YORK CITY SOUTH
YORK City have announced losses of of £413,590 for the year ending June 30, 2008.
Loan interest, amounting to almost £200,000, represents a significant proportion of the sum. Approximately £150,000 of that interest relates to the Football Foundation loan, acquired by the club to regain ownership of their KitKat Crescent home from former directors Douglas Craig, Barry Swallow and Colin Webb.
The remainder concerns the accrued interest on 75 per cent majority shareholders’ JM Packaging’s loan to the club, but that money is not due to be paid out until the Minstermen have moved stadium.
A rise in the playing budget, as City looked to build upon their play-off success during the previous season, also saw total salaries, including all club staff, swell to £854,305, which represented 74 per cent of the club’s turnover. Repairs and renewals to ageing facilities, meanwhile, cost the club £33,249.
The total income for the year was £1,152,419, which was slightly improved on the previous 12 months despite gate receipts dropping by £137,112 to £494,372 as the team failed to meet expectations.
As a result, attendance revenue unusually represented less than half the total income.
Impressive donations, totaling £77,257 and led by active supporters groups such as York Minstermen, resulted in a £15,000 increase in that area and commercial activity also improved. But the contribution from the Supporters’ Trust, still 25 per cent owners of the club, fell to £5,346.25.
Commenting on the accounts, finance director Terry Doyle said: “We try to operate York City on a break-even budget, however, last year was a tough year and the losses were extremely disappointing. The drop in gate receipts due to lack of success on the pitch was a real blow and the loan interest payments to the Football Stadia Improvement Fund became a burden we were finding difficult to deal with. Thankfully, the payments have now been placed on a moratorium and the debt will be paid when the ground is sold, which will assist our cash flow going forward. What has become evident is that our income cannot, on its own, sustain the Football League structure we have tried to maintain at the club and produce a team which can compete effectively in the Conference.. “We continue to look at all aspects of the club to identify where savings can be made, but the reality is that without JM Packaging’s support the club would be in a difficult trading position. It is likely we will continue to require further funding from JM Packaging this year. “Despite the financial difficulties we have faced, however, we continue to ensure all creditors are paid promptly and properly and that the club complies completely with Conference financial reporting requirements”.
Despite the sorry financial statistics, communications director Sophie Hicks revealed that funds are still available for boss Martin Foyle to strengthen his squad further during the current transfer window. She also added that the staggered appearance and performance-related payments, which will be received following Martyn Woolford’s August sale to Scunthorpe, could mean an improvement in this year’s accounts. Hicks said: “The money for Martyn may help to offset losses this year”.
This article is based on a story that first appeared in The (Yorkshire Evening) Press on January 17, 2009.
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