Ted Lassos Tache
Midfield
1. Financial Position and Key Highlights
- Revenue Growth: The company’s turnover increased from £35.54M in 2023 to £38.15M in 2024, driven by improvements in sponsorship, television/media, and retail merchandising.
- Operating Loss: The company reported a loss of £8.64M (2023: £8.93M), despite an increase in revenue. This was influenced by:
- Higher staff costs (£30.59M vs. £25.61M).
- Increased amortization of player contracts (£3.98M vs. £2.71M).
- Significant profit on disposal of players (£8.81M vs. £0.3M), helping offset operating expenses.
2. Major Revenue Streams
| Revenue Source | 2024 (£'000) | 2023 (£'000) | % Change |
|---|---|---|---|
| Gate Receipts | 11,641 | 10,726 | +8.5% |
| Television & Media | 10,443 | 10,083 | +3.6% |
| Sponsorship & Royalties | 2,391 | 1,620 | +47.6% |
| Conference, Banqueting, Catering | 8,713 | 8,429 | +3.4% |
| Retail & Merchandising | 2,997 | 2,721 | +10.1% |
| Other | 1,967 | 1,964 | ~0% |
3. Expenses and Costs
- Staff costs increased significantly (£30.59M vs. £25.61M), possibly due to new player signings or increased wages.
- Depreciation increased to £2.15M (2023: £1.85M).
- Bank loan interest payments appeared in 2024 (£626,000 vs. £0 in 2023), suggesting the company took on debt.
4. Player Contracts and Transfers
- Player contract amortization (cost of contracts spread over time) increased to £3.98M (2023: £2.71M).
- Profit from player sales increased significantly to £8.81M (2023: £0.3M).
- Trade creditors for player acquisitions rose to £3.48M (2023: £2.94M).
- Future transfer commitments rose to £4.77M (2023: £3.76M).
5. Financial Commitments and Liabilities
- Short-term creditors increased to £54.37M(2023: £43.51M), due to:
- Bank overdraft (£8.24M vs. £0M).
- Increased parent company funding (£19.82M vs. £18.05M).
- Higher accruals and deferred income (£17.11M vs. £17.34M).
- Long-term creditors jumped to £19.26M (2023: £8.18M), including deferred taxation (£14.49M vs. £4.41M).
6. Investment and Asset Valuation
- Stadium of Light revaluation increased net book value to £300.90M (from £91.16M).
- Total tangible assets rose significantly to £338.52M (2023: £125.28M) due to revaluations.
- Investment in subsidiaries remained constant at £1.08M.
7. Pensions and Defined Benefit Scheme
- The club is part of the Football League Pension Scheme, with a £118.19M notional deficit (2023: £92.90M).
- Total pension obligations rose to £137,000 (2023: £101,000).
8. Contingent Liabilities
- Maximum contingent liability related to future player payments was £29.60M (2023: £24.69M).
- Payments depend on player/team performance and third-party contractual obligations.
9. Related Party Transactions
- Parent company Mercator Investments injected £19.82M (2023: £18.05M) in shareholder funding, with plans to convert this into equity.
- The company provided services worth £29,317 to its charity, The Foundation of Light.
10. Ultimate Controlling Party
- Mercator Investments Limited (Cayman Islands) controls the company, with K. Louis-Dreyfus as the ultimate controlling party.
Overall Assessment
- Financial Stability: Revenue grew, but losses remain substantial.
- Investment and Asset Strength: The Stadium of Light’s revaluation strengthened the balance sheet.
- Debt and Liquidity Concerns: Rising short-term and long-term liabilities indicate higher debt reliance.
- Player Trading: Transfer profits improved financial performance.
- Parent Support: Mercator Investments continues to support the club, likely converting debt into equity.