Sunday, 22 February 2015

Club continues to make £7m loss

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 Duch√Ętelet’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.'

29 comments:

a2c said...
This comment has been removed by a blog administrator.
Dave said...

Blimey Guvnor! Everitt scoring points against the regime? The fact is the debts increased significantly. No point scoring there - strike a light!

a2c said...
This comment has been removed by a blog administrator.
Anonymous said...

A2c attempting to stir up more division with their comments as per usual.

Complains about personal attack whilst making personal attack on 'ex staff' and equating any comments on RD as disloyalty and probably going onto suggest that anyone disagreeing with him wants Charlton to lose.

Charlton Supporter

Anonymous said...

Was that jive talking or just bad spelling ?

Anonymous said...

Anonymous, a2c refuses to post in plain english and uses a cockney translator. It is all a bit of a wind up unfortunatley. Not a Charlton supporter but someone attempting to create division.

Unfortunate for the comments section here as a2c is attempting to dominate it. A bit like a wart on the side of the face.

Teatree oil or Salicylic acid may be helpful in this instance.

It is a shame as the article on Charlton finances and how it impacts on strategy is important and not straight forward.

a2c's ignoring of the article and attempt to muddy the waters in a simplistic and ridiculous fashion does not help things unfortunatley.

Charlton supporter

Brian G said...

What the figures and NYA's superb analysis show is that RD has invested substantial real cash into the squad and the ground, etc. Whatever individuals think of his approach and his business strategy, that has to be recognised and welcomed by all Charlton fans.

Anonymous said...

It's been said, over and over again.
Repetitive mockney windup merchant = Troll.
With trolls you either block them, down to Wyn his blog or ignore them. You're right he will try and take over, it's noticeable now. You will also notice that any attempt at humour and lightheartedness disappears when the trolls come out to play.
Play on your own, ignore the troll.

Anonymous said...

We don't have to like, respect or understand Roland's motivation, or the way he runs the club. I'm sure lot's of other club owners don't respect their supporters either. I'm not saying we shouldn't complain, but I do think we should understand it's never personal. Perhaps you have to be crazy to own a club like this. Who cares just keep on handing over the £££££££'s Rolly, mate, until you get bored, sunshine.

Wyn Grant said...

I will see what I can do about deleting or blocking posts. It's partly a practical question of how much time I can spend on the blog and other Charlton matters - probably too much already, but there you go.

Anonymous said...

Cheers Wyn!

Anonymous said...

A2c used to be a wind up merchant using the same strange lingo on the old bbc 606 forum.

I think they got him banned somhow

DPFC

Anonymous said...

Send all the Trolls to Coventry.
Sorry Coventry you have my football and social sympathies.

Anonymous said...

I noticed RD is charging 3% on the money he is loaning Charlton. He's a businessman who did his due diligence. He's not doing it for his love of Charlton: he knows what he is doing.

Brian G said...

I'm not sure whether the interest rate is relevant, Anon 16.36, as RD is both the borrower and the lender and there is apparently no repayment schedule. Wyn might be able to enlighten us.

Anonymous said...

Looks like Wyn has found the deleton tool - good man!

Anonymous said...

That should be "deletion".

Anonymous said...

I will really try hard to never speak badly of Acworth again.
His nemesis.

Wyn Grant said...

Hopefully, this is now a calmer place. On the question of interest rates, 3 per cent is not that high. I charged 4 per cent for a loan to a relative's company. On peer-to-peer lending you can get at least 6 per cent and a lot more for higher risks. As for 'lending to himself', one would need to know more about the structure of his companies which are legal personalities separate from him. I would like to know more about whether there are any taxation benefits in terms of offsetting losses etc. between different jurisdictions.

Brian G said...

Thanks, Wyn. I understand that these are inter-company loans and I was just making a very simple and broad assumption that RD was the major shareholder in the companies involved. Whatever tax shelters or other benefits there may be, RD's companies have still invested a lot of real cash in us. I hope that this is not overlooked by any of the supporters' forums.

Let's hope that we get a good turnout- and result - at Derby tomorrow. COYR!

jonathan acworth said...

i think if we get a buyer over the summer then all that debt be wiped out we just got hope and pray that some rich arabs like the sword as a badge then u never know!

jonathan acworth said...

annon i buy u a pint next time im at the valley

TANSEL CELIK said...

we are all charlton .we all must stick togother.we all want the best for the club.

Anonymous said...

Those Loans are unsecured as well as Ex Directors have mortgage over ground and training ground, so if he gets it wrong he cannot sell off assets.

Anonymous said...

Those Loans are unsecured as well as Ex Directors have mortgage over ground and training ground, so if he gets it wrong he cannot sell off assets.

TANSEL CELIK said...

would love rich arabs to buy us .but will it ever happen

Anonymous said...

If RD continues shift his policy from network players to Championship quality players then the club doesn't need rich Arabs, Russians or Chinese. His policies of improving the match day experience and developing youngsters fits with the ethos of the club. Look what chasing the Premiership has done for Portsmouth and Blackpool

Anonymous said...

Regarding loans, for ordinary folks £7 million appears a lot, but RD has a life time achievement award in making money. I can't believe he's just throwing it away. Ther'lll be a method to his apparent madness.

Wyn Grant said...

I don't like to censor posts, but I had a lot of complaints about this individual. I have also removed another post containing a four letter word. I know something about dyslexia and it seemed to me that this was not that but someone using a translator to put words into 'Mockney'. Apparently, at one time they were also on the BBC 606 site and have now appeared on another Charlton site. Charlton fan or not, there are limits, including using some four letter words.