It is misleading if you look at one company because CCFC Limited and CCFC Holdings limited are part of a group called Sky Blue Sports & Leisure Limited which has SISU Capital limited as the majority shareholder.
CCFC Ltd are 100% owned by CCFC Holdings and CCFC Holdings Ltd are 100% owned by Sky Blue Sports & Leisure Ltd (SBSL). Funds are transferred between group members to fund CCFC & CCFC H. The vast majority of the debt is owed to other members of the group of companies all of which are controlled by SISU.
For instance on 31st May 2009 CCFC has total assets of £5.5m and total debts of £50.6m and included in that total debt is £44m owed to other group members (effectively SISU). SO the debts are not like owing banks , HMRC etc the debt is effectively to SISU or companies controlled by SISU and I would assume have less chance of being called in. The deficit on the balance sheet is pretty much equal to the amount owed to other group members. CCFC made a loss of £7.6m, SISU funded that loss but at some point unless the club gets to break even or better they may say enough and not fund it any more, however unless the club is sold they stand to lose £44m if club goes into liquidation/administration etc. So whilst the results dont look good the situation isnt as dire as it could have been
There is a similar situation with CCFC Holdings. Assets of £3.4m Liabilities of £41.3m of which £38.7m is to group members. Again the deficit on the balance sheet equates to the amount owed to other group members. Also again the CCFC H shows losses in the year to 31/05/09 of £7.6m, apparently funded by SISU etc. Comments above apply same.
Overall the Sky Blue Sports & Leisure Group (which includes the results of CCFC, CCFC h and others ) made a loss after tax of £8.1m. The balance sheet shows assets of £22.7m and liabilities of £34.8m = Group deficit £12.1m. However of the total liabilities £23.4m is owed to SISU. So in basic terms if the whole group went bump and assuming the values in the accounts remained the same all debts to 3rd parties would be settled and SISU would lose (23.4m less 12.1m) = 11.3m
Bottom line
like many clubs there are big debts but a lot of the debt for our club is internal so it is wrong to pick out one set of accounts within the group for the sake of a headline. Yes the CCFC and CCFC h results need to improve in terms of making breakeven or a profit but it isnt like there is a long line of creditors beating the doors down for their money. So long as SISU (a) remain a strong company financially and (b) remain willing to fund the group then we are in a far better position than many other clubs. Unfortunately that will mean, unless crowds significantly increase (am thinking average of 25-26000) that we will continue to wheel and deal in transfers to reduce losses, we just have to accept the financial realities. SISU have invested in the club, but it hasnt been in the team as much as clearing the debts built by past administrations and by current trading losses
Source of info - Companies House filed accounts
Hope that explains some of it - but it isnt easy to keep it in plain language
