Canaries Spell Out Reasons Behind Debt

The EDP has reported on the delayed AGM at Norwich City Football Club. In what appeared to be very frank and open meeting with the club’s shareholders, the NCFC hierarchy outlined “the financial fall from grace which has run parallel with the rise and fall of the club’s fortunes on the football field.”

The report included a wealth of detail about the wealth (or lack of…) sources of the club, with some interesting details on revenue streams. Amongs these were:

  • The starting point was 2003-04, when City had £2.7m in cash in the bank and debts of £18m. Since then the club has generated £43.5m in ticket sales – 40pc of which are subject to some kind of concession or other.
  • While the worst team in the Premier League will pocket £40m in broadcasting rights, City will get £600,000 and £30,000 for a live match (The club play in League 1).
  • If City go up this summer, they will be eligible to £2.7m in broadcasting rights – and possibly another £1m as their share of parachute payments if Newcastle and West Brom go straight back up to
    the top flight.
  • Catering generated £20m in the past six years (driven no doubt driven by owner Delia Smith)
  • Commercial revenue on such things as advertising and sponsorship brought in £25m.
  • The cost of putting a team out on the pitch was £48m (players wages and bonuses), plus £4.8m to pay loan players – £2.2m of which was spent last year. Footballing staff – coaches, physios, office staff cost £10.8m, including £1.4m compensation for the four managers mangers who
    left the club in that six year period. Total footballing costs were £59.2m on revenue of £138m – 43pc.
  • Other staff cost the club £27m while operating costs came to £40.3m.