Rovers finances

[albie]

People are sometimes getting a bit giddy on here about the money side.

Worth putting a bit of context in place. Summary here of the basket case league table for the Championship;
Insider football finance: Championship debt reaches £1.1bn | Insider Media

Bolton and QPR dashing away with the smoothing iron there.

The Championship relegation season saw Rovers earn revenues of £9 million, with wages of £7 million. A wages to turnover ratio of 84%.

All the details are in the tables included in this article about Blackburn, from the Swiss Ramble;
The Swiss Ramble: Blackburn Rovers - Burning Down The House

Click on any of the graphs to get them all in series, without the text.

The great thing about this presentation is that you can see all the clubs side by side, and it shows how difficult it is for DRFC to measure up to the mad behaviour of some of the others.

When people talk about "not spending enough".....how much should "enough" be?

[bedale rover]

Hasn't PNE got she'd loads of debt?

[Muttley]

Hasn't PNE got she'd loads of debt?

According the article linked above, their "benefactor" wrote off £34m that he was owed.

[Sprotyrover]

That's probably what's caused the latest stock market crash!

[albie]

Todays addition to the article from Insider Football Finance, a more detailed club by club breakdown;
Insider football finance: Championship club-by-club | Insider Media

You either need so much money it doesn't matter to you, or else you must be deranged to put your money into a football club.

No takers for my question on how much is enough, then!

[Chris Black come back]

Be interested to know our net debt exposure. I imagine this is entirely owed to the KM2 as JR surrendered all his loans in generous gesture on departing club.

[DonnyOsmond]

Be interested to know our net debt exposure. I imagine this is entirely owed to the KM2 as JR surrendered all his loans in generous gesture on departing club.

Which was after the season in the link so hopefully were in less debt now then we were then.

[silent majority]

No doubt everybody's missed the DRFC accounts that we post on here at the end of every financial year. That has all the information you need to know.

[Al4475]

I'm not sure that the 'generous gift' from JR isn't quite as black and white as that given the rumours posted here a while back by aidenstu, I hope it is but it's never that simple surely?

[bpoolrover]

Nothing seemed to of come from that rumour,I'm sure it was said that it would come out in a few weeks and that was months ago so I for 1 don't believe it

[silent majority]

Nothing seemed to of come from that rumour,I'm sure it was said that it would come out in a few weeks and that was months ago so I for 1 don't believe it

It wasn't a rumour though bpool, just information that wasn't quite as accurate as it could have been.

[albie]

No doubt everybody's missed the DRFC accounts that we post on here at the end of every financial year. That has all the information you need to know.

Could you post the most recent accounts up again, SM?

Everybody is reading the same page then.

The point of this thread is to show what others are spending, at the level that Rovers hope to be at. It is not just what DRFC spend this year in L1, but what you need to do if you get promoted.

[Bessie Red]

Analysis of Patienceform Ltd financial statements year ended June 2014

The financial statements up to the 30th June 2014 for Patienceform Ltd (the trading name of DRFC) have been completed and passed to the Viking Supporters Co-Operative for analysis.  The results of which are provided below.

Reducing Loss
In a positive light the club has seen the loss incurred within the accounts reduce substantially.  This has been a reduction from £4.38M to £1.29M, with the loss reduced to a third of the figure traded in 2012/13.  This is a major positive and demonstrates the work undertaken at the football club to ensure the club moves towards a much more profitable outlook going forwards.

Income improvement
Unsurprisingly promotion to the Championship saw the club incur a boost in revenue to £8.7M (up by 66% from £5.25M in the previous league one season).  The majority of this stems from the increase in TV and Premier league revenue accounting for around £3.25M of the figure.  Following relegation to league 1 we can expect to see the opposite in next year’s accounts.

Wages
As discussed in last year’s analysis the wage bill of DRFC was high for a league one football club.  However the total staff bill at the club did increase to £7.3M in the latest financial statements an increase of 3.7%.  Whilst this does include all staff it does demonstrate that the staff bill quoted in the media of £4M was wide of the mark.  At 84% of the total club turnover this is a sizeable chunk of the revenue generated by the football club.

Loans and Debt

The football club did see a further increase in the loans provided by directors in the year ended June 2014.  This saw an increase by 15% of £1.9M from £12.5M to £14.4M.  The majority of loans were committed by the three major shareholders within the year and is analysed as below;


Owner       Balance at June 14              Balance at June 13    2013/14 Loans    Percentage of total company loans

J M Ryan             4,066,422.00              3,416,422.00          650,000.00         28.20%
T G Bramall       4,924,000.00                4,311,000.00          613,000.00         34.15%
R Watson             4,924,003.00              4,311,003.00          613,000.00         34.15%

A further £395k of loans are held by other minority shareholders with no movement on these in the 12 month accounting period.

Out of period write off
The accounts contain the recent publicised news surrounding former owner John Ryan’s decision to leave the football club.  An out of period note confirming the write off of all loans held by Mr Ryan to the value of over £4M was included.  For accounting reasons this cannot be stated in the numbers as this transaction fell in the subsequent financial year, however as this is classed as material, a note advising this has happened has been included.  All fans of DRFC will welcome the move to write off this and any other loan committed to the football club.  This is an extremely positive move for the club’s balance sheet.

The financial statements do not demonstrate any share transactions between parties or the value by which these may have undertaken.  These do not have to be stated within financial statements.

Movement of loans to Current Liabilities
Within the accounting period loans were moved from longer term liabilities to current liabilities.  This demonstrates that the loans are due for repayment within the next 12 months.  However, this does not have to happen and is at the discretion of the holder as we have seen with the loans held by John Ryan.  This is likely a move that is purely for regulatory reasons rather than what will actually come to pass.

Going concern
This can be stated with confidence given the note surrounding going concern.  This appears in every set of accounts published by the company and states the following;
“The directors consider the basis of the preparation to be appropriate based on their continuing financial support”
This demonstrates that the future of the club is secure and that the directors remain committed to ensuring the financial security of the club is in place on an ongoing basis.

Conclusion
Overall the financial situation of the club is improved within this period in comparison with the period in the previous 12 months.  As ever the club relies heavily on financial backing from the owners in order to retain the key figure of going concern.
« Last Edit: April 16, 2015, 09:16:45 PM by silent majority »

There you go Albie.

[DonnyOsmond]

Why is Watson's £3 more than Bramall's?

[Wild Rover]

He obviously loaned DRFC the cash to buy "The Pen".

[ss1953]

So basically, the 3 main directors lent or more likely long term gifted the club around £2m that year to keep us going
JR's was certainly a gift.

3 rich men are giving their money away, so WE can support a football club; and cheer and moan at the teams performance.
We should be thanking them rather than giving out all the stick.

We are so lucky we have local people running the club. Just because they don't want to take the limelight like some do, is not a reason to have a go at them. Do we really want to be a Portsmouth or Blackpool?

Will any of the critics gift something to the club?

[acko]

don't forget then own all the assets of the club to offset any money they have put in same as any clubs owners,and now they also own a super dooper rugby team, and the fabulous club Doncaster just think of all the extra revenue coming in.

[roversdude]

Assets ?

[wilts rover]

Assets ?

I am sure Acko will list them as he appears to know?

[Yorkiered]

So basically, the 3 main directors lent or more likely long term gifted the club around £2m that year to keep us going
JR's was certainly a gift.

3 rich men are giving their money away, so WE can support a football club; and cheer and moan at the teams performance.
We should be thanking them rather than giving out all the stick.

We are so lucky we have local people running the club. Just because they don't want to take the limelight like some do, is not a reason to have a go at them. Do we really want to be a Portsmouth or Blackpool?

Will any of the critics gift something to the club?

I gift the club over £300 each year for my season ticket. Does that count?

[acko]

every player is an asset,cantley training ground is an asset.keepmoat lease is an aset,the  rugby team is an asset,the name Doncaster rovers is an asset.

[Al4475]

LOL Yorkie!

Sorry but with the best will in my heart I simply can't see an astute businessman such as JR simply 'writing off' loans of that amount in a goodwill gesture - that's not how he got rich!

[big fat yorkshire pudding]

every player is an asset,cantley training ground is an asset.keepmoat lease is an aset,the  rugby team is an asset,the name Doncaster rovers is an asset.

Haha, you're not an accountant are you!

[acko]

no im not an accountant,bfyp family member is but even you know if a club goes into administration players are first on hit list and anything else what money can be raised from.====al4475 the owners of the club said he did so your now questioning their word

[Yorkiered]

LOL Yorkie!

Sorry but with the best will in my heart I simply can't see an astute businessman such as JR simply 'writing off' loans of that amount in a goodwill gesture - that's not how he got rich!

I agree Al, something not quite right there.

[bpoolrover]

Was tb not supposed to write his loans off when the sale to jr fell thru? If so did anyone question his motives?

[Al4475]

al4475 the owners of the club said he did so your now questioning their word

Yep I am.

I don't believe JR simply handed his loans/shares back without any question.
I don't believe TB/DW and co accepted it in good grace.

There's more afoot here imo.

Was tb not supposed to write his loans off when the sale to JR fell thru? If so did anyone question his motives?

I have no idea tbf LOL!

[BobG]

I'm absolutely convinced there's more than meets the eye.

If you think back, there's been an awful lot of weird goings on this last few years: the bizarre events when JR publicly backed SOD only to sack him a few days later; then the resignations from the Board; the returns to the Board; the attempted takeovers; the crowd funding; the slagging off of the KM2 by JR; the public tantrums; the servile press who abandoned any semblance of independence; the peddling to all and sundry of a well known Irish crook by JR; the Belize buggers. The list goes on and on.

I would be totally gobsmacked if JR's share and loan handovers and write offs were done with good grace and best wishes on all sides. The world simply doesn't work like that. It's a theory, and only a theory, but I think the most likely picture is that the KM2 took their revenge on JR. I also think JR painted himself into a corner. We all know for sure he had little money. I think the price of his freedom from whatever hold various people had on him was the handing over of his shares and his loans.

Could be utter tosh of course though I did read something, somewhere, a few months back that suggested JR did need an escape route. Not heard anything of it since though so I won't fan any flames.

Cheers

BobG

[big fat yorkshire pudding]

no im not an accountant,bfyp family member is but even you know if a club goes into administration players are first on hit list and anything else what money can be raised from.====al4475 the owners of the club said he did so your now questioning their word

Yep but that money doesn't go to the owners it goes to the creditors big difference.  None of our guys have done anything but substantial amounts in to our club.

In accounting speak a lot of those "assets" you mentioned are either not assets or worth nothing.

[silent majority]

The facts are pretty simple, we as supporters were lied to on a grand scale. I wouldn't believe anything that certain people claim to have done, or intended to do.