Palace make £7m loss in 2016

[Greg Bobkin]

 

[m20gull]

So a rough working gives you an average salary per employee of £415k pa. Not bad. Up 14% year on year.

121 players, managers, and coaches sounds like an awful lot.

I thought so but they have four squads (first, development, academy and ladies) plus a 20 strong management, coaching, and fitness team. In the same year Chelsea INCREASED their staff by over 100.

 

[El Presidente]

What are operating expenses on player trading?

Amortisation (£18m) and impairment (£2m) of player registrations. If they sign a player for (say) £10m on a four year contract then each year 1/4 of the transfer fee is charged as an expense to the profit and loss account.

 

[Garry Nelson's Left Foot]

Am I reading that right...they spent 80 million quid on wages last year?

 

[El Presidente]

I'm surprised that someone of el presidente's expertise in theses matters thinks that palace lost £7m when the figures he attached clearly show the loss to actually be £5.6m.

Rounding the loss up by £1.4m is a tad cheeky.

As any expert knows, it is common practice to discuss pre-tax profits and losses, which is where the difference of £1.4 million arises. The vagaries of the tax system create inconsistencies in the reported figures.

 

[El Presidente]

Am I reading that right...they spent 80 million quid on wages last year?

Correct, but for that you get...

 

[clarkey]

Am I reading that right...they spent 80 million quid on wages last year?

And this was only up until June last year, so will be very interested to see next year's figures what with Benteke etc salaries and Pardew pay-off etc.

 

[chaileyjem]

So over nearly 4 seasons the investment in Selhurst from nearly £3-400m quid of income is £105K in cladding, improved floodlights, some bits and bobs for media gantrys etc.
Anything else ?

 

[Mr Putdown]

As any expert knows, it is common practice to discuss pre-tax profits and losses, which is where the difference of £1.4 million arises. The vagaries of the tax system create inconsistencies in the reported figures.

Like I said, you are an acknowledged expert in this field.

Interesting that our losses were lower after tax.

 

[El Presidente]

Like I said, you are an acknowledged expert in this field.

Interesting that our losses were lower after tax.

You are effectively getting a tax break which can be carried forward against future profits.

In the 2016/17 accounts you will also have the benefit of about £2.5m from a Mr T Pulis, and, setting aside rivalries, I'm delighted that you won that case. I do have a very interesting tale about the said gentleman from his time at Gillingham, but I'm not willing to go to court over it...

 

[Garry Nelson's Left Foot]

And this was only up until June last year, so will be very interested to see next year's figures what with Benteke etc salaries and Pardew pay-off etc.

Yes and in the summer when Big Sam spends a shitload on mercenaries.

When they get relegated in a season or two they're going to be ****ed!

 

[Moshe Gariani]

I do have a very interesting tale about the said gentleman from his time at Gillingham, but I'm not willing to go to court over it...

The web of football managers and their finances is tangled. I was shocked by an allegation made about Mark McGhee when at Brighton but, as you say, best not make public here or elsewhere.

 

[Tom Bombadil]

Amortisation (£18m) and impairment (£2m) of player registrations. If they sign a player for (say) £10m on a four year contract then each year 1/4 of the transfer fee is charged as an expense to the profit and loss account.

Thanks. So in the case of players sold is the profit the gross amount receivable or the transfer net of the unamortised player value?

 

[El Presidente]

The web of football managers and their finances is tangled. I was shocked by an allegation made about Mark McGhee when at Brighton but, as you say, best not make public here or elsewhere.

It's true, he did drink pints of whisky, Mark McGhee, Mark McGhee.

 

[El Presidente]

Thanks. So in the case of players sold is the profit the gross amount receivable or the transfer net of the unamortised player value?

It's proceeds less book value of the registration.

Example: Sign a player for £20m on a four year contract, and sell him at end of year two for £14 million.

Gain in accounts is £14m less (20 x 2/4) = £4 million profit, even though it seems to be a loss of £6 million to fans.

 

[Deleted member 2719]

Pompey or Stains? The latter posted their accounts today too, as well as the small club in South London.

Pompey Neanderthals please.

 

[carlzeiss]

One of the directors trousered £692,000 too...which is nice.

£692,000 buys a lot of hairspray

 

[El Presidente]

Pompey Neanderthals please.

They seem to run a reasonably tight ship and broke even in the last year for which I can find records. There's no one to lend them money at present, as they are a community club, so cannot spend beyond their means any more...unless the ex head of Disney, Michael Eisner, decides to pursue his interest.

 

[Cantona's Flying Dropkick]

Despite being in the FA Cup final and receiving £78 million in TV money (the Albion earned less than £6m in the Championship), our chums up the road still lost £140,000 a week last season. This would have been a much higher loss had it not been for the sales of Glenn Murray, Jack Hunt and Barry Bannon, which generated a profit of £9 million.

It highlights that small clubs in the Premier League still struggle to make money, even if they have a good cup run.

Their wage bill was higher than that of Premier League Champions Leicester City.

Palace generated over £100,000,000 in revenue last season, and of that, spent £109,000 on new cladding at Selhurst.

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Is Jack the French equivalent to Mike?

 

[Deleted member 2719]

They seem to run a reasonably tight ship and broke even in the last year for which I can find records. There's no one to lend them money at present, as they are a community club, so cannot spend beyond their means any more...unless the ex head of Disney, Michael Eisner, decides to pursue his interest.

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Thanks, those sailorboys run far too tighter ship for my liking at the moment.