The Jags Foundation Board has taken the last few days to read, understand and reflect on, the Football Club’s annual accounts for the year ended 31st May 2022.
We have compiled a report, explaining some of the most important parts of those accounts, and placing the numbers into context as best we can.
Revaluation of the stadium
The way that the Club has presented the stadium revaluation on its website and in social media risks giving a misleading impression as to the Club’s true financial position, but is ultimately not itself a cause for concern.
The importance of current assets and cash
Of greater importance, as we have seen at so many other football clubs, is the issue of current assets and cash. Football clubs survive and thrive based on both their short and long-term ability to pay their bills as they fall due, and ensure flexibility about how, and when, they spend their money. While there are no immediate concerns highlighted by the auditors for the next 12 months, the longer-term position is far from clear.
The Club is making six-figure operating losses
Our main cause for concern is that the Club ran an Operating Loss of £215k in the 2021-22 financial year, and saw its cash reserves reduce substantially from over £620k to just over £330k. This is the lowest year-end cash balance for the Club since 2016.
The importance of non-recurring income
There are also important components of non-recurring income attributable to the 2021-22 financial year. These Accounts cannot tell us whether, and to what extent, the Club has replaced those income sources. We feel the Accounts could have been clearer about the non-recurring sources of income in the 2021-22 financial year.
Once non-recurring sources of income are excluded, we believe the Club has cumulatively lost close to £1 million, at an operating level, in the last two financial years. We would question whether, and for how long, that is sustainable.
To read our full report, click the button below.
NB the footnote on page 2 of the main document was updated on Tuesday 8th November to clarify why the Club suffered a £900k impairment loss in the 2019-20 accounts.