2012 Accounts Published

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Some observations:

We almost doubled our wage outlay in the championship compared with league one, though some of this will be performance-related (i.e. promotion bonuses of £5.3m). 125% wages to turnover is high and presumably considerably lower now (though we will again be paying some generous promotion bonuses). I guess that is the price of pushing for promotion. Only Leicester (130%) and Bristol City (157%) had higher in the championship that season.

Most of the debt (£38m) has been wiped out by the Liebherr estate after we secured promotion to the premier league, so our debt is actually considerably lower now than what was reported in the accounts. We owe £3.8m in a bank loan (the much-discussed loan to cover shortcomings in the training ground refurbishment), and £1m a year to Aviva for the stadium mortgage, until 2015/16 (as long as we stay in the premier league). The £4m 'former loan creditor' in exceptional expenses is also to Aviva for the stadium. Considering they gave us quite generous terms while in administration, seems only fair that Aviva get something back now we are in the PL again.

£12.4m profit in player sales is of course for Oxlade-Chamberlain. Without that our loss would be a fairly eye-watering £24.3m, which is comparable to QPR (£25.4m loss) in their promotion season, or West Ham's (£25.5m) last season. Only Leicester lost more (£29.7m) in the championship that year.

Oddly commercial income went down, despite promotion to the championship, maybe the 125th anniversary stuff was particularly profitable? The figure for 2010 was £3.2m, so £5.7m in 2011 (both in league one) is a significant increase on that. Or perhaps it's due to poor sales of the new kits, particularly the all-white one I'd imagine.

Cortese paid himself £1.6m, I'll leave it for you to judge whether that is fair or not :)
 
#saintsfc 2012 loss includes £9.5m exceptional once-off costs, due to PL promotion: mainly £5.3m staff bonuses & £4m to former loan creditor

Definitely could be worse.
 
Not bad at all - we're in a really good place moving forward. There's no doubt Cortese is an exceptional businessman and it has been proven that he has made all the right financial decisions thus far.
A £1.6million personal wage isn't bad considering how much Lowe and co lined their pockets with.
I have no doubt that if the s**t was to ever hit the fan, the interests of the club would come before his own - they might do even now, who knows. At least we haven't got the Venkys at the helm!
 
Can anyone put it in simple terms whether this is good or bad and how it compares with others? I see lots of numbers, but being a bit of a thicko they don't tell me anything!
 
SAINTDON13 said:
Can anyone put it in simple terms whether this is good or bad and how it compares with others? I see lots of numbers, but being a bit of a thicko they don't tell me anything!
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I tried to do that, did you read my post?

Short answer: we spent a lot in the championship but things are looking pretty good now.
 
pass the football said:
I tried to do that, did you read my post?

Short answer: we spent a lot in the championship but things are looking pretty good now.
Click to expand...

Thanks, must admit most of it just goes straight over my head. I guess the price we had to pay for promotion was inevitable, I wonder how things would have gone financially if we had been forced to go through it all over again! The average attendance figures are impressive.
 
I don't like wages to turnover being 125%. I don't know of any other business that could survive like that. It is simply not sustainable. It will be interesting to see what it is this year. Presumably both will have gone up, depends on which has gone up the most.
 
Lff said:
I don't like wages to turnover being 125%. I don't know of any other business that could survive like that. It is simply not sustainable. It will be interesting to see what it is this year. Presumably both will have gone up, depends on which has gone up the most.
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You're right, it's not sustainable, but the rewards of promotion are so high now that many clubs are gambling to get there. We are in a relatively good position because we made it at the first attempt. As you know, we had budgeted to get to the PL by 2014. If we had missed that target, we'd be in a similar position to Leicester et al.

Bristol City are an odd and unfortunate case because although they are not pushing for promotion and their wages are not high, their turnover is very low. Will be tough for them for the foreseeable future.
 
A small increase in the loss despite the sale of AOC but then again our squad must be worth much more than last year? For a club on the point of bankruptcy 3 odd years ago, the figures look pretty good bearing in mind the massively increased income we will enjoy this year.
 
SAINTDON13 said:
http://www.insidermedia.com/insider/south-east/87751-southampton-fc-reports-jump-revenues
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Since they mention transfer spending in that article, I'll just point out for those who don't know, that player purchases are not reflected in the accounts. The assumption being that a player is an asset with a value equal to the fee paid for him. If it turns out they are sold for a profit, that gets reported as 'profit on player sales' and if they are not (i.e. if they are released or sold at a loss) then the loss is reported as 'player amortisation'. You can expect the figures in that column to increase dramatically now we are paying larger transfer fees.

At least, that's a simple explanation of it. If you want to know the details of 'player amortisation' then this might be worth a read (essentially profits are reported as higher and amortisation is factored in as a loss as a player's contract runs down): http://www.nufcblog.org/2011/03/amo...a-football-clubs-profit-figures/#.UV2ZX6tAT3I
 
I'm imagining the wages will have increased massively on entry to the PL with players like Boruc, Ramirez and new contracts to Schneiderlin and Lambert etc, but the income will have shot right up. We stay up this season, we're pretty much sorted.
 
Jake Wuttz said:
I'm imagining the wages will have increased massively on entry to the PL with players like Boruc, Ramirez and new contracts to Schneiderlin and Lambert etc, but the income will have shot right up. We stay up this season, we're pretty much sorted.
Click to expand...

Yeah, we're on target to make a profit this season if the halfway report is anything to go by, which is what you'd expect for a newly promoted club that isn't, say, QPR ;)
 
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