Club Accounts Released

[Goodclaret]

The club have just made public the accounts for the year ended 30th June 2016.

Some brief highlights before they are looked at in more detail:

- Revenue down from £79m to £40m (as expected)
- Loss for the year was £3.7m, this was after promotion costs of £13.1m were paid
- Staff wages were £27.1m
- We made a profit of almost £12m on player sales (Tripps, Ings, Shacks etc)
- Net assets stood at £17.8m

I'm sure there will be a few questions on these when everyone's had chance to look at them properly.

UTC

[ClaretTony]

Where have they published them Goodclaret?

[Longside4evr]

Looks like their be lots to chew over, with off sets and Parachute payment included
sale able assets. Selling Jelle Vossen back must have bumped that up and Ings payment will be added to this years accounts
And a promotion season to boot I would expect quite a lot will go in depth over the profit margin
And relegation closes being under written into players contracts lots to debate over and Royboy claret is good at scaling through the accounts jargon UTC

[Sidney1st]

Ah so we only made a loss due to bonuses paid?

That's alright then.

[claretdom]

Ah so we only made a loss due to bonuses paid?

That's alright then.

Somebody will find fault in the bonus structure.

[ClaretTony]

Where are these accounts?

[Tis Mee]

email landed at 2:42

Dear Shareholder,



Burnley FC Holdings Limited

Accounts Year ending 30th June, 2016.



Please find attached the Accounts for year ending 30th June, 2016. This information is also available electronically at the following link: http://www.burnleyfootballclub.com/club ... otice.aspx" onclick="window.open(this.href);return false;

and can be accessed on our official club website http://www.burnleyfootballclub.com" onclick="window.open(this.href);return false; click on the ‘Club’

header and within the drop-down menu and ‘Features’ section, click on ‘Shareholders Notice 2016’ scroll to the bottom of the page to find the link to full details of the Accounts.



Thank you for your continued support.



Susan Crowther

PA to Head of Football and Company Governance

Burnley Football Club/Turf Moor/Harry Potts Way/Burnley/Lancashire/BB10 4BX

01282 704702

[Goody1975]

Get to work Royboy old chap.

[ClaretTony]

Thanks Tis Mee - found them now

[Royboyclaret]

First reaction is that's pretty much as expected.

The headline figure of Income at £40m (last year £79m with PL payment of £65m replaced by first year parachute payment of £25m).

Wages at £27m is a little higher than anticipated and less than £2m down on last season in the PL.

Promotion bonuses £13m compared to £8m last time.

And a decent Profit on Sale of assets of £12m, again higher than expected with the Ings' tribunal fee set at £6m, there must also have been a decent profit on Tripps and Shackell.

Detailed look now for the next few hours, but all looking good and on course for a £55m/£60m Profit to Jun'17.

[Goody1975]

The player sales and their replacements last season show it is possible to build a stronger team when losing star players, we have to seal the deal and retain our place in the coming weeks and then hope the use of the funds from the probable loss of Keane and our substantial liquid assets will leave us as a much stronger unit when the dust settles at the beginning of September, we need to be confident but also sensible with our recruitment.

[Sidney1st]

Have any clubs outside the top 6 made an actual profit of £50 million plus since the PL began?
Not the one where they don't mention the debts and claim they've made lots of money.

[paulatky]

Not a lot in there for people to get upset about, but no doubt some will .

Directors emoluments Nil, Directors Loan interest Nil !!!!

The one large figure which is never broken down into more detail is other operating charges of £8.2m , previous year £7.9m

[Steve1956]

Have any clubs outside the top 6 made an actual profit of £50 million plus since the PL began?
Not the one where they don't mention the debts and claim they've made lots of money.

Find it very unlikely ..don't you?

[Tall Paul]

I notice the accountants have ballsed up the name of the pdf file.

The one large figure which is never broken down into more detail is other operating charges of £8.2m , previous year £7.9m

They'll just be general operating expenses, such as electricity, telephone etc (ie everything not included in staff costs).

[Sidney1st]

Find it very unlikely ..don't you?

yup, but it just highlights what a shambles clubs are financially.

[Goody1975]

I still worry that i have been in a coma for the past dozen years and i'll turn up on Saturday to find Jeff Brown and Dave Edmundson parading around the side of the pitch with buckets followed by Bradley Wiggins lookalikes clad in Lycra.

Shudder.

[Royboyclaret]

"Have any clubs outside the top 6 made an actual profit of £50 million plus since the PL began?"


Sidney.......The only way Burnley can achieve this level of profit is by maintaining a wage bill which is the lowest in the PL (say £40m this current year) whilst having an Income of over £120m ( a remarkable figure for us but one which will increase even more if we can end the season in 15th). For comparison Tottenham released their accounts today and even though their Income exceeds £209m they will only show at £33m profit simply because of a soaring Wage bill.

Worth adding that if we were to sell Keane before the end of June for say £30m then the overall projected profit will be nearer £90m to Jun'17.

[Sidney1st]

What we've done is a good thing though isn't it?

Shows that clubs don't necessarily need to throw money away by giving in to demands from agents, players and clubs on exhorbitant fees.

[claretdom]

Line them up page for page with someone in direct competition say Middlesboro who finished 1 place below us last year and a will finish a few below us this year.

See how the look then.

[claret wizard]

So we got promoted on less than £4M loss, and if we hadn't gone up we would have made a profit of around £10M. Boro lost £35M in the same period?

[claretandy]

So with turnover of 40m, wages of 27m and bonus's of 13m we spent 100% of turnover on wages ? If the wage bill is 40m this year then i wonder how big the bonus's will be ?

[Royboyclaret]

"What we've done is a good thing though isn't it?"

Absolutely it is, we've always advocated on here that it has to be 'small steps' for us until the time comes that we are an established PL club. It's the one crucial element that sets us apart from the rest.

[ClaretTony]

Just had a brief look through but despite being a mathematician I'm not good with accounts.

My first thought is to echo what I've thought for some time, that we are a very well run club.

[minnieclaret]

Could somebody post this thread on a Boro forum?
They think we overspend!

[jlup1980]

They look like positive figures to me. We continue to confuse the footballing world by running a tight ship and gaining relative success! Long may it continue.

[Chester Perry]

Love the fact that paying off our loans saved almost £1.5m last year, but it is scary to note that minus TV we still only turn over about £12m - that dependency is truly frightening.

[ClaretMoffitt]

Makes for very good reading, the fact that we only took a minute loss as a result of promotional bonuses speaks volumes about the competency of those running the club. Most clubs who chase promotion hit massive losses if they miss out, we would have made about 10m in profit if we did.

Every club should run like we do, football would be much better for it.

[BleedingClaret]

I still worry that i have been in a coma for the past dozen years and i'll turn up on Saturday to find Jeff Brown and Dave Edmundson parading around the side of the pitch with buckets followed by Bradley Wiggins lookalikes clad in Lycra.

Shudder.

Chatting with you over those years increasingly led me to wonder the same.... but no your not dreaming Pal!
UTC

[BleedingClaret]

Love the fact that paying off our loans saved almost £1.5m last year, but it is scary to note that minus TV we still only turn over about £12m - that dependency is truly frightening.

Bloody good point that, I wonder if the players contracts have safeguards against a sudden catastrophic loss of TV incomes.
I bet not?

[IanMcL]

TV runs football now. Crowd is not the driving force. Fans are expendable....except when your club has a heart.

[DCWat]

With a longer stay in the Premier League we can start to take more steps forward. Hopefully though, and I've no reason to think otherwise, we will always have the worst case scenario in our minds and be planning for it.

Huge profits are great and will hopefully allow us to release the purse strings a little more. They should also help us to build a rainy day fund to allow us to survive a good number of seasons in the division below (aside from parachute payments).

[Chester Perry]

TV runs football now. Crowd is not the driving force. Fans are expendable....except when your club has a heart.

I understand that but if you look at the big boys - Man Utd - Match day income £100m+, Kit £75m, Match day Kit sponsorship £49 (talking about adding £15m for sleeve sponsorship), Training Kit/ground sponsorship £25m - additional global/regional partner sponsorship £100m+ - that is all per season we are and forever will be a long way behind - for the most part I am happy about that as our club has a heart (for the time being at least)

[Sidney1st]

Could somebody post this thread on a Boro forum?
They think we overspend!

It would be a waste of time.

They allegedly don't care about us (anymore) and never have done.
Plus they've got Gibson, best chairman in the world, possibly the universe.

I think our chairman can challenge him for that title if we post an actual profit in excess of £50 million.

[Sidney1st]

Why does it feel like we're repaying directors loans every year, regardless of how much money we're making?

[Royboyclaret]

"Why does it feel like we're repaying directors loans every year, regardless of how much money we're making?"


This current financial year, to Jun'17, is the first year in recent memory that there have been zero loans outstanding from the Board. So basically thanks to them propping up the business we have been able to operate in a realistic way and achieve three promotions in the last eight years. Different levels outstanding at various year-ends but all seven of them have made a contribution at some time or another.

For that reason it's probably justified that at times of success they are rewarded too and the reason for the difference in the players & staff promotion bonus of £11.3m and the overall bonus of £13.2m.

[JarrowClaret]

I haven't studied boros accounts because basically i couldn't care less as i don't support them, i would assume there loss will also include promotion bonuses as well though. What I do find interesting is if you remove Parachute payments our loss is still less than Boro not much less granted. I know it is a mute point though as parachute payments are a revenue stream and an entitlement just as much as ticket sales are.

[Bin Ont Turf]

Love the fact that paying off our loans saved almost £1.5m last year, but it is scary to note that minus TV we still only turn over about £12m - that dependency is truly frightening.

Surely you didn't need the release of the accounts to know that we can't generate enough of our own money?

[Chester Perry]

Surely you didn't need the release of the accounts to know that we can't generate enough of our own money?

No I don't - but there are plenty out there in Burnley who think we are minted forever

[Hazzyclaret1955]

Why does it feel like we're repaying directors loans every year, regardless of how much money we're making?

No loans were repaid last year as there are non to repay. Why do some people slag the Directors, they put money into the club in hard times and get it out in good times.

[Rumbletonk]

I for one would have no issue if the directors gave themselves a big fat bonus for a good job, well done if we continue to post the discussed profits whilst keeping us in the Premier League. It also keeps the club out of the grubby hands of foreign investors. Other than the board, who are clearly doing a superb job, Dyche is the key. 5mill per year keeps all but the top six from sniffing and if we do 50mill profit and stay in the top flight then he deserves it. If we tart up the ground, reward season ticket holders and lower walk on costs we can then turn our attention to ending poverty with free Haffners pies

[Sidney1st]

No loans were repaid last year as there are non to repay. Why do some people slag the Directors, they put money into the club in hard times and get it out in good times.

When I slag them, you can re post that comment, until then take some time to understand what I said.

I merely said it just felt like we've been paying directors loans off for a number of years now with PL money.

I don't begrudge what they've done for the club.

[Claretmatt4]

When I slag them, you can re post that comment, until then take some time to understand what I said.

I merely said it just felt like we've been paying directors loans off for a number of years now with PL money.

I don't begrudge what they've done for the club.

But we haven't paid them a penny in this year's accounts?

[Hazzyclaret1955]

When I slag them, you can re post that comment, until then take some time to understand what I said.

I merely said it just felt like we've been paying directors loans off for a number of years now with PL money.

I don't begrudge what they've done for the club.

Ok point taken.

[Sidney1st]

But we haven't paid them a penny in this year's accounts?

You're right, I misread the article on the club site like a bit of a dick

[Burnleysnumber1fan]

Where have they published them Goodclaret?

You mean no one told Mr Burnley they were being released!
Pmsl

[jtv]

You mean no one told Mr Burnley they were being released!
Pmsl

Given that you registered a new user name just to have a pop at Tony, it would be interesting to know what the handle that you were following this thread with really is.

[NRC]

I've always been vocal about the loan repayment percentage - it drives behavior to disguise taken numeration in the form of a loan that you pretty much know will be covered from cash flow. But on this occasion the higher level of "purity" of a bonus works well enough .....

[Claretmatt4]

No doubt we will have massive bonuses to be paid on survival too.

Good. That's how we have to operate. Financial incentives if we stay up (as we can afford them) and wage drops when we go down. You earn your crust properly then.

Imagine Pogba getting a wage decrease if they didn't make the top four?

We can make it work long term with a sensible approach like that.

[ontario claret]

TV money not included in revenue?