Sponsored by
IN FULL: Sheffield United release financial statement
Sheffield United released their latest set of financial figures today. Here is their statement in full:
Sheffield United's chairman Kevin McCabe today commented on the current year's financial results of the diversified football, leisure and services company.
He made his remarks as the club issued the annual financial results which saw United:
Dramatically reduce their football related bank debt by 7.2m during the year, and by September 2008 further repayments leave only 3 million of bank football debt outstanding.
Maintain salary spend on first team squad at Premier League levels to increase chances of promotion
Record an operating loss before interest and tax of 3.5m driven mainly by relegation from the Premier League
McCabe commented: "One can only ponder as to the potential turnover and profitability that may have been achieved were it not for the circumstances and events emanating from the media named "Tevez affair".
McCabe says adapting to a rapidly changing economic environment will be key to the future health and wealth of UK football clubs in the next three to five years.
He said the Championship club will look to concentrate on planning and repositioning all divisions of the group, none more so than football, with a keen eye on the negative influences facing the UK.
Key to this year's figures has been the reduction in debt with a repayment of 7.2m of bank debt as the football club looks to adapt to the recessionary period and by September 2008 football bank debt had fallen to only 3 million.
It comes as the Blades reported an operating loss before interest and tax of 3.5m (2007: profit 2.7m) and a retained loss of 6.3m (2007:
Profit 0.3m as restated) as a result of decreases in income driven mainly by relegation and the strong continued investment in the first team squad and the maintenance of a competitive player salary budget to increase chances of promotion.
Turnover in 2008 was 32.1 million - a reduction from the 44.2 million of 2007, arising from United's relegation from the Premier League in May last year but helped by the success of its off-the-field interests.
McCabe said: "The world of football will inevitably change as monies available to fund player wages, transfer fees, agents' costs and the like diminish. There will always be exceptions to the rule but the many ingredients that have created the present environment means that quickly adapting to the changed circumstances is to be a key factor for the future health and wealth of clubs certainly in the next 3-5 years.
Here at Sheffield United we must do our utmost to plan and reposition all divisions of the group - none more so than football.
"Our ambition has been and firmly remains for Sheffield United FC to regain promotion back to the Premier League."
Despite being the best supported team in the Coca Cola Championship in 2007/08 with an average attendance of 25,648, ticket office contribution was down 20% to 6.1m (2007: 7.6m).
Funding sources included a 10m loan note from a subsidiary of Scarborough Group International, a company wholly owned by the McCabe family. Post period end this loan was rolled over into an issue of new loan notes which also raised a further 2.2 million in cash.
Predicting a downturn in the economy led to United selling the property and health club business of Thames Club, Staines post period end achieving a price of 4.55m.
McCabe added: "This realised a profit of some 0.7 million and at the same time permitted us to reduce bank debt by a further 2 million. At the present time we are also considering the future of the group's investment in property and thus the Board may be promoting recommendations on how we should proceed with a restructure in the near future.
United's non football related divisions have continued to contribute favourably to operating profits despite the unfavourable economic climate.
Support from HBOS plc has seen the group's diverse business activities provide funds to assist in the development of the new four-star Copthorne Hotel due to open in December this year and the aptly re-christened Derek Dooley Junior Development Centre in Crookes.
McCabe backed his new manager Kevin Blackwell who, as well as steering the first team squad to a current play off position, has brought a refreshing and progressive approach to the on the field football infrastructure. Kevin has been key in driving forward the Blades Way strategy on best performance.
Looking ahead Sheffield United will continue to improve its Bramall Lane ground and is looking positively to 2018 as well as across the globe with its international links including in Europe, the Far East and Australia.
McCabe added: "We must not rest on our laurels. Our intention is to ensure that Bramall Lane maintains its position as one of the finest stadiums in the North of England. Our Master Planning hopes to ensure that the "home of football" will be on the list as a World Cup 2018 venue should England be selected. Season tickets sales for 2008/08 have been strong.
"Our international links means we remain ahead of the game with our brand in the world's fastest growing economy in China with the Chengdu Blades and our work to regenerate Hungary's famous Ferencvaros will bring future benefits to our young Academy players.
"Our young but experienced executive continues to deliver locally, regionally, nationally and internationally indicating Sheffield United's international commerciality highlighted by us becoming the first major UK football club to be sponsored by a country.
"The Blades have been able to offer to the Maltese Tourism Authority a unique blend of international reach and proactive business development enabling us to increase sponsorship revenue at a time when budgets for such expenditure are being cut by many organisations."
What do you think? Post your comments below.
READ MORE
Blades Watch 08-09 - The Season So Far
Owls Watch 08-09 - The Season So Far
Watch Premiership highlights, international football, golf, tennis, darts and much more
Football headlines
More Blades
More Owls
More Spireites
More Rovers
More Reds
More Millers
More Ice Hockey
More rugby league
More rugby union
More boxing
Sports columnists
All sport categories
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Sheffield
Thursday 24 May 2012
Today
Sunny spells
Temperature: 11 C to 24 C
Wind Speed: 10 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 10 C to 21 C
Wind Speed: 16 mph
Wind direction: East
