Financial Results for 2023
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Financial Results for 2023
These have now been published and the full reports can be seen on the Tigers website. The annual loss was reduced to £0.9m. At the end of the financial year the Club had a bank balance of £4.2m but loans and overdrafts totalled £17.6m. The report says "The loan and overdraft with HSBC have been and continue to be fully serviced in accordance with agreed terms. The loan with DCMS has accrued interest since inception but repayments began in September which will put a significant strain on club finances for several years to come. Mr Scott and Mr Tom have agreed to extend the redemption date (which was due to expire in June 2023) on their secured redeemable loan notes (current balance £3.0m) out to June 2025. There have been no settlements (interest or capital) on those loan notes and the Board are grateful for their continued support." The directors felt able to prepare the accounts on a going concern basis.
Re: Financial Results for 2023
So what happened to the extra 10m or what ever it was then?
Assume that's in there somewhere.
End of the day, is that good, bad, or meh??...
Assume that's in there somewhere.
End of the day, is that good, bad, or meh??...
Re: Financial Results for 2023
I am fully convinced that the club is trying to reduce its costs by closing bars etc quicker after games so that staff are released sooner than pay them to stay on.
Re: Financial Results for 2023
Bad but better than I thought they'd be.
£8.7m (net of costs of transaction) was put into cash flow as equity. £1.5m was used to clear the overdraft, £2.5m to plug the negative cash flow, leaving the £4.whatever million as cash at bank.
Goooooodeeeeeyyyyy!
Re: Financial Results for 2023
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Re: Financial Results for 2023
There's some fascinating analysis of the accounts in this week's Tigers pod:
https://www.bbc.co.uk/sounds/play/p0gp4xt0
Suggests that we're treading water, waiting for a new Prem Rugby deal. Us and Saints are in much more sustainable positions in the long term because of our balance sheets.
https://www.bbc.co.uk/sounds/play/p0gp4xt0
Suggests that we're treading water, waiting for a new Prem Rugby deal. Us and Saints are in much more sustainable positions in the long term because of our balance sheets.
Re: Financial Results for 2023
Owning the property give security for loans that allows the business to carry on trading. The important issue then is the valuation used verses the actual open market value. As Wasps bond holders found out, a distressed sale can have a lower value than the book value used for security purposes. Ourselves and Saints have longstanding property ownership and have seen values appreciate for the underlying land. It would be interesting to know the values used for the stadium and training ground vs land values for a development site in each area. That is the foundation value of the site really. I am sure others on here have more experience of such things and could comments better.
Re: Financial Results for 2023
I remain inherently worried.
I just cannot see where more money is going to come from to get to break even and the concern is only greater with the cap increase next year. It would appear to be financial suicide to spend more on wages and so you will start to see a gap between clubs with sugar daddies willing to plough in cash and those that live on what they earn. Players will leave for bigger salaries elsewhere and with less star names and less chance of success, crowds will drop. Dread to think about the prospect of relegation for any team. The negative side of me thinks that finances are so tight that relegation could spell the end for pretty much any team.
I really should stop looking at rugby finances, they do nothing but depress.
I just cannot see where more money is going to come from to get to break even and the concern is only greater with the cap increase next year. It would appear to be financial suicide to spend more on wages and so you will start to see a gap between clubs with sugar daddies willing to plough in cash and those that live on what they earn. Players will leave for bigger salaries elsewhere and with less star names and less chance of success, crowds will drop. Dread to think about the prospect of relegation for any team. The negative side of me thinks that finances are so tight that relegation could spell the end for pretty much any team.
I really should stop looking at rugby finances, they do nothing but depress.
Re: Financial Results for 2023
I'm sorry, it's probably just me being dim, but I cannot find the financial report anywhere on the Tigers' website. Can anyone give me a pointer to it, please?
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Re: Financial Results for 2023
They are "hidden" within the Shareholder Information pages of the website (under the AGM details) but live in a back office of the actual website:
https://www.leicestertigers.com/club/sh ... nformation
https://darkroom.leicestertigers.com/or ... r-2023.pdf
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Re: Financial Results for 2023
In this climate, increasing the salary cap is highly irresponsible. It could kill off clubs who feel compelled to keep up, or create a divide if clubs don't spend the extra money. Andrea has been the only responsible voice I've heard.
Re: Financial Results for 2023
Thanks CharlieHot_Charlie wrote: ↑Thu Nov 16, 2023 4:57 pmThey are "hidden" within the Shareholder Information pages of the website (under the AGM details) but live in a back office of the actual website:
https://www.leicestertigers.com/club/sh ... nformation
https://darkroom.leicestertigers.com/or ... r-2023.pdf
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Re: Financial Results for 2023
Thanks for the link. Well worth a listenCrumblingTerrace wrote: ↑Thu Nov 16, 2023 8:29 am There's some fascinating analysis of the accounts in this week's Tigers pod:
https://www.bbc.co.uk/sounds/play/p0gp4xt0
Suggests that we're treading water, waiting for a new Prem Rugby deal. Us and Saints are in much more sustainable positions in the long term because of our balance sheets.
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Re: Financial Results for 2023
It is incredibly irresponsible for the game to be increasing the salary cap, where is the governance?CrumblingTerrace wrote: ↑Thu Nov 16, 2023 5:21 pmIn this climate, increasing the salary cap is highly irresponsible. It could kill off clubs who feel compelled to keep up, or create a divide if clubs don't spend the extra money. Andrea has been the only responsible voice I've heard.