There doesn`t seem to be much underlying improvement in the reported profits / (losses) here with a substantial reduction in income broadly offset by a corresponding reduction in costs, “staff costs”:
The Operating loss reported in 2016/2017 of £14.5m looks fairly clean, in so much as there are no exceptional / book write-offs reported. It did however benefit from £4.8m from player transactions – being amortisation (book write-off) of players registrations (transfer fees, etc) of (£23.7m) plus book profit on the disposal of players of £26.6m and “turnover” from such of £1.9m.
Thus 2016/2017 Operating losses before player transactions were reported at £19.3m.
2) profit on players sales is not £26m as reported elsewhere. Proceeds from player sales after expenses is £26m but we actually spent £88m on player acquisitions.
Yorkshire Lions AVFC (@yorkshireAVFC) February 15, 2018
2015/2016 was less clean as the Directors opted to impair / write-off the value of both players and property in aggregate for £79.6m. This amount was included in the reported Operating losses of £81.3m:
£m
Reported Operating losses (81.3)
Add back exceptional items:
Impairment of players registrations 34.8
Impairment of property values 44.8
Payoff to Directors in respect of loss of office 2.6
Underlying Operating profit 0.9
To aid comparison to the above – add back other “player transactions” amounts:
“Turnover” (3.0)
Amortisation of player registrations 16.0
Profit on disposal of players (34.8)
Operating losses (20.9)
3) Only £23m of our £88m spend has been ‘booked` through using the footballing accounting technique of ‘amortisation`. That means the remaining £65m will be spear over future years` accounts relatable to the length of player contracts.
Yorkshire Lions AVFC (@yorkshireAVFC) February 15, 2018
So an underlying loss, before the “cost” of player transactions of £19.3m in 2016/2017 versus £20.9m in 2015/2016.
Income fell substantially from £108.8m to £73.8m:
2016/17 £m
|
2015/16 £m
|
|
Gate Receipts
|
10.7
|
12.5
|
TV
|
48.1
|
65.0
|
Sponsorship
|
2.7
|
11.8
|
Commercial/Other
|
12.3
|
19.3
|
Total
|
73.8
|
108.8
|
So basically, we have got no money?
And if we don’t get promotion………………. so we MUST get promotion!