Charlton Athletic plc chairman Richard Murray has revealed that the club made a net loss of £9.9m in the financial year ending 30 June 2007.
The net loss for the previous season, 2005/06, was £8.1m, although turnover has increased from £41.9m to £35.9m.
There was an overall operating loss of £11.8m before player sales, which brought in £11.3m, and amortisation.
After their relegation from the Premier League, the sale of striker Darren Bent to Tottenham brought in £15.5m.
However, Bent's previous club Ipswich were entitled to a sell-on fee as part of the deal, which earned the Addicks a net fee of £12.9m.
As well as relegation, the 2006/07 season also saw Charlton go through three managers - Iain Dowie, Les Reed and Alan Pardew.
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The £13 m (net) we got from Spurs is not in the accounts as it happen after June 30th - therefore we still have this money available.
The Young, Rommedahl & Diawara money was also not included.
But we have spent money late in the summer on McLeod, Racon, etc.
So maybe still not as much in the pot allocated for incoming purchases as we first thought - bearing in mind even loan signings have costs/payments/wages attached which would be paid from the same pot.
To raise further funds, perhaps players may have to be sold after all?
Wrong, it's being paid by instalments.
The funds from Rommerdahl/Young/Diawara sales happened after the accounts so don't show at all. None of the Summer signings appear either though which would wipe this out.
Without further shareholder input we are skint and losing money. We lost £9.9M AFTER including ALL the sale proceeds of Darren Bent!
Financial highlights
Year to June 2007 Year to June 2006
Turnover £35.9m £41.9m
Operating overheads (£47.7m) (£47.0m)
Exceptional items - £0.5m
Profit on player disposals £11.3m £1.4m
Operating (loss)/profit before amortisation and player trading (£11.8m) (£4.6m)
Amortisation of player costs ( £8.5m) (£4.8m)
Operating (loss)/profit (£9.1m) (£8.0m)
Net interest (£0.8m) (£0.1m)
Net (loss)/profit (£9.9m) (£8.1m)
Proceeds from issue of ordinary shares - £5.5m
Shareholders funds £19.2m £29.2m
That would be more like £0.50p and even that would be £0.50p out. : - )
could part of it be operation ewood?
No chance - he doesn't have any expenses, everyone else buys him the drinks.
Are we in a worse financial position than most realise ?
Thats why it amazes me when people are banding semi-regular premiership players names around that we should be buying. We can't afford the wages or the fee. End of story.
We need a serious backer - since those numbers include the sale of Darren Bent (before 30th June) then this year is going to be a lot, lot worse on paper.
Here's hoping for a Wembley play off final victory!
I guess it isn't all bad the Amortisation of player costs at £8.5M is a write down of player values in the book. The players are worth what people will pay which makes this figure somewhat arbitary. This is a book entry rather than actual cash leaving the club. On the other hand the profit received on sale of Darren Bent is a book entry and only 30% of the cash has been paid. I wonder if the directors loans will be repaid from these funds when hey actually arrive?