Iron budgeting for another big loss
SCUNTHORPE United will probably make a loss of more than half a million pounds this season even if they stay at Championship level.
That was the message from club chairman Steve Wharton at last night's annual meeting of shareholders at Glanford Park.
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Chairman Steve Wharton
That comes on top of a loss of £1.2-million already reported by the club for last season when they were promoted from League One and made two visits to Wembley.
"But for those Wembley games, the losses would have been £1.3 or £1.4-million," said the chairman.
"A lot of the money we got from Wembley went in bonuses to players.
"Believe me, from a financial point of view it would have been cheaper for us to lose there," he quipped.
The AGM heard that United's wage bill had risen by £750,000 during the last year and was expected to increase again this term.
"We are budgeting for a loss this season of between £500,000 and £600,000," said Wharton.
"Of course we all hope very much that we will stay in the Championship this season.
"If we don't, it will bring us a big, big difficulty in trying to bring our costs under control.
"Even if we stay at this level, we have to try and keep a tight control because our income is so much lower than other Championship clubs.
"It might be double what we had four or five years ago, but it is only about a third of what most other Championship clubs enjoy."
9 Comments
by frank, scunny
Wednesday, December 02 2009, 9:59AM
“We may as well give up! Losing money after two Wembleys and getting all the extra dosh for CCC! PLUS we are in big trouble when we get relegated! Whats the point? As for MIlne, don't think we could get insurance on him, but then , he does deserve a trip to USA? If we took the seats out of the away end this year we could have made the extra £500k!! Oh and by the way we have a ground worth in excess of £10 million fully paid for, so we aint doin so bad. Sell Hooper, McCann, Murphy, Hayes, and anyone else we can, in January, that will make us some dosh! Again, whats the point? Blackpool doin ever so well on gates only about 1000 more than us. Somethin not right...”
by Steve, London
Tuesday, December 01 2009, 5:36PM
“Comments re accounting practises are correct Pdoff.
However, as we are running a large wages bill which seems beyond our means this season as well, why are we carrying players who will NEVER perform for SUFC.
GEt the claim in on MIlne now, get Jones to do his job. Otherwise (as Pdoff says) he will be a millstone around our necks in Lge 1.
The chairman may have ''quipped'' that we would be better off in Lge 1 but I bet he knows it.
Jones, what a disasterous signing given the fee and his wages.
The fault lies squarely with Adkins et al. In the summer, they kept players who are manifestly not good enough at this level and wasted money on Jones. Why did he work so hard to keep Morris, he never gets a chance and has now gone out on loan.
Whats going on with May ? Get rid of him, he'll never be selected. Same with Forte, one good game.”
by Ian, Scunthorpe
Tuesday, December 01 2009, 3:25PM
“Forgive me, but two trips to Wembley with HUGE opposition following at both games, and we've made next to nothing? Perhaps Wharton should use his business head to stop promising the players such huge carrots. I assume their contracts include relegation wage drops as well? Unload a midfielder as well, we have too many.”
by Eddie Murphy, Beverley Hills
Tuesday, December 01 2009, 1:50PM
“So why aren't the club pushing other commercial activity?”
by Steve, Sheffield
Tuesday, December 01 2009, 1:26PM
“2008 2.1 profit - Not sure if this includes Keogh
2009 1.1 loss
2010 0.5 loss forecast
Net 0.5 profit
Still some money to invest then!!!
0.5 is naff all in real terms i just don't like the fact that we are being constantly reminded of the big losses but not the big profit.”
by dave, bradford
Tuesday, December 01 2009, 11:24AM
“Pdoff if u consider that we make a loss of 750k this can happen from an increase in wages of only around 12-13k per week and if Jones wages are as high as people have said on here that would be over half of that increase.”
by Rich, London
Tuesday, December 01 2009, 9:33AM
“Agreed - you have no concept of what makes up a company's profit or loss and shouldn't flaunt your ignorance on the subject until you do. If it weren't for the land and lift being capitalised then the loss would be significantly GREATER than the £500k-£600k quoted here. The reason we're making a loss is that the wage bill has gone through the roof, and this is something you should remember when extoling the virtues of buying another centre back, another right back , another striker or any other new player you see fit.”
by Iron Mole, Underground
Tuesday, December 01 2009, 8:45AM
“P you clearly have very little knowledge of company accounts to be making such statements. The purchase of the land and the lift are capital items and do not affect the profit and loss. The accounts are not prepared on a simple cash basis as you seem to think. The company accounts will have been independently audited and therefore should be a fair reflection of the state of play. Having seen the accounts there is no black hole as you seem to suggest. Why does there always have to be a conspiracy?”
by P.Doff, Addupsville
Tuesday, December 01 2009, 8:02AM
“Something not adding up here.
This season the club aquires £3.2m for just being in the CCC, £2.6m more than when were in the League last time.
We have spent less than £1m on players we have brought in which was more than helped on the additional monies we received from Paterson and Keogh add ons.
You have spent £300,000 on a strip of land for the benefit of the club and about £70,000 on the long overdue lift.
Considering the additional CCC funds which is akin to selling Sharp and Keogh lumped in one I am bemused as to why we are expecting a loss.
Perhaps this is the answer (excuse) as to why Adkins is now saying he is happy with his present squad.”