News: Football club on front foot over finances
Rotherham United Football Club has released a statement over its financial results for the year ended June 2024 - its relegation season from The Championship.
The proactive move comes before the results are published with Companies House.
Having made a loss before tax of £1.1m in the previous year when the club beat the odds to stay in the second tier, the Millers set out a playing budget which marked the highest set in the club’s history to combat other teams that had recently been in the Premier League and others benefitting from parachute payments or significant overseas investment.
The club say that for 2023/24 the overall operating losses increased to £1.7m, despite a rise in income.
Turnover, including that generated through player trading, increased by 22%, with a rise in commercial income of 3% also reported.
Rothbiz reported in January that in the latest accounts of Rotherham-based manufacturing firm, ASD Lighting PLC, Rotherham United Football Club is listed as a debtor owing £5.2m and that their £1m in sponsorship to the club continued in 2024.
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A statement from RUFC said: "Although the club were able to generate additional revenue during our stint in the Sky Bet Championship through revenue streams including media coverage, Season Ticket sales, corporate hospitality and merchandising, the financial landscape as a whole continued to undergo a transformation with other notable running costs significantly rising. Outgoings including pitch repairs and increased utility costs more than doubled in a holistically challenging season in 2023/24, while compensation agreements for departing staff also impacted the bottom line.
"The Board continues to meet regularly to discuss the long-term vision for the football club with our aims still firmly set on establishing Rotherham United as a second tier club.
"As always, we will continue to assess and critique our own internal practices but our recent history clearly outlines that that the club must operate using a model which sees promising young talent acquired for a relatively low cost to be developed and sold for a profit.
"Despite the losses shown in our accounts – and largely thanks to your support and that of our Chairman through his own personal investment and that of ASD Holdings – the club continues to be financially sustainable in an increasingly volatile industry.
"Safeguarding the long-term future of football in Rotherham will always be at the forefront of our priorities. The club is a notable employer within the town and we are pleased to have seen our staff base grow significantly over recent years despite the increase in operating losses, allowing us to offer opportunities to people within the local region that would not otherwise exist. Beyond that and with the help of our highly-successful Community Trust, our aims away from football continue to be centred around offering opportunities to people within the locality to experiences they may not otherwise be able to access."
Rotherham United are playing host to The Price of Football Live at AESSEAL New York Stadium on Monday April 28 giving local fans of football the chance to gain insight into finances across the pyramid from industry expert Kieran Maguire.
Rotherham United website
Images: RUFC
The proactive move comes before the results are published with Companies House.
Having made a loss before tax of £1.1m in the previous year when the club beat the odds to stay in the second tier, the Millers set out a playing budget which marked the highest set in the club’s history to combat other teams that had recently been in the Premier League and others benefitting from parachute payments or significant overseas investment.
The club say that for 2023/24 the overall operating losses increased to £1.7m, despite a rise in income.
Turnover, including that generated through player trading, increased by 22%, with a rise in commercial income of 3% also reported.
Rothbiz reported in January that in the latest accounts of Rotherham-based manufacturing firm, ASD Lighting PLC, Rotherham United Football Club is listed as a debtor owing £5.2m and that their £1m in sponsorship to the club continued in 2024.
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A statement from RUFC said: "Although the club were able to generate additional revenue during our stint in the Sky Bet Championship through revenue streams including media coverage, Season Ticket sales, corporate hospitality and merchandising, the financial landscape as a whole continued to undergo a transformation with other notable running costs significantly rising. Outgoings including pitch repairs and increased utility costs more than doubled in a holistically challenging season in 2023/24, while compensation agreements for departing staff also impacted the bottom line.
"The Board continues to meet regularly to discuss the long-term vision for the football club with our aims still firmly set on establishing Rotherham United as a second tier club.
"As always, we will continue to assess and critique our own internal practices but our recent history clearly outlines that that the club must operate using a model which sees promising young talent acquired for a relatively low cost to be developed and sold for a profit.
"Despite the losses shown in our accounts – and largely thanks to your support and that of our Chairman through his own personal investment and that of ASD Holdings – the club continues to be financially sustainable in an increasingly volatile industry.
"Safeguarding the long-term future of football in Rotherham will always be at the forefront of our priorities. The club is a notable employer within the town and we are pleased to have seen our staff base grow significantly over recent years despite the increase in operating losses, allowing us to offer opportunities to people within the local region that would not otherwise exist. Beyond that and with the help of our highly-successful Community Trust, our aims away from football continue to be centred around offering opportunities to people within the locality to experiences they may not otherwise be able to access."
Rotherham United are playing host to The Price of Football Live at AESSEAL New York Stadium on Monday April 28 giving local fans of football the chance to gain insight into finances across the pyramid from industry expert Kieran Maguire.
Rotherham United website
Images: RUFC
10 comments:
They just need to get rid of the manager now. Hopefully very soon.
That's not all they need to do but it would be a start.
The problem with the club lies at the very top .
It is certainly pretty shambolic at the moment.
Season ticket sales are about to go over a cliff edge unless the club rapidly shows more ambition.
The owner will have to take decisive action soon before the apathy becomes permanent.
Too late sir
Jasper?
We are a laughing stock.
Great news at last.
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