Million pound loss

[marshterrier]

From the Chairmans report on the official site:

FINANCIAL REVIEW

Income during the year was £3.97m (2006 £5.3m) with the result that the loss for the year was £1,055,094 (2006 profit £61,754).Gate receipts were down from £3.1m the previous season to £2.02m, whereas players' wages were up from £1.56m to £1.64m. The Club did not progress in Cup Competitions this year nor did we achieve our minimum goal of reaching the play-offs which resulted in a loss of the extra revenue and commercial opportunities which these matches bring.Our aim continues to be to maintain the Company's income and infrastructure notwithstanding the level of achievement
on the pitch.

I am pleased to be able to confirm that the debts due to former players were cleared during the year, some three years ahead of the original schedule.

[thomo]

load of b0ll0cks if you ask me. We're still only spending 41% of our income on players (against league average of 60% plus) so where's all the money going guys?

[SN0W]

Intresting that they can see that there will be benefits to going up... but they weren't prepared to speculate.... and they deluded themselves into thinking that we had the squad to take us up.... You reap what you sow...

[paulorossi]

The future looks rosy

[Mirfield_blue]

thomo said:

load of b0ll0cks if you ask me. We're still only spending 41% of our income on players (against league average of 60% plus) so where's all the money going guys?

Wrong! We are not spending so much on players wages! Someone might be able to put me right, maybe slaps, i think the percentage is about 38%

[Deleted]

mirfieldblue said:

thomo said:

load of b0ll0cks if you ask me. We're still only spending 41% of our income on players (against league average of 60% plus) so where's all the money going guys?

Wrong! We are not spending so much on players wages! Someone might be able to put me right, maybe slaps, i think the percentage is about 38%

The 41% is in the figures MB, £1.64m is 41% of £3.97m.

[Mirfield_blue]

O.K. thanks! I thought someone might be able to put me right.

[readsthemac]

Thats what you get (debt) if you get your funds from a chaiman as loans not cash they can be classed as DEBT unlike the egg chasers. but dont forget it is advantages for a chaiman to run one company in his empire at a loss to offset tax liability on the sectors that are running at a profit. or was this a KD leak to stop the expectations of us fans of potential January signing or am been too cynical.

[Captainslapper]

From my sums that means 2006 we only spent 29% of income on player wages. We had various windfalls that year including a sell on clause for Stead (£100k according to AW), we reached the play offs and the bumper pay days they bring, £75k from the worcester cup tie being on TV, a bumper pay day at Chelsea (£300k+?) and averaged over 13000 despite an inflation busting admission price hike of roughly 14% from the previous season. The second biggest average since Frank Worthington played for us in div 1.
And after taking all that into consideration we only made a small profit of £62k.

Last year the % of money spent on players went up as a result of a dramatic fall in gates. The only windfall we had was £150k for Abbott.

This year the gates have dropped even further. He's gone out of his way to put us into large debt to the Giants. Weve never had a smaller squad of realistically usable players. Unless we have a hell of a FA Cup run ,the losses will be enormous.

Conclusion: Same old same old. Davys company KSDL is crippling the club. Despite spending well below the allowed amount on players and being one of the best supported clubs at this level, we are miles off being viable.
And the most obvious thing of all - that davys insistance that hes building the club up slowly on a SOUND FINANCIAL FOOTING is the biggest crock of shit imaginable.

[paulorossi]

When you put it like that, it all looks very depressing.

Merry xmas

I need a drink ;D

[arnhemterrier]

A drink!!?!?1 I'm ruddy wasted, Town under DAyvt are screwed. Unitl the vast majority realise this they iy;'ll be the same olf same old. So don't youi lot compain about it. We had our chanve with Pearson...

[deo1]

i've always thought that davy had been carrying town and not the giants...

[towntastic]

We had no chance with Pearson, because he probably never got near the books. We ought to change our name to Titanic AFC as Captain Davy hit the iceberg some time ago

[specialun]

Loss for the year was £1,055,094

Gate receipts were down to £3.1m the previous season to £2.02m...ie) down £1.08m

You do the Maths Ken!!!!! Lack of investment = too small a squad/lack of qualityin depth=inevitable poor results=attendances down=gate receipts down £1m=loss of £1m.

Question is, will he learn his lesson after his big mistakes that have got us into this position.

[hughphamism]

What a time to release the figures when people aren't likely to see them...

[HuddsTerrier]

marshterrier said:

From the Chairmans report on the official site:

FINANCIAL REVIEW

Income during the year was £3.97m (2006 £5.3m) with the result that the loss for the year was £1,055,094 (2006 profit £61,754).Gate receipts were down from £3.1m the previous season to £2.02m, whereas players' wages were up from £1.56m to £1.64m. The Club did not progress in Cup Competitions this year nor did we achieve our minimum goal of reaching the play-offs which resulted in a loss of the extra revenue and commercial opportunities which these matches bring.Our aim continues to be to maintain the Company's income and infrastructure notwithstanding the level of achievement
on the pitch.

I am pleased to be able to confirm that the debts due to former players were cleared during the year, some three years ahead of the original schedule.

Can someone explain to me how gate receipts fell by over 33%

Yet the attendance figures only feel by about 20% (av. 12,500 to 10,000) in the same period?

It makes no sense to me!

And that's without factoring in season ticket price rises and categorisation of matches.

[gingerc]

I suppose it all depends how old the fans through the turnstiles are. If there are more kids or concessions going as a percentage of the attendance then they won't be bringing in the same revenue as the same number of adults. This will lead to a difference in the fall in gate receipts against attendance numbers.

So, good as it is to encourage the kids to come along it's the full paying adult fans who are the main source of match day finance by coming to games in numbers. From the looks of things they've been staying away as they haven't been happy with what they've been seeing and hearing about Davy.

I tell you if this loss is used as an excuse not to buy Jevons I wouldn't be surprised if there are more people missing in the run in...

[monkbar]

So where the hell is £3.3 million going if it isn't on players wages is what we should be asking. Wonder how easy it is to find out other teams operating costs in League 1.

[HuddsTerrier]

gingerc said:

I suppose it all depends how old the fans through the turnstiles are. If there are more kids or concessions going as a percentage of the attendance then they won't be bringing in the same revenue as the same number of adults. This will lead to a difference in the fall in gate receipts against attendance numbers.

So, good as it is to encourage the kids to come along it's the full paying adult fans who are the main source of match day finance by coming to games in numbers. From the looks of things they've been staying away as they haven't been happy with what they've been seeing and hearing about Davy.

I tell you if this loss is used as an excuse not to buy Jevons I wouldn't be surprised if there are more people missing in the run in...

I agree the kids point will explain some of it, but there's a 13% descrepancy, and the ones who've stopped going will be a mix of demographics - not just all full paying adults

[n7t]

And that's without factoring in season ticket price rises and categorisation of matches.

Except season ticket prices went down.

[bro600]

The amazing thing is the three amigo's..Messr's Armitage, Rimmer and Watson all agreed at the recent Patron's meeting that they can't see Huddersfield Town becoming financially viable and we are dependent on loans from Ken Davy.
Our debts are nearing £2 million and the major part of our revenue goes into shared synergies.
We can't measure most of the costs but KSDL is a major drain.
It doesn't look too good for our future.

[specialun]

Yet he still rejected pearson's bid. Baffling

Question is - exactly what is he hiding?

[Polish Hippy]

n7t said:

And that's without factoring in season ticket price rises and categorisation of matches.

Except season ticket prices went down.

Season ticket prices only came down ever so slightly this season. The figures are for last season. I am not at all surprised at the size of the loss. Considering the projection was for a £600k loss on average crowds of 12,500, i'm surprised it wasn't bigger.