NFFC Financial Talk

[Salvatore Matrecano]

Thanks KW, will be interesting to see a review of these to see what an expert makes of it.

From what I can see headline is for 19/20 NFFC made an operating loss of £15.9M down from £25.1M previous year.
Turnover is relatively unchanged at £25.6M and by far and away the biggest outlay is wages at £33.1M (up from £31M) so wages to turnover is 129% which is normal in the EFL but complete madness in any other business in the world.

Important to note these figures are for the season just gone, the Lamouchi season and losses incurred from Covid will be considerable and shown in next years accounts. Ticket sales and match day income accounts for £7M and this I suspect will be considerably reduced, depending on how many refunds on ST sales were given. Will be interesting to see if EM converts more loss to equity next year, I suspect he will.

[audiosmee]

Interesting to note the Directors- Mr Randall listed as Chairman still contrary to what has been suggested and Mr Owen too

[Sniffer Dog (Admin)]

Interesting to note the Directors- Mr Randall listed as Chairman still contrary to what has been suggested and Mr Owen too

I think there are a 173 non playing staff listed, it might have been 168 I can't remember exactly. Anyway that's about 160 more than some would have you believe  :s

[Paplane]

I'm no expert in accounts and I had a quick glance through and although the numbers are madness for any ordinary business I thought the figures showed a small improvement over the year before. And these accounts are up to May 2020, so will have 2 months of lockdown losses within them.

Anyone on here who can understand what the numbers mean?

[Sniffer Dog (Admin)]

I think Jean Claude Killy can give us the lowdown.

[Sausage Roll]

Good analysis on here bantyandshinty.

[ThePromisedLand]

Interesting to note the Directors- Mr Randall listed as Chairman still contrary to what has been suggested and Mr Owen too

I think there are a 173 non playing staff listed, it might have been 168 I can't remember exactly. Anyway that's about 160 more than some would have you believe  :s

And your point is?

[PsychoStanleyStone]

Good analysis on bantyandshinty.

Total operating costs for everything to do with the club was £51 million for the latest accounts 2019/20

Total income £25.7 million

So whichever way we look at it a loss of £25.3 million for 2019/20

Similar but very slightly more than 2018/19

and the last 2 years total costs were around £12 million more than 2017/18

The concern for me would be how long can a business sustain £25 million a year losses for?  Though it could be well within the owners budget.  I don't know.

[Salvatore Matrecano]

Good analysis on bantyandshinty.

That is an excellent review. This bit stood out for me, it is the same for the majority of clubs operating in the league so not just a criticism of our ownership.

“What leaps out from these numbers is the cost of our football strategy and the pressures this puts on the club’s finances. Whether these costs are the inevitable requirement of operating in the Championship or the result of a flawed and failing football strategy is open to debate, but it is important to recognise the unsustainability of both football at this level and of our own club in particular, in order to consider the best way forward.

Clearly, we should note that Covid-19 has impacted these numbers to some extent and will impact the current year far more, but even allowing for this unforeseeable global disaster an honest assessment of the financial statements shows us some stark realities that we have to own and understand. The club is massively reliant on its owner to keep going, and would be even more so if it were not for the remarkable performance of the development staff, and we have to consider whether this is wise for the club and whether those funds are being used in the best possible way.”

[ThePromisedLand]

I certainly don’t profess to be an accountant.

Hoping that someone on here can explain what these numbers do for our ability to remain within FFP limits? Do these results for instance increase the possibility ( likelihood? ) of a major sale this Summer. Are our hopes of retaining Joe Worrall somewhat reduced.

[Salvatore Matrecano]

“In each of the last 11 years Forest have paid out more in wages than they have generated in revenue, with revenue of £208m and wages of £289m, highlighting the insanity and lack of cost control in the EFL Championship”

Total debt for NFFC Ltd is £187 million which is a figure that makes my head hurt.

[Sniffer Dog (Admin)]

So the accounts today have revealed a lot of things.

1. The new stand is no smokescreen. We have spent 2m so far.
2. There are 170 or so non playing staff employed at the club.
3. We have applied for cat 1 academy and are also searching for a new academy site.
4. Randell and Owen are both still at the club.
5. No I didn't write the accounts.