Let\’s be \’Avin You

£23 million debt. It’s the situation that City find themselves in at present, but rather than shirk the questions surrounding it, the board have instead come out and given a very honest explanation of finances. It makes for interesting reading too.

So….what exactly has been going on?

BACK IN 2003.…

We start back in the 2003-04 season when City had £2.7 million in cash in the bank and debts of £18m.

Since then, the club has generated £43.475m in ticket sales – 40pc of which are subject to some kind of concession or other.

TV MONEY

Money gained from broadcasting rights has understandably dropped. In the Premier League, even the team sitting in 20th place can expect to receive £40m. In League One, City get £600,000, and £30,000 for a live match. Bit of a gap there then…..

If City do gain promotion this summer, they will be eligible to £2.7m in broadcasting rights – and possibly another £1m as their share of parachute payments if Newcastle and West Brom go straight back up to the top flight.

Come on the Toon/Baggies…..

FOOD FOR THOUGHT

On the catering side, City have generated £20m in the past six years, which is an impressive achievement. (We didn’t get voted the third best club for catering IN THE WORLD for nothing you know! Only Barcelona and Arsenal do pie and chips better….)

As far as commercial revenue goes, advertising and sponsorship brought in £25m. Other income topped £7.4m.

So far, so good. But then of course comes the darker side;

How much do you think it cost to put a team out on the pitch? (and when I say team, just think of those we have had for the past few seasons…dear me) Unbelievably, we paid £48m in players wages and bonuses for that. (Bonuses – really?)

£4.8m went on loan players – just to confirm, that’s players we didn’t even own – £2.2m of which was spent last year.

As for those behind the team scene; the coaches, physios, office staff, they cost £10.8m, including £1.4m compensation for the four managers who left the club in that six year period. Grrr….

PLAYER SALES AND PURCHASES

Players sales brought in £19.8m, but £19.9 was spent on purchases, including £1.2m on agents fees. (Those agents must have been laughing….)

Some assets, such as land, was sold for £7.7, however £25 was spent on the club’s assets, such as the building of the Jarrold Stand for £9.2m and £1.8m on, ermm, roads.

So, to sum it up, total footballing costs were £59.2m on revenue of £138m – 43pc. Other staff (mmm, I wonder who they included?) cost the club £27m while operating costs came to £40.3m.

MOANS, SORRY LOANS….

City have borrowed a total of £26.8m over the past six years; £17m worth has been repaid. The loans themselves cost City a cool £9m in interest. However, without the loans, Chairman, Alan Bowkett said, “we would not be here today.”

And there you have it. A very honest account of the financial accounts!!

Despite the predicament the club find themselves, there is no suggestion of administration (as that guy at the News of the World has discovered) and to me at least, it seems we actually have on board a couple of very astute men, in David McNally and Alan Bowkett. It will be a long process, and City will continue their search for investment, but at least with these fellas at the helm, we can start to believe our club is being run with some authority and know-how.

OTBC.

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