Finances - a guess at where we are this financial year (1 Viewer)

Thought I would take a stab at summarising where we might be this current financial year to 31st May 2012 and what it will mean for that financial year

It is a guess so I am happy for folk to put their own slant on the figures

Income

Look at the games played so far and total attendance is down 15274 compared to last time we played each of the teams. At £20 per ticket average (excl VAT) that equates to income down £300k so far or around £1m for the season. It may change if results pick up and there are some big crowd games to factor in as yet (eg West Ham). But say for £1m down for the year.

Wages

Looking at who has left then I reckon the club has knocked at least £2m off the wages bill (all staff & players). It may be more doubt it is any less. However you then have to factor in the new signings and uprating some of the youngsters say £600k. Overall saving I would guess at £1.4m. Have taken no account of payments to former managers no longer being made or the fact that AT is probably on a lower salary than previous managers (plus no scouting salary). Would expect there to have been a saving on wages in 2010/11 compared to 2010 accounts too say £1m so wages in 2011/12 would be 2.4m lower than in 2009/10 the last year I have figures for

Interest

Ranson has been paid off and in the last accounts £300k was paid to him in interest. This no longer due so saving £300K. Have included a £300k saving in wages for his salary but overall I reckon the total saving in wages for all employees isnt far off

Player contract write downs

I reckon due to how the present squad has been pulled together the only big write downs are Juke and Freddy so I estimate a saving of around £1m here in the accounts

Player Sales etc

We are due compensation for Gunnar say £300k, the sale of Turner £750k and the contract add on for Dann say £250 (assumes fee £7.5m not dependent on add ons so is payable now). Say total £1.3m

In summary (using 2010 figs as a starting point and adjusting for above savings) CCFC limited could look like this

Estimated Results

Income +8.3m
Direct operating costs -1.0m
Wages -8.0m
other overheads -3.0m
Contract writedowns -1.0m
Player sales +1.3m
Interest paid -0.2m

Net loss -3.6m.

This of course could change depending on whether crowds improve, sell someone or we get loans in etc. (2010 loss was 3.07m but included 4.7m player sales profit)

Cashflow requirement (different to losses) is on this basis (-3.6m loss add back player write off +1.0)/12 = 217K pm. Write down of contracts doesnt mean a movement in cash

These figures are CCFC Limited alone - it is not the Sky Blue Sports & Leisure Group estimate which would include the profit on disposal of Prozone. That Prozone profit could wipe out the overall loss for the group if it is more than 3.6m and the rest of the group breaks even

Still not good but better - well financially anyway:facepalm:

nope wingy nor the effects of any changes in sponsorship. Is all guesswork - really what I was showing is that financially things have improved, the damage that low attendances cause, and that cashflow doesnt require £500k pm

The better the figures get the more saleable the club is ...... but first and foremost the more secure from administration it is

Think folk need to realise that income potentially being down £1m for the year has a big effect on the ability to bring players in. The club needed to get the finances right, are right to do so, but my guess is didnt build in such a drastic fall in gate income (11% or more). This only adds to the financial pressure.

On the other hand bringing in a couple of players on loan could significantly improve results and increase gates thus paying for itself but thats a gamble. We all know SISU dont like to take a gamble (yet specialise in risky investments :facepalm

Not excusing anyone just stating what is

I know what you are saying shmmeee. I kind of based it on the turnover figures and attendance in total for 2010. All the turnover isnt bums on seats but with the lack of any other analysis i used that for a calculated guess. That came out at more than £20 per person. The average gates have really dropped this season but may pick up when the likes of Leeds, Birmingham, West Ham etc come to town, but if they dont increase then turnover may well be lower.

I think the guesswork illustrates what the Board are trying to do with the finances, but the plan is being hit by the fall in attendances