Just a few thoughts on the finance (only best guesses)
costs
player wages est 40k pw = 2,080,000pa
other staff/directors etc estimate = 500,000
ground rental apparently 7500 per game = 172,500
Interest on borrowings (now increased) previously was approx 1,000,000
other operational costs (stewards, police shop, insurance , league fees, audit etc) say 1,000,000
Academy costs = 500,000 (net spend - gross spend is supposed to be £1m but get grant to offset)
Ryton training ground costs est = 100,000
depreciation charges = 200,000
total estimate = 5,452,500
Income
match income at current levels 2000 x £9 x 23 = 414,000
catering & hospitality estimate 8000 per game = 184,000
TV money say 3 matches at 100k each = 300,000
Advertising and sponsorship = 100,000 (no shirt sponsor yet)
League money say 200,000 (prize money etc)
shop and sundry sales say 300,000
Total income = 1,498,000 (
FFP 60% = 898,800 - but players under 20 at start of season not included in calculation)
Loss 3,954,500
thats before any costs of the dispute with ACL - legals, insolvency advice etc.
If any where close I dont see how it all makes sense to TF............
Just a few thoughts on the finance (only best guesses)
costs
player wages est 40k pw = 2,080,000pa
other staff/directors etc estimate = 500,000
ground rental apparently 7500 per game = 172,500
Interest on borrowings (now increased) previously was approx 1,000,000
other operational costs (stewards, police shop, insurance , league fees, audit etc) say 1,000,000
Academy costs = 500,000 (net spend - gross spend is supposed to be £1m but get grant to offset)
Ryton training ground costs est = 100,000
depreciation charges = 200,000
total estimate = 5,452,500
Income
match income at current levels 2000 x £9 x 23 = 414,000
catering & hospitality estimate 8000 per game = 184,000
TV money say 3 matches at 100k each = 300,000
Advertising and sponsorship = 100,000 (no shirt sponsor yet)
League money say 200,000 (prize money etc)
shop and sundry sales say 300,000
Total income = 1,498,000
(FFP 60% = 898,800 - but players under 20 at start of season not included in calculation)
Loss 3,954,500
thats before any costs of the dispute with ACL - legals, insolvency advice etc.
If any where close I dont see how it all makes sense to TF............
£46k better than the previously reported £4m p/a losses at the Ricoh (it's a joke before anybody starts wailing)
£46k better than the previously reported £4m p/a losses at the Ricoh (it's a joke before anybody starts wailing)
Last year's figures - due to unsubmitted accounts - are anyone's guess; but I'd have thought turnover in the region of £6.5m would be sensible.
And now, this year. On current gates; could we be below the £2m level?
If the figures are somewhere near accurate too; it would suggest that the move from The Ricoh to Sixfields cost us some £4.5m+ in turnover; much of which will be ticket sales and therefore primarily profit.
The reply I had from the Football League on 25/07/13 said this
The Relevant Turnover figure used in the SCMP calculation includes cash invested into the club in the form of equity or donation but does not include money injected into the club through loans.
However for Otium to invest significant funds via equity then there must be the authorised share capital to begin with and I dont think that is more than 1000 which has all been issued and no increase filed at company house. So have SISU improved the FFP by investing more via equity - not on the face of it
No, I take that back!
I was relying on the explanation from this site: http://www.financialfairplay.co.uk/
But I see the site has been updated on July, 10th and now clearly says that any club in league 1 is restricted to 60% of turnover.
I don't know if this is because the rules have been updated or it's just the explanation that's been made clearer.
The loop-holes outlined in this presentation/article are all ones the auditing accountants are aware of and are lined up to spot. Where a non-standard practice is used, the accountants will submit an impact assessments to UEFA's Control Body.
-Pure Related Party transaction e.g. PSG sponsor
-Mixed Related Party transaction e.g. Etihad deal
-Declared Related Party transaction e.g. City sale of ‘intellectual property and know how’
-Non football-related income e.g. Real’s Dubai complex, Trabzonspor’s Hydro-Electric power plant
-Changing accounting duration e.g. Liverpool
-Transactions & costs outside club accounts
-Player write-down in season prior to FFP e.g. Man City
-Cancelled provision e.g. Ancelotti at Chelsea
-Exclusions e.g. Youth/Community spend
-Account auditing issues
-State Subsidies
-Membership fees
-Tax differences
Um. Small question, I'm sure I'm missing something.
That site lists non-football related income as not countable in FFP doesn't it?
So surely all Sisu need is the football income from the stadium as anything else wouldn't be counted. That can't be right can it?
The reply I had from the Football League on 25/07/13 said this
The Relevant Turnover figure used in the SCMP calculation includes cash invested into the club in the form of equity or donation but does not include money injected into the club through loans.
However for Otium to invest significant funds via equity then there must be the authorised share capital to begin with and I dont think that is more than 1000 which has all been issued and no increase filed at company house. So have SISU improved the FFP by investing more via equity - not on the face of it
I don't believe for a minute SISU wish to pump any more money into the club.. they are intending to run at break even on a low low budget. If they can achieve that at Northampton then they'll just sit there in the expectation someone else will break.. having acedemy players that don't count in the SCMP calc. is part of that equation.. but OSB's rough calc shows just how far they may be from breakeven..
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