Carlisle United Football Club Business Review 2014
There were many issues during the 2012/13 season and, following a poor start to the 2013/14 season, there was a change in manager after six league games which had yielded only two points. The cost of this action has been totally contained within the 2013/14 season.
Total income for the year at £3.55m was in line with the previous year, with small movements between different aspects which reflected a better FA Cup run but poorer programme sales and reduced hospitality income. Expenditure was reduced by £291,000 from the previous year, despite a small increase in loan player fees to £87,037.
The season was driven by some significant injury issues, from the goalkeeper (6 months), left and centre backs, midfield and forwards (one of whom retired from professional football due to his injury). This resulted in a plethora of emergency and medium term loans which amounted to 21 different players coming into the club in addition to our existing squad. The constant playing personnel changes undoubtedly had an influence on the season outcome, which was relegation. Significant playing squad changes were envisaged for the start of the 2014/15 season.
Following season 2012/13 there was a need to continue with the ‘cost improvement programme’ in order to reduce the overall losses at the club. Season 2012/13 had losses of £528,403 before amortisation and depreciation and £666,257 total loss, with a reduction in net assets to £2.45m.
In the last twelve months of trading the loss has been reduced to £234,519 before amortisation and depreciation and £369,440 total loss. Net assets are now at £2.08m.
The relegation from League 1 to League 2 will have a considerable affect on the forthcoming year as ‘guaranteed income' falls by some £286,000.
As ever the club relies heavily on support from the local community and local businesses and the club is extremely grateful for this support. Work is constantly ongoing to develop and improve these relations.
Business wise we are once again forecasting a cash neutral result and working hard to contain costs while allowing the playing and coaching aspects to improve with an aim to be challenging at the top of League 2 with a primary aim of promotion to League 1 within the next two years.
Managing director John Nixon said: “The results were not at the ‘cash neutral’ state that was planned for the year and, as such, were disappointing.
“However, after management changes the directors backed the new regime financially in an attempt to avoid relegation from League 1, albeit this was subsequently not successful.”