New beginnings - 25% Truth, 80% Bollocks

[Legends Lounge Lovechild]

You'd hope that due diligence had been done before handing 50% of the CG to Clem. Surely the Trust, via the JV, hold the trump card of stalling on anything to do with the CG that may make Clem a fast buck,

but the trust seem to be givign underdesk support to clem etal so god knows what the dilignece was
maybe nothing more than a hand shandy or blowy if it was done by james specner tbh

[ChalkyWhiteIsGod]

but the trust seem to be givign underdesk support to clem etal so god knows what the dilignece was
maybe nothing more than a hand shandy or blowy if it was done by james specner tbh

Be careful, if Spencer sees this he might give thinly veiled threats saying he knows who you are.

[ron dodgers]

hoorah , accounts checked, we're skint, tell me something I don't know.

[RobertT]

Sorry, that summary from the Trust is useless.  I don't expect to see player salaries, or even first team total salaries (although it should be possible to do that if they want to be open and honest, but I understand it is unusual to that level of detail).

What I do expect is a high level cost centre style analysis of where the % of spend is going, what the total outgoings are and a month over month analysis to allow comparative analysis and trending.  Otherwise, what is the point?  A year to year top level summary is the bare minimum for a large listed company and we don't even have that.  I understand it takes more than a day, nobody asked them to pop in for tea and a biscuit only, we expected them to be in there every night for a few weeks.  And yes, I know they are volunteers.  Send them to me, I'll have a bash at it for you.

[ron dodgers]

Keep it coming, I love this shit

[ThreeDrawsMentality]

Wake up hunny! There's a new Trust update. Was emailed so have pasted in below

Financial Review Update


As you may recall, the Trust engaged in a Memorandum of Understanding agreement with Swindon Town Football Club back in August 2021.



At the time, the MOU was circulated nationally via The Football Supporters Association, with praise coming from many areas. It was only the 11th such agreement to be put in place for the 92 English clubs.



At the September 2023 Advisory Board meeting, Trust board members requested to see the Management Accounts of the company as per the following agreed commitment:



"Provide the Trust with quarterly management and financial updates on the financial position and performance of STFC that contain a sufficient level of detail to build trust and an understanding of how the Club is being run, without compromising the Club’s position in a competitive market or revealing confidential information such as undisclosed transfer fees or individuals’ salary details."



The club stated that Management Accounts were not yet being produced and Clem Morfuni then extended the opportunity for the Trust to review the club's financial position.



Scott Curtis, the Trust Treasurer and Management Accountant, attended the County Ground on Wednesday to do this financial review.



As a one-off visit, the aim was to complete a high-level health check and the activity was aimed at providing a broad understanding of the club's financial results. It was not an audit, as it does not carry the same level of detail, time, cost, or legal obligation.



Anthony and Annabela, representatives from the club, spent time discussing and sharing financial ledgers and the costs associated with running Swindon Town. This collaboration marks the first time any supporters group, including the Trust, has been granted access to the club's books, an unusual but commendable step in the footballing world.



The financial review did not encompass personal dealings or transactions of directors in any other legal entity. Examples include transfers of shares not recorded on Companies House or loans between individuals or offshore companies.



Our goals for the review were threefold: understanding current revenues and costs, assessing other cash commitments, and determining funding needs for the next 12 Months.



Scott utilised various financial documents, including trial balances, as of 31st May 22, 31st May 23 and the latest available.  This gave a picture of their trading, a year-on-year comparison and an indication of the operational cashflows over the last 18 months.



It was clear to see that the club is currently financially unsustainable with the club's expenses exacerbated by many high costs over the course of a year, including but not limited to player, management and staff salaries, players nutrition, away game travel and accommodation, agent fees, medical care, legal fees for numerous ongoing cases, property and pitch maintenance, technology, energy, retail, online ticketing, security and policing, administrative and medical costs. The club are actively working to reduce these costs where possible, but some are unavoidable and part and parcel of running a professional football club.



The cash flow forecast for the next 12 months was also provided and this showed when further funds will be required. Scott was able to see movement in loan accounts and the figures confirmed that Clem Morfuni had put significant funds into the club this year to keep the club afloat and is forecasting to do so next.



While Scott was permitted to review the club's financial data, it was done so in-person and with the strict caveat that no information could be copied or taken away. The figures will be shared in detail with supporters early next year when the annual accounts are released, and it was agreed with the club that when the accounts come out, they will be accompanied by an executive summary giving supporters the granular detail they need.



This will take time to put together but ultimately give supporters great insight into the running of the club. In parallel, talks are underway between the Trust, the Club and an organisation called ‘Fair Game’ to create an even more comprehensive annual report, later next year.



These comprehensive reviews take time. We met with Fair Game this week and they told us it would take at least three months and would be done by their team of football finance experts and completely independent. More on this to follow. The club also meet with Fair Game regularly.

Fair Game work with clubs who want to become financially sustainable and who embrace openness with their supporters. In June 2023, Swindon Town became one of only 11 EFL clubs currently signed up to their mission.

Although this initial peek into the club's finances may not have answered all your questions, we believe that a more comprehensive financial review is in the works for next year. This should provide a more thorough and detailed understanding of the club's financial situation.

The Board of TrustSTFC

[ThreeDrawsMentality]

I find the reference to the MOU frustrating given the Club didn't abide to the MOU therefore making it pointless and redundant.

[The Artist Formerly Known as Audrey]

Wow, we’re losing money because we feed the players too well.

Those ongoing costs mentioned are the same - minus the legal battles - that all clubs incur. It still begs the question why, with our higher income over most of the clubs in L2, we are unsustainable.

Unless, and until, those ‘running costs’ are broken down in detail it’s difficult to believe why the club is in the financial shit.

And what does this bit mean

‘ The financial review did not encompass personal dealings or transactions of directors in any other legal entity. Examples include transfers of shares not recorded on Companies House or loans between individuals or offshore companies.’

[ThreeDrawsMentality]

One thing that hasn't been addressed is our cost of sales for 21/22 is less than our current revenue, so what has significantly changed in our outgoings since 21/22 concluded that all of a sudden means we are spending an extra £2mn a season? It's certainly not the playing budget. All commercial arrangements at the club have been completed on Clem's time bar the Puma deal. Clem ripped up the catering contract. This is all so baffling.

[The Artist Formerly Known as Audrey]

Also, how is ‘retail’ a cost? Surely retail should make a profit.

[Bennett]

Also, how is ‘retail’ a cost? Surely retail should make a profit.

the kits cost the club money, who then sell it on, for example. They won't be arranged on sale or return, hence the delay in the 3rd kit

In terms of how much that costs - staffing, website maintenance (titter) all add up. I just don't see how our set up is likely to be more challenging than other clubs in the lower leagues

[The Artist Formerly Known as Audrey]

Well, I understand that, but they are saying the cost of providing a retail outlet is actually loss making. Do all clubs make a loss when flogging merchandise - even at our level.

[Bennett]

I'd have thought it unlikely! I don't think they're saying the retail function loses money, but that there's a cost associated to it.
It'd be fascinating to know where income does come from (like the tranmere accounts), as the CEO said the ticket sales don't fund the club

[The Million Pound Man]

It was clear to see that the club is currently financially unsustainable with the club's expenses exacerbated by many high costs over the course of a year, including but not limited to player, management and staff salaries, players nutrition, away game travel and accommodation, agent fees, medical care, legal fees for numerous ongoing cases, property and pitch maintenance, technology, energy, retail, online ticketing, security and policing, administrative and medical costs. The club are actively working to reduce these costs where possible, but some are unavoidable and part and parcel of running a professional football club.




Translation, they don't want to feed the players or provide away transport/ accommodation..... starting to sound like the Sheridan season !

[Bogus Dave]

Unless there’s an explanation of what specific costs have increased by £2m YoY the whole exercise is pointless