Commercial Club Accounts to 30 June 2024 Released

[CaptainOx]

Net loss of £15.85m for the year ending June 30th 2024

I know there's the accompanying commentary from the club, but I assume that is focusing on positives.

If the usual suspects could do a bit of a layman's summing up of these it would be greatly appreciated @Colin B @MarkG

Oxford United Football Club Limited reports financial results for the year ending 30 June 2024 | Oxford United Football Club

Oxford United are pleased to present a summary of their financial results for the year ending 30 June 2024.

www.oufc.co.uk

 

[West Oxon U’s]

The club owed £40m to our owners as at 30th June 2024.

 

[Village-Yellow]

£5m of those expenses related to the stadium, so realistically a £10m loss.

 

[greatunclekip]

£5m of those expenses related to the stadium, so realistically a £10m loss.

5 million before a single planning approval has been signed is genuinely wild. I’m in the wrong trade!

 

[Ewes]

Only £622K profit on player sales. I’m guessing this related to selling Luke McInally to Burnley but I might be wrong.

 

[Village-Yellow]

5 million before a single planning approval has been signed is genuinely wild. I’m in the wrong trade!

Over 60% of our Turnover

 

[Oufccraig45]

£5m of those expenses related to the stadium, so realistically a £ 10 million loss

thought it might be more than that following promotion

 

[NorthWestOx]

Anyone know how this compares to Portsmouth or Derby? Or Bolton?

 

[Colin B]

Net loss of £15.85m for the year ending June 30th 2024

I know there's the accompanying commentary from the club, but I assume that is focusing on positives.

If the usual suspects could do a bit of a layman's summing up of these it would be greatly appreciated @Colin B @MarkG

Oxford United Football Club Limited reports financial results for the year ending 30 June 2024 | Oxford United Football Club

Oxford United are pleased to present a summary of their financial results for the year ending 30 June 2024.

www.oufc.co.uk

We’re on the way to Norwich. I’ll have a look tomorrow.

 

[Oufccraig45]

Over 60% of our Turnover

Must be on the limit with FFP or is this different

 

[Twiggy85]

So even before stadium costs, our losses increased £4m in the year. If anyone was in any doubt all our chips are in with these owners, since can’t see how anyone would take on a club based on those p&l and balance sheet numbers.

 

[OxRox]

The club owed £40m to our owners as at 30th June 2024.

 

[Carlislehotdog]

That's a big rise in admin costs. They mention the cost of the training ground flood, but that's only £800k out of a £2.5 million year-on-year rise. Plenty of money on "Improving processes, staffing structures, systems and governance".

 

[Common Villager]

Not that it was needed, but these accounts are a stark reminder that getting approval for and then delivering the new stadium is paramount to securing the club's future.

No one, not the fans, not the various councils, not FOSB, can reasonably expect to the owners to keep propping up the club without even a hint of a return on their investment.

If there's any chance of the county's only professional sports team and an over 130 year old institution surviving, the Triangle simply has to be given the go ahead.

 

[Lost Marbles]

Not that it was needed, but these accounts are a stark reminder that getting approval for and then delivering the new stadium is paramount to securing the club's future.

No one, not the fans, not the various councils, not FOSB, can reasonably expect to the owners to keep propping up the club without even a hint of a return on their investment.

If there's any chance of the county's only professional sports team and an over 130 year old institution surviving, the Triangle simply has to be given the go ahead.

Here's what I don't understand (and I'm not anti-stadium by the way, genuinely want to get this straight in my head):

We owe £40 million to our owners.

Stadium will cost £100+ million.

We could feasibly lose £10+ million this season and next, as we'll be in the same situation (limited income from current ground).

That's likely £160+ million owed to owners when the new stadium opens.

Then we start to earn revenue from the stadium. But how do we pay the debt back? Football clubs generally don't make sustained profits but we'd have to make huge profits over at least a decade to pay that amount back.

I don't get it.

 

[Carpy]

Net loss of £15.85m for the year ending June 30th 2024

I know there's the accompanying commentary from the club, but I assume that is focusing on positives.

If the usual suspects could do a bit of a layman's summing up of these it would be greatly appreciated @Colin B @MarkG

Oxford United Football Club Limited reports financial results for the year ending 30 June 2024 | Oxford United Football Club

Oxford United are pleased to present a summary of their financial results for the year ending 30 June 2024.

www.oufc.co.uk

Extraordinary numbers considering this only covers us in League One still, wouldn't shock me to see this at least double next year for our first season in the Championship.

The most frightening thing for me is if the owners get bored of the council pissing them about, or worse still, reject the stadium proposal, our club is likely toast.

 

[Carpy]

That's likely £160+ million owed to owners when the new stadium opens.

Then we start to earn revenue from the stadium. But how do we pay the debt back? Football clubs generally don't make sustained profits but we'd have to make huge profits over at least a decade to pay that amount back.

I don't get it.

I think the owners are banking on the club being a more attractive prospect (with a brand spanking new stadium) for some even richer folk to pay a few hundred million to get us into the Premier League, that's why our name recognition was such a massive play to them in the early days.

In the UK, apart from London, you'd be hard pushed to find a city more globally recognisable.

The stadium making it's money back is a bit of a red herring in my mind

 

[Foley]

Extraordinary numbers considering this only covers us in League One still, wouldn't shock me to see this at least double next year for our first season in the Championship.

The most frightening thing for me is if the owners get bored of the council pissing them about, or worse still, reject the stadium proposal, our club is likely toast.

It has been like that for a couple of years.
As thr club have said for a while, it is new stadium or out of business.

 

[Keeper65]

Here's what I don't understand (and I'm not anti-stadium by the way, genuinely want to get this straight in my head):

We owe £40 million to our owners.

Stadium will cost £100+ million.

We could feasibly lose £10+ million this season and next, as we'll be in the same situation (limited income from current ground).

That's likely £160+ million owed to owners when the new stadium opens.

Then we start to earn revenue from the stadium. But how do we pay the debt back? Football clubs generally don't make sustained profits but we'd have to make huge profits over at least a decade to pay that amount back.

I don't get it.

The profits will come from the new commercial activities of the stadium, the main one being the hotel & conference Centre

 

[Bigdwoolly]

Here's what I don't understand (and I'm not anti-stadium by the way, genuinely want to get this straight in my head):

We owe £40 million to our owners.

Stadium will cost £100+ million.

We could feasibly lose £10+ million this season and next, as we'll be in the same situation (limited income from current ground).

That's likely £160+ million owed to owners when the new stadium opens.

Then we start to earn revenue from the stadium. But how do we pay the debt back? Football clubs generally don't make sustained profits but we'd have to make huge profits over at least a decade to pay that amount back.

I don't get it.

I've no idea if this estimate is correct or not, but the theory is that in around 5 years time, a mid-level Championship club is going to be worth £200-300m. Mostly this is based on tv revenue. So the sums start to make sense if that's correct - as the owners could sell and make a tidy profit (admittedly I don't think they're doing this for a tidy profit financially).

I'm going to try and find where this theory of £200-300m comes from.

 

[Steve Gilbert]

Extraordinary numbers considering this only covers us in League One still, wouldn't shock me to see this at least double next year for our first season in the Championship.

The most frightening thing for me is if the owners get bored of the council pissing them about, or worse still, reject the stadium proposal, our club is likely toast.

Regardless of who ever the owners were, we will always be toast as a club if we don’t get a new stadium.

What these accounts show is the real need for a proper stadium where the club can actually generate proper income.

Count ourselves very lucky that we have owners with very deep pockets.

 

[Ox4Eva]

Can't see how much was spent on bog roll in the north stand

 

[Carpy]

It has been like that for a couple of years.
As thr club have said for a while, it is new stadium or out of business.

Our loss increased by £4mil without taking into consideration the stadium costs, I would say that is a pretty substantial increase compared to the previous year (both years in L1).

 

[Village-Yellow]

thought it might be more than that following promotion

Financials for the year to 30th June 2024.

We will find out what promotion does to the figures next year.

 

[Village-Yellow]

Must be on the limit with FFP or is this different

Yeah, this was just my reference to the amount spent in the year to June 2024 on stadium planning costs compared to what we actually earned.

Eye watering.

 

[Village-Yellow]

So even before stadium costs, our losses increased £4m in the year. If anyone was in any doubt all our chips are in with these owners, since can’t see how anyone would take on a club based on those p&l and balance sheet numbers.

Yeah, I alluded to something similar last year.

As that owner debt just gets bigger (£40m at 30th June 24), the chances of someone coming along to mop it up on the back of heavy losses just diminishes.

All the chips are in.... new stadium, sustaining championship status, kicking on next season.

 

[Village-Yellow]

I think the question of how this stadium is funded and paid needs to be re-visited.

I appreciate it has been covered before and we have been told that the stadium costs will be kept away from the running of the club and we will not be burdened.

Why then is there £5m of planning costs in these accounts? Why are these not kept away from the running of the club also?

 

[Steve Gilbert]

I think the question of how this stadium is funded and paid needs to be re-visited.

I appreciate it has been covered before and we have been told that the stadium costs will be kept away from the running of the club and we will not be burdened.

Why then is there £5m of planning costs in these accounts? Why are these not kept away from the running of the club also?

I believe it is the cost of the actual building of the stadium that will be kept away from the running costs of the club. Any costs to get us to that stage will be put on to the club’s accounts/debt to the owners.

 

[battman]

Here's what I don't understand (and I'm not anti-stadium by the way, genuinely want to get this straight in my head):

We owe £40 million to our owners.

Stadium will cost £100+ million.

We could feasibly lose £10+ million this season and next, as we'll be in the same situation (limited income from current ground).

That's likely £160+ million owed to owners when the new stadium opens.

Then we start to earn revenue from the stadium. But how do we pay the debt back? Football clubs generally don't make sustained profits but we'd have to make huge profits over at least a decade to pay that amount back.

I don't get it.

I don’t think we should be looking at this a debt to pay back to the owners. They’re not looking for an immediate return on investment, so long as the asset (the club and new stadium) will be worth more than the price they bought the club for plus the money they’ve invested.

So for as long as the owners want to keep putting money into the club, we don’t have to worry about it unless we go over PSR loss-making rules. The only time we’ll need to worry is if the owners pull the plug before we’re worth enough to recoup their investment.

Also I think there are a couple of points to reiterate, one about how rich our owners are, and another about passion or status projects.

First, the owner’s combined net worth. Bakrie is a billionaire, Thohir is a billionaire. And that’s before we get onto the likes of Geike et al. £15m a year is a lot to us and to the club, but relative pocket change to them.

Also we have to think about all the reasons why they bought Oxford. As well as the marketable international name with connection to the uni (if in locale only), it’s also a chance to own an English football club, to try and reach the riches of the Premier League, and to also advance the fortunes of Indonesian football (hello Marselino and Romeny) which the owners are very passionate about.

 

[Village-Yellow]

I believe it is the cost of the actual building of the stadium that will be kept away from the running costs of the club. Any costs to get us to that stage will be put on to the club’s accounts/debt to the owners.

Certainly looks that way.

I just don't know understand why the whole build (including the costly planning process) is not kept away from the day to day operations of running a football club on the basis these costs are not really operational costs.

I appreciate that the owners are still funding this, but it still impacts on the figures.