Brentford-financial openness-GS should follow suit

<h3 class="headline" id="headline">WHERE`S ALL THE MONEY GONE </h3><div class="articleBody" id="articleBody">

<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In April last year, Stephen Callen published an update on the Clubs finances entitled 'Where's all the money gone'. Continuing this theme, I have taken the opportunity to present the outlook for this season and look forward to next season.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">This seasons FA Cup run generated total income of £462k (2005- £686k) made up of our share of gate receipts £203k (2005 - £368k), TV and radio broadcast money of £129k (2005-£168k) and Prize money £140k (2005- £140k). FA Cup prize money is paid out in team and management bonuses of £138k (2005 - £136k.)</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The Clubs budget provided for £25k for FA cup gate share and £76k for TV or filming facility Fees. With total receipts from TV and filming facilities now reforecast at £157k in total- extra income of £81k has been generated from this source.That surplus together with the unbudgeted gate share of £178k has furnished the club with £259k of additional income from the cup run. Coupled with the net receipts of £350k from the transfer of DJ Campbell to Birmingham FC - the club has benefited from windfall income of £609k this season compared with a net £536k last year.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While this season's windfall income is £73k greater than last year - the club reported net losses last year of £75k, so the extra income would put us at breakeven, if nothing else had changed.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">There have however, been several changes from last year.The loss of the London Bronco's as our ground-share partner has reduced the Clubs income by £88k this season as compared with last year and by £129k for a full season.Central distributions from the Football league are £70k lower this year compared with the amounts recorded in the accounts for the prior season.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Playing squad costs are up approximately £200k this year in the wake of the squad strengthening that was undertaken following last seasons cup and league success in reaching the play-off semi-finals.Similarly, maintenance costs for the stadium; GP pitch and training pitches in the early part of the season have been significantly greater than experienced in prior years. </span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Total administrative salaries have increased by around £70k and ticketing system costs have increased as a consequence of the reorganisation that was effected following the problems associated with ticket distribution for the Southampton cup tie last season.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">The financial outcome for this season is still somewhat uncertain. We have potential additional fee income from the transfers of former players Paul Smith (£100k) and if Birmingham retains premier league status - DJ Campbell. (£90-£180k)</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">With the club in contention for an automatic promotion spot or a play-off spot we also need to consider and provide for the performance related bonus payments that come with success on the field.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">With so many important variables still in play, financial forecasts for the season will be at best speculative and inevitably subject to considerable fluctuations. </span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Looking forward</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">As the board considers the financial position of the club going into next season, perhaps the most significant factor in planning will be the division we are playing in next year.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Scenario planning is underway for competing in either the Championship or League 1 and the gate prices to be set once the outcome of this season's campaign has been determined. </span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Another pressing issue for the club is the ability to make progress with the planned improvements to Griffin Park, which in turn is dependent on securing a sponsor for our estimated £500k share of the total £2.3m works to be undertaken. Negotiations continue as I write, in an effort to secure the necessary sponsorship.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">While promotion to the Championship will bring with it new challenges and opportunities, the club needs to be prepared for continuity in League 1, in the event we fail to achieve promotion this season.</span></p>



<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">In doing so, a significant issue will be the re-assessment of the clubs continued reliance on substantial speculative income to cover its outgoings. The club does not have the safety net of a hugely wealthy benefactor to bail us out when things don't go to plan. Consequently, the assessment of the level of risk the club undertakes is an important area for both the club and the Bees United boards.</span></p>





<span style="FONT-SIZE: 10pt; FONT-FAMILY: Arial">Joseph Bourke</span></p></div>