Money, Money, Money

[S5Blade]

This will interest some.....

A run to the semi-finals of the FA Cup has helped Sheffield United increase turnover by £2.4m to £11.1m in its latest accounts.

But pre-tax losses at the League One club, which will play Tottenham Hotspur in the semi-final of the Capital One Cup later this month, widened from £3.7m to £4.2m.

In results for the year to 30 June 2014, Sheffield United posted turnover of £11.1m, up from £8.8m for the 11 months to 30 June 2013.

This increase in turnover was achieved mainly through the success in getting to the latter stages of the FA Cup, generating unbudgeted income from prize funds and TV appearances.

As a result of the sale of players Kevin McDonald and Lyle Taylor, along with contingent transfer receipts relating to Kyle Walker, Matt Lowton, Kyle Naughton and Stephen Quinn, the club recognised additional turnover of £1m in the year.

Players' wages remained consistent with the previous period but costs relating to staff increased by £300,000 to £8.9m for a full 12 month period and included the cancellation of both playing and non-playing employment contracts.

The resultant loss on ordinary activities before tax of £4.2m was an increase on the previous period, but Sheffield United highlighted that the 2012/13 financial year was for only 11 months and excluded July, which is a traditionally loss making month, as there are no events to drive "meaningful revenue".

The waiver of a £34.5m intercompany loan allowed the club to post an overall profit of £30.7m.

The 2013/14 season was the club's third season spent in League One of the Football League and "followed a pattern of highs and lows", Sheffield United said.

Although a poor start to the campaign left the club off the pace in the league, Nigel Clough, appointed as manager in October, oversaw an upturn in performance which led to a seventh place finish.

But the feat of becoming only the fourth club from the third tier to reach an FA Cup semi-final, allowed directors to describe the second half of the season's performance as "nothing short of outstanding".

January also saw a change in the executive staff, with Malachy Brannigan joining the club as managing director, following the resignation of Julian Winter.

HP: http://www.insidermedia.com/insider/yorkshire/131246-

 

[Houso]

A third tier club that gets to the semi finals of the FA Cup, sells a few players here and there has very very good attendances for this level of football, still makes a loss of 4.2m.

Something's wrong with the game.

 

[Darren]

This

The waiver of a £34.5m intercompany loan allowed the club to post an overall profit of £30.7m.

is I assume, McCabe, effectively turning £30 million he loaned to the club into a donation.

What a bastard eh?

 

[BusheyBlade]

"Although a poor start to the campaign left the club off the pace in the league..."

Not even half way through January and already understatement of the year.

 

[Liaminho9]

This

The waiver of a £34.5m intercompany loan allowed the club to post an overall profit of £30.7m.

is I assume, McCabe, effectively turning £30 million he loaned to the club into a donation.

What a bastard eh?

Was this not part of his deal with the Prince?

 

[WeareBlades]

I think some of the losses is still down to some players being on high wages, players such as Collins and Doyle. I think that's why Collins seems to be getting pushed out of the club and I don't think Doyle's contract will be renewed or it will be but on very different terms.

 

[metalblade]

This

The waiver of a £34.5m intercompany loan allowed the club to post an overall profit of £30.7m.

is I assume, McCabe, effectively turning £30 million he loaned to the club into a donation.

What a bastard eh?

I'm sure the Tevez cash and the £1 hotel softened the blow for him.
Still that said the problems were of his own making it is an expensive business paying off failed managers and to a certain extent players here for a last big pay day.

 

[judge]

I'm sure the Tevez cash and the £1 hotel softened the blow for him.
Still that said the problems were of his own making it is an expensive business paying off failed managers and to a certain extent players here for a last big pay day.

he didnt get any of the tevez cash and the hotel is making a loss

 

[Darren]

I'm sure the Tevez cash and the £1 hotel softened the blow for him.
Still that said the problems were of his own making it is an expensive business paying off failed managers and to a certain extent players here for a last big pay day.

There was 34million that United owed him and he decided, of his own free will, to write that off.

Obviously a complete money grabbing bastard.

 

[metalblade]

he didnt get any of the tevez cash and the hotel is making a loss

Who did get the Tevez cash then ? If the hotel makes a loss wouldn't that be a worry for Copthorne who run it ?

 

[S5Blade]

Who did get the Tevez cash then ? If the hotel makes a loss wouldn't that be a worry for Copthorne who run it ?

We got a loan from santander that was used for the upkeep of the club that the Tevez cash paid off I believe

 

[Woodwardfan]

KM told us all that he had been subbing United to the tune of £1m per month since relegation from the Championship (and our managers still couldn't get us back up there).

He also told us during the financial year mentioned that he had stopped writing the cheques and the club had to pay it's own way. In simple terms, if the prince had not come along SUFC would have had to drive all costs down by the stated £4m loss and more as it was only that little due to the cup run. David Weir was working to that brief and just picture what sort of squad we had to slim down to. Any higher paid player would have been replaced with kids.

The prince has rescued the club and you and me folks from oblivion and has put £8m in to date. Clough is working to the prince's budget thank goodness ( and we still might not go up).

 

[UnitedBlade]

Was this not part of his deal with the Prince?

It was and this ensured that we could hit bottom (expertly steered there by Weir) but start to recover.

For balance, we do need to remember that McCabe, through SU Ltd in which the Prince has no interest,owns the Lane and the Academy.

We may not get promoted this year but we have the wherewithal for next season.

I guess the Prince may have the option to buy the Lane in the future if we are successful and he has the will and the resources.

We desperately needed that cup run last year otherwise losses would have been £6M - £7M for a full year.

I'd be very interested to know the wage bill when the full accounts are published.

Onwards and upwards - we have a great month to look forward to.

 

[boo radley]

My question would be, How come we are struggling like this, if it is wages then why can we not pay less? Other clubs must do because their income must be far less. If we are offering comparable wages to a player and he opts to go to Preston why are they not struggling? Are other clubs struggling in this league? I know Bristol have a sugar daddy.

 

[SwissBlade]

My question would be, How come we are struggling like this, if it is wages then why can we not pay less? Other clubs must do because their income must be far less. If we are offering comparable wages to a player and he opts to go to Preston why are they not struggling? Are other clubs struggling in this league? I know Bristol have a sugar daddy.

Are Preston not struggling? I don't know by the way, just presume they must be in a similar situation.

I'd guess that we have bigger overheads, particularly for match days and running shirecliffe etc

 

[Fulwood Blade]

My question would be, How come we are struggling like this, if it is wages then why can we not pay less? Other clubs must do because their income must be far less. If we are offering comparable wages to a player and he opts to go to Preston why are they not struggling? Are other clubs struggling in this league? I know Bristol have a sugar daddy.

but how do you know Preston aren't struggling?

This IS the very nature of clubs who get into trouble - problem is, fans and the like don't get to know until it is published, and by then it is too late.

The issue with Leeds was kept, to a degree under wraps by the owners and Preston might be gambling on getting out - they might have consolidated for a few years just as Utd did in the early years of the Warnock/Mccabe era. We let the purse strings free and gambled on getting out of the Championship - it worked but it cost us a lot of money. QPR did the same.

Football just thinks it is ok to spend other peoples money, run up a debt and then go into administration. FFP was supposed to help which it is in a way, but it still doesn't stop clubs like Bournemouth. Apparently they "lost" £6.5m getting out of this division a while back and their wealthy owner converted the loss to equity - perhaps Preston will do the same.

One thing is for certain, we HAVE to get out of this league and quickly as we are undoubtedly losing bucket loads and even a wealthy Prince won't stand it forever.

UTB

 

[Pinchy]

In common with almost every football club in the world, our expenditure substantially exceeds our income.

This plain, simple fact needs to be carefully considered by those who bleat "What happened to the.....money?"

 

[Bladepicker]

This

The waiver of a £34.5m intercompany loan allowed the club to post an overall profit of £30.7m.

is I assume, McCabe, effectively turning £30 million he loaned to the club into a donation.

What a bastard eh?

Agree it's a fantastic gesture but he also appointed Robson and Adams so I guess we are quits.

Seriously though for all his faubles McCabe is not all bad, I still think he has the club at heart, just a run of bad luck and bad decisions have seen us where we are.

Some maybe his fault, but it was never his prerogative and he has never left us in the shit ala Ken Bates\Norton Lea\multitude of other Chairmen who have let their clubs enter admin and done one.

 

[Fulwood Blade]

Agree it's a fantastic gesture but he also appointed Robson and Adams so I guess we are quits.

Seriously though for all his faubles McCabe is not all bad, I still think he has the club at heart, just a run of bad luck and bad decisions have seen us where we are.

Some maybe his fault, but it was never his prerogative and he has never left us in the shit ala Ken Bates\Norton Lea\multitude of other Chairmen who have let their clubs enter admin and done one.

Good post, it's a shame others can't see the reality of the situation. The vitriol chucked at McCabe at times is disgraceful.

UTB

 

[Darren]

Agree it's a fantastic gesture but he also appointed Robson and Adams so I guess we are quits.

Seriously though for all his faubles McCabe is not all bad, I still think he has the club at heart, just a run of bad luck and bad decisions have seen us where we are.

Some maybe his fault, but it was never his prerogative and he has never left us in the shit ala Ken Bates\Norton Lea\multitude of other Chairmen who have let their clubs enter admin and done one.

My take is that McCabe is a genuine fan who. like lots of rich men when they have made tons of dosh, looks around for something to spend his money on. Some spend it on pneumatic blondes, some on fast cars, some on ocean going yachts and some on football clubs. He did not for one minute get involved in United as a wonderful investment opportunity. No-one would be daft enough to do that.

As you say, he has made any appalling decisions in his time, but I don't belief he has ever acted with malicious or primarily selfish motives.

 

[Bladepicker]

In common with almost every football club in the world, our expenditure substantially exceeds our income.

This plain, simple fact needs to be carefully considered by those who bleat "What happened to the.....money?"

Agree Pinchy.

Football clubs lose money. To own one is to have an expensive hobby, they are status symbols for the rich (at least in the top three divisions) and that is the one thing that puzzles me about Phipps and the Prince.

I believethat they have said that for them this is an investment, not a bottomless pit to throw money in but a way of getting a return on the cash they put in through success.

But as income increases so will expenditure so I am not sure how they think they are going to manage to do what no other club can do?

 

[UnitedBlade]

but how do you know Preston aren't struggling?


One thing is for certain, we HAVE to get out of this league and quickly as we are undoubtedly losing bucket loads and even a wealthy Prince won't stand it forever.

UTB

I think Trevor Hemmings is behind PNE and he's worth nearly £1bn. A quick look at their accounts and they seem to have been re-capitalised in the last 18 months. On the face of it they appear to be in profit but that will be due to the cash injection.

Their last (total not just players) wage bill was about £6M compared to ours of about £8M (haven't seen the wages associated with this latest set).

The FC appears separated from the holding company and like us doesn't include any ground assets.

I would say they are following a strategy similar to us. They might fluke promotion with Grayson and Ridsdale (FFS) this season but if not they will struggle without more money from Hemmings.

The same goes for us with the Prince.

I agree, we need to get out of this division asap.

 

[Bladepicker]

He did not for one minute get involved in United as a wonderful investment opportunity. No-one would be daft enough to do that.

As above I believe that is precisely what the Prince says he has done? That is the one bit of all this co ownership malarkey I have always been a bit uneasy about.

 

[Bladesway]

Saving us from an abyss he threw us into hardly makes him Chairman of the year does it?

 

[Darren]

As above I believe that is precisely what the Prince says he has done? That is the one bit of all this co ownership malarkey I have always been a bit uneasy about.

Presumably, the Prince is doing it for mixed reasons of prestige and money. He is someone else with more money than he knows what to do with and quite fancies having a football club as a toy. However, given that he has not got enough money to buy a PL club, he has settled on SUFC, a currently lowly club, but quite "big" nevertheless and with a reasonable chance of moving up the divisions and becoming more prestigious. If that happens, ythe Prince can probably sell out for a profit to someone else who wants prestige.

 

[Bladepicker]

Presumably, the Prince is doing it for mixed reasons of prestige and money. He is someone else with more money than he knows what to do with and quite fancies having a football club as a toy. However, given that he has not got enough money to buy a PL club, he has settled on SUFC, a currently lowly club, but quite "big" nevertheless and with a reasonable chance of moving up the divisions and becoming more prestigious. If that happens, ythe Prince can probably sell out for a profit to someone else who wants prestige.

Which is the only thing I can think, he gets us top end Championship or Prem and depending on his investment/price sells his stake.

That's why I am glad McCabe still has 50 percent to retain some control if\when we are sold.

 

[Woodwardfan]

Saving us from an abyss he threw us into hardly makes him Chairman of the year does it?

No, it doesn't. Maybe "Fan of the Year" though?

 

[Bladepicker]

Saving us from an abyss he threw us into hardly makes him Chairman of the year does it?

It puts him way ahead of a lot though doesn't it?

 

[Woodwardfan]

Presumably, the Prince is doing it for mixed reasons of prestige and money. He is someone else with more money than he knows what to do with and quite fancies having a football club as a toy. However, given that he has not got enough money to buy a PL club, he has settled on SUFC, a currently lowly club, but quite "big" nevertheless and with a reasonable chance of moving up the divisions and becoming more prestigious. If that happens, ythe Prince can probably sell out for a profit to someone else who wants prestige.

Why do any of the foreign owners do it? My son reckons it's an avenue to channel their resources out of their own countries for whatever reason and purpose. Who knows? They live in a different world

 

[Bladesway]

No, it doesn't. Maybe "Fan of the Year" though?

OOhhh bigger blade, excellent. Tell you what, I'll throw my company into a whole load of crap and then rescue it several years later. Oh hang on they would have fired me before I did the first bit.