Scunthorpe Utd: Player sales behind Iron's seven-figure profit
Player sales have contributed to Scunthorpe United announcing a seven-figure profit for the financial year ending June 30, 2011.
However, in real terms, the club have suffered a loss of over £240,000.
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FINANCIALLY SECURE: Scunthorpe chairman Steve Wharton has said the club will continue to support boss Alan Knill in his recruitment efforts
Combined with relegation to League One, chairman Steve Wharton admitted that means, although the Iron are relatively secure financially, operating costs will have to be reduced.
"After enjoying two consecutive seasons in the Championship League we find ourselves back in League One and having to adjust to a £4million reduction in revenue from the Football League and Premier League Solidarity payments," Wharton said in his annual report statement.
"Fortunately, as was the case the last time we were relegated from the Championship, we are relatively secure financially, which will help us to support Alan Knill and his management team in their efforts to strengthen the squad.
"Inevitably though, we do have to reduce our operating costs over the next few years unless we can return to the higher league."
Wharton added the sales of Gary Hooper, Martyn Woolford and Jonathan Forte all contributed to the accounts showing a profit of just over £1.4million for a year which incorporated the 2010/11 season.
"Financially, this year under review will appear excellent, but in truth it is a loss of just over £242,000," said the chairman.
"The profit has been generated from player sales, most notably Gary Hooper to Celtic back in July 2010."
In the previous year's accounts, United revealed a loss of £480,914, but over the last five years they have made a combined profit of £2million.
This year has seen wages and salaries rise by £400,000 to just over £5million.
"The 2011 figures look pleasing but the profit is due to player sales," said general manager David Beeby.
"It is good that we find ourselves in a relatively strong position because following relegation the 2012 figures will show a significant loss.
"The difference in central payments between the Championship and League One is huge for a club of our size.
"£3.7 million in revenue disappears overnight and unfortunately it will take longer to reduce our player costs."
19 Comments
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by RobinJackson1
Sunday, November 20 2011, 9:21PM
“Mismanagement by the manager not the board. The manager decides on a player he wants to sign and asks the board for the funds to do so, if they agree and he turns out to be a poor player then that is mismanagement by the manager not the board. Or are you saying the board should decide who to buy? If so thats a very dangerous road to go down.”
by PStoff
Saturday, November 19 2011, 12:32PM
“Happy clapper - does not mismanagement enter your clubite brain?”
by RobinJackson1
Saturday, November 19 2011, 11:40AM
“If we have a wage bill £1.5m higher than Peterborough then that suggests we have invested in the squad which some claim we haven't. This means that the anger should be directed at the players rather than the board as the board have obviously put up the funds but the players haven't performed. The manager decides what players he wants not the board.
Sheffield United had a £12m wage bill and still went down last season.”
by ironedout
Friday, November 18 2011, 6:15PM
“Pdoff, apologies for confusing you.6k is our average attendance for which it wouldn't make sense to have a championship average.Crowds don't migrate to other clubs.However players do & make championship demands for their wages.They may even move down to the league below if they are willing to pay more(G. MCann).the effect of these movements would cause an averaging of wages.Lets see what Peterborough's wage bill is in the next few years if they manage to stay up”
by stevemillson
Friday, November 18 2011, 6:10PM
“Pdoff back to his acerbic best. Pstoff was a fraud.
Makes you think though doesn't it ? £3.5m vs SUFC £5m. Peterb have a decent manager and some decent players. Much better in every department than SUFC.”
by PStoff
Friday, November 18 2011, 3:05PM
“BBC Sport - a report on Donny:
"We needed to do something different. Peterborough's wage bill is £3.5m and Rovers' is £8.5m. They are above us in the table. Remember Doncaster don't own their stadium or their training ground."”
by oscarmoggy
Friday, November 18 2011, 2:36PM
“p.stoff - as a matter of interest where did you get the info that the Peterborough wage bill was £3.5 million. Was it from a genuine source? or is it a guess?”
by PStoff
Friday, November 18 2011, 1:26PM
“What on earth are you on about???? Surely it is too early in the day to be sniffing the barmaid's apron. When discussing our club you referred to our sub 6k gate (6k is not the average Championship gate) but in the same sentence referred to a £10m wage bill. Now you are backtracking because you opened your happy clapping mouth without any thought or perception that you actually read the report above.
You now are disputing that Peterborough's wage bill is so low and put their success down to something totally unconnected. My point is, Mr Clubite, you can have a successful season in the Championship with low gates and you can have one with two thirds of the wage bill Mr Miser refers to above.
I await your next slant on this situation.”
by ironedout
Friday, November 18 2011, 1:12PM
“Pdoff - i don't need to lie to wind you up. £10mill is based on an average wage bill of all championship clubs.Peterborough have a well paid manager & have attracted a lot of players which is not down to low wages.”
by PStoff
Friday, November 18 2011, 7:39AM
“Peterborough are managing a reasonable campaign (11th) in the Championship with a £3.5m wage bill and low gates.
Is it me or are we too generous with the money given to players. If they can do it then so can we.
Irondout - again, where did you get a £10m wage bill from ? Why lie?
"This year has seen wages and salaries rise by £400,000 to just over £5million."
Horses mouth.”