the boy who cried "material uncertainty"

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basilrobbie3

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When people debate the issue of the English football pyramid, it's often said that the threat is overstated - even deliberately exaggerated.

I don't believe that, but it is not an an unreasonable theory when you consider that we've not lost a club at the higher end of the pyramid in quite a while now.

It's worrying though that in the last week we have seen at least three clubs publish accounts that have been qualified by either accountants, auditors, or both, as showing "a material uncertainty"about the club in question's ability to continue as a going concern. You can only hope that these threats recede, but it all looks a lot more precarious now than it has for some time. This isn't just about clubs being starved of money ; two of the three clubs concerned are currently in the EPL.

As for Birmingham City, in 2022/23 for every £100 they earned in revenue, they paid out £147 in wages. This is by no means unusual in the Championship ; and you can see the dilemma clubs face when you consider that practically the only club in that Division who makes a real effort to balance their books are currently languishing in 24th place and 20 points from safety.
 
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Another club to add to the "material uncertainty" list is Blackburn Rovers.

Latest accounts show that :

  • wages ran at around 140% of turnover ; and
  • on turnover of £21m, the club declared losses of..... 21m
  • historic debts are well in excess of £320m

It's little wonder that the auditor and accountants are concerned. The worries about the Venky's relationship with the Indian Government haven't helped much, even though they are maintaining it is all business as usual.
 
Those numbers are staggering. I guess if someone is prepared to cover those losses then that’s up to them.
It does show just how difficult it will be for us to compete should we ever get back in the Championship. I certainly wouldn’t want us to get involved in that nonsense, or expect SS to subsidise us more than he already is doing. The importance of developing out our players and recruiting smartly has never been clearer.
 
BIG_BERTHA_3 said:
Is this the same Birminham City that have just announced plans for anew ground and training complex? Im bemused .😕
Jonty Castle will have to do abit of overtime me thinks 😉
www.mirror.co.uk

Birmingham City's new stadium plans as owners plot transformative development

Knighthead Capital have owned Championship side Birmingham City since last summer and have now unveiled stunning new plans for the club involving a move away from St Andrews
www.mirror.co.uk www.mirror.co.uk
Click to expand...
Gary Cook is the idiot CEO, formerly of Man City. Will most likely be bullshit
 
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