Annual Report - 2019/20

[blue oli]

Really curious to see what the new sponsorships will be. £40mil a season for both shirt & stadium rights seems cheap considering all we've won since. Can see Etihad stadium staying for around £25mil a season, and then £45mil-ish for the shirt sponsor.

Then if we expand Etihad to 60,000, that's about another £6mil a year.

That combined is another £36mil a year.

You’re forgetting that would just be another 4,903 empty seats which you don’t get income for.

 

[Pablo ZZZ Peroni]

There's no debt in these accounts but the rise in wages and operating expenses is very odd, considering the circumstances. One possible explanation is that the legal costs of the CAS hearing are included, maybe even a provision for the €10m fine.

@Coatigan did speculate that we'd stuffed as much bad news as possible into these accounts and after initially being dubious I'm beginning to suspect there's something in that, but we'll only know when the 2021 accounts come out.

The statement from the CEO says we'll return to profitability this year so they'll have a good idea of how the figures look now, with 3 months left.

i) See earlier post re Player Bonuses. Seems pretty clear a chunk of the increase in wages was due to bonuses estimated would be earned at 30th June (which subsequently weren't earned due to k/o from CL and, less importantly, FAC) have been included in 19/20 accounts:

Annual Report - 2019/20

Surely every club in the world will be in the same boat after so long without matchday revenue?

forums.bluemoon-mcfc.co.uk

ii) provision HAS been made in 19/20 for the €10m fine:

From P7:
A provision for a €10m fine from UEFA has been made within these statements. This fine
was reduced from €30m, and a two-season exclusion from participation in UEFA club
competitions was lifted, following a ruling by the Court of Arbitration for Sport


It occurs to me you have not yet had the time to fully go through the financial statement in your customary forensic manner. Time to pull your finger out :)

Seriously, looking forward to your view and thoughts when you do get the chance.

 

[Coatigan]

I realised that's what you meant but apart from the costs of the CAS case (which might well have been considerable) it's hard to think what they might have put in. The 11% increase in wages just doesn't make sense under the circumstances unless it involves one-offs like loyalty bonuses and signing-on fees.

It could be partially to do with paying out bonuses (both to our players And clubs whose players we bought) based on the success of winning 4 domestic trophies at the start of that reporting period. And i've said this before, but the cost of the CAS case and all the fees associated must be included in this. Fair enough it doesnt het counted onto FFP calcs, but it still gets accounted for in overall books.
Whether it is in the wages themselves or 'other external charged' as pointed out by @Gaudion M earlier, it most likely makes up a chunk of the overall loss figure.

 

[Woody135]

Can anyone explain/confirm whether a big profit in 2020/21 (ie 12 months to 30-Jun-21) would then allow a sizeable loss in 2021/22 (ie 12 months to 30-Jun-22)?

By the averaging of losses over multiple periods (normally 2 years?) of account for ffp purposes.

If so it means we cover our loss made in 2019/20 due to covid (and relaxation of rules) and then allows us to have another one-off big investment in 2021/22 (as long as its followed up by a profit in 2022/23.

If so then means we are in a very good investment position for this summer as long as the cash exists.

 

[Bluebeemer]

As has been previously mentioned, it is likely that MCFC have used this unique period to drag in and 'burn' expenditure, especially whilst FFP regs are suspended.
Despite the drop in overall revenue, due to the reduction of broadcasting and matchday, other revenue has held up.
Also, apparently MCFC have deferred some income from 19/20 to 20/21, at the same time some expenditure to staff for 20/21 has been included in 19/20 accs.
Sane's transfer has not been included in 19/20.
All in all I think MCFC have chosen the opportunity to go loss making.
Khaldoon has said that he expects to be back in black, there speaks a man who knows exactly what's happening.

 

[kwm1988]

The champions league is to important for all clubs fall out of it for a year or two hour in deep shit.. we are looking good for the next few years while peps here but we don’t know how the change of manager will effect us once pep does leave..

crazy how reliant clubs are for getting in the champions league ,us included , the consequences of missing out financially are massive .

 

[blue b4 the moon]

Imho, no way the club commits to that contract with kev, and others coming, if they arent confident of returning to profitability, and so soon after releasing the accounts too.

And with chit chat on Uefa allowing one off owner investment to offset covid losses away from ffp, if that were to turn out to happen, having a particularly bad looking year doesn't do harm. And if nothing happens, it simply balances itself out as stated by the heirarchy when releasing the books.

Obviously, pure speculation on my part.

What would boil some piss is if it was allowed for owners to 'cover in cash to the club' any losses for this one financial year....so £126m into our coffers and £20m? If uncle malcs spawn even decided to chuck it in.

 

[HelloCity]

What’s the current ruling on allowable losses? Think it got changed to a 3 year period, so we’ve got 2 other season to make it up.

 

[waspish]

What’s the current ruling on allowable losses? Think it got changed to a 3 year period, so we’ve got 2 other season to make it up.

more four and it’s been looked at! So another revamp seeing as all clubs will be failing with Covid

 

[Tricky_Trev]

As has been previously mentioned, it is likely that MCFC have used this unique period to drag in and 'burn' expenditure, especially whilst FFP regs are suspended.
Despite the drop in overall revenue, due to the reduction of broadcasting and matchday, other revenue has held up.
Also, apparently MCFC have deferred some income from 19/20 to 20/21, at the same time some expenditure to staff for 20/21 has been included in 19/20 accs.
Sane's transfer has not been included in 19/20.
All in all I think MCFC have chosen the opportunity to go loss making.
Khaldoon has said that he expects to be back in black, there speaks a man who knows exactly what's happening.

I honestly think this is exactly what we’ve done. Purely because it makes logical sense if FFP has been relaxed, that we try to include as much expenditure as we can in 19/20 and exclude as much revenue as we can. It just seems like a sensible thing to do, so I’m sure it happened.