It’s (fairly) steady as she goes as Brewers report loss of £46,865
ACCOUNTS TAKE IN ONLY START OF PANDEMIC SPELL
BURTON Albion chairman Ben Robinson says he is optimistic for the future after revealing an operating loss of £46,865 for the financial year ending on June 30, 2020.
The figure follows the loss of £1.85m in the previous accounts – the alarming consequence of relegation from the Championship.
But, as always, there are many factors at play in trying to analyse the figures.
The large figure for the period ending June 2019 was for a 13-month period, rather than the usual 12.
The new figure relates to a financial year which ended with the Covid-19 pandemic closing down the season early, hitting clubs’ revenues for the last couple of months. At that stage, rescue packages from the EFL and Premier League had not been agreed and the effect of those will not be seen until the next accounts, which of course will also reflect a whole season without gate money.
Keeping the Brewers more financially viable than the vast majority of other clubs has always been a balancing act for long-serving chairman Robinson but never more so than in the last couple of years.
Reflecting on that period, Robinson said: “The record loss for the 13 months to June 2019 was made in our first year after relegation from the Championship
“Despite relegation clauses in players’ contracts, we still carried forward a substantial wage bill.
“We were also involved in an unprecedented transfer dispute which had a major impact on the club’s finances.”
That is understood to be a reference to a dispute over Jackson Irvine’s transfer to Hull City in July, 2017, but with the two clubs have signing confidentiality clauses as a condition of the eventual settlement, neither have commented further about the outcome.
“The season was a one-off due to these circumstances and we have now successfully overcome those difficulties,” said Robinson.
“In the year to June 2020, we had to focus on getting the wage bill down to a more realistic level, while continuing to work on every avenue of commercial income.
“The season was curtailed on Friday, March 13, the day before we were due to play Wycombe Wanderers, and the subsequent five league matches were cancelled.
“We used the Government Job Retention Scheme (furlough) and Recovery Loan Scheme to help the club survive and to support our staff through a very difficult period.
“We would like to thank our fans and sponsors who did not ask for refunds for games lost and who have continued to support us. We would also thank all the club staff for their support during these difficult times.”
Robinson maintains the picture is rosier now, although whatever the future might bring with regard to the pandemic is an unknown.
The season was a one-off and we have now successfully overcome those difficulties.
Ben Robinson
“Last season concluded with games still played behind closed doors but thanks to the Government schemes already mentioned and financial support from the EFL and Premier League, we were able to maintain cash flow,” said the chairman.
“We have also had amazing support from season ticket holders and vice-presidents who backed us for the start of the new season with no certainty of whether they could return to the Pirelli Stadium.
“We have also had great support from a number of sponsors and advertisers who continued to back us financially even through times when they would not be receiving normal commercial exposure.
“All these aspects have enabled us to see out last season and plan for the return of fans.
“Like many clubs and businesses, we will find life very difficult going forward if severe lockdown policy has to be reintroduced and if clubs and businesses do not receive the same levels of financial support we experienced at the height of the pandemic.
“But, with fans now returning, we remain optimistic for the season ahead.”
The loss of £46,865 comes after amortisation of £120,111 and depreciation of tangible assets of £250,924 have been taken into account.
Amortisation refers to the gradual writing off of the original value or
cost of an asset – in this case, players.
The turnover for the year to June 2020 was £5,677,726, made up of commercial income of £4,840,441 and gate receipts of £837,285 – in plain terms, gates accounted for approximately only 14% of the turnover.
That compares with turnover of £6,746,717 for the 13 months to June 2019, in which commercial income – in a Championship season – was £5,557,433 and gate receipts £1,189,284, more like 20% of the turnover.
Wages and salaries, as expected, dropped dramatically between the two years.
The figure for June 2020 was £4,509,308, compared with £6,084,187 for the 13 months to June 2019.
The wages figure takes into account all club staff but the majority of it is accounted for by the playing staff.
Robinson, the major shareholder as well as the chairman, is always at pains not to make a lot of it but the accounts show he continued to support and facilitate the club’s cash flow following his previously declared interest-free loan of £400,000.
The accounts have been sent out to shareholders and will be officially presented at the club’s AGM on Monday, August 2 (6pm) in the Tom Bradbury Suite at the Pirelli Stadium. Only shareholders can attend.