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Millwall absorbs losses
England - 14 November, 2006
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English Millwall, coming off a season in which it was relegated to League One, suffered losses this past financial year.
The average home League attendance was 9,529 – down from 11,655 in 2005 – making Millwall one of the bottom four in attendance. Two of the clubs below Millwall in that attendance league also were relegated.
Season ticket sales for the new season are currently 4,719, down from 5,416 in 2005, a reduction of 13 percent.
A proactive in-house marketing campaign, utilising a group of supporters has helped to minimise the effect of relegation on season ticket sales.
During the year a total of GBP 4.9 million was raised by a placing and open share offer, together with a net GBP 1.4 million generated from the sale and lease back of the training ground. Since the year end further private placings have generated approximately GBP1.4 million after expenses.
Turnover for the year was GBP 6.2 million, compared to GBP 7.4 million in 2005. The fall in turnover was a direct result of lower match attendances and the fact that during the 2004-2005 season the club received additional revenue from playing in the UEFA Cup against Hungarian Ferencvaros.
The loss on ordinary activities was GBP 4.3 million, changed from GBP 2.8 million in 2005, after taking account of GBP 500,000 profit on disposal of players' registrations. The loss on ordinary activities excluding player trading was GBP 4.8 million, off from the GBP 6 million total in 2005.
Staffw as reduced from 114 to 102, accounting for the fall in total staff costs from GBP 8.1 million in 2005 to GBP 6.5 million in 2006. These figures point toward a "Total wages to Turnover" ratio of 104 percent. The Championship average "Total wages to Turnover" ratio was 72 percent in 2004-2005. Figures for 2005-2006 are not yet available.
The ratio of 104% is more a consequence of low turnover compared to other clubs than an excessively high wages bill. Average wage costs, per club, in the Championship in 2004-2005 was approximately GBP 9 million, while Millwall had GBP 8.1 million. Average turnover per club was GBP 12.4 million, compared to GBP 7.4 million for Millwall.
The average home League attendance was 9,529 – down from 11,655 in 2005 – making Millwall one of the bottom four in attendance. Two of the clubs below Millwall in that attendance league also were relegated.
Season ticket sales for the new season are currently 4,719, down from 5,416 in 2005, a reduction of 13 percent.
A proactive in-house marketing campaign, utilising a group of supporters has helped to minimise the effect of relegation on season ticket sales.
During the year a total of GBP 4.9 million was raised by a placing and open share offer, together with a net GBP 1.4 million generated from the sale and lease back of the training ground. Since the year end further private placings have generated approximately GBP1.4 million after expenses.
Turnover for the year was GBP 6.2 million, compared to GBP 7.4 million in 2005. The fall in turnover was a direct result of lower match attendances and the fact that during the 2004-2005 season the club received additional revenue from playing in the UEFA Cup against Hungarian Ferencvaros.
The loss on ordinary activities was GBP 4.3 million, changed from GBP 2.8 million in 2005, after taking account of GBP 500,000 profit on disposal of players' registrations. The loss on ordinary activities excluding player trading was GBP 4.8 million, off from the GBP 6 million total in 2005.
Staffw as reduced from 114 to 102, accounting for the fall in total staff costs from GBP 8.1 million in 2005 to GBP 6.5 million in 2006. These figures point toward a "Total wages to Turnover" ratio of 104 percent. The Championship average "Total wages to Turnover" ratio was 72 percent in 2004-2005. Figures for 2005-2006 are not yet available.
The ratio of 104% is more a consequence of low turnover compared to other clubs than an excessively high wages bill. Average wage costs, per club, in the Championship in 2004-2005 was approximately GBP 9 million, while Millwall had GBP 8.1 million. Average turnover per club was GBP 12.4 million, compared to GBP 7.4 million for Millwall.
Source: euFootball.BIZ © Copyright 2006 -
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