YORK CITY SOUTH
Taken directly from an article inThe Press on May 9th 2015 by Dave Flett.
YORK City have reported operating losses of £280,000 for the 2013/14 season.
The losses, accrued during the club’s play-off campaign under Nigel Worthington, were approximately £9,000 greater than the previous season - the Minstermen’s first back in the Football League. Peter Rookes, the club’s financial management consultant, revealed that additional legal costs relating to the new community stadium and repair and maintenance costs at Bootham Crescent accounted for some of the losses.
City’s wage bill, meanwhile, went down by £44,000 from £2.1 million to £2.06 million, including a slight drop in players and management salaries from £1.93 million to £1.86 million, despite overall staff numbers increasing from 88 to 92.
The accounts also included a £70,000 donation from Minstermen owners JM Packaging to prevent the club from being penalised under the Football League’s salary cost management protocol. Rookes said: “These financial results show a very similar level of loss to 2013.
“While the income from season ticket sales and gate receipts was slightly increased from 2013, with a similar level of playing costs, there were additional legal costs associated with the new community stadium as well as increased repair and maintenance costs of Bootham Crescent, which led to the overall loss being at a similar level.”
On the cash injection from chairman Jason McGill’s Malton-based business, Rookes added: “The club is subject to the Football League’s salary cost management protocol, which broadly restricts the amount spent on playing costs to 55 per cent of its income.
"While gate receipts and season-ticket sales accounted for around 36 per cent of the club’s total income and are essential to provide the manager with a competitive playing budget, the continued support of JM Packaging has also been important and the company made further donations to the club of £70,000 during the year.
“As is expected, the accounts show that the major expense for the club was wages. Playing costs, including player and football management wages, bonuses for on-pitch success, as well as administration and match day wages, represented around 77 per cent of income in total - a reduction from 82 per cent in 2013.”
No salaries or expenses, meanwhile, were taken by City’s board of directors, as in previous seasons, while Rookes added: “As the club enters its final season at Bootham Crescent, the board have backed manager Russ Wilcox with another competitive budget, as they did last season with Nigel Worthington in charge.
"With the increased opportunities the new community stadium brings to maximise income and reduce costs, the board anticipates being able to set a break-even budget once the new stadium comes into operation.”
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