CCFC accounts

[logic]

Re: CCFC accounts

Well I don't want to waste my time researching as you put it into American directors of sport in baseball etc

Especially when there are helpful people on here with regard to such matters

The teaching profession missed a trick not taking you on .....

Hey Mr Logic ? .......can you as our history teacher tell us about the Arab Israeli conflict and its origins since the creation of Israel ?

Mr Logic ......no .....piss off .....Google it !

Having taken a beating from Dembe, Sludge moves on.

It would be utterly boring for endless reams of text to be posted about the topic.

Here's one for you. Google "Jerry Jones".

[Ninian1962]

Re: CCFC accounts

The following has just been sent out to Trust menbers.

"Trust Chair Keith Morgan, a football finance expert, comments on the latest Cardiff City FC (Holdings) Ltd accounts for the year ended May 31, 2022.

The accounts were signed off by Chair Mehmet Dalman on February, 24, 2023 and the accompanying group strategic report by CEO Ken Choo on the same date. The audit report was signed off by auditors BDO on February 28, 2023.

Summary

The accounts show an operating loss for the year of £28.9m (2021 £12.1m) and a loss after tax of £26.6m (2021 £12.0m).

As a consequence of the above losses and other adjusting transactions the balance sheet deficit as at 31 May 2022 rose from £36m as at 31 May 2021 to £56m.

Profit and loss account

Turnover fell dramatically in the year from £55.2m in 2020/21 to £20.0m as a consequence of losing income from "parachute payments" and despite an increase of £3.5m in gate receipts in the post-Covid pandemic period.

Efforts were clearly made to reduce operating costs to try and offset at least part of the loss of income with player salaries down by approximately £4m although it should be noted that the majority of player salary savings would have occurred after the balance sheet date with 11 players whose contracts had expired coming off the payroll in June 2022. The 14 players brought in to replace them (and three other loan signings) were at significantly lower salary cost.

Administration costs were down by £11.4m from £30.9m to £19.5m. This was principally due to a reduction in the cost of amortising (depreciating) and making an impairment provision for the playing squad where this cost reduced by £11m compared to 2020/21. There was a profit on player sales of £4.2m (2021 £2.9m).

Interest payable in the year of £2.4m was slightly up on the 2021 figure of £1.9m

Directors` remuneration was down significantly to £143k (2021 £550k) with the highest paid director paid £121k (2021 £413k). The accounts do not disclose which other director(s)received remuneration in the two years. The reduction is almost certainly as a result of the CEO Ken Choo moving to a part time role at the club.



Balance sheet

The value of the playing squad as at 31 May 2022 had been written down to £2.5m from a value at the previous year end of £10.5m. Player addition costs in the year were only £1m with players originally costing over £14m leaving the club at a profit of £4.2m compared to their written down value.

The club`s stadium asset stood in the accounts at £77.6m.

As at 31 May 2022 a total of £7.7m was due to the club, including £4.6m of transfer fee instalments

The main liabilities in the May 2022 balance sheet were amounts of £73m due to Vincent Tan and his family and £25.8m due to Tormen Finance, a company in which Mehmet Dalman has a significant interest – this loan carries interest at 9%. This amounted to £98.8m of total debts due of £123.4m (up from £113.4m in 2021). The balance of debts due included £12m of accruals (including season ticket money received in advance) , transfer fee instalments payable of £2.6m and the remaining balance of an EFL pandemic support loan of £5.5m.

There continues to be full provision in the accounts at £20.7m for settlement of the Emiliano Sala dispute with FC Nantes, as has been the case since 2019.

There are important matters to note in respect of the debt due to Vincent Tan

a) There were new loans of £19.8m made by him in the year, with repayments to him and his family of only £1.1m

b) In the year he converted £6.6m of debt due to him into shares

c) Just after the year end, in June 2022 he converted a further £19m of debt into shares

d) Of the total due to Vincent Tan £51.2m carries interest at 7% and rights to convert into shares. The rest carries no interest and has no conversion rights.



Contingent liabilities

The Companies Acts require companies to disclose material liabilities which might arise in future , dependent upon certain events occurring. In the balance sheet notes is a disclosure of a potential liability of £4.9m relating to player contracts and these will refer to amounts payable should a player achieve certain targets such as appearances, goals , international caps etc. plus any share of transfer profits due to a former club should a player be sold on. The notes state that such events will probably not occur so no provision is needed for this in the balance sheet.



Related party transactions

In the year consultancy fees were paid to WMG Group in respect of the services of Mehmet Dalman and £1.7m was paid in loan interest to Tormen Finance .



Post balance sheet events

Some significant events have occurred between the 31 May 2022 balance sheet date and the date the accounts were signed off by the directors on 24 February 2023 which are noted in the accounts

a) As noted above ,Vincent Tan converted a further £19m of debt into shares

b) Further loans of £24.4m were made to the club at 9% interest by an unnamed party

c) New players were acquired at a cost of £5.4m

d) Legal actions regarding the Emiliano Sala case are ongoing

Other matters

The directors' reports accompanying the accounts reveal two other important points

a) The club is negotiating with the EFL to have the current transfer embargo under EFL rule 52.6 fully lifted

b) Plans are progressing for the construction of a new training facility for sole use of the club first team to be held under a 150 year lease with the aim of completion in time for the 2025/26 season. This is not the same facility currently being developed in Llanrumney for the club to hire for its Academy teams"

I have only just realised that this commentary is my first draft which was subsequently amended for some typos in the figures and text. The draft and final versions give the same overall impression but it should have been the final version not the draft which went out.

Keith

[logic]

Re: CCFC accounts

I have decided that dembe is a fanny and he can carry on trying to annoy everyone else then vanishing down a rabbit hole , if he's your new buddy I wish you a happy marriage xx

With regard to this matter the accounts warnock and a possible director of football there have already been some interesting contributions from the trust chair and a few others .

You may or may not have something to add and I was interested in your post and responded politely but you have not replied with the same so I think you should go out for a very long walk , come home , have a shower and go to bed as you are about as useful as a candle in a snowstorm .

You are impotent .

Google that .

The point you're spectacularly missing, Sludge, is that the American model doesn't necessarily fit non American sports due to the vast differences involved.

You then see fit to whine, asking if top management in US sports are dodgy.

Simple googling would reveal numerous instances, here's another, "Washington Commanders". Or "Robert Kraft". Or "Daniel Snyder".

Now, do you think the American style is better or worse, and why?

[Former Labour leader]

Re: CCFC accounts

One positive from the accounts is that the First team training ground is full steam ahead. I assume it's the one at Miskin which has been rumbling along for a few years.

[The Hooded Claw]

Re: CCFC accounts

To the point made earlier on the difference between the profit before and the profit after tax:
- the level of debt is only relevant in terms of the amount of interest paid, as it affects the profit before tax.
- the tax charge is not just a simple percentage of the current year’s profit. There are other factors (such as “timing differences”) which form part of its calculation.

[tforturton]

Re: CCFC accounts

If the club made a loss of £29m last year, and £12m the year before, then surely we're already set to exceed the "£39m over 3 years" target set to comply with FFP? Does that mean we have to make a profit of £3m next season, or get a fine and points deduction? Or am I missing something?

[Ninian1962]

Re: CCFC accounts

If the club made a loss of £29m last year, and £12m the year before, then surely we're already set to exceed the "£39m over 3 years" target set to comply with FFP? Does that mean we have to make a profit of £3m next season, or get a fine and points deduction? Or am I missing something?

There were adjustments made in earlier years to compensate for the impact of Covid which increased the allowable losses under P&S rules

[the other bob wilson]

Re: CCFC accounts

In an ideal world warnock would have got us promoted after looking like we were going down then the board offer him a joint managers role or director of football post

He wouldn't have accepted either

They were in no man's land

A lot of hindsight and wise after the event comments on here

When did you realise things were going tits up and why didn't you start shouting from the rooftops then ?

You’re wrong Sludge, plenty on here and elsewhere accurately predicted how the 19/20 season would go under Warnock before a ball was kicked - they could see what was coming after the signing of players such as Flint, Vaulks, Pack and Vassellto add to the earlier mad deal for Bacuna.

[OurManFlint II]

Re: CCFC accounts

If somebody wanted to buy Cardiff city, Shirley the value is a couple of million at most right?

No real assets aside from a few players, disparity between outgoing and incomings to make your eyes water. what would be the true value you think, do we own anything?

[dembethewarrior]

Re: CCFC accounts

If somebody wanted to buy Cardiff city, Shirley the value is a couple of million at most right?

No real assets aside from a few players, disparity between outgoing and incomings to make your eyes water. what would be the true value you think, do we own anything?

He won't get what he wants for it that's for sure.

Buyers don't care about what you've put in, only what it's worth. We ain't worth a lot.

[OurManFlint II]

Re: CCFC accounts

He won't get what he wants for it that's for sure.

Buyers don't care about what you've put in, only what it's worth. We ain't worth a lot.

Huddesfield are for sale for 1 gbp, but you need to clear their debt of about 30 million.

[blue lewj]

Re: CCFC accounts

Huddesfield are for sale for 1 gbp, but you need to clear their debt of about 30 million.

Probably a fair bit cheaper than us then.

[blue lewj]

Re: CCFC accounts

How much are we paying to Dalman's firm in interest per season/year?

[Rjk]

Re: CCFC accounts

https://swissramble.substack.com/p/qpr-finances-202122 Here is an analysis of QPRs accounts by Swiss Ramble, which gives some context to our figures - although most of the values on there so far were for 2021 still which was covid affected

[Doucas]

Re: CCFC accounts

I haven't looked into the accounts much but a £29 million loss is crazy! If we had 25 players on £22k a week that's £29 million.

Obviously there are loads of other expenses but my figures above assumes an income of zero. What the hell is going on?!