as first seems. At least £16m can be written off the Langstone debt if settled shortly and a further £37m of VT debt should be converted to shares. So the total debts would then come down to £30m from the headline figure. On a related note , there is provision to pay Langstone a further £5m if the club gets promoted before it has paid off the £15m plus accrued interest figure. So the club can settle the debt before promotion and avoid that further potential liability. In summary , the loss of £13.5m is worrying in that it shows that the club simply cannot run at Championship level without making a big loss , but the resultant balance sheet position is not as bad as it first appears. A second worry for me is the big increase in administrative expenses which we were assured would be better controlled and reduced when the new investors came on board. Hope this helps. If not , it wasn`t me who wrote it Keith
Cheers DJR Good summary from Keith. Getting rid of Sam's debt and capitalisation of VT's loans is now essential to kncok the balance sheet into better shape. I can see now why Sam is sitting on his hands and waiting for promotion = another £5m. The position will have worsened since May with only about £500k income from player sales and so much more going out to buy players - must have come from VT's back pocket. Also, I won't be surprised if turnover is down with a decline in attendances until recently and has the change from blue to red sold less or more shirts. I know we won't get it but it would be useful to get a breakdown of the admin expenses to see where the extra £2m has gone. Overall I'm not surprised at the results which at the bottom line emphasise 3 key things: - 1. Pay off Sam 2. Capitalise VT's loans 3. Get promoted Simples!!!!
Apparently they have sold 15,000 red shirts ad about 3-5000 blue ones, inmcluding baby-grows. (Don't ask me lol) The average figure for the last few seasons was c55000 but this was greatly caused by 30000+ going on the various trips to Wembley The absence of blue shirts for some time, which raised all the baseless accusations that VT had ordered them removed, was in fact caused by the last order being dispatched in 2 deliveries instead of the usual one.
so thats last year when we spent very little on transfers and were operating with a threadbare squad. and we lost £13.5m....... when the next set of accounts come out in a years time it will make for some scary reading....... i'm thinking a QPR size £20-£25m loss. the PL money will be needed, its very timely that there's a huge hike in the money clubs will receive next year
There has been a big increase in sponsership this season with Ricoh, NewLaw, Peters, Sytner & Circleit there is also 24 box holders. Not sure how much ££ that brings in but not going to be cheap.
It is scary stuff, but it goes to show that the owners need promotion now. We are so close and they will not let it go...there is too much to lose. Expect a big signing this week!
What? And spend more money? Ah what the hell, why not? VT can afford it even if he is now retired and surviving on a meager pension.
All wums aside, good luck for your final push as the consequences of failure look a bit worrying IMHO.
I'm sure you will be fine and look forward to relinquishing the rivalry next season. Hopefully it will bring back some numbers on your board too.
First side ever who dont gain a penny because of bad accountancy to reach the premiership.. you wont be able to afford to stay and looks like pompey all over again...
God you are such a twat ....run along now and don't forget to tell your mum to shave her moustache off so she can sell her blowjobs for more than 50p down the Workingmen's (job centre) club
No matter who you are, where you are from, who you support or what sport you follow, my team has been the TEAM OF THE DECADE. From potential insolvency / expulsion to the minor leagues, to a team run by fans, a desire to play football the "correct fashion", continual improvement every season, promotions from the third division to the Premier League and now .... who knows? 2012, centenary year of Swansea City.......it's fate! WHO ARE WE ???THE JACK ARMY...I LOVE BEING A JACK BASTARD !!! This is so wrong ......You have no choice .....AS WE ALL KNOW ....YOU WANT TO BE A CARDIFF CITY FAN ......Stay on our forum for a few more years and we may accept you .....but for now 'You are a twat'
