New beginnings - 25% Truth, 80% Bollocks

[ThreeDrawsMentality]

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

[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.

[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

[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

[Audrey]

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 !

But take out the legal fees everything else must be pretty much like it was last season - OK a bit more for inflation - it certainly isn’t £2m more. The increase in Ticket prices this season would cover all inflationary increases I reckon, but every other cost is the same season after season

[Hyabb17]

It’s just lots of words on a page without any real evidence. So they were allowed to see the figures but not share them, pointless!

[Bob's Orange]

It's not really the main point here, but had the Trust's earlier statement said - "a statement on the finances is being prepared and will be distributed within 'add timeframe' " then I imagine they wouldn't have lost a number of members yesterday. They may still have gone but for me this seems like pretty basic 'customer care' and are shooting themselves in the foot.

Unless this statement was made off the back of all the criticism they received yesterday, but I doubt it.

[Nemo]

Will need to read this one a few more times and think about it. We asked for more and we got more within a day, that's good. My first impression is that this is wordy and vague and crucially doesn't seem to talk about specific areas where the costs have increased.

What I would say is that a significant year on year increase in costs doesn't seem impossible - inflation has been running rampant across the country, and I'd be surprised if the football club was completely insulated from that. That said, those sorts of costs would seem uncontroversial to be specific about - if they said 'last year the energy bill was 200k, this year it's 600k' then that's hardly sensitive information and it's also in line with how energy bills have been for everyone (no price cap for business energy either).

[tans]

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

Indeed

[Hyabb17]

I did forget to mention something on the topic of season
Tickets, have you seen the Accrington owners tweet from yesterday with their pricing & in brackets the cost per game….no freeloading 8 game comment