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Millwall reports losses
England - 28 February, 2006
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Despite cost-saving measures, the Championship club posted losses in the six-month period ending in November 2005, the club announced. Millwall reported pre-tax losses of GBP 2.37 million, compared to GBP 1.77 million in losses over the same period the previous season.
Losses were mitigated by an increase in player trading profits, up to GBP 1.299 million after a loss of GBP 180,000 in the previous period. Those figures were helped by the sale of Australian international Tim Cahill to Premiere League club Everton in the first half of 2005. Along with profits, turnover was down 22.3 percent to GBP 2.83 million.
“Whilst steps will be taken/have been taken to strengthen the playing staff, it is clear that the club faces a battle to retain its Championship status,” New chairman Peter de Savary said. “In the event that we are successful in retaining our current status at the end of April, the Board, having taken account of the problems faced during the current campaign, will plan for, and resource, a staged progression, whereby we have a realistic chance of becoming one of the leading sides in the Championship once again.”
Along with its financial struggles, the club is struggling on the pitch, third from bottom in the Championship division after the first week of March. Consequently, the club’s attendance has dropped from an average gate of 9,260 over the first half of 2005, compared to an average of 11,250 in ’04. Season ticket sales also dropped over the same periods from 7,351 to 5,399. Those figures have lessened the impact of the club reducing administrative costs from GBP 2.38 million to GBP 1.66 million.
If the club is relegated to League One, more cuts and cost adjustments will have to be made. “But should relegation to League One occur, the Board, have contingency plans in place to take account of this change in status,” de Savary said. “With 13 players’ contracts expiring during the close season, we are in a strong position to plan the size of our squad accordingly.” However, if the club is relegated an outside funding source must be found. In 2004, a share issue covered losses, but net debt has risen from GBP 2.43 million to GBP 3.87 million.
Losses were mitigated by an increase in player trading profits, up to GBP 1.299 million after a loss of GBP 180,000 in the previous period. Those figures were helped by the sale of Australian international Tim Cahill to Premiere League club Everton in the first half of 2005. Along with profits, turnover was down 22.3 percent to GBP 2.83 million.
“Whilst steps will be taken/have been taken to strengthen the playing staff, it is clear that the club faces a battle to retain its Championship status,” New chairman Peter de Savary said. “In the event that we are successful in retaining our current status at the end of April, the Board, having taken account of the problems faced during the current campaign, will plan for, and resource, a staged progression, whereby we have a realistic chance of becoming one of the leading sides in the Championship once again.”
Along with its financial struggles, the club is struggling on the pitch, third from bottom in the Championship division after the first week of March. Consequently, the club’s attendance has dropped from an average gate of 9,260 over the first half of 2005, compared to an average of 11,250 in ’04. Season ticket sales also dropped over the same periods from 7,351 to 5,399. Those figures have lessened the impact of the club reducing administrative costs from GBP 2.38 million to GBP 1.66 million.
If the club is relegated to League One, more cuts and cost adjustments will have to be made. “But should relegation to League One occur, the Board, have contingency plans in place to take account of this change in status,” de Savary said. “With 13 players’ contracts expiring during the close season, we are in a strong position to plan the size of our squad accordingly.” However, if the club is relegated an outside funding source must be found. In 2004, a share issue covered losses, but net debt has risen from GBP 2.43 million to GBP 3.87 million.
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