Charlton absorbs losses by investing in players

English Charlton recorded operating losses of GBP 4.6 million and an overall net loss of GBP 8.9 million in 2005-2006.

The losses were offset by a share issue to directors and the sale of players.

The club made an effort to invest on the pitch, as salaries and wages increased by 18 percent to GBP 30.5 million, representing 72 percent of turnover, up from 63 percent the year before and far above the 50 percent level recommended by accountants Deloitte.

Overall turnover was up from GBP 40.7 million to GBP 41.9 million with strong showings in conference and banqueting revenues, which increased by 43 percent.

Sponsorship revenues were affected by the premature termination of the all:sports agreement, with the loss of nearly all the year's income. Retail sales during the crucial Christmas period were hampered by the inability to sell any goods branded with the all:sports logo during that period. That reduced sales.

The number of fans buying season tickets fell by almost 10 percent.

"The fall in season ticket holders to 18,700 is due to a number of factors, the more important we feel being the varied kick-off times spread across weekends during the season and the more negative approach taken to clubs because of the fear of relegation and its serious financial impact," Charlton chairman Richard Murray said.

Survey evidence, though, does not suggest that kick-off times are a decisive factor for most fans.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.