You need special skills to read and understand company accounts and I am grateful to the New York Addick for providing an analysis of the latest Charlton Athletic accounts: Accounts
Interpreting the data is a complex matter, but for me there is one key headline: the club continues to make a loss of over £7m a year. Indeed, results in the current financial year are likely to be somewhat worse, given that revenues were boosted by a cup run last year, and attendances have fallen recently.
Any further cuts in spending would have to focus on the biggest item on the expenditure side, player wages, and, as it is, we have struggled to achieve the standard required to stay in the Championship. One just wonders how sustainable the situation is, although, of course, we are not the only Championship club to make substantial losses. However, some of them have wealthy benefactors who are prepared to make substantial subventions. Charlton also has significant debts.
Voice of the Valley editor Rick Everitt made the following comment on his blog, 'The publication on Friday of the club’s annual accounts underlined that the size of its debts continues to grow apace and the extreme unlikelihood that this can be addressed by anything other than an eventual return to the Premier League. Some £28m was owed to Duchâtelet’s Staprix by June 2014, against £15m to the former owners’ British Virgin Island company a year earlier. This financial hole is going to get deeper and deeper, especially if the additional revenue paid to all Championship clubs as a result of the new Premier League TV deal and amended Financial Fair Play rules simply inflates player wages.'