Financial Results 2015/2016

[PodgeyRam]

Rams reveal financial results for the 2015/16 campaign.

Derby County have today announced their financial results for the 2015/16 season - reporting records in turnover, attendances and season ticket numbers, together with a significant strategic investment programme across all sectors of the club. 

A record year of ticketing and commercial revenue generation – resulting in a 5% increase on the previous year - were the highlights of the strong revenue performance. 

The financial year July 1 2015 to June 30 2016 saw the Rams record:

• A best-ever Championship turnover in a non-parachute year of £22.6m 

• The highest number of season ticket holders of any club in the English Football League - 22,553 

• The highest average attendance of any team throughout the competition - 29,663 

The club’s record Championship turnover was a result of a £1.1m uplift in ticketing and commercial revenue performance on the previous year. The year saw Derby County retain the highest number of season ticket holders of any club in the English Football League and the highest average attendance for any team across the competition. 

The Board made a strategic decision to drive substantial investment in the playing side, operational functions and the infrastructure of the club, whilst recognising it must still continue to operate within the boundaries and rules of Financial Fair Play set by the EFL. 

Almost £6m was invested on operational functions across both Pride Park Stadium and the Training Centre in partnership with the University of Derby. Developments included; new undersoil heating, a top class pitch and LED floodlights at the stadium and the completion of further significant pitch and infrastructure improvements at the Training Centre. 

A number of permanent player signings were made during the transfer windows of summer 2015 and January 2016, which boosted balance sheet intangible assets from £7.5m to £33.5m. Wages increased in the year to £32m from £21.8m. 

The Rams reported a loss of £14.7m for the year compared to £10.1m in the previous one. 

The loss for FFP purposes was £9m (£4m within the allowable £13m threshold) compared to £5.6m in the previous year when the threshold was £6m. This financial year was the fourth in which the English Football League Financial Fair Play regulations were in force and the club’s financial results were approved by the EFL in December. 

President & Chief Executive Officer Sam Rush said: “I am pleased to be able to report another strong year for the club across all sectors of our operations. Increases in revenue emphasise the fantastic backing we continue to receive from our supporters and how we remain market leaders in the EFL. 

“The 2015/16 season was a landmark year for us as it was the first season in which Mel Morris joined us as owner and Chairman. In this year, Mel’s tremendous commitment to Derby County enabled The Board to make significant strategic investments across all aspects of what is an exceptionally vibrant club. We have now laid the foundations for the club to build for many years to come. 

“The club remains in good health for season 2016/17. Gary Rowett and his staff have brought an upbeat and positive outlook and we are all looking forward to the last seven games of the league campaign and beyond.”

http://www.dcfc.co.uk/news/article/2016-17/derby-countys-201516-financial-results-announced-3654711.aspx#

For any interested parties. Gonna have a look at Companies House as that's where the juicier stuff tends to hide.

Edit: Jumped the gun a bit there. Suspect the full accounts won't be on Companies House for another couple of weeks. Last years went up on April 12.

[deano180]

Red dog scum were right again, not.....

[Mckram]

Pretty impressive turnover figures.

Wages scary at 50% up with little improvement on the pitch, I guess you could say we have a lot more depth now...

Thinking about it I wouldn't be surprised if the current wage figure isn't closer to £40m for this season! 

 

[WystonRam]

£32M in wages ?! WTF!

[rynny]

@Derby_EnglandLoyal is on one on twitter, calling out all the fans that have mentioned derby and embrgo since August last year ?

[Rev]

Our wages outstriped turnover by nearly £10m!

Spin it how you want, but that is not sustainable.

£15m loss, all funded by the owner, this seasons likely similar or more.

Mel's commitment is admirable, but not sustainable, surely?

[BondJovi]

7 minutes ago, reveldevil said:

Our wages outstriped turnover by nearly £10m!

Spin it how you want, but that is not sustainable.

£15m loss, all funded by the owner, this seasons likely similar or more.

Mel's commitment is admirable, but not sustainable, surely?

Makes me certain Rowett will do some squad trimming! No wonder moving to Derby was a no brainer for some players.

[needles]

Well, he's worth upwards of £500m isn't he?

So he could (and I'm not saying he should or will) quite conceivably swallow a decade of that without it affecting his ability to pay the gas bill.

Surely sooner or later if we're among the best supported, biggest spending and with best facilities we'll get promoted and the game changes out of all recognition anyway.

So long as Mel is relaxed about it, no need to worry. Maybe we should all just cut him some slack and give him a cuddle instead of moaning about him. IMO.

[needles]

Anyone know how ramblur is getting on? Or, erm, well...hope he's OK.

[Carl Sagan]

While it's great commercial revenue grew and we have such brilliant attendances and season ticket numbers, the wage inflation is madness. A 47% increasetaking wages from pretty much equal to turnover to half as much again. And how much will it have risen again this year?

I remember Sam at the London fans forum a few years ago saying we didn't have huge wage earners sat on the bench or not even in the match squad. How times have changed. I've heard horrifying figures for the wages of some of our recent signings.

Is there a correlation between paying the biggest wages and getting promotion? And even if there is, correlation doesn't imply causation!

 

[Rev]

3 minutes ago, needles said:

Well, he's worth upwards of £500m isn't he?

So he could (and I'm not saying he should or will) quite conceivably swallow a decade of that without it affecting his ability to pay the gas bill.

Surely sooner or later if we're among the best supported, biggest spending and with best facilities we'll get promoted and the game changes out of all recognition anyway.

So long as Mel is relaxed about it, no need to worry. Maybe we should all just cut him some slack and give him a cuddle instead of moaning about him. IMO.

I'm not moaning about him needles.

It's just not sustainable, i read a report into football finance a while back, which reckoned at tops a football club owner could readily afford to spend 10% of his worth on football club, we're well past that mark already if your figures are correct.

Leeds, Forest, Sheff Weds and indeed Sheff Utd could all make the same claim to being too big to stay down, and they've all spent time in League 1 since last in the Prem.

[dcfcfan1]

we definately need to reduce the wage bill,, but still I say we have a fair bit to spend to increase the quality of the squad to suit rowetts style

[Curtains]

Just now, reveldevil said:

I'm not moaning about him needles.

It's just not sustainable, i read a report into football finance a while back, which reckoned at tops a football club owner could readily afford to spend 10% of his worth on football club, we're well past that mark already if your figures are correct.

Leeds, Forest, Sheff Weds and indeed Sheff Utd could all make the same claim to being too big to stay down, and they've all spent time in League 1 since last in the Prem.

Mel is very relaxed I'm sure.  

He looked well happy after the game on Friday .

[Curtains]

These results are really quite old now .

Basically last seasons and don't take into account the sale of Jeff Hendrick for 12 million and Jake Buxton and Warnock and the loan of Chris Martin for 3 Million or the signings of Vydra and Anya etc. 

[uttoxram75]

Doesn't matter now does it?

We used to agonise over the clubs financials when the Americans were running us but somehow, because Mel owns the whole shebang, it dunt make much difference.

The question is, how long can Mel compete with the premier league relegatees....looks like Sunderland and Hull are coming down so  probably not as hard to compete with financially as Newcastle and Villa, but looks like all the eggs are in the "get us fookin promoted next season Gary" basket.

 

 

[Rev]

3 minutes ago, dcfcfan1 said:

we definately need to reduce the wage bill,, but still I say we have a fair bit to spend to increase the quality of the squad to suit rowetts style

This is the balancing act Rowett will have to achieve, improve the quality of the squad, indeed get more out of it, while reducing the wage bill.

I'd agree there is money to do that, but why would incoming players agree to less money than the players they're upsurping, unless we go down the younger, hungrier but unproven route?

I'd say Rowett is the right man for that task, but it won't be as easy as some make out, especially moving unwanted players out.

[CornwallRam]

£32m in wages - that's quite breathtaking.

That'll be for the entire club, so maybe £2m for the off-field staff and £1m for junior players. The wage bill for the senior players is likely to be around £29m - so a ball park average wage of c£20k per week. Of course, many like Hanson, Buxton and Roos won't have been on anything like that, so there'll be players at our club earning over £40k per week.

The thing that strikes me is just how poor our recruitment has been. We were clearly shopping in the luxury end of the market, but failed to make our financial clout pay. If we were paying top dollar to Knockeart, Dunk, Abraham and Friend, then fair enough, but Bent, Ince, Johnson and Butterfield? Not bad players, but not what you'd expect when we clearly did have the money to 'buy' the league.

[needles]

20 minutes ago, reveldevil said:

I'm not moaning about him needles.

It's just not sustainable, i read a report into football finance a while back, which reckoned at tops a football club owner could readily afford to spend 10% of his worth on football club, we're well past that mark already if your figures are correct.

Leeds, Forest, Sheff Weds and indeed Sheff Utd could all make the same claim to being too big to stay down, and they've all spent time in League 1 since last in the Prem.

Sorry rev, I wasn't getting at you for moaning. Some have been and I mixed your not sustainable point with that. Poorly worded on my part, possibly due to a good quaff of blinding Aussie Shiraz and a honest dent in a bottle of Auchentoshan 3 Barrels.

I maintain that he could sustain these losses for a while, should he have to. Hope he won't have to.

[uttoxram75]

3 minutes ago, reveldevil said:

This is the balancing act Rowett will have to achieve, improve the quality of the squad, indeed get more out of it, while reducing the wage bill.

I'd agree there is money to do that, but why would incoming players agree to less money than the players they're upsurping, unless we go down the younger, hungrier but unproven route?

I'd say Rowett is the right man for that task, but it won't be as easy as some make out, especially moving unwanted players out.

The quality of the squad will improve with a fully fit George Thorne, a rejuvenated Chris Martin and just playing Will Hughes.

I would suggest we don't need to spend a penny. If we can get one or two off the wage bill while getting those we've got to perform to anywhere near their capability in a system that suits them we'll be raite.

[Day]

14 minutes ago, curtains said:

These results are really quite old now .

Basically last seasons and don't take into account the sale of Jeff Hendrick for 12 million and Jake Buxton and Warnock and the loan of Chris Martin for 3 Million or the signings of Vydra and Anya etc. 

Bit more than that,

New contracts for Keogh, Martin and Hughes.

Vydra, Anya, Nugent, McAllister in and Wilson, De Sart loans

Hendrick, Grant, Albentosa, Shotton, Warnock, Buxton, Sammon, McDonald, Calero, Thomas, Morch gone

Martin, Weimann, Hanson, Rawson out on loan