Bristol City have announced a club record loss of £14.4m for the year ending May 2012.
It compares to a loss of £11.45m for the previous financial year.
Turnover at Ashton Gate dropped slightly from £11.9m to £11.8m, but wages rose from £15.9m to £18.6m.
Chairman Keith Dawe described the figures as "disappointing" but said they reflected a "difficult year" for the club, who are currently two points off the bottom of the Championship.
The losses will leave City struggling to meet with Financial Fair Play regulations, with sanctions for non-compliance expected to come in to force at the start of the 2014-15 season. Bristol City losses
The aim of the new regulations is to prevent clubs from over-spending on wages and transfer fees and accruing debts.
By the 2015-16 season, losses at a Championship club can be no more than £5m, with a maximum of £3m funded by shareholders and clubs.
Clubs not meeting the detailed criteria face a transfer embargo.
"The loss illustrates how much work is required to reduce costs and grow our income in order to comply with the new FFP regulations, brought in by the Football League," Dawe added.
"Manager Derek McInnes has a firm focus on results on the pitch but is equally aware of the financial demands of FFP on the club, and this rounded understanding and determination can only help us in our ultimate aims."
The deficit recorded in 2011 was put down to rising player wages and severe delays in the development of their new 30,000 stadium at Ashton Vale.
City sacked and subsequently paid off manager Keith Millen, his assistant Steve Wigley and coaches Alan Walsh and Stuart Naylor in October 2011.
They also had to pay compensation to St Johnstone for the appointment of McInnes and assistant Tony Docherty.
McInnes opted to release 11 players in the summer, including David James and Kalifa Cisse, two of the club's highest earners. Midfielder Lee Johnson and defender Nicky Hunt both had their contracts terminated and paid up in January.
Meanwhile, the recent accounts show the stadium project cost City £148,696, compared to £0.6m in 2011 and £1.9m in 2010.
18 million+ on wages is simply ridiculous for a struggling club with mediocre gates. The chairman is out of order. He knows that the club will not go to the wall .. administration, wipe off the debts ... back in biz .. IF the club goes into admin, it should start again in the West Counties league division 9 or whatever.
I believe our wage bill last year, for comparison was around 4.5m, and Huddersfield's was 50% higher than ours. It is insane.
Especially when you consider that the wage bill of Viktoria Plzen, leaders of the Czech league and already through to the knockout stage of the Europa League, where they will probably stuff Newcastle or somebody similar, was £ 1.8m.
We're only fans while the people who own City are businessmen and it's a business.
Poor.
Seriously, what's the point in that post HI? Or are you trying to drag some of the crap from other threads onto this one?
Poor or too close to the bone for you? Too uncomfotable for you to read the rubbish spouted by some shown up as the nonsense it is?
Why don't you just "move on". That seems to be the glib answer to any uncomfortable views that are expressed on here.
If I knew what on earth you were on about I might answer you, but I genuinely don't.
"Too close to the bone"? I have no idea what that is meant to mean, but it certainly doesn't bother me what you said.
It just seemed like a (rather lame) attempt to score some points on your part. Against who and for what reason I really don't know, or care quite frankly.
Move on, carry on, jog on, follow on, come on, bang on, hard on. Up to you. Do what you like.
We're only fans while the people who own City are businessmen and it's a business.
Poor.
Seriously, what's the point in that post HI? Or are you trying to drag some of the crap from other threads onto this one?
Poor or too close to the bone for you? Too uncomfotable for you to read the rubbish spouted by some shown up as the nonsense it is?
Why don't you just "move on". That seems to be the glib answer to any uncomfortable views that are expressed on here.
If I knew what on earth you were on about I might answer you, but I genuinely don't.
"Too close to the bone"? I have no idea what that is meant to mean, but it certainly doesn't bother me what you said.
It just seemed like a (rather lame) attempt to score some points on your part. Against who and for what reason I really don't know, or care quite frankly.
Move on, carry on, jog on, follow on, come on, bang on, hard on. Up to you. Do what you like.
What no 'bring it on'? To hell with the season of goodwill.......fight, fight, fight!
We're only fans while the people who own City are businessmen and it's a business.
Poor.
Seriously, what's the point in that post HI? Or are you trying to drag some of the crap from other threads onto this one?
Poor or too close to the bone for you? Too uncomfotable for you to read the rubbish spouted by some shown up as the nonsense it is?
Why don't you just "move on". That seems to be the glib answer to any uncomfortable views that are expressed on here.
If I knew what on earth you were on about I might answer you, but I genuinely don't.
"Too close to the bone"? I have no idea what that is meant to mean, but it certainly doesn't bother me what you said.
It just seemed like a (rather lame) attempt to score some points on your part. Against who and for what reason I really don't know, or care quite frankly.
Move on, carry on, jog on, follow on, come on, bang on, hard on. Up to you. Do what you like.
Gosh - isn't he a rude chap and so very tuff, I bet he's got a baseball bat under the drivers seat.
We're only fans while the people who own City are businessmen and it's a business.
Poor.
Seriously, what's the point in that post HI? Or are you trying to drag some of the crap from other threads onto this one?
Poor or too close to the bone for you? Too uncomfotable for you to read the rubbish spouted by some shown up as the nonsense it is?
Why don't you just "move on". That seems to be the glib answer to any uncomfortable views that are expressed on here.
If I knew what on earth you were on about I might answer you, but I genuinely don't.
"Too close to the bone"? I have no idea what that is meant to mean, but it certainly doesn't bother me what you said.
It just seemed like a (rather lame) attempt to score some points on your part. Against who and for what reason I really don't know, or care quite frankly.
Move on, carry on, jog on, follow on, come on, bang on, hard on. Up to you. Do what you like.
You knew exactly what my first post was about hence your reaction and you know exactly what my second post was about.
Having overreacted to the first your fiegned indifference to the second is laughable.
The longer I spend on this site the more convinced I am that you're all just a load of squabbling old ladies that didn't get their dose of eastenders this week.
Some of us don't read every thread - or at least don't read every post on every thread, particularly if you get a "feel" for it and can';t be bothered.
Nice to be told what I'm thinking and doing though. Most of the time I don't know myself, so am grateful for a few gaps being filled in for me.
Agreed, Kent. Back to Brizzle, they're shocking figures. What I cannot get my head around is how they continued to bring in (presumably) high cost players like Baldock while the gap was just getting bigger. It's the kind of thinking that made Enron such a success. £7M of non salary costs seems steep too. Presumably paying off a lot of cost of Ashton Gate redevelopment, still.
Some of us don't read every thread - or at least don't read every post on every thread, particularly if you get a "feel" for it and can';t be bothered.
Nice to be told what I'm thinking and doing though. Most of the time I don't know myself, so am grateful for a few gaps being filled in for me.
As you said elsewhere, there is nothing wrong with people being challenged, I accept that. Mainly you seem to have a go at me over 'tone of voice' rather than content, but I think that's good for me too, to be hauled up from time to time. Thing is I am genuinely curious about what you do think about the non-football side, because when you talk football I usually agree with what you write. But on this kind of thread you choose to confine yourself to having a pop. It's not a big deal either way, but I am curious.
Agreed, Kent. Back to Brizzle, they're shocking figures. What I cannot get my head around is how they continued to bring in (presumably) high cost players like Baldock while the gap was just getting bigger. It's the kind of thinking that made Enron such a success. £7M of non salary costs seems steep too. Presumably paying off a lot of cost of Ashton Gate redevelopment, still.
It is baffling. It raises the question of how many other Champ sides have a similar wage bill. It is not as if this lot came down from the Prem with players on long contracts, nor do they have parachute money to help pay them as Blackpool do.
Thats is why many people ITK say that the Championship is the biggest financial basket case of the lot.
And we have to somehow compete with them (financially) to have a squad decent enough to get us up. What that tells me is that we have to operate at a loss. The questions is how big, and who picks up the tab?
In any other business i expect Bristol City would have gone bust ages ago ..perhaps i dont know enough about their ownership but there must be somebody guaranteeing a very big unserviceable bank overdraft ...and if that is the case then how responsible are the financiers/bankers?
i think HI is referring to the lack of Clarity/communication from Cafc management on this matter as i guess we fans have to mind our own "business" on the clubs affairs
Absolutely bonkers. The chairman describes it as a 'disappointing year'? If only they'd made the next round of the Capital One Cup they'd have bridged that deficit.
Surely it was obvious from the outset? The turnover must be pretty straight forward for a club like them to forecast, I'm sure they would have known that it wasn't going to increase by 56% year on year which it needed to do just to cover wages.
As someone else said, completely irresponsible, when they go into administration a lot of local businesses and other suppliers simply won't get paid and Bristol City will take the 'x' points fine and carry on like nothing happened.
How did this ridiculous slide into business practices that can only be called insane, ever get started? I can sort of understand getting a club into huge debt if you're gambling on Premier League/Champions League success (a la Leeds) as the potential rewards are very enticing but what the hell are Bristol City gambling on? What do they aim to achieve by running the clubs finances into the ground?
Comments
We're only fans while the people who own City are businessmen and it's a business.
It compares to a loss of £11.45m for the previous financial year.
Turnover at Ashton Gate dropped slightly from £11.9m to £11.8m, but wages rose from £15.9m to £18.6m.
Chairman Keith Dawe described the figures as "disappointing" but said they reflected a "difficult year" for the club, who are currently two points off the bottom of the Championship.
The losses will leave City struggling to meet with Financial Fair Play regulations, with sanctions for non-compliance expected to come in to force at the start of the 2014-15 season.
Bristol City losses
2012: £14.4m
2011: £11.45m
2010: £11.8m
2009: £6.5m
The aim of the new regulations is to prevent clubs from over-spending on wages and transfer fees and accruing debts.
By the 2015-16 season, losses at a Championship club can be no more than £5m, with a maximum of £3m funded by shareholders and clubs.
Clubs not meeting the detailed criteria face a transfer embargo.
"The loss illustrates how much work is required to reduce costs and grow our income in order to comply with the new FFP regulations, brought in by the Football League," Dawe added.
"Manager Derek McInnes has a firm focus on results on the pitch but is equally aware of the financial demands of FFP on the club, and this rounded understanding and determination can only help us in our ultimate aims."
The deficit recorded in 2011 was put down to rising player wages and severe delays in the development of their new 30,000 stadium at Ashton Vale.
City sacked and subsequently paid off manager Keith Millen, his assistant Steve Wigley and coaches Alan Walsh and Stuart Naylor in October 2011.
They also had to pay compensation to St Johnstone for the appointment of McInnes and assistant Tony Docherty.
McInnes opted to release 11 players in the summer, including David James and Kalifa Cisse, two of the club's highest earners. Midfielder Lee Johnson and defender Nicky Hunt both had their contracts terminated and paid up in January.
Meanwhile, the recent accounts show the stadium project cost City £148,696, compared to £0.6m in 2011 and £1.9m in 2010.
Does anyone know our wage costs over the same period?
Literally stark-raving MENTAL.
Seriously, what's the point in that post HI? Or are you trying to drag some of the crap from other threads onto this one?
Especially when you consider that the wage bill of Viktoria Plzen, leaders of the Czech league and already through to the knockout stage of the Europa League, where they will probably stuff Newcastle or somebody similar, was £ 1.8m.
Why don't you just "move on". That seems to be the glib answer to any uncomfortable views that are expressed on here.
...... Oh, they did in 2005.
"Too close to the bone"? I have no idea what that is meant to mean, but it certainly doesn't bother me what you said.
It just seemed like a (rather lame) attempt to score some points on your part. Against who and for what reason I really don't know, or care quite frankly.
Move on, carry on, jog on, follow on, come on, bang on, hard on. Up to you. Do what you like.
Gosh - isn't he a rude chap and so very tuff, I bet he's got a baseball bat under the drivers seat.
Having overreacted to the first your fiegned indifference to the second is laughable.
Nice to be told what I'm thinking and doing though. Most of the time I don't know myself, so am grateful for a few gaps being filled in for me.
Thats is why many people ITK say that the Championship is the biggest financial basket case of the lot.
And we have to somehow compete with them (financially) to have a squad decent enough to get us up. What that tells me is that we have to operate at a loss. The questions is how big, and who picks up the tab?
Personally I don't think our losses are anything like that.
i think HI is referring to the lack of Clarity/communication from Cafc management on this matter as i guess we fans have to mind our own "business" on the clubs affairs
an incidental advertisement for the Trust .....
Surely it was obvious from the outset? The turnover must be pretty straight forward for a club like them to forecast, I'm sure they would have known that it wasn't going to increase by 56% year on year which it needed to do just to cover wages.
As someone else said, completely irresponsible, when they go into administration a lot of local businesses and other suppliers simply won't get paid and Bristol City will take the 'x' points fine and carry on like nothing happened.