Scary plans at Chester City
Posted by John Beech on September 30, 2009
Alerted by a posting on the Supporters Direct blog titled Strange goings on at Chester City, I’ve been looking at an Excel spreadsheet (1), downloadable from the club’s website, of the club’s forecast for its Profit & Loss Account for 2009/10.
Highly commendable that the club should make this available, but it certainly isn’t going to reassure anyone.
Key number is ‘the bottom line’ of course – the projected profit or loss. Homing in on this, you find, unless it has been corrected since, a projected Profit of an amazing £660k! But wait – that can’t be right, not with a projected Income of only £649k, can it? (That, by the way, includes a parachute payment of £215.5k, or almost exactly a third of the projected Income.) And a projected Expenditure of just over £1.3m?!?!
No, of course it isn’t right. The spreadsheet has been set up to calculate profit (or loss) by subtracting Income from Expenditure, rather than the rather more conventional accounting standard of subtracting Expenditure from Income. Oops! The projected Profit of £660k, it transpires, should in fact be a projected Loss of £660k – quite an error by any standards.
With that kind of howler, it’s difficult to have much credence in any of the figures.
Even if we take the figures themselves seriously, it hardly paints a healthy plan. Planned expenditure on ‘Playing Squad / Loans In’ is a staggering 92% of Income!!!
And all this from the man the Chester Evening Leader was hailing as the club’s ‘saviour’ back in June (the URL to the source now produces 404 page not found for some strange reason).
In case you haven’t seen, the club today sacked their manager Mick Wadsworth (2), who complains that the club is ‘full of negativity‘. Once corrected, their projected Profit & Loss Account certainly is.