Admin Fees Revealed

[GBJ]

Let's just say i stumbled upon these earlier and quite frankly, it's no wonder why we're in trouble.

This list is taken from SOL website. Unfortunately i can't post a link or copy and paste the origional article.

Make of it what you will....


DETAILED PROFIT AND LOSS ACCOUNT

.............................................................2007......................2006

Turnover ..............................................8,391,989............3,740,313


Cost Of Sales
Wages...................................................3,696,637.............2,531,186
Other expenses.......................................1, 537,346............1,098702
Amortisation of players
registrations.............................................344,366...............124,183


Gross Profit (loss).....................................2,813,640.............(13,758)


Administrative Expenses


Salaries and associated costs....................274,664............263,199

Management Charges................................60,000.............65,000

Rent.......................................................3,367................239

Rates......................................................97,395...............74,399

Insurance and maintenance........................142, 452............132,716

Light and Heat..........................................72,770................57,293

Stationary and postage..............................29,883...............24,403

Advertising................................................1,111.................4,833

Telephone.................................................44,799...............43,628

Motor running, travelling expenses
and entertainment......................................75,674...............93,057

Other professional fees................................20,485..............43,239

Legal fees/settlements................................121,014.............184,532

Accountancy fees........................................4050.................5,402

Audit fees..................................................14,000...............12,000

Bank Charges..............................................62,996...............69,595

Bad and doubtfull debts..................................477...................1,668

Sundry expenses..........................................144,787..............83,975

Depreciation on furniture, fixtures
and equipment............................................252,543..............128,891

Donations....................................................1,520.................350

Centre of Excellence......................................88,625................82,687


Few interesting bits -

motor running/travel/entertainment at £75k and £90k??? very extravagant. Stationary? £30k? serious? and furniture at £250k?
Also why the big change in rent fees? Bank charges? what bank charges? And what does sundry expenses mean?

 

[chapperzUK]

motor running/travel/entertainment at £75k and £90k??? very extravagant. Stationary? £30k? serious? and furniture at £250k?
Also why the big change in rent fees? Bank charges? what bank charges? And what does sundry expenses mean?

Purchases are NOT the same as Depreciation. Depreciation is a yearly thing where the accounting concept on Prudence is taken into account and they Depreciate the value of their fixed assets as they see suitable. So what has actually happened is that the value of the furniture, fixtures and equipment has decreased by £250k (NO money has changed hands).

Sundry basically means 'other' (I am 99% sure of this).

Can't comment much on the others as I don't know the expenses that occur on a daily basis of a football club.

 

[Billy Bests boot laces]

Quite honestly i'm sick to the back teeth of whats going on. We will probably never be told whats going on ( and some fans have questioned why should we?). I read on someones facebook site tonight that he has a source within (yet another one) who claims we are still really in deep manure financially. All i predict is that with only probably 4 home games left this season when we will have attendances over 7,000 ( Colchester, Charlton, Brentford and Brighton) we will end the season below our break even figure of 8,000 crowds. No way will Barnard sign a new contract (would you?) and in all probability several other players will be on there way, so what state will we be in come next summer?. The feel good factor has well and truly gone, and season tickets will drop big time next season. Tilson deserves a medal for trying to hold the fort together, but like all of us there is only so much he can take with his hands tied. Now in the most expensive month of the year and theres 5 games to pay for (including last nights). I've got my tickets for charlton and orient, but no way exeter as cant afford that one the week before christmas. Perhaps 'Rons blog' parts 2-5 will ease my concerns, but somehow i doubt it. Roll on saturday for a few jars in 'The Rose of Denmark'.

 

[chapperzUK]

Could you post the rest of the P&L A/C?

 

[EastStandBlue]

No doubt this will rub people up the wrong way in the light of recent events, but these are no different/more concerning than any other football clubs costs. Having done feasibility studies before, most clubs have similar costs.

i.e. in 2007 we had some long haul trips, so flights and hotels were required. If you think over the course of 9 months travelling up and down the country with the best part of 30 people including the squad and staff, then that amount of money is completely understandable.

As has been said, Depreciation doesn't mean cost.

It's Stationary and Postage. Think how much it takes you to send a large envelope these days, and then think that Football Clubs often send 60-100 page documents that are probably recorded delivery, we have kit delivered too us, legal documents are probably sent via courier etc etc.

It's stupid costs, but essential.

 

[Boreham Shrimper]

I too am not that concerned about the costs as, as EastStandBlue says, they are largely necessary and 2007 was an expensive year for the club. Obviously, we will have been cutting our cloth according to our league position and the finances, as all clubs have been. In fact, I was reading today that Gillingham now send their players to more local games independently to cut costs (ie. without a team coach) with the result that last night they didn't know who was turning up when because of the traffic.

That said, I wouldn't mind Ron delivering on his promised blogs to explain our current state...

 

[Mick]

No doubt this will rub people up the wrong way in the light of recent events, but these are no different/more concerning than any other football clubs costs. Having done feasibility studies before, most clubs have similar costs.

i.e. in 2007 we had some long haul trips, so flights and hotels were required. If you think over the course of 9 months travelling up and down the country with the best part of 30 people including the squad and staff, then that amount of money is completely understandable.

As has been said, Depreciation doesn't mean cost.

It's Stationary and Postage. Think how much it takes you to send a large envelope these days, and then think that Football Clubs often send 60-100 page documents that are probably recorded delivery, we have kit delivered too us, legal documents are probably sent via courier etc etc.

It's stupid costs, but essential.

It's not !

The only thing that's stationary is the progress on the new ground.

Remember "e" for envelope.

 

[weststander]

Few interesting bits -

motor running/travel/entertainment at £75k and £90k??? very extravagant. Stationary? £30k? serious? and furniture at £250k?
Also why the big change in rent fees? Bank charges? what bank charges? And what does sundry expenses mean?

Travel is not that extravagent, think about how much it costs to get to away games, the team coach must cost quite a bit and then theres the hotel bills for the team to rest and have their pre-match meals on the longer away trips, i bt that doesnt come cheap !

As for the stationary and postage if you think that we have 4500ish season ticket holders and a couple of thousand shareholders, if they send a mailing out to say 6000 people at large letter costs of 50p per item (thats with the royal mail franking discount) amounts to £3000 per mailing ! Also theres the costs involved with posting match tickets as well, i think that £30k is actually quite reasonable.

As previously said the furniture is depreciation so it doesnt mean that we have spent that but the amount of its value has to be written down each year and i believe that there is a stipulated amount that can be written down each year.

As for bank charges, as i understand it as a business the bank charges just for having an account and keeping it open and then there are charges for each transaction that the club makes e.g each time a ticket is sold and a credit card is used......

It would be interesting to compare these figures against a club of similar size and stature as our in this division, perhaps Bristol Rovers or Swindon ??

 

[jamesmut2000]

motor running/travel/entertainment at £75k and £90k??? very extravagant. Stationary? £30k? serious? and furniture at £250k?
Also why the big change in rent fees? Bank charges? what bank charges? And what does sundry expenses mean?

you honestly don't think banks charge for their services?????

 

[The Big Shrimp]

Quite honestly i'm sick to the back teeth of whats going on. We will probably never be told whats going on ( and some fans have questioned why should we?). I read on someones facebook site tonight that he has a source within (yet another one) who claims we are still really in deep manure financially. All i predict is that with only probably 4 home games left this season when we will have attendances over 7,000 ( Colchester, Charlton, Brentford and Brighton) we will end the season below our break even figure of 8,000 crowds. No way will Barnard sign a new contract (would you?) and in all probability several other players will be on there way, so what state will we be in come next summer?. The feel good factor has well and truly gone, and season tickets will drop big time next season. Tilson deserves a medal for trying to hold the fort together, but like all of us there is only so much he can take with his hands tied. Now in the most expensive month of the year and theres 5 games to pay for (including last nights). I've got my tickets for charlton and orient, but no way exeter as cant afford that one the week before christmas. Perhaps 'Rons blog' parts 2-5 will ease my concerns, but somehow i doubt it. Roll on saturday for a few jars in 'The Rose of Denmark'.

& this will be Tilson's last season at the club. He IS sick of all the crap going on at the club & unless RM waves a magic financial wand, he will be gone.

I will ask a friend who occasionally posts on here to relay the conversation he had with Tilly at the start of the season. It is this that I base my statement on.

Needless to say, despite his lack of ability in getting us to defend in an organised manner, I think he is Mr Southend United & should stay!

 

[Lester Bangs]

Apart from the increase in Sundries I'd say that a quick analytical review of that P&L expense looks pretty reasonable.

Nothing out off sorts really. I think you're clutching at straws somewhat GBJnr.

Edit: to say these arent even contemporary figures. They relate to 2 years ago assuming a December year end.

 

[fbm]

Let's just say i stumbled upon these earlier and quite frankly, it's no wonder why we're in trouble.

This list is taken from SOL website. Unfortunately i can't post a link or copy and paste the origional article.

Make of it what you will....


DETAILED PROFIT AND LOSS ACCOUNT

.............................................................2007......................2006

Turnover ..............................................8,391,989............3,740,313


Cost Of Sales
Wages...................................................3,696,637.............2,531,186
Other expenses.......................................1, 537,346............1,098702
Amortisation of players
registrations.............................................344,366...............124,183


Gross Profit (loss).....................................2,813,640.............(13,758)


Administrative Expenses


Salaries and associated costs....................274,664............263,199

Management Charges................................60,000.............65,000

Rent.......................................................3,367................239

Rates......................................................97,395...............74,399

Insurance and maintenance........................142, 452............132,716

Light and Heat..........................................72,770................57,293

Stationary and postage..............................29,883...............24,403

Advertising................................................1,111.................4,833

Telephone.................................................44,799...............43,628

Motor running, travelling expenses
and entertainment......................................75,674...............93,057

Other professional fees................................20,485..............43,239

Legal fees/settlements................................121,014.............184,532

Accountancy fees........................................4050.................5,402

Audit fees..................................................14,000...............12,000

Bank Charges..............................................62,996...............69,595

Bad and doubtfull debts..................................477...................1,668

Sundry expenses..........................................144,787..............83,975

Depreciation on furniture, fixtures
and equipment............................................252,543..............128,891

Donations....................................................1,520.................350

Centre of Excellence......................................88,625................82,687


Few interesting bits -

motor running/travel/entertainment at £75k and £90k??? very extravagant. Stationary? £30k? serious? and furniture at £250k?
Also why the big change in rent fees? Bank charges? what bank charges? And what does sundry expenses mean?

I have to say that whilst they may be "of interest" to some, they are certainly not "interesting".

In addition I am not certain how much credibility I want to give to your views after you revealed a couple of weeks back that you only wondered where all the money had gone because you didn't know that football league teams don't get parachute payments when they are relegated.

As for your analysis of the P&L account, unfortunately you have clearly not yet reached a level in life where you have encountered things like "sundry expenses" to enable you to know what the phrase means, and consequently I'm afraid I doubt that you have sufficient knowledge to dissect anything financial and deliver meaningful comment on it.

Stick to what you know and you won't make yourself look daft. Sorry if that seems harsh and I don't mean to be rude, but this board has plenty of people who love to pass judgement on stuff they assume must be happening when in reality they actually know naff all.

 

[bazzashrimper]

Still doesn't say where the Eastwood money has gone ;)

 

[dloman]

Nothing really that unusual there, i guess the only one i would look at think mmmm would be the Legal expenses/Settlements.

One thing that has concerned me in regards to the move to Fossets Farm and that it appears no one on here has really considered is the extra running costs of having a much larger stadium. Now a lot on here will say the "Extra revenue" streams wil cover this. But bearing in mind we have no idea of what the rent will be etc, i do wonder what the crowd numbers would be to have to break even.

Nothing malacious in it just thought i would throw it out there.

 

[canveyshrimper]

Nothing really that unusual there, i guess the only one i would look at think mmmm would be the Legal expenses/Settlements.

One thing that has concerned me in regards to the move to Fossets Farm and that it appears no one on here has really considered is the extra running costs of having a much larger stadium. Now a lot on here will say the "Extra revenue" streams wil cover this. But bearing in mind we have no idea of what the rent will be etc, i do wonder what the crowd numbers would be to have to break even.

Nothing malacious in it just thought i would throw it out there.

Agreed, and if you break down the travel / entertaining expenses that equates to 1500 quid a week for 2007, which for a business IMO is the square root of sod all.

 

[Firestorm]

Apart from the increase in Sundries I'd say that a quick analytical review of that P&L expense looks pretty reasonable.

Nothing out off sorts really. I think you're clutching at straws somewhat GBJnr.

Edit: to say these arent even contemporary figures. They relate to 2 years ago assuming a December year end.

The latest accounts are to 31/7/08,

These figures are headed 2007 and 2006 so I assume are to 31/7/07

Funny though, the original poster is critical of the increase in depreciation up by 120kyet fails to give praise for an increase in the profit of the club by over 2.5M !!!


Edit...

after another look at the figures , The Turnover of 8M correlates to the Championship year, Which was 2006-2007 so these figures are not from the latest accounts , although IIRC the administration expenses in the year to 31/7/08 were a bit higher than 2007, (it was the severe drop in income which caused the loss)

 

[Mad Cyril]

When I won the Champions League with Southend on Championship Manager I was spending a fraction of these figures on Stationary and postage, audit fees and sundries.

 

[canveyshrimper]

When I won the Champions League with Southend on Championship Manager I was spending a fraction of these figures on Stationary and postage, audit fees and sundries.

That's probably because you were almost motionless.

 

[GBJ]

you honestly don't think banks charge for their services?????

To the tune of £60k?

 

[GBJ]

Nothing out off sorts really. I think you're clutching at straws somewhat GBJnr.

Can't really understand that tbh.

I didn't say i'd uncovered some mad conspiracy. I was one of many questioning why are we skint. The main response was "to the running of the club", and "admin fees". So, here they are for all to see.

I still think some of those figures seem high though, and like i said it's understandable we're in financial turmoil.