BFC Accounts May 2022

Not a great year for the club both on and off the pitch.

The accounts show an operating loss of £7m, prior year £4.3m. This is based on turnover of £15m (an increase over the prior year of £2.5m mainly driven by increased matchday revenue past Covid).

The actual operating loss is increased by a £3m legal settlement falling on the club which is the debt owed to the previous owners as part of the transaction to purchase the club. The underlying operating loss was actually closer to the £4.3m loss the prior year. The repayment of the £3m to Oakwell Holdings will commence from August 2023.

In terms of costs salaries were around £13m a fall of around £1.4m on the prior year

On the balance sheet the club has slipped from a positive position of £1.4m to a negative value of £4.8m. Post the year end £5.6m was injected in to the club in the form of equity.

I've just scanned these and will have a fuller look tonight.

 

We need promotion more than ever before. Especially as the next TV rights is expected to go for twice as much as the current deal.

 

Yep, although I think rights change 24-25, not 23-24 so we’ve got to avoid an Asbaghi-style collapse for a season if we do go up.

 

https://find-and-update.company-inf...E5MmFkaXF6a2N4/document?format=pdf&download=0

 

The £5.6m is in respect of equity so not repayable but part of me believes that this came in to enable the payment of £3m back out to Oakwell Holdings. Without the injection of cash the club would have struggled to get through the current season.

 

Exactly why I try argue the point against people when they say we're not good enough to go up this season, doesn't really matter, it's financial reasons we need to go up! Especially because then we'll end up losing our better players.

 

Try it another way, if the funds hadn't come in the club would have gone in to admin, at that point the owners' equity value would be zero. They had in essence injected money to keep the club going and settle the legal case by Oakwell Holdings. The total injection I believe is around £6.6m.

There is debt in the club with £2.8m owed to the EFL and £3m to Oakwell Holdings.

 

From a footballing standpoint, it might have made sense to strengthen and be in a better position next season and maybe relax a bit in terms of pressure to succeed this season. Maybe next season target the title and then go up, with a better chance of not struggling to stay up.

But looking at the financial side, I don't think we can afford not to go up.

What a horrible mess the finances are

 

It’s always been a strange argument for me. If we go up, it’ll be because we’re good enough, and maybe some assessments of the players have been too negative. If we’re not good enough to go up, we won’t.

 

What other option is there?

 

Aye, I get that mate. But that also still runs the risk of losing our best players. Connell, Andersen, Williams, Collins say. Then we'd have to replace them all. Always best to get promoted back ASAP and keep your best players

 

So where does £13m in salaries put us in relation to other teams in this league. We consistently hear that we can't compete with nearly everyone else on salaries, seems a big whack to me. Take out them down the road and are there many laying out more than that?
I guess the 2 from Conway's legacy ain't helping.

 

I think the only clubs we can't genuinely compete with in this league is Wednesday, Ipswich & Derby. The likes of Bolton, Charlton, Portsmouth etc I'd assume we were all similar..? Just they get bigger attendances

 

The salaries are diverse across the league, the figure of £13m is for BFC in the championship. This will have fallen as a result of some of the bigger earners moving on and reductions as a result of relegation.

Using the current top six
Plymouth £6m
Sheff Wed £24.3m (20/21 - latest filed accounts)
Bolton £6.9m (20/21 - latest filed accounts)
Ipswich £13.4m (20/21 - latest filed accounts)
Barnsley £13m (Championship)
Derby - N/a