2022/23 FINANCIAL RESULTS

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Faverdale
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2022/23 FINANCIAL RESULTS

Post by Faverdale » Tue Mar 12, 2024 5:33 pm

Full accounts and report available to download from YourClub

https://darlingtonfc.co.uk/news/202223- ... al-results
https://yourclub.darlingtonfc.co.uk/documents
questions supporters have on the accounts can be emailed to chris.stockdale@darlingtonfc.org.

Darlington FC has today released 2022/23 accounts to shareholders and owners.

As a fan owned club, we are committed to keeping our supporter-owners fully informed on the club’s financial position in a timely and consistent manner. The full accounts and report are available to download for DFCSG Owners from the document section of supporter’s YourClub accounts here: https://yourclub.darlingtonfc.co.uk/documents

We are currently expect to hold the Darlington 1883 Ltd AGM in early April at which the Board will be available for questions. In the meantime, any questions supporters have on the accounts can be emailed to chris.stockdale@darlingtonfc.org.

Summary

Core revenue lines all increased on 2021/22
Commercial revenue up by 15% on the previous year’s record level
Overall revenue increased by 12% from £719,051 to £803,232
Boost The Budget investment from fan-owners of £126,000
Operating loss, which excludes Boost The Budget investment, supported by Boost The Budget and cash reserves


The numbers

Overall

Season 22/23 was our fourth under the management of Alun Armstrong. Playing spend increased by 21% versus the previous season as we finished in 10th place with 67 points.

The adjusted operating loss was in-line with the budget set ahead of the season. It is important to note that as Boost The Budget (£126,000) is recorded as an investment it does not affect the P&L number and if Boost The Budget was included as income would materially reduce the loss for the year.

Over the course of the year the Company received funds totalling £126,000 from its majority shareholder DFCSG from Boost The Budget. This continued investment from our fan-owners provided consistent cashflow across the period and helped bolster the club’s financial position.

Comparing our core revenue streams against the prior period we have grown Matchday, Commercial, Retail and Womens & Academy Teams revenues on a comparable basis.

Overall, the operating loss was funded by the continued investment from our supporter-owners via Boost The Budget and our cash reserves on our balance sheet.

Additional progress on the sustainability of the business is required to underpin the club’s financial position to allow us to continue to support our ambitions on the pitch. The Board are actively pursuing the long-term goal of a new stadium development which in the Board’s view is key to a truly sustainable future.

Balance Sheet

During the period, as planned, we utilised our cash reserves to fund the operating loss of the business. We concluded the year with a positive net cash position (after external debt) of £55,545.

Update on the current financial year

In the current financial year, overall revenues are in line with original budget whilst costs are now expected to be higher than initially planned due to increased football spend, including an increase to the playing budget. This spend is as expected with the mid-season Boost The Budget funding raised in January. The forecast loss will be supported by Boost The Budget investment and our cash reserves.

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theoriginalfatcat
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Re: 2022/23 FINANCIAL RESULTS

Post by theoriginalfatcat » Tue Mar 12, 2024 6:55 pm

Did we have Boost the Budget when Gray was manager?
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Ghost_Of_1883
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Re: 2022/23 FINANCIAL RESULTS

Post by Ghost_Of_1883 » Tue Mar 12, 2024 11:39 pm

Yes.

After he tried to bring Radged back because he wanted more money, we ended up doing the first BTB off the back of that. We raised around 43k IIRC.

Gray left for York not far into that first BTB season.

wizardofos
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Re: 2022/23 FINANCIAL RESULTS

Post by wizardofos » Wed Mar 13, 2024 4:17 pm

It looks unsustainable to me.
Without going into it chapter and verse, we are settling into a pattern of annual losses which the BTB doesn't cover.
There was a couple of bonus years during Covid, where the support schemes allowed the Club to generate some cash, believe it or not.
That cash looks like it will run out soon, probably during the current financial year.
It's no wonder the Board try to dampen expectations with this knowledge in mind. The calibre of Directors we have got suggests to me that no one else could do any better.
I don't know what the answer is, but I'd be surprised if any new Stadium development and the suggested extra revenue it will create, can come in time.

super_les_mcjannet
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Re: 2022/23 FINANCIAL RESULTS

Post by super_les_mcjannet » Wed Mar 13, 2024 5:06 pm

Not looked through fully but basically we were about £50k overspend after BTB or at least how it looks. Think we done something similar last year and again season 23/24. That buffer will disappear soon enough and we will have less to spend and very little fall back options for a bad season.

We are reliant on a cup run, player sale (we always want to spend that cash - who wouldn't), or another BTB each year. Something eventually will need to change, either increase revenues or reduce costs.

Darlobill
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Re: 2022/23 FINANCIAL RESULTS

Post by Darlobill » Wed Mar 13, 2024 9:13 pm

Financial results have been very similar over last 7/8 years bar a cup run or Covid help. This years finances will look even worse having to pay for Armstrong’s contract and no cup revenue.
Not sure how we get out of it TBH except more through the gate on match days - be interesting to see crowd numbers on Saturday.

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Wed Mar 13, 2024 10:26 pm

Looks pretty similar to every football club - effectively require financial input from owners.

That said - when we look at the likes of Scarborough and Curzon Ashton and their cost base - we do seem to be expensive to run for the return we get.

We should be able to cut costs and be able to be competitive in the top half of the division.

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theoriginalfatcat
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Re: 2022/23 FINANCIAL RESULTS

Post by theoriginalfatcat » Wed Mar 13, 2024 11:13 pm

Yes, we should be able to be competitive in this division.

What didn't help was the previous policy of lowering of expectations by the powers that be - talk about shooting yourself in the foot. :(

It reminds me of that Ratners jewellers thing, when Mr Ratner said that his products were total crap.
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Spratts corner
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Re: 2022/23 FINANCIAL RESULTS

Post by Spratts corner » Wed Mar 13, 2024 11:44 pm

Does the women's team finance itself or does it come out of the mens team budget?

Faverdale
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Re: 2022/23 FINANCIAL RESULTS

Post by Faverdale » Thu Mar 14, 2024 6:00 am

Crowd is improving last few games if that continues into next season that will help.
Club seem to be developing links with Middlesbrough
Hopefully develop links with Sunderland Newcastle leeds and get youngsters in and save costs on squad players.

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Thu Mar 14, 2024 6:38 am

Spratts corner wrote:
Wed Mar 13, 2024 11:44 pm
Does the women's team finance itself or does it come out of the mens team budget?
It makes a profit.

e4sby
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Re: 2022/23 FINANCIAL RESULTS

Post by e4sby » Thu Mar 14, 2024 7:54 am

What surprised me most was the staffing costs of £185k, on top of the £400k playing budget... would be interesting to see the breakdown of that.

Manager - £45k
Assitant - £30k
Physio - £25k
Kit man - £10k
Fitness coach - £15k
GK coach - £15k
Academy coach - £15k
Secretary - £10k

Even with those estimates i'm £20k short...

Hopefully moving forwards we can make substantial cuts in this area, to me it does seem a luxury at our level especially when we are looking to be sustainable as possible.

eddie-rowles
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Re: 2022/23 FINANCIAL RESULTS

Post by eddie-rowles » Thu Mar 14, 2024 8:18 am

e4sby wrote:
Thu Mar 14, 2024 7:54 am
What surprised me most was the staffing costs of £185k, on top of the £400k playing budget... would be interesting to see the breakdown of that.

Manager - £45k
Assitant - £30k
Physio - £25k
Kit man - £10k
Fitness coach - £15k
GK coach - £15k
Academy coach - £15k
Secretary - £10k

Even with those estimates i'm £20k short...

Hopefully moving forwards we can make substantial cuts in this area, to me it does seem a luxury at our level especially when we are looking to be sustainable as possible.
Average Uk salary £35K
Kit man £10k? even if you say he gets 2 months off thats about 175 sessions(matches, friendlies and training sessions) so your offering £50 each. If he can clean 20 kits and boots for £50 using his machines, electricity, purchaese snacks, drinks, put names numbers on shirts, fill fuel for his van drive 5-6 hours to away matches getting home 2am for £50 we are onto a winner

e4sby
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Re: 2022/23 FINANCIAL RESULTS

Post by e4sby » Thu Mar 14, 2024 8:20 am

eddie-rowles wrote:
e4sby wrote:
Thu Mar 14, 2024 7:54 am
What surprised me most was the staffing costs of £185k, on top of the £400k playing budget... would be interesting to see the breakdown of that.

Manager - £45k
Assitant - £30k
Physio - £25k
Kit man - £10k
Fitness coach - £15k
GK coach - £15k
Academy coach - £15k
Secretary - £10k

Even with those estimates i'm £20k short...

Hopefully moving forwards we can make substantial cuts in this area, to me it does seem a luxury at our level especially when we are looking to be sustainable as possible.
Average Uk salary £35K
Kit man £10k? even if you say he gets 2 months off thats about 175 sessions(matches, friendlies and training sessions) so your offering £50 each. If he can clean 20 kits and boots for £50 using his machines, electricity, purchaese snacks, drinks, put names numbers on shirts, fill fuel for his van drive 5-6 hours to away matches getting home 2am for £50 we are onto a winner
It’s still £230 per week for the duration of the season…


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EDJOHNS
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Re: 2022/23 FINANCIAL RESULTS

Post by EDJOHNS » Thu Mar 14, 2024 8:55 am

theoriginalfatcat wrote:
Wed Mar 13, 2024 11:13 pm
Yes, we should be able to be competitive in this division.

What didn't help was the previous policy of lowering of expectations by the powers that be - talk about shooting yourself in the foot. :(

It reminds me of that Ratners jewellers thing, when Mr Ratner said that his products were total crap.
My wife was a jewellery designer working for a Company in Birmingham called Johnson Mathey who supplied Ratners.
His stupidity wiped billions of companies all over the world and cost countless jobs.
A rather more severe reaction than the silliness of our leaders, but your comment brought back a lot of memories of a great to work for South African company

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Thu Mar 14, 2024 10:35 am

eddie-rowles wrote:
Thu Mar 14, 2024 8:18 am
e4sby wrote:
Thu Mar 14, 2024 7:54 am
What surprised me most was the staffing costs of £185k, on top of the £400k playing budget... would be interesting to see the breakdown of that.

Manager - £45k
Assitant - £30k
Physio - £25k
Kit man - £10k
Fitness coach - £15k
GK coach - £15k
Academy coach - £15k
Secretary - £10k

Even with those estimates i'm £20k short...

Hopefully moving forwards we can make substantial cuts in this area, to me it does seem a luxury at our level especially when we are looking to be sustainable as possible.
Average Uk salary £35K
Kit man £10k? even if you say he gets 2 months off thats about 175 sessions(matches, friendlies and training sessions) so your offering £50 each. If he can clean 20 kits and boots for £50 using his machines, electricity, purchaese snacks, drinks, put names numbers on shirts, fill fuel for his van drive 5-6 hours to away matches getting home 2am for £50 we are onto a winner
Fuel wouldn't be under staff salaries on a P&L.

The_Natural
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Re: 2022/23 FINANCIAL RESULTS

Post by The_Natural » Thu Mar 14, 2024 12:34 pm

so budget last year was 21% increase overall, shrinking our cash reserves and still Armstrong bemoaned it as not enough and some fans said we should have given him more risking the club further?

As people have said the directors doing a great job but swimming against the tide somewhat

LoidLucan
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Re: 2022/23 FINANCIAL RESULTS

Post by LoidLucan » Thu Mar 14, 2024 12:41 pm

Your AA doll must surely be overloaded with pins by now :shock:

The_Natural
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Re: 2022/23 FINANCIAL RESULTS

Post by The_Natural » Thu Mar 14, 2024 12:59 pm

LoidLucan wrote:
Thu Mar 14, 2024 12:41 pm
Your AA doll must surely be overloaded with pins by now :shock:
I see you aren't arguing with the facts as stated in the financial statement--which is a step forward for the reality deniers.

Spratts corner
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Re: 2022/23 FINANCIAL RESULTS

Post by Spratts corner » Thu Mar 14, 2024 1:27 pm

lo36789 wrote:
Thu Mar 14, 2024 6:38 am
[quote="Spratts corner" post_id=518459 time=<a href="tel:1710373473">1710373473</a> user_id=21642]
Does the women's team finance itself or does it come out of the mens team budget?
It makes a profit.
[/quote]that wasn’t the question

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Thu Mar 14, 2024 4:20 pm

Spratts corner wrote:
Thu Mar 14, 2024 1:27 pm
lo36789 wrote:
Thu Mar 14, 2024 6:38 am
[quote="Spratts corner" post_id=518459 time=<a href="tel:1710373473">1710373473</a> user_id=21642]
Does the women's team finance itself or does it come out of the mens team budget?
It makes a profit.
that wasn’t the question
[/quote]

It is. They finance themselves, make a profit, which is then added to the men's budget.

They don't come out of the men's budget - they add to it.

Income from Womens and academy
2021/22 - £40,749 | 2022/23 - £37,366

Costs of Women and academy
2021/22 - 31,599 | 2022/23 - 30,357

Net profit - which is added to and subsequently consumed by the men's budget £7,009, down on last year when it was £9,150.

Spratts corner
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Re: 2022/23 FINANCIAL RESULTS

Post by Spratts corner » Thu Mar 14, 2024 5:41 pm

Thank you very much lo I
I didn’t know that
That’s why I asked

Yarblockos
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Re: 2022/23 FINANCIAL RESULTS

Post by Yarblockos » Thu Mar 14, 2024 7:42 pm

How do the women's team and academy make a profit, are they funded through some central funding source? Obviously can't be through gate receipts.

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Thu Mar 14, 2024 10:49 pm

Yarblockos wrote:
Thu Mar 14, 2024 7:42 pm
How do the women's team and academy make a profit, are they funded through some central funding source? Obviously can't be through gate receipts.
I suspect it is through payment of subs.

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Re: 2022/23 FINANCIAL RESULTS

Post by Henley » Fri Mar 15, 2024 8:39 am

lo36789 wrote:
Thu Mar 14, 2024 4:20 pm
Spratts corner wrote:
Thu Mar 14, 2024 1:27 pm
lo36789 wrote:
Thu Mar 14, 2024 6:38 am
[quote="Spratts corner" post_id=518459 time=<a href="tel:1710373473">1710373473</a> user_id=21642]
Does the women's team finance itself or does it come out of the mens team budget?
It makes a profit.
that wasn’t the question
It is. They finance themselves, make a profit, which is then added to the men's budget.

They don't come out of the men's budget - they add to it.

Income from Womens and academy
2021/22 - £40,749 | 2022/23 - £37,366

Costs of Women and academy
2021/22 - 31,599 | 2022/23 - 30,357

Net profit - which is added to and subsequently consumed by the men's budget £7,009, down on last year when it was £9,150.
[/quote]

Are the Women’s Team and the Academy one and the same?

lo36789
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Re: 2022/23 FINANCIAL RESULTS

Post by lo36789 » Fri Mar 15, 2024 9:08 am

Henley wrote:
Fri Mar 15, 2024 8:39 am
Are the Women’s Team and the Academy one and the same?
They are the same line in the accounts.

I do think people misinterpret the intent of the Academy. It would actually surprise me if it ever produces, or even intends to produce, players for the first team.

Academies outside of the professional clubs you apply to join rather than being asked to join (the application form for ours is here - https://darlingtonfc.co.uk/academy)

It is the private further education over anything else, and is about getting a BTEC by the end of the 2 years. Players that end up playing at our level will have more likely been at Cat 1 / Cat 2 academies.

Yarblockos
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Re: 2022/23 FINANCIAL RESULTS

Post by Yarblockos » Fri Mar 15, 2024 12:22 pm

lo36789 wrote:
Fri Mar 15, 2024 9:08 am
Henley wrote:
Fri Mar 15, 2024 8:39 am
Are the Women’s Team and the Academy one and the same?
They are the same line in the accounts.

I do think people misinterpret the intent of the Academy. It would actually surprise me if it ever produces, or even intends to produce, players for the first team.

Academies outside of the professional clubs you apply to join rather than being asked to join (the application form for ours is here - https://darlingtonfc.co.uk/academy)

It is the private further education over anything else, and is about getting a BTEC by the end of the 2 years. Players that end up playing at our level will have more likely been at Cat 1 / Cat 2 academies.
So do we get central funding to run the academy, or do students pay a course fee?

Maurice_Peddelty
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Re: 2022/23 FINANCIAL RESULTS

Post by Maurice_Peddelty » Fri Mar 15, 2024 2:43 pm

Yarblockos wrote:
Fri Mar 15, 2024 12:22 pm
lo36789 wrote:
Fri Mar 15, 2024 9:08 am
Henley wrote:
Fri Mar 15, 2024 8:39 am
Are the Women’s Team and the Academy one and the same?
They are the same line in the accounts.

I do think people misinterpret the intent of the Academy. It would actually surprise me if it ever produces, or even intends to produce, players for the first team.

Academies outside of the professional clubs you apply to join rather than being asked to join (the application form for ours is here - https://darlingtonfc.co.uk/academy)

It is the private further education over anything else, and is about getting a BTEC by the end of the 2 years. Players that end up playing at our level will have more likely been at Cat 1 / Cat 2 academies.
So do we get central funding to run the academy, or do students pay a course fee?
Government funding, presumably via Department for Education.

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Quaker85
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2022/23 FINANCIAL RESULTS

Post by Quaker85 » Fri Mar 15, 2024 3:09 pm

lo36789 wrote:
Henley wrote:
Fri Mar 15, 2024 8:39 am
Are the Women’s Team and the Academy one and the same?
They are the same line in the accounts.

I do think people misinterpret the intent of the Academy. It would actually surprise me if it ever produces, or even intends to produce, players for the first team.

Academies outside of the professional clubs you apply to join rather than being asked to join (the application form for ours is here - https://darlingtonfc.co.uk/academy)

It is the private further education over anything else, and is about getting a BTEC by the end of the 2 years. Players that end up playing at our level will have more likely been at Cat 1 / Cat 2 academies.
Does this income stream not lead to irrecoverable VAT (partial exemption) ?

The FA recommends setting up a separate company to avoid this issue.

Just read ahead lol

If it’s grant funded rather than paid coaching there should be no VAT issue.

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jjljks
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Re: 2022/23 FINANCIAL RESULTS

Post by jjljks » Sat Mar 16, 2024 6:33 am

On the positive side, no risk of a 10 point deduction for going into administration or Financial Fair Play penalty.

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