Town Make £6.6m Loss
Tuesday, 20th Dec 2016 12:12 Town made a loss of £6.6 million in the year to the end of June 2016, the club has announced.
Ahead of tomorrow’s AGM of the PLC, which owns 12.5 per cent of Town, the Blues have made public the financial highlights of the club as a whole.
In the previous financial year Town made a profit before tax of £5.5 million due to the the sales of Aaron Cresswell and Tyrone Mings but made an operating loss of £6 million. In the year to June 2016 the operating loss was a similar figure, £6.6 million, with only £400,000 having come in via player trading compared to 2014/15's £11.4 million.
The club’s overall debt is down slightly from £87.19 million to £86.51 million with ‘other group loans (non-interest-bearing)' having been reduced by £1.4 million and 'convertible loan notes' down by £163,000, while cash in the bank was down from £896,000 to £91,000.
Town’s debt is owed almost wholly to owner Marcus Evans’s other companies with MD Ian Milne having previously outlined the position.
“This is no third party debt," he told TWTD in November 2014. “The money that an owner has put into a club, he’s never going to see that back, unless maybe it goes up [to the Premier League]. But even then I doubt he’ll see that return."
Town’s turnover in 2015/16 was down slightly to £16.28 million from £16.41 million in the year to June 2015.
The wage bill, by far the biggest outlay, was £16.57 million, up from £15.97 million during the 2014/15 season.
The financial highlights in full can be found on the club site here.
Photo: TWTD
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Burnzee1991 added 12:20 - Dec 20
operating at a loss of 6m a year :-( That's really bad news for the club. |  | |
midastouch added 12:21 - Dec 20
£86.51 million debt! Just need to unearth another 11 Tyrone Mings and we should be back into the green stuff then! Not too much pressure on the scouts. |  | |
Marcus added 12:21 - Dec 20
It's a good plan. Slow and steady reduction in the debts. We'll be debt free by the year 2144. Hopefully then there will be more investment in the squad and we can start to compete. |  | |
bluehook added 12:22 - Dec 20
Goodbye Bart and Webster? |  | |
blues1 added 12:23 - Dec 20
And there guys, is the reason that Evans isn't spending multimillions on players. Not because he doesnt want to, but because he can't without riskirisking the future of the club |  | |
MickMillsTash added 12:25 - Dec 20
Timing of this put tin hat on new signings
16.57Million !!
The senior players/ earners are/ were McCarthy, Smith, Chambers, Knudsen, Berra, Skuse, Mcgoldrick, Murphy, Pitman, Varney, Douglas, Sears- are we saying that this lot get close to £1 Million a year? |  | |
beacon added 12:30 - Dec 20
The debt is not the problem , most businesses run on debt, The operating loss of 6 million is the issue , without an increase in turnover the budget will not grow and the playing staff will continue to be made up of freebies . To a degree this is why MM has his hands tied. |  | |
PhilTWTD added 12:32 - Dec 20
Have just added some background re the debt.There is no expectation that the debt will ever be repaid, it is just the most efficient way of investing, so won't have impact on players sales/purchases. |  | |
jas0999 added 12:36 - Dec 20
The debt is to an extent irrelevant. That figure is the full value. When Evans bought the club he actually bought the debt for an absolute fraction of what is was at the time. | | |
Mick_Mills_Tache added 12:37 - Dec 20
Beacon, maybe, but to increase turnover you need to improve your service. Football is, ultimately, an entertainment business. Life under McCarthy is the exact opposite. The lack of progress and ambition will not bring in customers. We've seen average gates slowly fall from 24k under Magilton to 15-16k under McCarthy. It's not a coincidence either. | | |
howdonblue added 12:47 - Dec 20
Could not agree more Mick mills Tache!
Everything surely rests on people spending money coming through the turnstiles !
Which then leads to happy fans buying merchandise and season tickets etc!
So with respect beacon I disagree mate
But I must say that I was pleased with the much needed 3 points Saturday
Well done pitman I think he is a big miss from the current people with have in the building |  | |
mrmorisato added 12:52 - Dec 20
I dont know about the rest of the members on here but I cant believe that the club has a wage bill of £16million. We're a championship club, my guess is that our TV revenue alone is only about a third of this. The only thing town need to concentrate on is reducing the wage bill as we're not going to win promotion if our house is not in order, what the h**l is Mr Evans doing!? It answers the question that Mick has no money to spend and I can only expect outgoings from the club :( | | |
BrettenhamBlue added 12:52 - Dec 20
At least this makes things more clear. If we sell Webster in Jan that could help us to break even. We need FA cup money this year too. |  | |
Ferguson added 13:08 - Dec 20
Phil,or anyone else on here who knows, how does this compare with other clubs in the Championship ? |  | |
TR11BLU added 13:11 - Dec 20
Hmmm, I wonder how much of the wage bill is being trousered by Dino?
Get him Out Now
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jjhbruno added 13:11 - Dec 20
Clearly shows there is reward for failure no matter what the result. Happens in no other walk of life but football. 7th in the second tier of English football. Well done here's another million. Jeez, just bored now. I'd like to be hopeful for the future of the club but after what seems to have been an eternity of life in the championship I find it incredibly difficult. | | |
Swn98 added 13:19 - Dec 20
A another 6million pounds ME has got to pull up who says he doesn't. Invest any money good job for Mickma keep us struggling along on a shoestring.
Be thankful you could be a Notts County supporter down and nearly out.
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Beattiesballbag added 13:22 - Dec 20
blues1 added 12:23 - Dec 20
And there guys, is the reason that Evans isn't spending multimillions on players. Not because he doesnt want to, but because he can't without riskirisking the future of the club
He wouldn't be risking the future of the club by spending more money as it would all be owed to his group! (not forgetting he only paid 6 million for 30 million of that figure in the first place.)
It would be a waste of money to put more into the club while MM is in charge though.
If money is an issue though a good manager would be bringing in more younger players like Webster from the lower divisions & increasing their value by playing them in the Championship instead of throwing money down the drain on loan player payments. |  | |
rickw added 13:35 - Dec 20
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muhrensleftfoot added 13:36 - Dec 20
What does the owner do? He can't sell the club with all that debt. It's not a viable business anyway with those annual losses, so only a billionaire Town fan would be foolish enough to take it on, & there probably aren't any of those. Frankly we're lucky to have Evans, as the likes of Sheepshanks, the Cobbolds, and Suffolk farmers couldn't cope with these losses. Evans can carry on being frugal & hoping McCarthy manages to pull off a miracle, or risk spending multi millions on a wing and a prayer hoping for promotion to the promised land. It's a Catch 22. |  | |
RYITFC added 13:46 - Dec 20
The wage bill figure doesn't surprise me, too much dead wood around the squad earning good money. Last season Coke, Toure, Polish Pete, Varney. None of them we're really needed but each of them probably on around £5K a week (Over £1 million per year).
I'd rather see a leaner squad & give the youngsters the chance when there are injuries. |  | |
Wickets added 13:47 - Dec 20
This is more or less what we expected isn't it. |  | |
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