Carlisle United Post Losses Of Over £660k
Mon 28th Oct 2013 | Money & Finance
Carlisle United have posted losses of over £660,000 in their latest set of accounts.
It’s been a difficult year for the club both on and off the field with the team finishing seventeenth in League One, having dropped nine places from the previous season’s finishing position.
The struggles on the field have brought an equal and direct effect on the club’s business with turnover decreasing from £4.33m to £3.54m (a reduction of £780,000).
The operating loss seen in 2011/12 of £124,329 has increased to a trading loss of £492,464 for 2012/13. The company is posting a total loss of £666,257 after amortisation and depreciation for the year 2012/13.
This has led to a decrease in net assets from £3.12m to £2.45m at 30 June 2013 prompting the need to introduce funds from some of the directors during the year to maintain the cash flow and continue operations.
Some of the key areas of movement year on year are as follows:
- Match income saw a reduction of £363,000 during this year and this is mainly attributable to the lower gates.
- An increase of £103,000 in cup income for the season helped by the progression to round three, and subsequent home draw against Tottenham Hotspur, in the League Cup competition.
- Commercial income saw a reduction of £190,000 against the previous year. There were a number of factors which affected this area of income including a poor year in the club shop, dropping numbers in match day hospitality areas and a reduction in income generated through the official website due to centralised Football League online partnership changes (betting, sponsorship, etc). Again, much of this can also be attributed to the fall in attendance figures suffered throughout the season.
- Football League income also reduced by £88,000 which was caused by a reduction in centralised TV income leading to smaller distributions being made to clubs.
- Player transfer income dropped by £392,000 against the previous year. This was due to the fact we had received income relating to the transfers of Gary Madine, Richard Keogh and Danny Graham relating to sell-on clauses, some of which had finished before this financial year.
The club implemented a cost reduction plan at the end of 2011/12 but, due to results and league position, further work is required which will see further cuts implemented in the office, commercial and scouting areas of the business at the mid-season point of 2012/13, with coaching and playing staff reductions planned for the close season to coincide with expiry of contracts.
It’s hoped that work carried out in the first six months of 2013 will allow the business to operate in a break-even situation for 2013/14 with the assumption that results, crowds and performances remain in-line with the second half of 2012/13.
Posted by: Aaron Gourley
To subscribe to our range of football newsletters including news, products and jobs CLICK HERE.
If you have any football business related news stories you’d like to share then please contact us – email@example.com
Thu 21st May 2015 | Money & Finance
The economic importance of FC Barcelona to the city of Barcelona has been analysed by Deloitte. A report by the business advisory firm revealed the club generated 759 million euros in the 2013/14...
Thu 14th May 2015 | Money & Finance
Manchester United today announced an 11.7% rise in commercial revenues in its financial results for the 2015 fiscal third quarter and nine months ended 31 March 2015. However, a lack of Champions...
Fri 8th May 2015 | Money & Finance
This year’s four UEFA Champions League semi-finalists are four of the richest clubs on the planet generating in excess of €1.8 billion between them. Barcelona, Bayern Munich, Juventus and...