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Almost £10m loss...

WSSWSS
edited December 2007 in General Charlton
Charlton Athletic plc chairman Richard Murray has revealed that the club made a net loss of £9.9m in the financial year ending 30 June 2007.

The net loss for the previous season, 2005/06, was £8.1m, although turnover has increased from £41.9m to £35.9m.

There was an overall operating loss of £11.8m before player sales, which brought in £11.3m, and amortisation.

After their relegation from the Premier League, the sale of striker Darren Bent to Tottenham brought in £15.5m.

However, Bent's previous club Ipswich were entitled to a sell-on fee as part of the deal, which earned the Addicks a net fee of £12.9m.

As well as relegation, the 2006/07 season also saw Charlton go through three managers - Iain Dowie, Les Reed and Alan Pardew.

Comments

  • WSSWSS
    http://www.cafc.co.uk/newsview.ink?nid=31703
  • pete_tong1pete_tong1
    Blaming poor shirt sales etc.... more like paying up dowie, mills, and reeds contracts.
  • northstandstevenorthstandsteve
    so that puts stop to all the twaddle about how much we are goin to spend,myself and afka plus many others have been sayin there is diddly squat to spend in January whilst others have been banding millions around.We are skint and if we don't go up i will be one of the 14-15k turning up next year week in week out.
  • northstandstevenorthstandsteve
    and the 14-15k includes away fans.
  • golfaddickgolfaddick
    don't get your knickers in a twist.

    The £13 m (net) we got from Spurs is not in the accounts as it happen after June 30th - therefore we still have this money available.
  • Oggy RedOggy Red
    Right, Golfie - although I believe I remember reading in the summer it was to be paid in increments over 2 or 3 years.

    The Young, Rommedahl & Diawara money was also not included.
    But we have spent money late in the summer on McLeod, Racon, etc.

    So maybe still not as much in the pot allocated for incoming purchases as we first thought - bearing in mind even loan signings have costs/payments/wages attached which would be paid from the same pot.

    To raise further funds, perhaps players may have to be sold after all?
  • Stu_of_KunmingStu_of_Kunming
    [cite]Posted By: golfaddick[/cite]don't get your knickers in a twist.

    The £13 m (net) we got from Spurs is not in the accounts as it happen after June 30th - therefore we still have this money available.

    Wrong, it's being paid by instalments.
  • ChicagoAddickChicagoAddick
    edited December 2007
    3 equal installments over 3 years. No mention of any pay-off's to Reed or Dowie listed in report & accounts.
  • Oggy RedOggy Red
    If Dowie & Reid didn't receive a lump sum to pay off contracts - then the chances are they are still being paid as if they were still employed.
  • MaglorMaglor
    I read (see below) the £13M for Darren Bent is in the accounts from a profit/loss perspective but most of the cash has yet to be paid (we have had £3.75M)

    The funds from Rommerdahl/Young/Diawara sales happened after the accounts so don't show at all. None of the Summer signings appear either though which would wipe this out.

    Without further shareholder input we are skint and losing money. We lost £9.9M AFTER including ALL the sale proceeds of Darren Bent!

    Financial highlights

    Year to June 2007 Year to June 2006
    Turnover £35.9m £41.9m
    Operating overheads (£47.7m) (£47.0m)
    Exceptional items - £0.5m
    Profit on player disposals £11.3m £1.4m
    Operating (loss)/profit before amortisation and player trading (£11.8m) (£4.6m)
    Amortisation of player costs ( £8.5m) (£4.8m)
    Operating (loss)/profit (£9.1m) (£8.0m)
    Net interest (£0.8m) (£0.1m)
    Net (loss)/profit (£9.9m) (£8.1m)
    Proceeds from issue of ordinary shares - £5.5m
    Shareholders funds £19.2m £29.2m
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  • pete_tong1pete_tong1
    We lost 8 million quid the year before and thats when we were in the premiership. What is the role of Charlton Athletic Ltd ?
  • guinnessaddickguinnessaddick
    Exceptional items - £0.5m What this? pay off?
  • F-BlockerF-Blocker
    It's too small to be a pay-off (unless it's Andrew Mills...?) - I reckon it's for redecorating the office for Reg's new PA! ;o)
  • MaglorMaglor
    Perhaps it's for the goldfish?
  • Off_itOff_it
    legal fees?
  • ChicagoAddickChicagoAddick
    Legal fees against Palace? Too small to be pay off. Doubt if we are still paying Dowie & Reed. That would have to feature somewhere in the annual report and both are now gainfully employed.
  • T_C_ET_C_E
    The "Fans Director" entertainment expenses, maybe ;)
  • Henry IrvingHenry Irving
    [cite]Posted By: T.C.E[/cite]The "Fans Director" entertainment expenses, maybe ;)

    That would be more like £0.50p and even that would be £0.50p out. : - )
  • paulbaconsarniepaulbaconsarnie
    [cite]Posted By: guinnessaddick[/cite]Exceptional items - £0.5m What this? pay off?

    could part of it be operation ewood?
  • AddicktedAddickted
    [cite]Posted By: T.C.E[/cite]The "Fans Director" entertainment expenses, maybe ;)

    No chance - he doesn't have any expenses, everyone else buys him the drinks.
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  • AFKABartramAFKABartram
    the headline figures don't make good reading, and nor did the previous years.

    Are we in a worse financial position than most realise ?
  • WSSWSS
    [cite]Posted By: AFKA Bartram[/cite]Are we in a worse financial position than most realise ?
    Yes. But not as bad as a hell of a lot of other clubs in this division i shouldnt think (that will change if we don't get promoted this year or the next however).

    Thats why it amazes me when people are banding semi-regular premiership players names around that we should be buying. We can't afford the wages or the fee. End of story.
  • seriously_redseriously_red
    This tells me we must spend a couple of million in January to ensure at least a play-off place.

    We need a serious backer - since those numbers include the sale of Darren Bent (before 30th June) then this year is going to be a lot, lot worse on paper.

    Here's hoping for a Wembley play off final victory!
  • WSSWSS
    [cite]Posted By: seriously_red[/cite]This tells me we must spend a couple of million
    Only if we are selling will we able to do that
  • seriously_redseriously_red
    I think Andy Reid + one or two others will be gone in the summer if we don't make it up so we have to give it a push now
  • Red_Pete_in_DubaiRed_Pete_in_Dubai
    There is no doubt that our financial situation is far from healthy. The Directors have had to loan another £9m to the club to keep it going. If we don't get promotion this year then expect to see ALL of our saleable players shipped out in the summer & replaced with a raft of free agents. Without a serious backer coming forward fairly quickly the future looks decidedly precarious. I cannot see how we can afford to buy anybody new in January without selling first. I guess that a couple of new loan deals are the most likely outcome.
  • AFKABartramAFKABartram
    Do you have an indication from the accounts on what levels current outstanding debts stand at ?
  • MaglorMaglor
    Our debt was £8.2M in the Chairman's statement. I guess secured by the Valley.

    I guess it isn't all bad the Amortisation of player costs at £8.5M is a write down of player values in the book. The players are worth what people will pay which makes this figure somewhat arbitary. This is a book entry rather than actual cash leaving the club. On the other hand the profit received on sale of Darren Bent is a book entry and only 30% of the cash has been paid. I wonder if the directors loans will be repaid from these funds when hey actually arrive?
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