Cardiff City lost £30 million in the season they were promoted to the Premier League, latest accounts reveal. The club’s overall debt has risen to a £118m, with just over half, £66m, owed to owner Vincent Tan.
But Cardiff chairman Mehmet Dalman said the club was on course to becoming debt free. Mr Dalman said Malaysian billionaire owner Mr Tan had put up to £150m into the club since 2010.
Cardiff City lost £30 million in the season they were promoted to the Premier League, latest accounts reveal. The club’s overall debt has risen to a £118m, with just over half, £66m, owed to owner Vincent Tan.
But Cardiff chairman Mehmet Dalman said the club was on course to becoming debt free. Mr Dalman said Malaysian billionaire owner Mr Tan had put up to £150m into the club since 2010.
In the year ending 31 May 2013 the football club made operating loss of £30.9m, up from almost £13m the previous season. Wages and salaries accounted for £27m, a jump from £18.5m the previous year. Some of this resulted from bonus payments for promotion.
The accounts, for the financial period up to May last year, also show life president Sam Hammam’s Langston was paid £22m to solve the historic debt it was owed. That includes a one-off payment of £15m and further non-interest bearing payments of £7m over a seven-year period. It is roughly £11m less than what could have been paid given £9m stadium naming rights and a £5m one-off payment for promotion to the Premier League.
One puzzle in the accounts is that administration costs increased from £7m to £15m and it is not clear why these should increase by so much.
Money owed amounts to £118m, with the largest part due to Mr Tan, the accounts suggest. He does intend to convert the debt into shares which would make the club debt free.
Some think that the club could make a profit of £20m to £30m in their first season in the Premier League, but that in part depends on how much is spent in the transfer window.