All that Premier League television money and they still make a £12 million loss!

CoymayCardiff City’s Annual Accounts for the year ending 31 May 2014 were filed at Companies House recently and are now available for public inspection – as usual, they should make for sobering reading for any City fan who is, like me, unable to look at the club as something that exists for ninety minutes once or twice a week (i.e. when the team plays) and can be forgotten about for the rest of the time. I’ve long gone past the “oh well, things can’t get any worse” stage, because, quite clearly, they can.

Anyway, rather than have me try to make sense of what’s in the Accounts, it makes much more sense to see how someone who knows what they are talking about interprets them, so, I’d advise anyone who wants the lowdown on the club’s finances to read the views of City Supporters’ Trust Committee Member and Treasurer, Keith Morgan – Keith, is an Accountant who specialises in Football finance and his piece on the City’s latest figures can be read here.

 

A splendidly appropriate photo I think!*

A splendidly appropriate photo I think!*


There are a few observations I’d like to make about the Accounts;-

1. Last year I did a piece on here about the “Administration Expenses” figure that appears in the Accounts every year. It showed that a large percentage of our annual losses and total debt was made up of these expenses, yet there is never anything in the Accounts to indicate what they are exactly. The latest Accounts show that, after more than doubling to £15,856,000 in 12/13, they came in at an incredible £39,775,000 in 13/14.

Now, I presume that the figure covers at least some of the expenditure during that period in new signings/wages etc., but we are in a position whereby a sum that amounts to virtually half of the company’s turnover and two thirds of the television income last season were accounted for by a category that is not explained by the club!

2. At the time of the rebrand (May 2012), Cardiff City’s overall debt was put at £83 million – two years down the road, the debt had grown by a further £74 million. As to whether the 2015 Accounts will show a further increase in the money owed, I suppose it comes down to a question of whether the money saved in wages, the cost cutting seen during the January transfer and a profit in the transfer market in the summer of 2014 as some high earners left the club, compensates for the loss of Premier League television income. Looking at things from a positive perspective, I believe it may well do when you consider that there is also a substantial relegation parachute payment to be taken into account. However, even if my optimism is justified, the level of debt is, surely, going to be substantially higher come May 31 than it was three years earlier.

Back in May 2012 we had a team, assembled at a very small cost, that had finished sixth in the Championship and played in a Cup Final a couple of months earlier – the latter is certainly not going to apply on 31 May and surely no one in their right mind believes that the former will either. So, in all likelihood, three years of more “hands on” leadership from Vincent Tan has seen debt levels almost double, a much worse showing on the pitch from a far more expensive squad of players at the club, a pointless stand extension built which only serves to showcase even more how much crowds have suffered in the on field decline and, almost certainly, the worst season ticket sales in years – whatever financial acumen Mr Tan has that he has benefited from in his business career, is, assuredly, not finding it’s way into his football dealings.

* picture courtesy of Jed Leicester/Action Images

 

 

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A win at last as mid table mediocrity beckons.

CoymayMany pundits will tell you that the Championship is the most competitive league in Europe – actually, scrub that, the world. It’s the league where the most humble of sides can beat the recently fallen “Premier League giants” on any given day, a league where nothing can ever be taken for granted.

Well, after the latest round of Championship fixtures, the “most competitive league in the world” is shaping up to be pretty predictable in 2014/15. With the season just over two thirds completed, it’s still a little early to say for certain that this will come to pass, but, as things are shaping up, the teams to be promoted and relegated look to be coming from small groups at the top and bottom of the table.

Things look pretty clear cut to me at the top – Forest fans will be telling themselves that a win over Bournemouth tonight would put them right back in the Play Off hunt, but that ten point gap between themselves and Wolves in eighth looks a very big one to me. At the lower end of the table, there is a pretty widespread consensus that the bottom two are already gone and no one is giving Millwall much of a chance at the moment – Rotherham need to look out for themselves after two heavy defeats and Fulham are still very erratic, but people have been telling me for some time that the current bottom three would be the ones to be relegated and. as of now, I can’t mount much of an argument against them.

This of course presupposes that Cardiff City are not going to become major players in the end of season relegation drama. Such a possibility looked to be well and truly on the cards as January ended, but, with one match to go in the month, February has been a steadying period for the side and last night’s very significant 1-0 win at Wigan means that, besides picking up their first victory since beating Fulham in the back to blue match on 10 January, it’s now five matches since a defeat for Russell Slade’s team.

So, although further dramas at the bottom of the table cannot be discounted completely given the club we are talking about here, all of the signs are that City are going to see out the final couple of months of the campaign in a mini league comprising of about half the sides in the division where the prize for success will be a ninth placed finish and the price of failure will be coming about twentieth in the table.

Aron Gunnarsson's calmly finishes off one of City's best solo goals of recent seasons - it was a moment of class completely out of keeping with a game played between two struggling teams on a very poor pitch.*

Aron Gunnarsson’s calmly finishes off one of City’s best solo goals of recent seasons – it was a moment of class completely out of keeping with a game played between two struggling teams on a very poor pitch.*

Even if we end up winning the mid table battle to be “best of the rest”, I’m fairly sure a finish just inside the top ten will be deemed not good enough by many (including owner and Board I daresay) – even with last month’s cost cutting exercise, this is still a very expensively assembled squad.

I’d like to think that the fact I’m not using hindsight would be proved by a look back at some of my pieces on here from earlier in the season when I said that I was never convinced that our squad was as good as many claimed. Truth be told, I didn’t expect the level of performance from them to be as consistently poor as is has been, but I’d like to think that, basically, I had this squad figured out – there were others in the division that I got spectacularly wrong however.

Although it might have not have seemed like it after watching us toil against the likes of Rotherham, Reading and Brighton, it seems that there are worse sides than us in the division. For example, by completing our first double of the season in beating Wigan, we have, surely, shown that they are inferior to us.

Back in August the score was the same when the two clubs met at Cardiff City Stadium, but, back then, the game was seen by many as being very significant because, even then, the three points at stake were seen to be potentially very important at the top of the table come the end of the season. As mentioned earlier, I was not sure that this would prove to be the case for City, but I was convinced pre season about our opponents – I ended my piece about the game by saying “Wigan might have made a poor start, but it’s hard to see them struggling for long” (in fact, they and Norwich were my pre season tips for automatic promotion).

Anyone who says they saw Wigan’s troubles this season coming is a liar in my book – earlier I talked about the Championship’s competitiveness, so seeing a fancied team struggle shouldn’t be too much of a shock, but Wigan are now in real danger of becoming tailed off at the bottom of the league with Blackpool. I’ve looked at their season from afar and thought that they’ve got to start picking up results soon with the squad they’ve got and on the face of it, home matches against Charlton and Cardiff in the space of the last five days represented a great chance to kickstart a revival, but both games were lost without a goal being scored.

In fact, after beating Blackpool and Birmingham at the DW Stadium at the back end of August in the two matches following their defeat here, Wigan have been winless at home since then and it’s now just one point from eight home games after last night’s defeat – teams don’t avoid relegation with records like that.

The home team’s travails should be a warning to City as they, seemingly, face a second season in the Championship following relegation  – Wigan had the advantage of another season of parachute payments and, leaving the sort of matters that prompted a boycott of the home Director’s Box by City Board members to one side for now, had an owner who, from a distance anyway, seemed pretty clued in when it came to football in a way that we are not used to at Cardiff. However, at the age of 78, it appears that Dave Whelan’s sure touch has deserted him – the appointment of Malky Mackay was a huge gamble which is just not working.

Settings aside the baggage that appointing Mackay following the nature of his departure from Cardiff brings, I find it startling how his stock has fallen so far in such a short space of time. The clues are there that his relationship with Vincent Tan had broken down when Manchester City were beaten back in August 2013 and so, even at the time of our greatest triumph in the Premier League, the writing may well have been on the wall for him already.

However, go back a few months to the close season and all of the talk was how we had one of best young managers in the game and the persistent rumours about him becoming David Moyes’ successor at Everton were never dismissed as being too outlandish to be true – Mackay to Everton seemed perfectly reasonable at the time. Now, less than two years on, whatever it was that marked him out as a manager to watch has gone. Wigan have taken a meagre eight points from his sixteen games in charge and their record under him is far worse than it was under the man he replaced (Uwe Rosler).

Predictably, Kimbo was widely regarded as Wigan's best player on a night when he faced his former club- what's done is done now, and Kimbo was very poor in the first team matches he played this season, but I hope that the days of City giving away such naturally talented players are over now.*

Predictably, Kimbo was widely regarded as Wigan’s best player on a night when he faced his former club- what’s done is done now, and Kimbo was very poor in the first team matches he played this season, but I hope that the days of City virtually giving away such naturally talented players are over now.*

Maybe Mackay can resurrect his managerial career yet. I’ve got my doubts about that though on two fronts, will he be able to recapture whatever it was that made him good, but, maybe more importantly, will the desire be there to try again if, as seems likely, it ends in tears for him at Wigan?

After the game, Mackay declared himself to be touched by the reception he got from the City fans before kick off – sure, plenty of bridges have been burned over the last fifteen months or so with large sections of the club’s support and I’m not going to tell those that have no time for the man any more that they are wrong to feel like that, but I look at him and what has happened to us since he left and I can’t help thinking about how things could have been.

We are where we are though and Russell Slade’s side produced more of what we have seen from them in their previous four matches at Wigan – it’s not pretty (apart from a few occasions against Blackburn about which I’m already beginning to question myself as to whether they really happened!), but, built around the solidity of our centrebacks, it’s solid and was able to survive the loss through injury of our two new full backs.

I say it’s not pretty, but it needs to be recorded that we scored one of our better goals of the season last night as a central midfielder burst forward, beat three opponents and slotted the ball confidently home. Even when he was playing his most effective football for City, I’m not sure if I had asked someone who had not seen the goal who the scorer was based on that description, I doubt it very much if I would have got the answer Aron Gunnarsson, but Gunnarsson it was.

Actually, at the risk of falling into a trap I’ve been caught in a few times already this season, I’d say that Gunnarsson is one of two much criticised members of the current squad who have stepped their game up in the last month or so. While the search for signs of the Peter Whittingham that was regarded as the best player in this league once goes on, his midfield partner is looking more like his old self and at the back, Sean Morrison is beginning to provide some evidence as to why we paid so much for him back in August – Bruno Manga’s more eye catching defending is the inspiration behind a record of two goals conceded in five matches, but Morrison’s steady work alongside him should not be ignored either.

* pictures courtesy of http://www.walesonline.co.uk/

 

 

 

Posted in Out on the pitch, The Championship | Tagged , | 3 Comments