Losses (1 Viewer)

[CJparker]

Wanted to start a slightly different thread to those already looking at the accounts, this one focusing on how exactly it is that we can still be losing well over £500k a month - if anything this figure has grown since this time last year!!

Given the cutbacks we have seen, it really does show the catastrophic management record of SISU that expenditure can be pared back and yet the club continue to bleed money. What's going on??

 

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[grego_gee]

We made a loss of 616k in the season of the last accounts compared to a profit of 5112k in the previous year. Thats 5728k difference = a loss of 477k a month on transfers.

imp:

 

[CJparker]

thought the accounts said was lost over £5.5m last year?

 

[Brighton Sky Blue]

Depends which accounts you want to consider for a start! SBSL's accounts are probably the best to look at since that is the company in charge of CCFCH and hence CCFC. 2010/11 turnover was £16 million-£4m of that was ProZone, which we no longer have, and relegation provides an approximate £4.5m drop in commercial revenues (which formed £8m of turnover). The last chunk of turnover was £4m from match receipts which came from average crowds of 17,000 that season. Average crowds this season were 15,000, so assuming proportionate fall, match receipts would come down to £3.5m. By my crude estimates the ultimate parent company has total turnover of £7m. Chop off the fixed operating costs of £2-2.5m, and you're not hugely far off Fisher's £5.5m pot to play with.

 

[grego_gee]

thought the accounts said was lost over £5.5m last year?

I was just refering to the transfers for the relevent years.

click here

imp:

 

[wingy]

Depends which accounts you want to consider for a start! SBSL's accounts are probably the best to look at since that is the company in charge of CCFCH and hence CCFC. 2010/11 turnover was £16 million-£4m of that was ProZone, which we no longer have, and relegation provides an approximate £4.5m drop in commercial revenues (which formed £8m of turnover). The last chunk of turnover was £4m from match receipts which came from average crowds of 17,000 that season. Average crowds this season were 15,000, so assuming proportionate fall, match receipts would come down to £3.5m. By my crude estimates the ultimate parent company has total turnover of £7m. Chop off the fixed operating costs of £2-2.5m, and you're not hugely far off Fisher's £5.5m pot to play with.

By your estimates BSB that would make last years turnover £11.5m. adding back in the £4.5m.from commercial revenues and we shipped 13-14 players on the wages side before and through the season +in Juke and Turner Transfers + Dann ,Gunner Money ,Did we get something in through Sturridge as well? Take Cody money out and allow a little for reduced ST price and that apart from a wage guess would tell us how close to breakeven or profit they got.

 

[Brighton Sky Blue]

Wage expenditure will have gone down considerably, that's pretty certain. There are fixed operating costs referred to in the accounts costing around £2.5m, which leaves gross profit at an estimated £9m. 2010/11 staff wages were £11m-say that this went down by £3m. Admin expenses are anyone's guess, but let's assume it's £13m minus the £8.5 one off that was written off in 2011. This gives operating loss of £3.5m, and including Gunnar/Turner/Dann/Juke, I'd say we either broke even or made a small profit/loss either way.
The issue we have this time around is that it's difficult to slash the wage bill by as much, and our huge drop in commercial revenue gives us a £4.5m shortfall to compensate for; our wage bill is likely still so high that it consumes all of our gross profit before admin expenses and the idea of signing new players come into the equation.

 

[wingy]

Wage expenditure will have gone down considerably, that's pretty certain. There are fixed operating costs referred to in the accounts costing around £2.5m, which leaves gross profit at an estimated £9m. 2010/11 staff wages were £11m-say that this went down by £3m. Admin expenses are anyone's guess, but let's assume it's £13m minus the £8.5 one off that was written off in 2011. This gives operating loss of £3.5m, and including Gunnar/Turner/Dann/Juke, I'd say we either broke even or made a small profit/loss either way.
The issue we have this time around is that it's difficult to slash the wage bill by as much, and our huge drop in commercial revenue gives us a £4.5m shortfall to compensate for; our wage bill is likely still so high that it consumes all of our gross profit before admin expenses and the idea of signing new players come into the equation.

Have been doing a few more sums ,I would differ on turnover /Gross income by around £1m. so £6m. starting point,your assumption on wages being @£8m. now being further reduced by the five departees saving between £2-2.3m. so to be conservative £2m., equilibrium achieved .The shortfall here would be the fixed costs,they may be able to get these down to £2m. or slightly under,so Two more sales bringing in say a million + two others on bigger money replaced for £5k. a week less and just about there ,might need a third sale but who is there?

 

[georgehudson]

having previously been chastised for having an issue with 'the controllers' i just wonder when & where the truth lies ?
one thing for sure, we are like mushrooms as far as **su are concerned,
our finances are dire, but there is no evidence of a way forward,
TF & cohorts are suitably economic with the truths,
together with the more out than in syndrome,
are we supposed to be successful with a squad of 25,
and are they FIT & PROPER OWNERS ?

PUSB

 

[wingy]

Never been chastised by me George ,I get you,but while they think we're mushrooms its getting to the point where we've got them Figured.

 

[TommyAtkins]

Never been chastised by me George ,I get you,but while they think we're mushrooms its getting to the point where we've got them Figured.

But the cuts implemented by SISU should have been done in 2001.

Too many fans think we have a god-given right to exist by spending money we don't have.

On those terms alone, SISU have done the right and proper thing