davenportram Posted January 16, 2013 Share Posted January 16, 2013 title says it all. http://www.thisisderbyshire.co.uk/BREAKING-Derby-County-announce-loss-8m-latest/story-17872516-detail/story.html DERBY County have announced a loss of nearly £8m in their latest accounts. The Rams' net loss for the year ending June 2012 was £7.9m, slightly up on the £7.7m in the previous 12 months. . During the same period, the club's turnover was £17.3m, down from £18.1m the year before. Operating costs, meanwhile, were reduced from £17.6m to £17.3m. Derby chief executive Sam Rush said: “The results posted are very much in line with our expectations, and although they relate to a time prior to my arrival at the Club, they do offer evidence of one of the key factors that attracted me to Derby. “We have a strong ownership group, who continue to be the single biggest source of finance for Derby County. "The simple truth is that somebody has to cover our working capital needs, as well as make continued investments in our squad and wider infrastructure. "The ownership group’s strength offers the club that much needed financial stability." Link to comment Share on other sites More sharing options...
Stedcfc Posted January 16, 2013 Share Posted January 16, 2013 Looks like the owners will have to get their hands in their pockets again! Link to comment Share on other sites More sharing options...
CornwallRam Posted January 16, 2013 Share Posted January 16, 2013 Amazing There can't be much fat left to trim. I go back to my theory from a few weeks ago that DCFC is just too big to run profitably in the 2nd tier. Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 Fans shoul realise this doesn't represent a cash deficit,which will be much lower. We already knew that they had put in at least £5.8m in the reported year,so this loss doesn't mean they've had to find money that wasn't already there.What will be interesting is whether any investment was signalled for this year (and how much).From this figure,you could hazard a guess at how things are currently going. Link to comment Share on other sites More sharing options...
Gary Teale Posted January 16, 2013 Share Posted January 16, 2013 Looks like the owners will have to get their hands in their pockets again! Or sell some assets (players) and cut the wage bill further Link to comment Share on other sites More sharing options...
dabber Posted January 16, 2013 Share Posted January 16, 2013 Like the thread title dav, how are the fat fingers!? Link to comment Share on other sites More sharing options...
trekkie_ram Posted January 16, 2013 Share Posted January 16, 2013 Looks like the owners will have to get their hands in their pockets again! But they do regularly, and get nothing but grief for it. Link to comment Share on other sites More sharing options...
PrivateDerby Posted January 16, 2013 Share Posted January 16, 2013 Maybe we need to yo yo for a couple of years? Link to comment Share on other sites More sharing options...
Gary Teale Posted January 16, 2013 Share Posted January 16, 2013 So I know nothing about accounts but why are we making such a loss still with all our cost cutting? Surely we have one of the better revenue streams in the champ with out ticket sales, pride park being pretty corporate stadium. How do all the other clubs do it, I know some run at huge losses and have people throwing money at them but surely not all of then do that. Does anyone who knows about this thing (ramblur) give any examples of clubs that are well run and living close to there means? Link to comment Share on other sites More sharing options...
CornwallRam Posted January 16, 2013 Share Posted January 16, 2013 But they do regularly, and get nothing but grief for it. But apparently they've sorted out the financial mess left by Gadbsy - you know the one, reduced debt, millions in the bank, most of the Sky cash and one unaccounted for parachute payment to come. I'm so glad that things are much better now! Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 Depending on the profit/loss figures on player sales,admin expenses may have fallen a little. The £800k drop in revenues couldn't have been bridged by this year's price hike.Add to that falling S/Ts and overall attendances,this is beginning to look like the vicious circle I feared. Link to comment Share on other sites More sharing options...
CornwallRam Posted January 16, 2013 Share Posted January 16, 2013 I'd be interested to know why the accounts have been filed so early compared with previous years? Sam Rush?, FFP?, a takeover?, a plot to keep Ramblur on his toes? I wonder whether the cash loss will look a little like £1.8m? Link to comment Share on other sites More sharing options...
Gary Teale Posted January 16, 2013 Share Posted January 16, 2013 Maybe they have done it in the transfer window to say we want to sell out best players on the cheap. 'http://www.dcfcfans.co.uk/public/style_emoticons/<#EMO_DIR#>/smile' class='bbc_emoticon' alt=':)' /> Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 So I know nothing about accounts but why are we making such a loss still with all our cost cutting? Surely we have one of the better revenue streams in the champ with out ticket sales, pride park being pretty corporate stadium. How do all the other clubs do it, I know some run at huge losses and have people throwing money at them but surely not all of then do that. Does anyone who knows about this thing (ramblur) give any examples of clubs that are well run and living close to there means? Can't afford to look at many clubs,but all I've looked at are making losses (you only have to look at the SSN ticker to see this).Because fixed asset depreciation is usually around £2m,our FFP result is likely to be £5.9m minus (unknown) net expenses on youth development,so well within guidelines for maximum FFP losses,which I think was £12m for the year in question. Link to comment Share on other sites More sharing options...
notts_ram Posted January 16, 2013 Share Posted January 16, 2013 These figures worry me intensely, if we are still loosing nearly 8 million pounds a year and we already purportedly have one of the lowest wage bills in the division then where do we go from here? If the owners are trying to manage the club on an even financial footing then we won't have much of a team left for them to fulfill this judging by these accounts Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 I'd be interested to know why the accounts have been filed so early compared with previous years? Sam Rush?, FFP?, a takeover?, a plot to keep Ramblur on his toes? I wonder whether the cash loss will look a little like £1.8m? I mentioned last week that,because FFP results needed to be lodged by December 1st,there should have been nothing to stop earlier release of accounts. Ha,your last point has possibilities if movement in debtors,creditors,stock etc swung in the opposite direction to last year.However,there's always a bit of a clue in the £5.8m they put in.Linking this £1.8m suggestion to the paper story doesn't work though-wrong year,and covered by the £5.8m! Link to comment Share on other sites More sharing options...
davenportram Posted January 16, 2013 Author Share Posted January 16, 2013 These figures worry me intensely, if we are still loosing nearly 8 million pounds a year and we already purportedly have one of the lowest wage bills in the division then where do we go from here? If the owners are trying to manage the club on an even financial footing then we won't have much of a team left for them to fulfill this judging by these accounts or they are happy to provide the funds to cover the defecit and enable slow progression. Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 These figures worry me intensely, if we are still loosing nearly 8 million pounds a year and we already purportedly have one of the lowest wage bills in the division then where do we go from here? If the owners are trying to manage the club on an even financial footing then we won't have much of a team left for them to fulfill this judging by these accounts If you strip out the paper transactions of depreciation/amortisation,then you're probably looking at something around £3m-if you then strip out interest payable,then EBITDA may come out at £2m+. The thing that worries me most is falling income-I'll now have to revise my earlier guess at cash break even for the current year. Link to comment Share on other sites More sharing options...
ramblur Posted January 16, 2013 Share Posted January 16, 2013 or they are happy to provide the funds to cover the defecit and enable slow progression. I wouldn't be happy if I were one of their investors! I'd just see the hole getting bigger,and the exit ever more difficult (without promotion). Don't know why any are surprised by these results-Glick signalled it a year ago. Link to comment Share on other sites More sharing options...
CornwallRam Posted January 16, 2013 Share Posted January 16, 2013 or they are happy to provide the funds to cover the defecit and enable slow progression. But what is the difference between that and what Leicester's owners are doing other than time? It is looking likely that promotion is the only option for profitability. Leaving aside buying the clubs. If Leicester's owners throw £50m at it and try to get up quickly whilst ours put in £50m over 8 seasons and hope to fluke promotion, is there that much difference? Both are gambles, but Leicester's version at least has a track record of success. If both fail, both owners are £50m down. Is one way really so much more sensible than the other? Link to comment Share on other sites More sharing options...
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