There are a number of worrying aspects to the latest accounts of Cardiff City FC. The £12m loss, up from £900,000, is not the biggest concern as the previous year’s figures were influenced by the sale of Ninian Park and associated sites.
There are a number of worrying aspects to the latest accounts of Cardiff City FC. The £12m loss, up from £900,000, is not the biggest concern as the previous year’s figures were influenced by the sale of Ninian Park and associated sites.
However, the £70m debt pile is a concern. It has grown by £6m and £40m of it is due within one year. Of even greater concern is the high wages to turnover ratio with £13.97m of the £15.74m turnover being absorbed by wages. Admittedly, such spending is not unusual for a Championship football club with Premiership aspirations.
Turnover is also down, but this was influenced by cup runs and the Championship play offs in the previous season and on a like-for-like basis it is up. The average attendance is at its highest level for 50 years.
The club’s Malaysian investors are continuing to put money into the club, £4.8m in the accounting period. However, promotion to the Premiership would really transform the club’s finances.