2011 ACCOUNTS

[PurpleCanary 6,389]

What follows is as nerdy is you can get - and long - and won''t interest everyone. But finance is at the bottom of football. For those who are interested, to simplify matters I have lighted upon three abbreviations ; OR for the Old Regime, NR1 for the first year of the revamped board, in League One, and NR2 for this last year, in the Championship, to which these accounts apply.

 

However it would be a mistake to read too much into this apparent regime change. In day to day and week to week matters, relevant. Less so for the long-term big picture stuff. If you are two experienced business people - as Smith and Jones are - and you own a multi-million pound company, and you sit on the board, then you run it. And there is a move in prospect that points that up.

 

The company rule about directors having to retire at 70 is being scrapped. Assuming it gets passed at the AGM. Presumably this is because Delia has hit that age and otherwise would have to step down at this AGM. On the same subject, Foulger''s purchase of £2m worth of shares takes his holding to 98,200, and to 15.9 per cent of the total, while reducing Smith and Jones''s to 53.1 per cent. But if you add them together they come to 69 per cent of the increased share capital, whereas before this triumvirate owned 64.5 per cent. Not a vast difference, but if Foulger - as has always seemed the case - is generally a Smith and Jones loyalist then his share purchase buttresses their position rather than undermining it. Fry''s elevation to the board can sensibly be seen to an extent in that light as well. Smith and Jones may not order the paper clips, but the company still runs the way they want it to run.

 

One other AGM motion is to change our accountants, from Grant Thornton to BDO. Both national companies. Both with branches in Norwich. No explanation for this in the bumpf.

 

Moving on to the accounts, two small signs of financial stringency. Firstly, charitable donations. In 2009 (OR) the club gave £5,000 to Football in the Community. That fell to £2,000 last year (NR1) and has stayed at £2,000 (NR2). Secondly, payments to suppliers. The club gives a ratio figure for paying trade creditors. This has risen from 22 days (OR) to 64 days (NR1) to now 78 days (NR2).

 

As has been reported the club made a post-tax loss of £3.9m, compared with £5.7m the year before, with turnover sharply up from £16.7m to £23m. A similar rise in operating expenses. A different - higher - division, of course, which plainly has affected many of the reported figures. For example, the player wage costs as a percentage of turnover, which the club has as a key indicator, rose from 40 per cent to 47 per cent. And our figures will continue to be difficult to compare, given that the next set of accounts will be Premier League-based. It would help we nerds if the club could stay put in one division for more than one season.

 

The club, with some reason, has trumpeted the operating profit (before exceptionals) of £1.7m, against a previous loss of £1.4m. The problem, if it is a problem, is that there are always exceptionals. As there were the year before. Whether it is, as in this case promotion bonuses, or paying off a failed manager. The likelihood is that if we stay up there will be more exceptionals. It is an exceptional year when they aren''t any.

 

While on wages, and performance bonuses and the like, McNally''s total package (including benefits and bonuses) has risen an eye-watering £657,000, to £871,000. Not quite what it seems . That includes Premier League promotion and other bonuses totalling £582,000.

 

Meanwhile the number of non-football employees has continued to drop. The old regime had already started to cut numbers slightly, and then there was a significant post-relegation fall from 131 to 112. But even back in the Championship there has been another cut, to 102. That numbers have continued to fall despite that promotion back is perhaps slighty surprising. It makes a three-year drop in staff numbers of 23.8 per cent.

 

---

 

Don''t miss the exciting part two - debt and how much we still owe!

[lappinitup 629]

[quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]PC, how much was the TV money compared with the season before in League One?

[Tangible Fixed Assets anyone? 0]

While on wages, and performance bonuses and the like, McNally''s total package (including benefits and bonuses) has risen an eye-watering £657,000, to £871,000. Not quite what it seems . That includes Premier League promotion and other bonuses totalling £582,000.

 

So £871k - £582k = basic £289k.   Which is about £100k more than Doncaster got.

I look forward to hearing the justification for the £582k bonus given that he gets paid £289k to do his job!

 

 

[newyorkcanary 14]

You need to really ask what McNally''s justification is to his bonus? Look at us now and look at us 2 years ago. McNally played an important role in getting us to the Prem. I''m happy he is well paid. That can only mean Lambert is similarly well paid. I''d say right now is the least appropriate time to be questioning NCFC wage packets. They can''t be doing their job any better than they are right now!

[Canary_on_the Trent 0]

I find it quite remarkable that we''ve won back-to-back promotions with players wages to turnover ratio''s of just 40% and 47%.

Many clubs outside the Premier League push this figure close to and sometimes over 100% as they strive for promotion and the riches that come with it.

Part of me believes there should be a salary cap in terms of this ratio, in order to prevent clubs from over-extending themselves and putting themselves at risk but that would only push Manchester United etc. further ahead and how would relegated clubs manage with such a fall in turnover?

[Tangible Fixed Assets anyone? 0]

I dont have a problem with Lambert, Culverhouse etc and the players getting well paid after all they were responsible for what happened on the pitch.  However I couldnt remember McNally playing for us!

As I say it will be interesting to hear the justification for McNallys bonus and the forthcoming AGM is the appropriate time for it to be justified.

 

[lappinitup 629]

[quote user="newyorkcanary"]You need to really ask what McNally''s justification is to his bonus? Look at us now and look at us 2 years ago. McNally played an important role in getting us to the Prem. I''m happy he is well paid. That can only mean Lambert is similarly well paid. I''d say right now is the least appropriate time to be questioning NCFC wage packets. They can''t be doing their job any better than they are right now![/quote]Worth every penny considering the guaranteed £90m the Prem is worth. Imagine the outcry if he left because we didn''t match his ambitions. Remember Mike Walker?

[Bury Yellow 2]

So maybe McNally is earning £100k more than Doncaster. Your problem is?

I should add that the assumption that S & J are still running the company would not bear too close examination in practicality.

For example, if our Chairman and CE had a falling out with S & J and decided to move on out, I don''t think our finance houses would be too happy that the very people responsible for restructuring our finances had gone!!!

Make no mistake, the prime mover that has found us in such a wondrous position is one Mr Bowkett plus the Chief Exec.

[Tangible Fixed Assets anyone? 0]

[quote user="lappinitup"][quote user="newyorkcanary"]You need to really ask what McNally''s justification is to his bonus? Look at us now and look at us 2 years ago. McNally played an important role in getting us to the Prem. I''m happy he is well paid. That can only mean Lambert is similarly well paid. I''d say right now is the least appropriate time to be questioning NCFC wage packets. They can''t be doing their job any better than they are right now![/quote]Worth every penny considering the guaranteed £90m the Prem is worth. Imagine the outcry if he left because we didn''t match his ambitions. Remember Mike Walker?
[/quote]

McNally doesn''t manage the team, Lambert does.

I dont think anybody is questioning whatever bonus Lambert received because he''s earnt it. We''re questioning McNally''s bonus of £582K on top of a basic (incl benefits) of £289k.

[T 191]

I don''t have the figures but no doubt the explanation will be that is the going rate for a premiership CEO.

[PurpleCanary 6,389]

[quote user="lappinitup"][quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]

PC, how much was the TV money compared with the season before in League One?
[/quote]

 

lappin, the accounts don''t exactly specify, but if - as I suspect - the relevant figures are those that come under income from the FA and the league, then TV money was roughly £1.6m in League One and £5.5m this last year in the Championship. Of course the next accounts will show a quantum leap.

[Buncey 1]

[quote user="Tangible Fixed Assets anyone"]

I dont have a problem with Lambert, Culverhouse etc and the players getting well paid after all they were responsible for what happened on the pitch.  However I couldnt remember McNally playing for us!

As I say it will be interesting to hear the justification for McNallys bonus and the forthcoming AGM is the appropriate time for it to be justified.

 

[/quote]A valid question TFA, altogether the bonuses accounted for nearly £4m, a quarter of the normal wage bill, which is very significant. What is more concerning from my point of view is that if similar levels of compensation are negotiated for maintaining our premier league status, then combined with us having to pay back loan notes of around £10m by the end of 2013, how much breathing room does that leave Lambert to strengthen the squad next summer?

[Legend Iwan 30]

[quote user="Bury Yellow"]So maybe McNally is earning £100k more than Doncaster. Your problem is? [/quote]

He''s not going on about McNally earning another 100k on top of Doncaster, but the 580k he received in bonuses. Which I think is a perfectly valid question. Don''t get me wrong, I know he has played a huge part in our miracle turnaround, however I would like to see the breakdown of said bonuses.

[PurpleCanary 6,389]

[quote user="Fellas"][quote user="Tangible Fixed Assets anyone"]

I dont have a problem with Lambert, Culverhouse etc and the players getting well paid after all they were responsible for what happened on the pitch.  However I couldnt remember McNally playing for us!

As I say it will be interesting to hear the justification for McNallys bonus and the forthcoming AGM is the appropriate time for it to be justified.

 

[/quote]

A valid question TFA, altogether the bonuses accounted for nearly £4m, a quarter of the normal wage bill, which is very significant. What is more concerning from my point of view is that if similar levels of compensation are negotiated for maintaining our premier league status, then combined with us having to pay back loan notes of around £10m by the end of 2013, how much breathing room does that leave Lambert to strengthen the squad next summer?
[/quote]

 

Fellas, I am now looking at where we stand with debt, and plan to post something later, but that is a valid point. With Premier League income come Premier League costs. You also have to factor in possible stadium expansion, which the club have costed at £20m PLUS £1.4m in lost income.

[UEA Canary 0]

For the job McNally has done, he deserves every penny of that bonus. I don''t think people realise how important his role is. Just look at the work he does compared to Doncaster, he is a crucial component of the whole success of the club. He''s the one that makes the money to give Lambert funds to get the players he wants.

[lappinitup 629]

[quote user="PurpleCanary"]

[quote user="lappinitup"][quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]PC, how much was the TV money compared with the season before in League One?[/quote]

 

lappin, the accounts don''t exactly specify, but if - as I suspect - the relevant figures are those that come under income from the FA and the league, then TV money was roughly £1.6m in League One and £5.5m this last year in the Championship. Of course the next accounts will show a quantum leap.

[/quote]Thanks Purple, I had a £4m figure in the back of my mind so about right.So, if we remove the £5.5m from the £23m turnover then add the £40m from the Prem, the next accounts should show a turnover in excess of £57m. If my mathematics are correct, McNally''s bonus is chickenfeed by comparison.

[Tangible Fixed Assets anyone? 0]

[quote user="Bury Yellow"]So maybe McNally is earning £100k more than Doncaster. [/quote]

Just merely stating a fact about the basic package.  However I am looking forward to hearing the justification of the bonus.

[Tangible Fixed Assets anyone? 0]

[quote user="lappinitup"][quote user="PurpleCanary"]

[quote user="lappinitup"][quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]

PC, how much was the TV money compared with the season before in League One?
[/quote]

 

lappin, the accounts don''t exactly specify, but if - as I suspect - the relevant figures are those that come under income from the FA and the league, then TV money was roughly £1.6m in League One and £5.5m this last year in the Championship. Of course the next accounts will show a quantum leap.

[/quote]Thanks Purple, I had a £4m figure in the back of my mind so about right.

So, if we remove the £5.5m from the £23m turnover then add the £40m from the Prem, the next accounts should show a turnover in excess of £57m. If my mathematics are correct, McNally''s bonus is chickenfeed by comparison.
[/quote]

Comrade Lapdog,

How many goals did McNally score for us last season?

BTW I think they have already said that turnover for this season (2011 -12) will be over £60m.

 

[Tangible Fixed Assets anyone? 0]

[quote user="PurpleCanary"][quote user="Fellas"][quote user="Tangible Fixed Assets anyone"]

I dont have a problem with Lambert, Culverhouse etc and the players getting well paid after all they were responsible for what happened on the pitch.  However I couldnt remember McNally playing for us!

As I say it will be interesting to hear the justification for McNallys bonus and the forthcoming AGM is the appropriate time for it to be justified.

 

[/quote]

A valid question TFA, altogether the bonuses accounted for nearly £4m, a quarter of the normal wage bill, which is very significant. What is more concerning from my point of view is that if similar levels of compensation are negotiated for maintaining our premier league status, then combined with us having to pay back loan notes of around £10m by the end of 2013, how much breathing room does that leave Lambert to strengthen the squad next summer?
[/quote]

 

Fellas, I am now looking at where we stand with debt, and plan to post something later, but that is a valid point. With Premier League income come Premier League costs. You also have to factor in possible stadium expansion, which the club have costed at £20m PLUS £1.4m in lost income.

[/quote]

Hi Purple Canary,

Regarding the £20m for ground expansion, is that a figure quoted in the recently published Accounts or sourced from elsewhere? They were quoting £15m for a new GW. (City) stand.

Thanks

[Tangible Fixed Assets anyone? 0]

[quote user="T"]I don''t have the figures but no doubt the explanation will be that is the going rate for a premiership CEO.[/quote]

But last season (2010 -11) he was a Championship CEO.

[Tangible Fixed Assets anyone? 0]

[quote user="UEA Canary"]For the job McNally has done, he deserves every penny of that bonus. I don''t think people realise how important his role is. Just look at the work he does compared to Doncaster, he is a crucial component of the whole success of the club. He''s the one that makes the money to give Lambert funds to get the players he wants.[/quote]

If its going into McNallys pocket as a bonus then its not heading into Lamberts player budget, is it?

 

[Tangible Fixed Assets anyone? 0]

Chase is looking like excellent value for money!

[lappinitup 629]

[quote user="Tangible Fixed Assets anyone"][quote user="lappinitup"][quote user="PurpleCanary"]

[quote user="lappinitup"][quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]PC, how much was the TV money compared with the season before in League One?[/quote]

 

lappin, the accounts don''t exactly specify, but if - as I suspect - the relevant figures are those that come under income from the FA and the league, then TV money was roughly £1.6m in League One and £5.5m this last year in the Championship. Of course the next accounts will show a quantum leap.

[/quote]Thanks Purple, I had a £4m figure in the back of my mind so about right.So, if we remove the £5.5m from the £23m turnover then add the £40m from the Prem, the next accounts should show a turnover in excess of £57m. If my mathematics are correct, McNally''s bonus is chickenfeed by comparison.[/quote]

Comrade Lapdog,

How many goals did McNally score for us last season?

BTW I think they have already said that turnover for this season (2011 -12) will be over £60m.

 

[/quote]Well done Tangy, the only relevant comment in your post was the last line and I had already said "the next accounts should show a turnover in excess of £57m". Glad you agree.

[PurpleCanary 6,389]

[quote user="Tangible Fixed Assets anyone"][quote user="PurpleCanary"][quote user="Fellas"][quote user="Tangible Fixed Assets anyone"]

I dont have a problem with Lambert, Culverhouse etc and the players getting well paid after all they were responsible for what happened on the pitch.  However I couldnt remember McNally playing for us!

As I say it will be interesting to hear the justification for McNallys bonus and the forthcoming AGM is the appropriate time for it to be justified.

 

[/quote]

A valid question TFA, altogether the bonuses accounted for nearly £4m, a quarter of the normal wage bill, which is very significant. What is more concerning from my point of view is that if similar levels of compensation are negotiated for maintaining our premier league status, then combined with us having to pay back loan notes of around £10m by the end of 2013, how much breathing room does that leave Lambert to strengthen the squad next summer?
[/quote]

 

Fellas, I am now looking at where we stand with debt, and plan to post something later, but that is a valid point. With Premier League income come Premier League costs. You also have to factor in possible stadium expansion, which the club have costed at £20m PLUS £1.4m in lost income.

[/quote]

Hi Purple Canary,

Regarding the £20m for ground expansion, is that a figure quoted in the recently published Accounts or sourced from elsewhere? They were quoting £15m for a new GW. (City) stand.

Thanks

[/quote]

 

Tangible, this is from Bowkett and McNally at the last AGM, talking, as you will see, about knocking down the City Stand and starting afresh:

But [McNally] he pointed out that it cost about £2,500 per seat in a “new build”, so it would cost £20m to increase capacity by 8,000.

City would lose £1.4m in gate income from lost capacity while building work was in progress and it would take nine years to pay back the building cost, he said, adding that they would consider expanding the stadium only after two consecutive years in the Premier League.“ Only then would it be a viable proposition,” he said.

Club chairman Alan Bowkett said after the meeting that one side of the stadium was a prime candidate for redevelopment.

He said: “The obvious route is the Geoffrey Watling City Stand and whether you throw another layer on it, or you take it down and rebuild I don’t know.“I think probably the sensible thing to do is bite the bullet, take it down and build a new stand but it means 18 months, possibly two years, without revenue. Then what do you do to the people in the Geoffrey Watling Stand, who tend to be the people who have been supporters for many generations? So it’s difficult.”

[Tangible Fixed Assets anyone? 0]

[quote user="lappinitup"][quote user="Tangible Fixed Assets anyone"][quote user="lappinitup"][quote user="PurpleCanary"]

[quote user="lappinitup"][quote user="PurpleCanary"]with turnover sharply up from £16.7m to £23m.[/quote]

PC, how much was the TV money compared with the season before in League One?
[/quote]

 

lappin, the accounts don''t exactly specify, but if - as I suspect - the relevant figures are those that come under income from the FA and the league, then TV money was roughly £1.6m in League One and £5.5m this last year in the Championship. Of course the next accounts will show a quantum leap.

[/quote]Thanks Purple, I had a £4m figure in the back of my mind so about right.

So, if we remove the £5.5m from the £23m turnover then add the £40m from the Prem, the next accounts should show a turnover in excess of £57m. If my mathematics are correct, McNally''s bonus is chickenfeed by comparison.
[/quote]

Comrade Lapdog,

How many goals did McNally score for us last season?

BTW I think they have already said that turnover for this season (2011 -12) will be over £60m.

 

[/quote]Well done Tangy, the only relevant comment in your post was the last line and I had already said "the next accounts should show a turnover in excess of £57m". Glad you agree.
[/quote]

Comrade Lapdog,

More quality from me than your usual post!

[Tangible Fixed Assets anyone? 0]

Thanks Purple C.

[Bill 1,788]

" McNally''s total package (including benefits

does the Daily Mail know about this ?

Tangible, you are being an arse. McNally has overall responsibilty for the club. We dropped into the old third division at the end of two seasons ago.

I wonder how much fans would have agreed to pay him as a bonus were he to have told them that they would get straight back up to the Championship in one go .... and as runaway champions at that.

What sum would they have agreed to if back to back promotions were to be on offer ?

Perhaps McNally took a small percentage of the extra income from the food/drink price rises he pushed through. Or the hard faced player negoitiations I''ve been hearing of - noticably Cody MacDonald or haggling over Lamberts compensation. Getting us promoted with very low wage costs and reducing staff costs.

What he has done is rid us of that ''little ole Norwich'' mentality. Suppliers are told by us when they will get paid. supporters are told they can''t con the club over their age and sh!te like the now defunct NOTW can''t post up blatant lies without having to cough up for it.

Unfortunately there are still a few that would have the club badge as some farmhand wringing his flatcap while mutteriing the club motto ''ever so umble, sir". Where achievement is measued by the better clubs allowing us to be grateful for a chance to stay in 17th place, as long as we ''know our place''.

Holt''s goal summed it up perfectly. Whallop into the back of the net in front of the Kop and 3 players. Have some of that ! We are here to stay and McNally is worth every penny of his bonus.

Perhaps you might wish to query the other bonuses whilst you are up on your hindlegs at the AGM, Tangible. Imagine how much money we could have saved if we had not got promoted and had to pay out all those millions.

[Tangible Fixed Assets anyone? 0]

[quote user="City1st"]" McNally''s total package (including benefits does the Daily Mail know about this ? Tangible, you are being an arse. McNally has overall responsibilty for the club. We dropped into the old third division at the end of two seasons ago. I wonder how much fans would have agreed to pay him as a bonus were he to have told them that they would get straight back up to the Championship in one go .... and as runaway champions at that. What sum would they have agreed to if back to back promotions were to be on offer ? Perhaps McNally took a small percentage of the extra income from the food/drink price rises he pushed through. Or the hard faced player negoitiations I''ve been hearing of - noticably Cody MacDonald or haggling over Lamberts compensation. Getting us promoted with very low wage costs and reducing staff costs. What he has done is rid us of that ''little ole Norwich'' mentality. Suppliers are told by us when they will get paid. supporters are told they can''t con the club over their age and sh!te like the now defunct NOTW can''t post up blatant lies without having to cough up for it. Unfortunately there are still a few that would have the club badge as some farmhand wringing his flatcap while mutteriing the club motto ''ever so umble, sir". Where achievement is measued by the better clubs allowing us to be grateful for a chance to stay in 17th place, as long as we ''know our place''. Holt''s goal summed it up perfectly. Whallop into the back of the net in front of the Kop and 3 players. Have some of that ! We are here to stay and McNally is worth every penny of his bonus. Perhaps you might wish to query the other bonuses whilst you are up on your hindlegs at the AGM, Tangible. Imagine how much money we could have saved if we had not got promoted and had to pay out all those millions.[/quote]

And if you looked at one of my posts on this thread I have already said I dont have a problem with Lambert, Culverhouse etc or the players having their bonuses as they are the ones responsible for the action on the pitch.

As for McNally, he was paid a basic package (including benefits) of £289k to do his job! So I look forward to hearing the justification of the £582k bonus, for all we know it may be justified but until we hear what it is we dont know, do we?

 

 

 

[T 191]

Yes but he was a premier League CEO previously and therefore we would have to offer him a package to attract him or are you suggesting that we stayed with Doncaster or advocating we did not show ambition or are you just trolling?

[Tangible Fixed Assets anyone? 0]

[quote user="T"]Yes but he was a premier League CEO previously and therefore we would have to offer him a package to attract him or are you suggesting that we stayed with Doncaster or advocating we did not show ambition or are you just trolling?[/quote]

Please correct me if I''m wrong but I thought McNally was on garden leave when we appointed him prior to the 2009 -2010 season so he would hardly be in a position to demand too big a package especially given that we were in the third tier of football at that point.