I'm hearing from our old friend Roller, that we have posted our latest financial records ...and it is a loss of 24 million. It relates back to the time we signed Johanssen Austin and Dozzell for Warburton Apparently we are still within ffp , but if this is repeated in the next two years...we are in trouble. You can see how ffp is affecting us ...and I am sure all other clubs that aren't in the big boys club
Clubs like ours are playing with both hands tied behind their backs, which is why slipping into league one could mean slipping even further as others have done.
FFP is a clumsy and sometimes unfair tool, but its aim, sustainable football clubs, is good. Without it, and without owners who have been forced to write off their ‘loans’ to the club, we could have been even more massively in the red, unsaleable, and headed towards an almost certain administration and perhaps oblivion. As you say, apart from PL clubs and those getting parachute payments, it’s the same for everyone. We need to sell a couple of players for decent money, but we haven’t got much in the way of assets at the moment.
https://find-and-update.company-information.service.gov.uk/company/03197756/filing-history Link to accounts. Skimming them now. Grim reading.
Wages up from £24m to £27m which is disappointing - we can't afford that figure to be that high. Acquisition costs for the transfers in this period (4 loanees coming permanent / Moses / Dunne / Gray and McCallum loans) up by about £2m but I doubt that's the total as the amortisation will be spread over multiple years. TV income is about £9m and at least we can expect that to double with the new TV deal. Pleasing to see the training ground included within our fixed assets, which has increased by about £6m. Can't see what else that could be beyond the training ground.
Interesting to see the ownership structure clearly split out: - Ruben 51% - Fernandes & Meranun 26.8% - Richard Reilly 12% - Mittal family 10% - Various minor shareholders 0.2% I'm actually pleased the Mittal holding is that high...
Why would administration expenses go up by £2m over 2021? On the share capital side owners now a third of a billion quid down. They lack ambition, apparently.
I wondered if that's a bounce back from COVID thing? Guessing costs for running the stadium were much lower in '21 and bounced back. Would be helpful to see pre-COVID figure against '21 figs for reference. Aye. Ambition is not the problem for our club, financial reality is.
There’s no doubt that footballers wages and agents fees are slowly strangling non EPL clubs. Owners will continually have to pump in money (which they are fined for doing) to keep clubs afloat. Perhaps the EFL should begin by putting in wage controls that would help clubs manage their playing staff costs. If done by the EFL they, the players, would have to accept it. The clubs could then begin to get closer to managing within the FFP guidelines. They could also start to agree on better compensation for EPL clubs coming along and stealing (and strangling) young talent from EFL clubs.
Interesting that the Mittal share has risen from 3%. Not good news for me, Mittal is an odious person, this must have been the price of his son in law being made chairman.
It’s irrelevant who has what share in a football club tbh. Most hugely privately successful business people have some kind of negatives in their character. As you say Sb the aim of sustainable football clubs is a good one. But more has to be done. If it’s about financial stability it all comes down to control of costs. And there are few opportunities. Raise TV revenues? Reduce wages or people? Increase matchday/season ticket costs? Or all of them? If the EFL wants financial sustainability it has to do more than sit in the gentleman’s club and set rules. It has to help the clubs get there. It needs to provide better cost frameworks for clubs to have a reasonable chance. Or just leave it to the creatives to ignore it, wangle their way through the rules or for clubs to just slide ever slowly downwards to closures, less professional jobs for footballers and football staff, reducing income streams from outside football and finally loss of interest in non-EPL football (it’s bad enough now with minimal exposure on all media channels).
Not really. It has 'key management' compensation listed at just under £2m but doesn't state who that covers. Presumably Lee Hoos, maybe SLF, maybe the FD, maybe the first team coach? Could include Ramsey? Without that clarity we'd just be guessing.
It's grim reading alright and doesn't bode well for the immediate future. As we know, we have to sell our best players to even put a small dent in the running costs. I fully expect to see Field leave at the end of the season, will do well to get £3m for him. Might get similar for Dieng. Other assets in the likes of Willock & Chair I guesstimate around £1.5 - 2.5 max. I was having a conversation with my lad last night about the ever so possible prospect of League 1 football. We both agreed that it's about right where we should be considering our financial implications, ground size, fan base and standard of football we currently play. We both agreed on those reasons for Ainsworths appointment. Theres no point pretending we are something we are not or pretending we should be more than what we are. The years of the board dishing out stupid money on stupid players that helped get us into this mess are long gone. Infect, the board spending money on any players could be long gone. We can always hope for more but realistically, it ain't going to happen.
I guess there wasn't a Leicester fan anywhere that thought they'd ever win the Premier League. If we're to give up trying to achieve as much as possible, then we may as well fold. The football league needs more financial help, but everything is tilted in favour of the Premier League. Getting back there, however unlikely, must be our ultimate aim and ambition imo.
