Source: FOOTYMAD
AFC finances downturn
Sobering thoughts on the financial tightrope All AFC shareholders will have received copy of the audited accounts - covering the year up to 10 May 2010. I'm no financial expert but the picture they portray is darker than recent years with the club slipping into significant operating loss - of around £58,000 over the period compared with an operating profit of around £12,000 the previous year. Income: Looking into the details, most income - including gate receipts - held reasonably steady but with big drops experienced in donations (down from £43K to £15K), transfer fees (£16k down from £43K) and SFA/SFL sponsorships (96K down from 103K). But there has real improvement in sponsorships, advertising and hospitality (103K up from 94K and Govt grants (11k) Expenditure : In terms of expenditure the major element, wages (players, checkers) which accounts for over 60% of turnover jumped by almost 15%. The youth team expenses (17k versus 7k) also jumped. These were perhaps the main contributors to the running loss Without major benefactors and with very modest gate revenue, all lower league clubs operate on a financial tightrope. For the first time in 5 years I think, we're seeing red in the accounts not black. the club seems well ruhn, but it doesn't take much to alter the balance.
