News: Rotherham United post loss for Championship survival season
The numerous losses on the pitch this season sees Rotherham United currently at the bottom of The Championship, but off the field, the losses in the club's latest accounts put them somewhere near the top when it comes to responsible fiscal management in a league where spending often far exceeds income.
The Millers posted a loss before tax of £1.1m for the 12 months to June 30 2023, a season where it brought in more, and spent more, and finished 19th to remain in The Championship for at least another year.
Comparative losses were £1.7m in 2022, £705,928 for 2021 and £1.2m in 2020. A profit before tax of £2.74m was recorded for 2019.
Championship Clubs follow Profitability and Sustainability rules which dictate what losses clubs are permitted to incur over a rolling three-year period. In its simplest form, clubs cannot exceed losses of more than £39m over a three-year period.
Accounts filed with Companies House show that income mostly came from being in the second tier - £8.4m in "central distributions" compared to £3m when the club was in League One. Likewise, TV money vastly increased, from £45,000 to £475,000 due to more Championship games shown live and a slice of a much larger broadcast deal.
Match income and season ticket sales remained the same as the previous year at £2.6m but the accounts also show that season ticket sales for the current season were in excess of 7.200, up from 6,700 the previous season. The financial period also included Rotherham United's New York Stadium hosting four well-attended games at UEFA Women's Euro 2022.
Other aspects of the accounts include commercial income going up to £3.1m from £2.9m. The accounts highlight the importance of related company, ASD Lighting, which again provided £1m in sponsorship and advertising.
Club chairman Tony Stewart OBE, founded ASD Lighting over 40 years ago. For the same financial year as the football club, the Rotherham manufacturer posted gross profits of £8.1m and an operating profit of £500,000 from a turnover of £21.3m.
In total, turnover for the year at Rotherham United was £15.7m, an increase from the £9.9m the previous year.
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The main expenditure went on wages, which exceeded £10m for the first time.
The accounts again show that during the year Rotherham United was charged £1m by RU Estates, another Stewart family company, that was created to develop the AESSEAL New York Stadium. RU Estates is listed as a debtor on the ASD Lighting accounts, owing £13m, repayable over nine years.
Also listed is a long term loan from the EFL to guarantee PAYE (£1.7m), which is interest free and repayable in 2025.
Kieran Maguire, a lecturer in football finance at the University of Liverpool, has analysed the results and points out on social media that Rotherham United "have excellent wage control by Championship standards." paying out 66% of income on wages compared to troubled clubs like Reading and Birmingham that paid more than they brought in (150% of income) on wages.
In League One, a Salary Cost Management Protocol (SCMP) operates where a club’s "player-related expenditure" should not exceed the sum of 60% of the relevant turnover.
Maguire also highlighted the low average wages and transfer fees. The Millers total squad cost at the end of the season of £1.3m can be compared to the Championship average of £27.8m and the squads of former Premier League teams built with millions in parachute payments.
Written before the current disappointing season (on the pitch, at least) got underway, the RUFC accounts read: "With collectivism and togetherness at the AESSEAL New York Stadium and a feeling that the players and all staff once again worked extremely hard to secure their Championship status for 2022/23. We will focus our efforts on recruitment and training to add further strength to staff and players.
"First Team staff will work closely with the Academy in a renewed emphasis to develop young players to play in a first team squad.
"Our Management team will continue to make use of the facilities at our Roundwood training site whilst identifying innovative ways to measure and improve player's fitness and skills.
"The Club will continue to work alongside and support our Community Trust which continues to deliver sport, education and confidence to the local community.
"Season ticket sales for 2023 are in excess of 7200. ASD Lighting Plc has agreed to sponsor the Club for another season. Other Sponsors secured include AESSEAL (Naming Rights), Mears, Eric Twigg Foods, J Bennet, KCM, IPM, Hughie Construction, Guardian Electrical and Equisolve and many more all secured for another season.
"We look forward to an exciting season in the Championship. Up the Millers."
RUFC website
Images: RUFC
The Millers posted a loss before tax of £1.1m for the 12 months to June 30 2023, a season where it brought in more, and spent more, and finished 19th to remain in The Championship for at least another year.
Comparative losses were £1.7m in 2022, £705,928 for 2021 and £1.2m in 2020. A profit before tax of £2.74m was recorded for 2019.
Championship Clubs follow Profitability and Sustainability rules which dictate what losses clubs are permitted to incur over a rolling three-year period. In its simplest form, clubs cannot exceed losses of more than £39m over a three-year period.
Accounts filed with Companies House show that income mostly came from being in the second tier - £8.4m in "central distributions" compared to £3m when the club was in League One. Likewise, TV money vastly increased, from £45,000 to £475,000 due to more Championship games shown live and a slice of a much larger broadcast deal.
Match income and season ticket sales remained the same as the previous year at £2.6m but the accounts also show that season ticket sales for the current season were in excess of 7.200, up from 6,700 the previous season. The financial period also included Rotherham United's New York Stadium hosting four well-attended games at UEFA Women's Euro 2022.
Other aspects of the accounts include commercial income going up to £3.1m from £2.9m. The accounts highlight the importance of related company, ASD Lighting, which again provided £1m in sponsorship and advertising.
Club chairman Tony Stewart OBE, founded ASD Lighting over 40 years ago. For the same financial year as the football club, the Rotherham manufacturer posted gross profits of £8.1m and an operating profit of £500,000 from a turnover of £21.3m.
In total, turnover for the year at Rotherham United was £15.7m, an increase from the £9.9m the previous year.
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The main expenditure went on wages, which exceeded £10m for the first time.
The accounts again show that during the year Rotherham United was charged £1m by RU Estates, another Stewart family company, that was created to develop the AESSEAL New York Stadium. RU Estates is listed as a debtor on the ASD Lighting accounts, owing £13m, repayable over nine years.
Also listed is a long term loan from the EFL to guarantee PAYE (£1.7m), which is interest free and repayable in 2025.
Kieran Maguire, a lecturer in football finance at the University of Liverpool, has analysed the results and points out on social media that Rotherham United "have excellent wage control by Championship standards." paying out 66% of income on wages compared to troubled clubs like Reading and Birmingham that paid more than they brought in (150% of income) on wages.
In League One, a Salary Cost Management Protocol (SCMP) operates where a club’s "player-related expenditure" should not exceed the sum of 60% of the relevant turnover.
Maguire also highlighted the low average wages and transfer fees. The Millers total squad cost at the end of the season of £1.3m can be compared to the Championship average of £27.8m and the squads of former Premier League teams built with millions in parachute payments.
Written before the current disappointing season (on the pitch, at least) got underway, the RUFC accounts read: "With collectivism and togetherness at the AESSEAL New York Stadium and a feeling that the players and all staff once again worked extremely hard to secure their Championship status for 2022/23. We will focus our efforts on recruitment and training to add further strength to staff and players.
"First Team staff will work closely with the Academy in a renewed emphasis to develop young players to play in a first team squad.
"Our Management team will continue to make use of the facilities at our Roundwood training site whilst identifying innovative ways to measure and improve player's fitness and skills.
"The Club will continue to work alongside and support our Community Trust which continues to deliver sport, education and confidence to the local community.
"Season ticket sales for 2023 are in excess of 7200. ASD Lighting Plc has agreed to sponsor the Club for another season. Other Sponsors secured include AESSEAL (Naming Rights), Mears, Eric Twigg Foods, J Bennet, KCM, IPM, Hughie Construction, Guardian Electrical and Equisolve and many more all secured for another season.
"We look forward to an exciting season in the Championship. Up the Millers."
RUFC website
Images: RUFC
40 comments:
This disastrous season will prove very costly,can see season tickets sales dropping drastically,I for one will not be renewing!
It is very difficult to see how RUFC can ever become an established Championship side without a major injection of funds from somewhere. I think that when they return to Division 1 at the end of the season it will be an uphill battle to halt the slide.
Change needed at the very top .
There is a danger I suppose that they could spiral downwards in the same way that Doncaster, Chesterfield and other clubs have done following relegation from the second tier. Maybe it is time for the Chairman to collaborate with potential investors and inject new funding and ideas into the club.
Been a truly appalling season for the Millers. Have had a season ticket for 30 years now but by no means certain to renew unless there are signs that the club is starting to put things right on and off the field. There are an awful lot of very disgruntled Millers at the moment.
Rotherham United and Sheffield United the laughing stocks of football.
Oh dear, we have well and truly been sent to Coventry tonight.
That's me done!
Another horror show. These are not Rotherham United players. They are stealing money.
The expression "not fit to wear the shirt" springs to mind.
We are about to break our own abysmal record for worst season ever by a Rotherham United side. Well done lads!
Certainly not a great time to be a Miller or a Blade. Thanks to the iniquities and inequalities of football Sheffield United have a good chance of bouncing back because of parachute payments. RUFC on the other hand are in for a very rough few years and will be lucky not to fall through divisions 1 and 2.
We're that bad,we've made a pathetic wendies team look good!😁
We would make Frickley Athletic look good
Well nobody else can break the record for worst ever season by a Rotherham United side can they!
Sans heart, sans pride, sans fight, sans everything
With apologies to Bill.
"The Only Way is.... Down",
With apologies to Yazz
We're Doomed!, with apologies to Private Frazer.
Beyond a joke, I'm afraid, although laughing stock seems appropriate
They shoot horses, don't they?
The Millers are in freefall at the moment and there seems to be a total lack of leadership both on and off the field. There is a danger that the thrashings being handed out at the moment will do permanent damage to confidence and morale. The end of the season can't come quickly enough for everyone concerned, but will next season be any better?
Season ticket sales will drop disastrously this summer unless fans can see that the structural and organisational problems at the club are being addressed. New ideas are urgently required. An injection of cash from other investors would also be welcome though this does not seem to be something that the owner is currently pursuing.
American backers are riding into town. Netflix series already in the pipeline
I'm sure I spotted Ryan Gosling in the Red & White Shop this morning. He was buying the XXL away top. Fingers crossed.
Did he have Barbie with him in her Primark OS shell suit?
No, funnily enough he was with a lass who serves on in our local chippy.
Now I come to think about it it probably wasn't Ryan Gosling
It could have been the Chairman in a pink suit.
Joke club!
I blame Millerbear
I've heard he spends more time in the treatment room than Morrison and Ferguson
I am a life long Miller. Been in all weathers home and away. Went when they were languishing in the old 4th division. But I will not support this shower of gutless under performers. All I have ever asked is that Millers players give their all for the shirt. Most of this lot are stealing supporters hard earned money. Well, enough is enough.
Reluctantly, I agree. I will await developments before going again this season or renewing my season ticket.
I prefer to watch us being competitive in Division 1 than witness our weekly humiliation in the Championship. We just don't have the resources to compete at this level. The promises of the Premiership to distribute money more fairly throughout the leagues are as hollow as the Tories pledges to level up.
True. Premiership clubs only have their own sel interests at heart. They couldn't give a monkeys about grass roots football.
Pitiful yesterday even when playing 10 men
The ref was man of the match for us. Sent one of theirs off and disallowed two Huddersfield stonewall penalties and still we couldn't win.
Don't think Pep Guardiola with Jurgen Klopp as assistant could get a win for this lot
Yes, the ref had an open goal near the end but only managed to hit a post.
The club is absolutely clueless and there is no long term plan
Where are Hollywood super heroes when you need them?
"Laughing stock" doesn't even scratch the surface.
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