Cardiff City's Latest Accounts: Trust Chair Gives His Analysis.

[William Treseder]

It does make you wonder what his reasons are for staying. He’s never gonna make a profit from the club. He doesn’t spend much time here anymore. Is it just a toy he’s got fed up of playing with, and has left it to gather dust, or are there any financial positives in carrying on?

[the other bob wilson]

Swiss Ramble's take on City's latest accounts;-

https://mobile.twitter.com/SwissRamb...47425607991298

[Rjk]

Swiss Ramble's take on City's latest accounts;-

https://mobile.twitter.com/SwissRamb...47425607991298

Thanks, I always like the additional context he gives vs the other clubs in the league, it at least makes me feel like I understand what's going on.

A couple of things stood out to me:

1 - how reliant we are on Vincent Tan
2 - how most championship clubs seem to lose a lot of money
3 - the money from the premier league and parachute payments has been largely squandered, and things will be tight next season.

4 - we would have broken even this season if it wasn't for covid
5 - how little money we have made over the years from player sales

[jon1959]

Swiss Ramble's take on City's latest accounts;-

https://mobile.twitter.com/SwissRamb...47425607991298

Always interesting commentary. The context comments are most useful to me:

Although #CardiffCity £12m loss is clearly not great, it was around mid-table in the Championship with many clubs reporting much larger losses in 2019/20, including Stoke City £88m, #LUFC £62m (large promotion bonus), Reading £42m, #Boro £36m and WBA £23m.

It is also worth noting that some clubs’ figures have been boosted by the sale of stadiums, especially #DCFC £40m and #SWFC £38m, so their underlying profitability was even worse than reported.

[Ninian1962]

Always interesting commentary. The context comments are most useful to me:

Although #CardiffCity £12m loss is clearly not great, it was around mid-table in the Championship with many clubs reporting much larger losses in 2019/20, including Stoke City £88m, #LUFC £62m (large promotion bonus), Reading £42m, #Boro £36m and WBA £23m.

It is also worth noting that some clubs’ figures have been boosted by the sale of stadiums, especially #DCFC £40m and #SWFC £38m, so their underlying profitability was even worse than reported.

Swiss Ramble always does a very good analysis and comparison with other clubs in the Championship for the season being reviewed.

As you say the profits for Derby and Sheffield Wednesday are artificially boosted by a (dubious?) sale of their stadia.

Of the remaining few clubs that reported a profit , Swansea benefitted from the fact that their accounts year end is July. Therefore they had the complete season`s income in their turnover figure while as we lost about £11m from our financial year end finishing before the season finished - which will benefit us in financial year 2020/21 though.
I haven`t looked at what year end the other clubs reporting slightly better figures than us have but it may be that some of them benefit in the same way as Swansea.

[The Hooded Claw]

It’s interesting that directors’ remuneration rose 34% at a time when the other salary costs were reducing by a similar percentage.

[Rjk]

It’s interesting that directors’ remuneration rose 34% at a time when the other salary costs were reducing by a similar percentage.

yes and the two companies we paid a lot of money to that dalman has interests in - what's that about?

we seem to have done some decent work in trimming the wage bill already, with more to follow.
all things considered we seem fairly middle of the road championship club.

however, considering that next season will be the first since 2013/14 that we won't be recieving any additional money from the premier League we should probably be in a more enviable position.
that's 8 seasons of an unfair advantage over other clubs with which to build up the club, and we've basically wasted it all.

the club are now starting to make the right sounds about bringing through youth and identifying players who could be sold at a profit, but it's going to be a lot more difficult without the premier League money. better late than never I suppose.
the main problem for me remains that we seem to have been far too reliant on the manager for transfer policy etc

[Bluebirdman Of Alcathays]

yes and the two companies we paid a lot of money to that dalman has interests in - what's that about?

Didn't he hold a meeting with fans last year when he said we need to tighten our belts?

[Rjk]

Didn't he hold a meeting with fans last year when he said we need to tighten our belts?

Well in fairness we do need to, to the tune of £30 million +
difficult to speculate too much on the payments without knowing what they're for

[Bluebirdman Of Alcathays]

Well in fairness we do need to, to the tune of £30 million +
difficult to speculate too much on the payments without knowing what they're for

Fair point, the payments might have been due, same with the pay rise for the directors - it just doesn't look good amidst everything else.

[xsnaggle]

It’s interesting that directors’ remuneration rose 34% at a time when the other salary costs were reducing by a similar percentage.

In large Companies don't the directors remunerations reflect the previous years business or even the year before that?
I recall many years ago talking to a man called Sam Toy who was the MD of Ford UK. Ford were then currently making loss but he had just got a huge pay rise of something like 60% as I recall, because it was based on a previous year when ford had made a huge profit.

[The Hooded Claw]

Why doesn't it look good ? What the directors get in remuneration or what the owner does with his money is absolutely nothing to do with us. Its all in the accounts anyway and not being hidden, so why is the automatic response always that something fishy is going on.

No one is saying it’s fishy. It just seems odd (inappropriate, perhaps) that the directors have been given a pay rise at a time when other staff are having their pay reduced.

[The Hooded Claw]

In large Companies don't the directors remunerations reflect the previous years business or even the year before that?
I recall many years ago talking to a man called Sam Toy who was the MD of Ford UK. Ford were then currently making loss but he had just got a huge pay rise of something like 60% as I recall, because it was based on a previous year when ford had made a huge profit.

Not necessarily. The accounts for the year in question should show the directors fees that relate to that year, regardless of when they are actually paid.
Profit & Loss Accounts are prepared on an accruals basis, not a cash basis.