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Account 2021


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Posted (edited)

After the drama of last year with late accounts and unpaid wages, the Owls appear to be on top of things this time around, but the financial effects of the pandemic were clear to see as they saw their match receipts and associated turnover pretty much halved as it fell to £7,894,000 from £15,123,000 – meaning that the loss for the year - before taxation - is £25,780,000, even more than the £24,084,000 that was lost in 2020.
 

Another major talking point from the document released today is that wages and salaries at the club fell dramatically from £30,036,000 to £21,135,000 - falling by almost £9m following the exits of many players last summer, and that specific fee is set to fall off a cliff completely in the next round of accounts given the further exits that followed relegation into League One.

 

Another major talking point from the document released today is that wages and salaries at the club fell dramatically from £30,036,000 to £21,135,000 - falling by almost £9m following the exits of many players last summer, and that specific fee is set to fall off a cliff completely in the next round of accounts given the further exits that followed relegation into 

Edited by EBRA
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So, the wage bill in March 2021 was 21 million. Considering that we lost even more high earners after June, I can see that wage bill coming down by easily another 5-7 million again.

Some big money in the last that left last summer.

Ignore Dawson and Hunt as they went out on loan.

 

 

 

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2 hours ago, HoylandOwl said:

Bean counters assemble.

Some interesting stuff aside from the obvious bit that we lost £25m 😄

Well £20m if you take out player amortisation of £4.7m which is a cost but relates to prior player purchases. Taken £17m out of the cost of player registrations for disposal ie Rhodes, Reach and we only have £2.25m of purchase costs left and £919k of amortisation, so next years figures won't take such a big hit 

The number I hone in on is cash and the club absorbed £10m to run it. The rest I suspect is smoke and mirrors between this company and Sheffield 3 Limited in how the intercompany loan is recycled via the loan to DC himself. So it appears he has been repaid £5.6m but that is not real money back to him 

There is a new 3rd party loan of £2.7m bringing that total external loan to £6.8m. This is the loan referred to in the Sheffield 3 register of charges because it is cross guaranteed by the Club

The one figure that sticks out is near on £20m owed in tax and social security - I guess this was the deferred VAT re covid and it looks like £8m is on a longer term payment plan with HMRC. That is the one slightly concerning figure in the numbers for me 

The rest as they say is history and be interesting what the current numbers look like, reduction in income re TV contracts but presumably a big drop in wage costs 

How this interacts with FFP who knows 

 

 

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It was never going to make easy reading after covid. But with the last few years and what happened at Derby I feel fortunate that we found a way to cover those losses. I’m surprised there any any clubs left!

What seems unclear is FFP. If we had lost 49m over two seasons ie last season and before, even adding the 12m covid allowance that was announced that has us on the threshold again. 
 

However as we are in league one now and out of duristiction of the championship I’m not sure how this season would apply or if the 19/20 season was already counted toward our deduction. 
 

I suspect if we fail to go up then it’s a moot point as it’s another two seasons of lower costs (at least) that would be applied if we went back up in the three year cycle. But hopefully if we do we don’t end up in that same situation again. 

 

 

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The positive bit there is the decrease in wages. Presumably even more so this season but obviously the income will remain lower than Championship level for things like TV rights.

Like mk I find the VAT and PAYE liability ‘interesting’ but I think we would know by now if this was causing issues in practice.

As in previous years I could be a right smartarse and point out some technical errors in the accounts but I’m not that sad.

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1 minute ago, Chelters said:

The positive bit there is the decrease in wages. Presumably even more so this season but obviously the income will remain lower than Championship level for things like TV rights.

Like mk I find the VAT and PAYE liability ‘interesting’ but I think we would know by now if this was causing issues in practice.

As in previous years I could be a right smartarse and point out some technical errors in the accounts but I’m not that sad.

Go on i am

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4 hours ago, TheExile said:

What seems unclear is FFP. If we had lost 49m over two seasons ie last season and before, even adding the 12m covid allowance that was announced that has us on the threshold again. 

However as we are in league one now and out of duristiction of the championship I’m not sure how this season would apply or if the 19/20 season was already counted toward our deduction.

We were still under Championship FFP regs for this season as the rules state you're not done with FFP until you've discharged all your Championship accounts. I believe it's the reason why we were still under transfer embargo this season. 

Now that we can spend again I'm not sure we'll be spunking millions and will still be hunting in the free market.

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18 minutes ago, mkowlthesexynewversion said:

Go on i am

The main one is the treatment of Chansiri’s loan. Should be shown as a current liability or have some sort of discounting applied. The accounts do sort of acknowledge this is wrong.

Disclosure of estimates and judgements is a bit ropey.

Should disclose more on the government grants and what they are.

But I’m being picky. As you say they look pretty sound overall.

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8 hours ago, Tylluan said:

We were still under Championship FFP regs for this season as the rules state you're not done with FFP until you've discharged all your Championship accounts. I believe it's the reason why we were still under transfer embargo this season. 

Now that we can spend again I'm not sure we'll be spunking millions and will still be hunting in the free market.

I've heard otherwise 

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9 hours ago, Chelters said:

The main one is the treatment of Chansiri’s loan. Should be shown as a current liability or have some sort of discounting applied. The accounts do sort of acknowledge this is wrong.

Disclosure of estimates and judgements is a bit ropey.

Should disclose more on the government grants and what they are.

But I’m being picky. As you say they look pretty sound overall.

See I am a refusnik on the director loan bit and the discounting of it bollocks. Bit more significant at 50m loan though compared to my 50k ones 

Related party bit should be a bit more informative, lumps it all together not by entity. But I can appreciate the reasons for doing the bare minimum there.

There is a professional intrigue as to whether BHP got a nudge letter from its regulator post the prior year adj on the stadium sale given the shortfalls were aired in public

 

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Posted (edited)

Vardy and Cahill incoming if we go up....mission Premier League goes to code red (blue).....I repeat......etc etc

Edited by MPB
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Does this make a difference to the way the accounts are viewed?

The EFL have introduced a couple of measures to help clubs with their P&S submissions. Recognising the last third of the 2019/20 season and the whole of 2020/21 were impacted, they allowed clubs to take both years losses in total and halve them. In effect this changes a three-year P&S cycle to a four-year cycle.

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3 hours ago, Andyben said:

I've heard otherwise 

5 Clubs Ceasing to be Members of the Championship

5.1 If a Club is promoted or relegated out of the Championship Division that Club shall, notwithstanding promotion or relegation, remain bound by these as if it were still a Championship Club, until such time as it has complied with all of its obligations relating to its last Season as a Championship Club.

https://www.efl.com/-more/governance/efl-rules--regulations/efl-regulations/appendix-5-financial-fair-play-regulations/

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  • 2 weeks later...

The audit report originally filed had a heading ‘material uncertainty related to going concern’ but then explained that there wasn’t any. So the heading was wrong or the wording underneath it was.

As that’s quite a sensitive one I bet they wanted to change it. 

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On 03/05/2022 at 21:40, mkowlthesexynewversion said:

Haven't gone through in great detail but they actually looked more technically robust than the last couple of years.

The fact there was no comment in the auditors report on going concern was clearly a fuck up and I am surprised about its omission. Give it a couple of weeks I reckon this will get spotted and amended accounts filed

 

Fuck me i am good at this analysis 

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28 minutes ago, Footlikeatractionengine said:

You're very good at blowing smoke up your own backside, that's for sure. Look at me, I have a personalised reg plate and own my own business. Who'd have known?? 

Can always fuck off if you don't like it dickhead. 

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7 hours ago, Footlikeatractionengine said:

You're very good at blowing smoke up your own backside, that's for sure. Look at me, I have a personalised reg plate and own my own business. Who'd have known?? 

Hark at her, must be one of my many admirers from Stalk missing my presence in shaking things up on there.

I appreciate in your shite snivelling life it is easy to get incredibly jealous of mundane success like being able to splash out a crazy £200 on a regular plate with OWL on it. Crikey you should wander down Claywheels Lane on matchday where its actually more unique not to have an OWL plate. 

Now if you bothered to look properly on this thread you would see it was an auspicious edit of an original post from 2 weeks ago, to make it appear how knowledgeable I was, to then ironically self congratulate myself. I appreciate for you as an intellectually challenged person that you ably demonstrate, such humour is a difficult concept to grasp 

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1 hour ago, mkowlthesexynewversion said:

Hark at her, must be one of my many admirers from Stalk missing my presence in shaking things up on there.

I appreciate in your shite snivelling life it is easy to get incredibly jealous of mundane success like being able to splash out a crazy £200 on a regular plate with OWL on it. Crikey you should wander down Claywheels Lane on matchday where its actually more unique not to have an OWL plate. 

Now if you bothered to look properly on this thread you would see it was an auspicious edit of an original post from 2 weeks ago, to make it appear how knowledgeable I was, to then ironically self congratulate myself. I appreciate for you as an intellectually challenged person that you ably demonstrate, such humour is a difficult concept to grasp 

You forgot the full stop. 

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10 hours ago, Footlikeatractionengine said:

You're very good at blowing smoke up your own backside, that's for sure. Look at me, I have a personalised reg plate and own my own business. Who'd have known?? 

I'll be honest, if I'd made a post like mk's original one, I'd be blowing smoke up my own arse too. Let's be reyt, none of us Neanderthals even know what it means let alone are congratulating him on being correct.

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