CCFC Club Statement: Club Accounts

Update:


Interest payable was £2.6m (2023 £2.0m). Of this , a note to the accounts reveals that £2.1m of this interest was payable to Tormen Finance Inc. in which club Chair Mehmet Dalman has a significant involvement. This interest is stated to be at a rate of 6% per annum.


£137.7mill in Debt includes £68mill to Vincent Tan.

But £40 plus mill is owed mainly to Mehmet Dalman and a Company which the details have never been made public, the Directors?

We pay £2.6mill a year interest to them.


Plus Mehmet Dalmans wages and Ken Choo’s.



We received £5mill income from our insurance claim regarding Emiliano Sala, Tan wanted £15mill, We had to settle for £5mill, I wonder if we will ever know why we could not get the full amount ?










CARDIFF CITY FC:

Monday 3rd March 2025




The following communication has been issued by Chairman, Mehmet Dalman and Finance Director, Philip Jenkins.

Following Board correspondence to supporters in January, we’d like to take this opportunity to offer insight into the statutory accounts for the year ended 31st May 2024 that have recently been submitted to Companies House.

The group accounts for Cardiff City Football Club (Holdings) Limited can be viewed in full here, for those who wish to see them.







Below are several highlights, with some greater detail and clarification:







Trading Results



The filed accounts show:

- Operating loss of £9,957,000 which is a reduction of £1,169,000 on the prior year.

- Loss before tax of £11,661,000 which is a small marginal increase of £231,000 on the loss for the prior year.

- Increase in the cost of sales and administrative expenses over the prior year that has been more than offset by the exceptional income realised in the year.

- Increase in the cost of sales from 2023 to 2024 of £9,473,000 driven by:

Increase in player related costs at £5,712,000.

Increase in amortisation charge from investment in our playing squad of £840,000.

Increase in running costs following investment in Academy development of £1,136,000, including provision for the one-off costs on the termination of the lease on the old Academy site.




The above account for 81.2% of the increase in the cost of sales.


Exceptional items

The results for the year have benefitted from exceptional gains of £18.4m.

The main driver therein is the £12m receivable from the sale of a “percentage” share of the ultimate proceeds from a litigation claim made by the club.

The sum receivable is non-refundable and not dependant on the ultimate outcome of the litigation case itself.

While there is potential for additional amounts to be received, dependent upon the outcome of the litigation, such “contingent asset” has not been recognised in these accounts and further will not be included in future years accounts until any such sums are awarded and received.






Balance sheet

Investment in Intangible and Tangible Fixed Assets:

Investment in our playing squad of £7,460,000 in the year shows an increase of £1,934,000 over the previous year.

Investment in tangible fixed assets of £1,665,000 in the year, includes initial payments to secure the 150-year leasehold interest in the site for the development of the new First Team Training Ground and operational base.

Loans from shareholders and connected parties:

Loans from the majority shareholder, Tan Sri Vincent Tan, and connected parties has increased in the year from the injection of net additional funding of £11,832,000.

While the loans have increased in 2024, as in previous years, there is no interest burden on the Club as while the loans accrue interest at 7%, all interest on the loans from Tan Sri Vincent Tan has been waived by the Owner.

As our chairman has previously indicated when the time is right, such loans will be either written off or converted to equity. Therefore, there is no demand or pressure on the Club for such loans to be repaid.

Loans from directors and connected parties:

Such loans have increased by additional loans received of £11,000,000, taking the resultant balance to £40,300,000.

It is the intention of the Club to start repaying these loans as soon as cash flow allows, or additional funding is received.





Summary

While the reduction in the Operating Loss for the year is encouraging, there is still a great deal of hard work ahead to continue the downward trend in the Operating Loss.

We have, however, in 2024 been able to expand our investment in the First Team squad, complete the new Academy development and lay the ground for the construction of our new purpose-built First Team training ground.

Each of these advancements will put us on a more stable and stronger footing for the future.

Mehmet Dalman (Chairman) & Philip Jenkins (Finance Director)

3rd March 2025

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Loans from directors and connected parties:

Such loans have increased by additional loans received of £11,000,000, taking the resultant balance to £40,300,000.

It is the intention of the Club to start repaying these loans as soon as cash flow allows, or additional funding is received.

£40 plus £million now owed to others?
Can I ask at what interest?

Are we just 40mil in debt?

Loans from directors and connected parties:

Such loans have increased by additional loans received of £11,000,000, taking the resultant balance to £40,300,000.

It is the intention of the Club to start repaying these loans as soon as cash flow allows, or additional funding is received.

£40 plus £million now owed to others?
Can I ask at what interest?

Think it says 7% that's to dalman and one other? Tans debt will be written off or converted to shares..... basically it means we plod on as we have been doing whilst there as been lot codt cutting the 1st team squad as suffered very little in this regard despite what fans may think..

What does the £12m as a percentage of litigation, non refundable and not dependent on the outcome of the case mean?

Unless it’s from Tan itself it comes across as if a third party is satisfied that we’re going to come into quite a significant sum of money from litigation if I’m thinking correctly?

Cardiff City have announced pre-tax losses of £11.6m for the last financial year after making investments which the club state will put them on a "more stable and stronger footing for the future".

The losses published are up £231,000 from the 2023 financial year, meaning the balance sheet deficit rose to £30.8m, however the club have built a plush new academy in Llanrumney and have invested £1.7m in payments to secure a 150-year lease for the development of the new 42-acre training base for the first team. Running costs, including a one-off payment to terminate the old academy site lease, also increased by £1.1m.


The club's turnover was £23.2m, down £3.4m from the previous year, with a dip in sponsorship, advertising and commercial incoming accounting for the much of the shortfall compared to the 2023 financial year.

The actual operating costs - i.e. the ongoing expenses the club incurs to run its day-to-day operations - of £10m have reduced by £1.2m compared to the previous year.



As for loans, owner Vincent Tan, and "connected parties", have put in further loans of £11.8m, mainly via Mehmet Dalman.

The loans have increased when compared to the previous year, however Tan's loans specifically do not accrue interest. Chairman Mehmet Dalman has previously stated that Tan will likely, at some point in the future, either write off the loans or convert them into equity.

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The accounts also show that £2.1m of the £2.6m payable interest was to Tormen Finance Inc., in which Dalman has a significant involvement. That interest is at 6 percent per annum. Tormen Finance put £11m into the club during the year in question, taking their total debts owed up to £37.3m, while owner Tan is now owed £68m in total.

Importantly, as the losses incurred are in-keeping with the EFL's allowances - £15m per year over three years - they have not breached profit and sustainability rules, but have in the field struggled the whole of this season.



Cardiff chairman Mehmet Dalman says the club is actively seeking to refinance.

Dalman said the club's owner, Malaysian businessman Vincent Tan, remained committed to a team currently struggling in the Championship.

But he said the club was facing "multi-dimensional challenges" including finances, legal cases and poor results on the pitch.”

You do not have the required permissions to view the files attached to this post.

The group accounts for Cardiff City Football Club (Holdings) Limited can be viewed in full here, for those who wish to see them.

Below are several highlights, with some greater detail and clarification:

Trading Results

The filed accounts show:

Operating loss of £9,957,000 which is a reduction of £1,169,000 on the prior year.

Loss before tax of £11,661,000 which is a small marginal increase of £231,000 on the loss for the prior year.

Increase in the cost of sales and administrative expenses over the prior year that has been more than offset by the exceptional income realised in the year.

Increase in the cost of sales from 2023 to 2024 of £9,473,000 driven by:

Increase in player related costs at £5,712,000.

Increase in amortisation charge from investment in our playing squad of £840,000.

You do not have the required permissions to view the files attached to this post.

Statement of Comprehensive Income (the Profit and Loss account)-key figures



Turnover for the year was £23.2m, down £3.4m from the previous year. Gate receipts and match day income plus income from broadcasting actually rose slightly but sponsorship, advertising and commercial income fell by £4.3m compared to 2022-23.

Cost of sales rose significantly in the year by £9.5m to £39m.A large proportion of this was down to an increase of £5.7m in player wage payments to £19.9m. Other elements of the increase appear to relate to an increase in the accounting write down (amortisation) of the playing squad value – a normal annual cost charged over the period of players’ contracts. In addition, there was a substantial further increase in investment in running costs of the club’s Academy.

Administration expenses went up £4.4m to £12.7m. However, I understand that the 2022-23 figure benefited from some one-off exceptional credits so the true increase was only in the order of £1m.




Exceptional items - £18.4m

This has been a major financial benefit to the club in the year, offsetting all of the increased cost referred to above. It consisted of three main elements

Settlement of a contractual dispute arising in a previous year which generated £5.8m.
Release of a provision in previous accounts no longer considered required - £0.7m and (most importantly).

Are we just 40mil in debt?

NO


£137.7mill in Debt includes £68mill to Vincent Tan.


But £40 plus mill is owed mainly to Mehmet Dalman and a Company which the details have never been made public, the Directors?

We pay £2.6mill a year interest to them.

Plus we pay Mehmet Dalmans wages who lives in Monaco and works in London and Ken Choo’s who lives and works in London.

INTEREST PAYABLE:


Interest payable was £2.6m (2023 £2.0m). Of this , a note to the accounts reveals that £2.1m of this interest was payable to Tormen Finance Inc. in which club Chair Mehmet Dalman has a significant involvement. This interest is stated to be at a rate of 6% per annum.

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Profit on player sales - £760K compared to £1.7m in 2023.

Players sold in the year (ie the Summer 2023 and January 2024 transfer windows) had an initial cost to the club of £6m but had been depreciated down to just £285k at the time of their disposal.

Stadium value- £84.5m.The stadium is on a 150 year lease from 2009 with the landlord being Cardiff City Council. The value of the stadium is supported by an independent professional valuation undertaken by Savills in 2023.

You do not have the required permissions to view the files attached to this post.

The accounts also reveal a “directors loan” of £3m from one of Vincent Tan’s sons U-Peng Tan.

Tan and Dalman believe they will win the case against Nantes FC now over 5 years old ?


TLG Aka David Sugarman very very knowledgeable: Asks a question?





Keith Morgan:

"There are enterprises that will buy the rights to all or parts of legal claims, but only if they believe that the claim has a very good chance of success. Therefore, it seems that it is just not the club and its legal advisors that continue to believe they will eventually succeed in their claim against Nantes but an independent third party who are willing to advance £12m - non refundable no matter what the outcome of the case."






Dave Sugarman aka TLG:


It would be interesting to know just how 'independent' the third party is...

Why would any 'enterprise' do this? What do they have to gain?

We received £5mill income from our insurance claim regarding Emiliano Sala, Tan wanted £15mill, We had to settle for £5mill, I wonder if we will ever know why we could not get the full amount ?

Besides the fact that they're an insurance company & they try to get out of paying anything to anyone all the time I doubt we'll ever know.

Besides the fact that they're an insurance company & they try to get out of paying anything to anyone all the time I doubt we'll ever know.

I agree, I would love to know the truth, the rumours were not good.

But it does show we did have some kind of insurance.

Dave Sugarman aka TLG:

.......Why would any 'enterprise' do this? What do they have to gain?

It says in the report..... a percentage of the claim.

It's basically a bet, but a bet that someone thinks is winnable.

Dave Sugarman aka TLG:

.......Why would any 'enterprise' do this? What do they have to gain?

It says in the report..... a percentage of the claim.

It's basically a bet, but a bet that someone thinks is winnable.

Yes I read that

Dave Sugarman aka TLG:

.......Why would any 'enterprise' do this? What do they have to gain?

It says in the report..... a percentage of the claim.

It's basically a bet, but a bet that someone thinks is winnable.

Yes I read that

https://x.com/kieranmaguire/status/1896 ... SD2aRt-GNg

Some people on social media are seeing this as good news just because the board have communicated it to fans.

I don't see it as good news, a lot of those numbers don't make pretty reading still.

Progress has been made but it's still not good.

Some people on social media are seeing this as good news just because the board have communicated it to fans.

I don't see it as good news, a lot of those numbers don't make pretty reading still.

Progress has been made but it's still not good.

Exactly and Spot on Ned

So dalmans companys intrest rate is 6% not 10% that's a good commercial rate tbf but who.are they ? , I was told that it's tans son which i told annis about a year ago but who knows , nothing really shocking in the accounts 11m loses again .

Some people on social media are seeing this as good news just because the board have communicated it to fans.

I don't see it as good news, a lot of those numbers don't make pretty reading still.

Progress has been made but it's still not good.

These accounts are no different to any other championship club who don't have parachute money, the good news is the investment in training facilities.

So the highest paid director is on 60k a year for the last year? ,probably choo as dalman has said he doesn't take a wage now but his company is making intrest payments

Loans from directors and connected parties:

Such loans have increased by additional loans received of £11,000,000, taking the resultant balance to £40,300,000.

It is the intention of the Club to start repaying these loans as soon as cash flow allows, or additional funding is received.

£40 plus £million now owed to others?
Can I ask at what interest?

It says Tans loans are at 7% but he waives the payments-effectively making them interest free.
The other loans are said to be at 6%.
6% for £11m unsecured lending is an extremely low interest rate. Would expect it to be nearer 10-12% tbh.

Dave Sugarman aka TLG:

.......Why would any 'enterprise' do this? What do they have to gain?

It says in the report..... a percentage of the claim.

It's basically a bet, but a bet that someone thinks is winnable.

It’s probably a private litigation funder. They agree to fund some or all of the costs of litigation, in return for a share of the payout. I would expect them to be paid at least £12m (on top of their £12m) in the event we win the case.
That’s a huge vote of confidence for them to plough that in. Especially on a non refundable basis.

I’ve always felt we’d win this particular case and guessed a potential settlement in the region of £60m-£80m.

Shrewd business by the club, as the figures would obviously look £12m worse without the injection.

Dave Sugarman aka TLG:

.......Why would any 'enterprise' do this? What do they have to gain?

It says in the report..... a percentage of the claim.

It's basically a bet, but a bet that someone thinks is winnable.

It’s probably a private litigation funder. They agree to fund some or all of the costs of litigation, in return for a share of the payout. I would expect them to be paid at least £12m (on top of their £12m) in the event we win the case.
That’s a huge vote of confidence for them to plough that in. Especially on a non refundable basis.

I’ve always felt we’d win this particular case and guessed a potential settlement in the region of £60m-£80m.

Shrewd business by the club, as the figures would obviously look £12m worse without the injection.

As frustrating as it may be , the first two questions can`t be disclosed (at least not yet) due to confidentiality agreements.

Some of the main losses are due to the on going Sala case, which Vincent Tan is gambling on winning.