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The 2018/19 accounts - the Grumpy take

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So next set of accounts we get to see what Donald as done to increase revenue and cut expenditure, hopefully being in league 1 its quite a reduction on the expenditure side of things as we know revenue will have dropped again by quite a bit.
 
Grumpy Old Man said:
This, hopefully, is the nadir, the final emptying of the cesspit of declining finances. We live in hope.

What can we say from the numbers, and what does it really mean going forward?

First, this year's figures

Income
Obviously, way down on 2016/17. TV income halved as expected. Gate receipts went down by £2.4m, a drop of just under 25%. That's the cost of PL fanboys and stayaways. Sponsorship fell off a cliff, down 80%, while commercial and retail were down about 35%. Depressing, but pretty much what you might expect. Looking at 2018/19 gates, everything but TV income will probably have bottomed out. However, we're looking at another £15m or so drop in TV income in the 2018/19 accounts. That's why the new owners needed, and still need, tocut costs.

Expenses
Staff costs dropped by £35m (around 42%), lower than the fall in income. so staff costs were 73.4% of turnover (2017 - 67.5%). Bain got a £1m payoff (looking at his total pay, that's probably a contractual one year notice). On staff numbers, it looks as though redundancies affected 1 in 6 admin staff. It appeared that we still managed to spend around £2om on other operating costs. This is where Donald is really going to have to wield the axe to get the books balanced.

Other points to note from the P&L: a further £12m was written off player contract values, we made an £8m profit on the sale of the Charlie Hurley centre, and the lawyers and merchant bankers trousered £6.5m for the share issue.

Turning to the balance sheet, transfer debtors were £16.2m (£4.4m receivable next season), while transfer creditors were £19.6m (£3.5m payable next season). Other debtors include £9.6m due from another group company (not Sunderland Ltd). It's unclear who owes this, or why the debt is there. As expected, there arer no external debts, and there was a positive cash balance of £11.1m at the year end.

Looking forward, there are grounds for optimism, although we may continue to make smaller losses while the position the owners inherited unwinds. Clearly, there is much more work to be done on the cost base, particularly player wages, but it's a far brighter picture than when I was writing this time last year.
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Thanks.easy to understand
 
Zak's Dad said:
Haway man we've got to manage to do it once a year :D



Given the list of players with their contract end dates that was posted on here a few days ago?
It's almost like we're 'steadying the ship' with that last payment ready for the remaining big contracts to terminate at the end of the next season and give us some breathing space.
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Depends which year you're on about mate. :lol::lol:
 
0321safc said:
Fund the academy big style and that could bring in money long term, big money given the premium placed on English/British players. The top 2 in the championship sold young British player in the summer for big money, they both re-invested that money wisely.
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We’re doing the opposite though we’ve sold fair few from the academy this year

Doesn’t seem to be the plan at all
 
The Rat said:
We’re doing the opposite though we’ve sold fair few from the academy this year

Doesn’t seem to be the plan at all
Click to expand...
I thought we would see big things happening at the academy but it just hasn’t happened. The talk of Uruguayans etc. I appreciate we might be a hard sell as a league one club but conversely young players could see us as a chance to get game time pretty quickly.
 
0321safc said:
I thought we would see big things happening at the academy but it just hasn’t happened. The talk of Uruguayans etc. I appreciate we might be a hard sell as a league one club but conversely young players could see us as a chance to get game time pretty quickly.
Click to expand...

I don't think its a priority for them as I don't think they will be here that long IMO anyway
 
Grumpy Old Man said:
Any stories you may have heard about FDs and MDs being sick in the Stanhope Gate toilets before budget meetings are true.
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The London-Hyde Park-Park Lane-Stanhope Gate?

kildaremackem said:
some taslk of it but hard to see in the accounts..


wasng much of s gesture..the money left safc and went to another company in the group..


same way we funded the last decade of losses..by issuin new shares..youn dont think safc funds itself do you?




so safc ltd pays sunderland limited? but oif they are one group of companies..surely it just washes out anyway as the same thing at the group operating level/
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Is someone else on the board of Sunderland Ltd that isn’t on the board of the others?

The Rat said:
I don't think its a priority for them as I don't think they will be here that long IMO anyway
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Here! Have your own fears.
 
Last edited:
safccfas said:
I’ve just reported you for the two accusations you’ve made of legal wrong doing. I’ve never ever reported anyone on this message board before. You are the first. Hopefully it results in an immediate ban from this forum. You’re clearly just here to wind people up. You must live a very sad life.
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No mate he was in the “parras” whatever they are, and he’s a boxer too!
 
safccfas said:
I’ve just reported you for the two accusations you’ve made of legal wrong doing. I’ve never ever reported anyone on this message board before. You are the first. Hopefully it results in an immediate ban from this forum. You’re clearly just here to wind people up. You must live a very sad life.
Click to expand...

Mole
 
0321safc said:
I thought we would see big things happening at the academy but it just hasn’t happened. The talk of Uruguayans etc. I appreciate we might be a hard sell as a league one club but conversely young players could see us as a chance to get game time pretty quickly.
Click to expand...
I doubt that, we haven’t really got any youngsters around the first team apart from hume 3rd choice left backs and kimpioka 4th choice forward.
 
Grumpy Old Man said:
This, hopefully, is the nadir, the final emptying of the cesspit of declining finances. We live in hope.

What can we say from the numbers, and what does it really mean going forward?

First, this year's figures

Income
Obviously, way down on 2016/17. TV income halved as expected. Gate receipts went down by £2.4m, a drop of just under 25%. That's the cost of PL fanboys and stayaways. Sponsorship fell off a cliff, down 80%, while commercial and retail were down about 35%. Depressing, but pretty much what you might expect. Looking at 2018/19 gates, everything but TV income will probably have bottomed out. However, we're looking at another £15m or so drop in TV income in the 2018/19 accounts. That's why the new owners needed, and still need, tocut costs.

Expenses
Staff costs dropped by £35m (around 42%), lower than the fall in income. so staff costs were 73.4% of turnover (2017 - 67.5%). Bain got a £1m payoff (looking at his total pay, that's probably a contractual one year notice). On staff numbers, it looks as though redundancies affected 1 in 6 admin staff. It appeared that we still managed to spend around £2om on other operating costs. This is where Donald is really going to have to wield the axe to get the books balanced.

Other points to note from the P&L: a further £12m was written off player contract values, we made an £8m profit on the sale of the Charlie Hurley centre, and the lawyers and merchant bankers trousered £6.5m for the share issue.

Turning to the balance sheet, transfer debtors were £16.2m (£4.4m receivable next season), while transfer creditors were £19.6m (£3.5m payable next season). Other debtors include £9.6m due from another group company (not Sunderland Ltd). It's unclear who owes this, or why the debt is there. As expected, there arer no external debts, and there was a positive cash balance of £11.1m at the year end.

Looking forward, there are grounds for optimism, although we may continue to make smaller losses while the position the owners inherited unwinds. Clearly, there is much more work to be done on the cost base, particularly player wages, but it's a far brighter picture than when I was writing this time last year.
Click to expand...

Good stuff, thank you.

Oh hang on... what about the penniless chancers, asset stripping, pot to piss in, not billionaire stuff?
 
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