2022/23 Accounts

So in layman's terms. For those specific players, what have we received and are still to receive?

 

Doing a bit of rough guessing from the accounts, £4m in total fees of which £2m has been paid and £2m to be paid. This is based on transfer debtors increasing by £1.75m over the year.

The £2m outstanding has already been accounted for and included in transfer receipts. If received this year it will not impact profit and loss merely a movement from debtors to cash.

 

Cheers. Yeah I can understand the movement, but it isn't entirely clear to non accounting folk on our transfer sales.

As a fan, it's one of the measures I am using to assess how well the current board do. Or not as the case may be.

A little underwhelming if 4 million is the total we can expect.

 

Beyond all the stuff pointed out in Archerfield's summary, the eye-opening bit for me was the increase in pay of the highest paid director, which was presumably Khaled in both years. Total emoluments of £223k in the latest year, compared to £166k in the prior year.

Possibly a bonus of some kind within the latest figures but, with the benefit of hindsight, I don't think we got good value for money from his tenure.

The carrying value of the squad (i.e. the intangible assets less any amortisation) is £1m compared to £2.6m at the previous year-end, which is a considerable reduction, but will include the contracts of Andersen, Kitching and Collins, all of whom were sold after the year-end. Consequently, those sales should reflect a healthy profit on trading in the next set of accounts.

 

Khaled rewarded with a 34% increase in pay.

 

But is it Khaled...?

It only states highest paid director. And we have

Jean
James
Zuk
JAQ
Etc
Etc

 

There's just over £2m showed as owing from transfer instalments, and the club owe just under £0.5m in outgoing transfer fee instalments.

We don't yet have any visibility on the Anderson, Kitching and Collins sales, as they all took place after the year-end so will only be reflected in next year's accounts. I would imagine that the equivalent figure next year is likely to be significantly higher than the £2m for 2022/23.

 

I would imagine that Jean Cryne, Khaled and Neerav take only minimal emoluments, if any, based on attendance at Board meetings. I don't think James Cryne is a full-time employee, and I believe the services for his proprietary software (i.e. "the spreadsheet") are likely invoiced by an external company.

Of the full time staff (KEA and Zuk) it's logical that the CEO is the highest paid of these, so I think it's a reasonable assumption. There's no way for us to know with 100% certainty, but I'd say the likelihood was very high.

 

Looks like we were desperate for anything we could get at that time and a real shame that we lost quality players on the cheap but the real damage was done in appointing Asbaghi when we clearly needed someone that knew how to dig us out of the hole that Schopp put us in.

 

As a layman on these things I would suggest we,re better off than 90% of clubs in the English leagues.

 

This seema to be a really good thread for those who have Twitter that explains the accounts in simpler terms.
(Sorry but I don't know how to post the screenshots for those not on Twitter!)

 

Promotion is a must this season to keep somewhat in touch with the championship.

With the new SKY deal which starts next season, championship clubs will receive 46% more than they do now, with L1 clubs only getting approx 25% uplift. Failure to get promoted this season will ultimately see the gap between Champ and L1 grow IMO.

 

That’s an excellent point, in essence the £6m differential becomes £9.5m

 

On that point, I noticed on Saturday how short the queue was at the dedicated alcohol counter in the Ponte End. With those bottoms up pumps working properly now, by the last 5 minutes of half time, there wasn't anyone in the queue, despite the Ponte being sold out. So hopefully, catering reneue will increase further going forward, albeit as you say, we had several bigger fixtures last year.

 

This is an eye-opening one, regarding our commercial income (or rather the lack of such).

https://x.com/christoph_21/status/1762810057006158271?s=20

 

Surprised to see he got quite a significant increase when relegated given playing side had such reductions.

 

That's why I suspect there's probably a bonus element explaining much of the difference, given that this covers the season where we reached the play-off final.

 

Would the Hex debacle have played a significant part of that? Guessing we went through the season without the income that you would nornally get from a main shirt sponsor.

 

2 points you could clarify if possible please. And I may be out of date with this.
97% of revenue spent on players wages..
I thought clubs were supposed to work to a max of 60% revenue. I know there are contracts to be honoured after relegation. And i assume getting Iseka and oulare off the books will see a fall in % in this seasons figure. Hopefully if we can get promoted that wont be an issue. I get the losses given the first figure. To facilitate the running of the club.
The other is the commercial side. Where does club apparel etc come under. I think this season has been a total disaster. If no improvement in the summer I fear even worse. I can't think of anyone prepared to order online ever again including myself. And if it's the us mobile transfer (not the company itself) I think it could be the first time I don't invest in a shirt in around 35 yrs having bought one every single year. Although some will, I appreciate that, as it is an important Item of clothing especially for the kids.

 

Your are correct that the max wage spend is 60% of turnover, but this is subject to transition rules but broadly correct.

This is, in part, why the equity raise was required. By putting £5m of equity in to the club this can be added to turnover which in broad terms brings total turnover to £14.5m, with wages at £9.3m that is 64%. I would imagine that there are some transitional arrangements on some contracts which bring us under the 60% threshold.

On the commercial side the revenue would come under merchandise, this stood at £805k an increase from the previous year of £753k. Worth noting that this is revenue and not profit, there will be the costs of sales to deduct form this.