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City release accounts - Ouch!


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7 minutes ago, Ian M said:

This is why I keep saying Ashton going is equivalent to the period when Pulis left us with an aging squad, on big money, on long contracts. It took us years of treading water at L1 level before we were able to challenge again. Pearson's task is to attempt to do that at Championship level. 3 years to get that season off the books (or turn one of the Academy lads into a £40m sale)

Perhaps the owner might take a moment to spell this out in plain English to his supporters to take a little heat off his manager? 

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They also show we have substantial transfer fees to still to pay for . There is also comment about how we are talking with EFL regarding future trading, so we are close to an embargo it seems. As some have already mentioned. @davefevs will have a look at FFP as there are some of the losses that can be off set. Whatever way we look at it, we are and will be for another season be very close to FFP limits and are very restricted in our transfer and squad reshaping. Tough moment for us (and other clubs) to ride through. 

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The question I would ask is that can Uncle Steve write these losses off by purchasing more 'worthless shares'.

Even on this thread there are those knocking SL for allowing this to happen, but all he has done is leave footballing matters to footballing people in the likes of LJ and MA team.  Now bail out time again.

 

And suspect every Championship club is same boat. 

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1 minute ago, Fordy62 said:

How much was down to that?

By my calculation £12 million, which is a significant proportion of the losses.   But it goes beyond that, because the team and club’s deterioration during COVID was largely due to the absence of fans,  The fans have always kept the club on it’s toes both on and off the pitch,  The brown stuff  would have hit the fan far sooner last season had circumstances been normal.

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2 minutes ago, DT The Optimist said:

The question I would ask is that can Uncle Steve write these losses off by purchasing more 'worthless shares'.

Even on this thread there are those knocking SL for allowing this to happen, but all he has done is leave footballing matters to footballing people in the likes of LJ and MA team.  Now bail out time again.

 

And suspect every Championship club is same boat. 

To see how bad we are run we need to compare our cost base with the likes of Blackburn, Coventry, Millwall and Luton. None of these have parachute payments and no one [?] to bail them out each year. How do they do it and maintain a position on a par with us?

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5 minutes ago, Olé said:

Good point but surely there is an accounting adjustment for early season ticket revenue on this season, which has not been fulfilled. I've assumed season ticket revenue as published is banked and relates to the 20/21 season only within the trading year. 

To answer my own question @RonWalker 21/22 season ticket revenue is classed as deferred income. We also issued £4.6m worth of refunds in the trading year. 🥴

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5 minutes ago, Olé said:

Good point but surely there is an accounting adjustment for early season ticket revenue on this season, which has not been fulfilled. I've assumed season ticket revenue as published is banked and relates to the 20/21 season only within the trading year. £700,000 is what, about 2500-3000 season tickets? If it's inclusive of early sales this year, that makes the benevolent actions in 20/21 much smaller. How many names were on that third shirt? 

Yes, 2021-22 season ticket sales won’t be included in the revenue figure as it is deferred to the relatable accounting period.

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5 minutes ago, Mike Stone said:

Fingers crossed theres a bidding war for Lloyd Kelly and Newcsstle get their man. Oh and within the first two weeks would be nice

Wasn’t one of their other centre halves left out yesterday because he’s agreed a deal to go elsewhere? Not sure that’s going to help. 

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45 minutes ago, ralphindevon said:

I know nothing about this sort of thing but isn’t this, between Christmas and new year, an odd time to announce this?

Or is it done just before the transfer window on purpose?

Our accounts for 20/21 are due by the end of February 2022 so they weren't needed now. You could certainly argue we are using this to soften the expectation in the transfer window. Last year we filed two months later on February 1st, but prior to that we filed fairly regularly in November (a month earlier than this) so I don't think it's too unusual .

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37 minutes ago, steviestevieneville said:

You don’t know where we’d be without them. How do you know we wouldn’t be better off. The tripling of the wage bill is his fault . Lack of a recruitment plan & letting Ashton ride roughshod for years. Obviously covid has had a big impact but if he’d had a sustainable recruitment/football plan in place we’d be in a better place

Well said, and my thoughts exactly.

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As much as this is staggering loss, I think we're okay for FFP

FFP was effectively suspended for last seasons accounts and wouldn't count. See the French League where despite Covid and the collapse of their TV teams still spent. 

Afaik, its a free hit for FFP. 

Massive losses though, shows exactly how unsustainable Football is 😕

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8 minutes ago, Olé said:

Our accounts for 20/21 are due by the end of February 2022 so they weren't needed now. You could certainly argue we are using this to soften the expectation in the transfer window. Last year we filed two months later on February 1st, but prior to that we filed fairly regularly in November (a month earlier than this) so I don't think it's too unusual .

It is also probable that they needed to be filed as we are in discussions with the EFL about our transfer policy within FFP considerations. There is mention of those discussions in the accounts. Sounds like we are close to a soft embargo and have to file accounts and provide projections. 

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2 minutes ago, Sweeneys Penalties said:

its only a matter of time before the game financially implodes

We've been saying that for a good few years now, but it already has hasn't it? Except for some reason no-one is admitting it: Instead they're all 'lets all vote against wage caps' - lets not try to contol talent costs. They've wished all this on themselves.

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42 minutes ago, RonWalker said:

This balance sheet was to the end of May - they first went on sale on April 12 so that's 6-7 weeks' worth of income for this year's tickets, and whatever amount the club kept from fans' payments last season as you mention. Not a bad tally given the state of the pandemic at the time and the short time period.

The 6-7 weeks’ worth of season ticket sales for 2021-22 which were made before 31 May will only be recognised as P&L revenue in the accounts for the year ended 31 May 2022. None of it will be recognised in the P&L in the year to 31 May 2021.

The accounting entries for these sales in the 2021 accounts will be debit cash, credit deferred revenue (as Ole noted in a later post).

Then in the 2022 accounts the accounting entries will be debit deferred revenue, credit P&L revenue, to match the ticket revenue to the period which it relates to. 

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2 minutes ago, Northern Red said:

The best bit is that we'll still get at least half a dozen threads over the next month or so whining that we aren't spending any money.

I know some people think there's a magic money tree (wish I could find one) and that we should spend, spend, spend. The biggest complaint I've seen for many years now is not that we aren't spending, it's that we're not spending wisely. As long as there's room for improvement, I think it's a fair point. 

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Paying players too much to come here, if the South West in general and Bristol in particular is such a sh!t hole that we have to offer players over the odds to come here then **** um, forget the Premier League dream, buy promising players from lower leagues, take the hit of relegation and begin the ten year cycle again. 

 

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Ouch. Otoh broadly in line with my expectations/fears.

Not read anything but the main article yet, certainly not read them in full.

@billywedlock mentioned something about future trading talks with the EFL. That sounds about right, we're in that zone clearly between upper and lower loss limits- future trading talks etc are whereby club and EFL talk, club submit what they forecast to be their Projected Accounts and FFP losses for the following couple of seasons. ie 2021/22 and 2022/23. Quite a few clubs will probably be in such talks with the EFL, the basic objective is that 3 year FFP losses are kept to no more than £39m at any given time.

Covered by Future Financial Information regs that I've mentioned on occasion.

I digress, FFP wise:

1) I think we're fine to 2020/21.

2) To 2021/22 as well.

3) As for the losses in 2019/20 and 2020/21, these are added together and halved.

4) A very quick scan of the press release suggests £14m in losses attributable to Covid? You can knock that off the losses.

5) I believe our typical FFP costs to be £4-5m per season. Obviously subtract those from the headline losses.

As for when we can spend with relative freedom again at this level? Barring big sales or benefitting from major sell on clauses, it would be IMO 2023/24.

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39 minutes ago, Malago said:

And having no income from fans for 12 months had nothing to do with the loss?

Season ticket refunds and lack of matchday ticket sales only account for £3m of the loss. Obviously, there will be non-ticket revenue missing as well, but at the end of the day we'd have still made a thumping loss had the ground been open.

 

33 minutes ago, petehinton said:

Staff costs up by millions during a pandemic….and some people still think we are well run!

Indeed. I wonder why furloughing didn't offset that in some cases?  Bristol Sport was supposed to share the off-pitch admin burden and lower such costs. Instead they seem to be going through the roof. 

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Okay, a few reasons to be slightly optimistic.

The academy are starting to produce players who look fairly comfortable playing in the Championship and whilst there is no way we wouldn't have to listen to offers for them if someone comes calling, they have been developed by the club and will be on reasonably low wages.

The players who are here just for the coin are easily identified and should they get close to 1st team action, they'll be under no illusion that their effort is going to be under scrutiny, so they might choose to run that extra yard to avoid grief.

As supporters we have to accept that we are skint and we won't be spending money any time soon.

Who is responsible for these numbers? Anyone who feels obliged to wear a suit on a match day has to take some of the blame, and the further up the food chain you go, the more accountable they are.

I just hope that fans rally and let SL know how much him and his generosity is appreciated.

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