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CCFC Accounts 2019-2020:




As at 31 May 2020 the club had loans of £48.9m due to Vincent Tan and £37.6m due to others.

Total debts £86.million

So Tan is now not our only debtor.


Banks have been lending the current board money at interest of course 6%.


The accounts show that the total paid in directors` remuneration was 2020 £712k (2019 £533k).

This included £507k (2019 £380k) paid to the highest paid director.

In addition note 28 to the accounts discloses that companies in which Mehmet Dalman had a significant interest received £586k in respect of consultancy and other professional services.
Dalman for consultancy fees received £967,000 in 2019.



Cardiff City’s Latest Accounts: Trust Chair Gives His Analysis


Wednesday June 2, 2021

Trust News

Keith Morgan

Trust chair Keith Morgan, accountant and football finance specialist, presents his present expert analysis of the latest audited accounts for the year ended May 31, 2020, submitted by Cardiff City Football Club (Holdings) Limited.




Summary

The club made a net loss for the year of £12.2m in its first season following relegation from the Premier League

As at May 31, 2020, it had net liabilities in the balance sheet of £24m

The directors have received a letter of support from the club`s principal shareholder in terms of his future intentions to provide funding for the club to enable it to continue operating for the foreseeable future.

The directors have expressed their strong confidence that the club continues to be compliant with the financial requirements of Profitability and Sustainability Rules (Financial Fair Play).

The club will continue to receive a “parachute payment” in financial year 2020-21 but not beyond that which will have an adverse impact on income of around £30m.



Financial Result For The Year – Statement Of Comprehensive Income

The club made an operating loss for the year of £23.8m compared to a small operating profit of £2.2m in the previous year to May 31, 2019. After accounting for a substantial profit on player sales and interest the loss for the year was reduced to £12.2m (2019 loss £755k).

The principal reason for the increased losses was the huge decline in income following the club`s relegation from the Premier League. Turnover fell from £125.2m in 2019 to £46.0m in 2020, largely due to a fall in broadcasting income of £70m from £107m to £37m. Gate receipts fell by £4m due to lower attendances at Championship level, and sponsorship, advertising, etc. also fell by £5m.

In addition, the club was badly impacted by Covid restrictions towards the end of the financial year. The postponement of the end of the season and its non-resumption until June meant that some £8.8m of TV revenue was deferred until the following financial year. Also, some £2.1m had to be repaid in respect of the club`s share of EPL refunds paid for matches not played under the overseas broadcasting agreement. Without these two amounts, totalling £10.9m the club would have shown almost a breakeven position for the year.

Despite the obvious great efforts by the club to reduce costs in the year (see below), to cover such a fall in income was virtually impossible but big savings were made, including the following:

Player-related wage costs were reduced by £14.6m from £42.5m to £27.9m. This accounted for a significant proportion of the overall saving in cost of sales of £34.8m.

Administrative expenses fell by £26.7m from £62.1m to £35.4m.

This was largely due to the fact that the 2019 figure included a provision of over £19m in respect of the legal case surrounding the Emiliano Sala transfer dispute with FC Nantes. In addition, a reduction in player impairment charges of £11.6m was enjoyed compared to 2019.


In the year to May 31, 2020, the club made a significant profit on the sale of players of £13.7m. In 2019 there was a much smaller profit made of £2.1m.




The Statement Of Financial Position as at May 31, 2020

As a result of the net loss of £12.2m in the year and a technical tax adjustment of £271k, the overall net liabilities of the club increased to £24.0m (assets of £123.8m and liabilities of £147.8m). The main assets and liabilities were as follows:

The value of the playing squad was £24.2m, very similar to that in 2019. £18.5m of player cost was added to the squad in the year and players initially costing £14.6m were disposed of, but those players had been depreciated down to a net nil value at the time of disposal (hence the large player transfer profit referred to above in the profit and loss account). Overall, player value was written down by £17.8m in the year (amortisation).

The Cardiff City Stadium was valued (based on an independent professional valuation carried out in 2018) at £81.0m, with other fixed assets such as fixtures and fittings having a value of £1.2m and training ground improvements of £314k.

As at May 31, 2020, the club was owed £14.4m by various debtors, most of which (£13m) related to future instalments due on player sales. It also had £2.4m of cash at bank and £207k of stocks.

Technically, the club had £118.6m of liabilities as at May 31, 2020, which were payable by May 31, 2021, or earlier. However, in reality, much of this didn`t have to be repaid in that timescale as explained in the following breakdown of some elements of that total figure

£45.9m was due to Vincent Tan and £3m due to his son U-Peng and as principal shareholder, this sum is unlikely to be required to be repaid in the short term. In fact, during the year Vincent Tan put a further net amount of £8.8m into the club by way of loans. There was no debt write-off or conversion of debt to shares in the year. All Vincent Tan loans are secured against all the assets of the club.

There were £37.9m of other loans made to the club as at the year-end, stated to be secured against guaranteed future income streams.

This would include future broadcasting money, plus future instalments due from other clubs arising from player sales. There are no charges registered at Companies House other than two in favour of Vincent Tan so it is assumed that the security for these loans is by means of an agreement with Vincent Tan through the security that he holds and has registered.




The club owed £3.9m in future instalments of transfer fees for players bought.

There is a figure of £20.2m for accruals. This included a sum of £8.8m which relates to parachute income and EFL basic award money which (because of the Covid-19 deferment of the season) did not take place until the following financial year which started on June 1, 2020. Also included is £2.1m relating to an EPL rebate due as the club`s share of broadcasting income refunded as a consequence of the deferral of matches at the end of the season.
A sum of £5.9m was due to other parties but not repayable for over one year after May 31, 2020, – secured as referred to above.

There remains a provision in the club`s accounts (as there was in the previous year) in respect of the ongoing legal dispute over the Emiliano Sala transfer. The figure is £20.7m but, as the accounts clearly note, no such sum is considered payable and will be extinguished after a subsequent hearing of the case by the Court of Arbitration for Sport. However, to comply with prudent accounting requirements, full provision continues to be made in the accounts.






Events After The Balance Sheet Date

The year to May 31, 2021, is also going to be very difficult financially for the club as Covid-19 has continued to have a major adverse impact on football generally for the whole of the 20-21 season. The continued cash flow support of Vincent Tan and other funders was mentioned at a recent meeting with fans` groups and the media and there is also some reference in the accounts (Note 29) to further funding of £34.8m received by undisclosed parties between May 2020 and the April 2021 signing of the accounts at interest rates of up to 9%. The same accounts note reveals that part of these funds was used in that period for the acquisition of new players at a cost of £5.2m.

The accounts were approved by the board of directors on April 19, 2021, and signed off as approved by the independent external auditors on April 26, 2021.

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Hi Keith,

Can you clarify, so what is our current updated debt? Did Vincent Tan withdraw any money? wages have come down Covid was only part of this season, am i correct as seven months had already gone before it hit football?

So does our club have other debtors than Vincent Tan? do we pay interest?

Keith, morning, i am also curious. Choo and Dalman what did they receive in these accounts? what are the expenses taking out of the club over all?
Council own the ground, we have 150 year lease do we pay rent?

i know this sounds stupid, but can you put it in a nutshell, what is the final over all debt still owed?

Administrative expenses fell by £26.7m from £62.1m to £35.4m.

So they were £62.1mill in 2019.
What do these expenses cover?

Hi Keith,

Can you clarify, so what is our current updated debt? Did Vincent Tan withdraw any money? wages have come down Covid was only part of this season, am i correct as seven months had already gone before it hit football?

So does our club have other debtors than Vincent Tan? do we pay interest?

As at 31 May 2020 (remember that is a year ago now) the club had loans of £48.9m due to Vincent Tan and £37.6m due to others.
During the year Vincent Tan put in £14m of new loans , and got some repayments coming to £5.1m. Other loans of £11m came in during the year from other lenders. The loans were needed to fund cash outflows during the year as normal trading activities didn`t generate enough cash to make payments such as £24.7m of instalments on player transfers in.

Wages costs did indeed come down from £53.7m to £35.6m following our relegation from the Premier League. Of this amount £27.9m related to player wages (2019 £42.5m). I expect the 2020/21 figure to be lower again and will also need to be next season in the absence of parachute money.

The 2020 loss figure was higher than it would normally have been because the season was delayed beyond the 31 May accounts date, so about £11m of income was carried forward into the next set of financial figures. Without this adjustment the 2019/20 accounts would have shown roughly a breakeven result rather than a loss.

Keith

Administrative expenses fell by £26.7m from £62.1m to £35.4m.

So they were £62.1mill in 2019.
What do these expenses cover?

They cover most expenses such as non playing staff wages , lease of the stadium and other stadium maintenance costs, depreciation of assets etc. The 2019 figure was also much higher because it included a provision of over £19m for settlement of the Emiliano Sala dispute.

Keith, morning, i am also curious. Choo and Dalman what did they receive in these accounts? what are the expenses taking out of the club over all?
Council own the ground, we have 150 year lease do we pay rent?

The accounts show that the total paid in directors` remuneration was £712k (2019 £533k). This included £507k (2019 £380k) paid to the highest paid director. In addition note 28 to the accounts discloses that companies in which Mehmet Dalman had a significant interest received £586k in respect of consultancy and other professional services.

Published accounts do not disclose costs such as travel and other expenses properly incurred by directors of the company in carrying out their duties, but the auditors will carry out checks to ensure that they are proper expenses incurred.

Basically without covid we would of broke even ,not too bad I think

Administrative expenses fell by £26.7m from £62.1m to £35.4m.

So they were £62.1mill in 2019.
What do these expenses cover?

They cover most expenses such as non playing staff wages , lease of the stadium and other stadium maintenance costs, depreciation of assets etc. The 2019 figure was also much higher because it included a provision of over £19m for settlement of the Emiliano Sala dispute.

Thanks Keith
How come SALA dispute now taken out?

Basically without covid we would of broke even ,not too bad I think

Yes that’s what my (very very limited) knowledge of accounts tells me too. Hopefully with a lower wage bill and fans back soon we’ll be looking a lot better.

Basically without covid we would of broke even ,not too bad I think

Mate Covid was less than 2 months of these accounts and its shocking what Dalman and Directors get. Dalman also said Tan was only debtor, more bullshit

Thanks Keith

Was the transfer money that came in to the club from the sales of Manga, Zohore and Decordova-Reid, which was approx £21.5 -£23m ??

Basically without covid we would of broke even ,not too bad I think

Mate Covid was less than 2 months of these accounts and its shocking what Dalman and Directors get. Dalman also said Tan was only debtor, more bullshit

The other debt might be Tan but a different company. Like when Sam was Langstone.

How is it shocking? Sam used to get over £600k a year and that was over 15 years back.

Basically without covid we would of broke even ,not too bad I think

Mate Covid was less than 2 months of these accounts and its shocking what Dalman and Directors get. Dalman also said Tan was only debtor, more bullshit

Covid shutdown caused the season to be deferred into June 2020 so about £11m of income for the season fell into the 2020/21 accounts not the ones now being reported on so without Covid the club would have reported a breakeven position for 2019/20.

Vincent Tan is a creditor not a debtor - he doesn`t owe any money to the club.

The other debt from the loan raised, would have been repaid as the TV money came in. Then this year we would have raised another loan and repaid it when the money comes through. Most clubs do this so they can have the money up front and control their cash flow, and repay the debt by the end off the year. So we'll se a similar instance in next year's accounting.

Hi Keith,

Can you clarify, so what is our current updated debt? Did Vincent Tan withdraw any money? wages have come down Covid was only part of this season, am i correct as seven months had already gone before it hit football?

So does our club have other debtors than Vincent Tan? do we pay interest?

As at 31 May 2020 (remember that is a year ago now) the club had loans of £48.9m due to Vincent Tan and £37.6m due to others.
During the year Vincent Tan put in £14m of new loans , and got some repayments coming to £5.1m. Other loans of £11m came in during the year from other lenders. The loans were needed to fund cash outflows during the year as normal trading activities didn`t generate enough cash to make payments such as £24.7m of instalments on player transfers in.

Wages costs did indeed come down from £53.7m to £35.6m following our relegation from the Premier League. Of this amount £27.9m related to player wages (2019 £42.5m). I expect the 2020/21 figure to be lower again and will also need to be next season in the absence of parachute money.

The 2020 loss figure was higher than it would normally have been because the season was delayed beyond the 31 May accounts date, so about £11m of income was carried forward into the next set of financial figures. Without this adjustment the 2019/20 accounts would have shown roughly a breakeven result rather than a loss.

Keith

Cheers Keith for a very well written explanation, appreciated

Basically without covid we would of broke even ,not too bad I think

Mate Covid was less than 2 months of these accounts and its shocking what Dalman and Directors get. Dalman also said Tan was only debtor, more bullshit

The other debt might be Tan but a different company. Like when Sam was Langstone.

just reading your reply to always blue, i believe Dalman has lent our club money at a very high interest rate.

Basically without covid we would of broke even ,not too bad I think

That's absolute rubbish and you know it.

These accounts cover a very short period of Covid. If the whole Covid period was represented, they would be far worse.


More bullshit from Dalman when he said the only debt we had was to Tan (even though Tan said we'd be debt free by now).

The other debtors aren't registered charges at companies house but they're still debts.

In these accounts, Tan has still not converted any of our debts to him to shares.


The money taken out of the club by these people is a disgrace.

Basically without covid we would of broke even ,not too bad I think

That's absolute rubbish and you know it.

These accounts cover a very short period of Covid. If the whole Covid period was represented, they would be far worse.


More bullshit from Dalman when he said the only debt we had was to Tan (even though Tan said we'd be debt free by now).

The other debtors aren't registered charges at companies house but they're still debts.

In these accounts, Tan has still not converted any of our debts to him to shares.


The money taken out of the club by these people is a disgrace.

Worcester, i could not of put it better.
Wez, supports Dalman, tan no matter what even when its their in black and white, Wez should be putting our club first instead he backs Dalmans shite, unbelievable

Basically without covid we would of broke even ,not too bad I think

Yes that’s what my (very very limited) knowledge of accounts tells me too. Hopefully with a lower wage bill and fans back soon we’ll be looking a lot better.

Covid did not effect football till the last week of March 2020, majority of matches already played

Basically without covid we would of broke even ,not too bad I think

That's absolute rubbish and you know it.

These accounts cover a very short period of Covid. If the whole Covid period was represented, they would be far worse.


More bullshit from Dalman when he said the only debt we had was to Tan (even though Tan said we'd be debt free by now).

The other debtors aren't registered charges at companies house but they're still debts.

In these accounts, Tan has still not converted any of our debts to him to shares.


The money taken out of the club by these people is a disgrace.

Did you not read kieths piece or are you just ignoring the fact that the loss was down to having to reimburse tv monies and other costs due to covid ? So it not rubbish at all the only charges are Tan and thats a fact the 39 million debt is Tans company too ,do the research please tan borrowed the club 39 million in the season we went up against future TV monies for cash flow it was in the last accounts

Basically without covid we would of broke even ,not too bad I think

Yes that’s what my (very very limited) knowledge of accounts tells me too. Hopefully with a lower wage bill and fans back soon we’ll be looking a lot better.

Covid did not effect football till the last week of March 2020, majority of matches already played

It effected the TV monies football stopped in the 1st week of march nearly 3 months of matches

Basically without covid we would of broke even ,not too bad I think

Yes that’s what my (very very limited) knowledge of accounts tells me too. Hopefully with a lower wage bill and fans back soon we’ll be looking a lot better.

Covid did not effect football till the last week of March 2020, majority of matches already played

Ok mate. I did say ‘ver limited’ knowledge

Thanks Keith

Was the transfer money that came in to the club from the sales of Manga, Zohore and Decordova-Reid, which was approx £21.5 -£23m ??

I think that comes under the future transfer incomes as it always gets paid in installments

What i have worked out is the sale of our players saved us, bringing in over £22mill, plus about £35mill from parachute payments.

Administrative expenses fell by £26.7m from £62.1m to £35.4m.

So they were £62.1mill in 2019.
What do these expenses cover?

They cover most expenses such as non playing staff wages , lease of the stadium and other stadium maintenance costs, depreciation of assets etc. The 2019 figure was also much higher because it included a provision of over £19m for settlement of the Emiliano Sala dispute.

Thanks Keith
How come SALA dispute now taken out?

The potential cost of settling the matter has not been taken out , it is still there as a provision in the balance sheet at a figure of £20.7m but this is only slightly up from the figure of £19.5m when first allowed for in 2019 so the cost in the 2020 profit and loss account is only the difference of £1.2m.

Basically without covid we would of broke even ,not too bad I think

That's absolute rubbish and you know it.

These accounts cover a very short period of Covid. If the whole Covid period was represented, they would be far worse.


More bullshit from Dalman when he said the only debt we had was to Tan (even though Tan said we'd be debt free by now).

The other debtors aren't registered charges at companies house but they're still debts.

In these accounts, Tan has still not converted any of our debts to him to shares.


The money taken out of the club by these people is a disgrace.

Did you not read kieths piece or are you just ignoring the fact that the loss was down to having to reimburse tv monies and other costs due to covid ? So it not rubbish at all the only charges are Tan and thats a fact the 39 million debt is Tans company too ,do the research please tan borrowed the club 39 million in the season we went up against future TV monies for cash flow it was in the last accounts

I did read it. Did you, or did you just pick the bits out that you want to hear?




My point was that this is a very short of covid represented, and next year will be a lot worse. My comment of "absolute rubbish" was you saying that it's not too bad.


Most of the debts may well be to Tan's companies (even though he promised we'd be debt free).

Not forgetting the small amount of money we owe in future transfer fees and all the money we'll have to pay when we lose the Sala case.



But it's pointless even talking to you about it, you'll defend Tan no matter what.

Basically without covid we would of broke even ,not too bad I think

That's absolute rubbish and you know it.

These accounts cover a very short period of Covid. If the whole Covid period was represented, they would be far worse.


More bullshit from Dalman when he said the only debt we had was to Tan (even though Tan said we'd be debt free by now).

The other debtors aren't registered charges at companies house but they're still debts.

In these accounts, Tan has still not converted any of our debts to him to shares.


The money taken out of the club by these people is a disgrace.

In addition, the club was badly impacted by Covid restrictions towards the end of the financial year. The postponement of the end of the season and its non-resumption until June meant that some £8.8m of TV revenue was deferred until the following financial year. Also, some £2.1m had to be repaid in respect of the club`s share of EPL refunds paid for matches not played under the overseas broadcasting agreement. Without these two amounts, totalling £10.9m the club would have shown almost a breakeven position for the year.

Thanks Keith

Was the transfer money that came in to the club from the sales of Manga, Zohore and Decordova-Reid, which was approx £21.5 -£23m ??

Honestly don`t know as I never remember who we sold when.

The profit of £13.7m from selling players in the year was from sales in the Summer 2019 and January 2020 transfer windows so it is whoever we sold then. That is the profit and we received far less in cash in the year from player sales as most deals are paid for in instalments. We got less than £2.3m in cash from the sales in the year and were owed a further £13m in instalments as at the year end, £7.1m due by now (to help the 2020/21 cash flows) and £5.9m due next season). On the other side of player cash , we paid out £24.7m cash in player transfer monies in the year and owed a further £3.9m in instalments as at the year end.