2 blogs about the current plight of Lewes FC and options to be read in conjunction with each other. The other one of the is here-
Without further ado, let’s take a layman’s view of the finances!
*Why a layperson?
A layperson is a person without professional or specialized knowledge in a particular subject:
A layperson’s view is often the best way to take a view on these things because generally when it is left for people within finances to explain finances there is a lot of presumption that you will know what they’re talking about. On the whole we don’t.
Also, for years prior to Mercury 13, when the board finally fessed up to us being in the financial shit, shall we say politely, the club interpreted the figures in a positive way contrary to the reality.
I have run my own business since I was 18 so I have a basic grasp on the finances.
*Meaning?
This is the fanzines beginners guide to the Lewes FC finances written be a beginner with a pretty good grasp of figures but please grant me absolution for approximations and being slightly out on some of the figures, I am just trying to impression as to what is going on.
*In a nutshell?
In a nutshell the club turns over nearly £1.5 million per season.
We can approximate break this down to
£600,000 from directors/former directors
£350,000 in donations.
£450,000 from club income.
£1.4 million total.
*That’s simple?
As I say this is laypersons view and figures gleaned from the 2021-22 accounts as the 2022-23 accounts are not as transparent as 21/22 and I have found the club unhelpful re the accounts. Matchday and commercial income is £235,967 which is obviously included in the £450,000 club income but I know not where specifically where sponsorship and tv money is attributed.’ presumably here.
*Transparent?
The club should be telling the accountants to break income down to specifics for instance income should be broken down into gate receipts, bar and concessions, 3g, sponsorship, tv money, other commercial etc. Pluming it all under club income is disingenuous and insulting to the membership who should have access to a clear view of the finances.
*So how will things change when the generous donations from Ed Ramsden stop?
I understand they already have, A lady or gentleman accountant posted on the forum that at the start of the season the club had a £450,000 cash reserve from past donations and the endowment fund. Again, I am unsure of the specifics. But there was nearly half a million in the bank. I understand this is known as ‘legacy’ money. But Ed’s contributions have stopped, and we are existing this season on this legacy money that will be blown by the end of the season.
*So, is this right for next season?
£000,000 from directors/former directors
£350,000 in donations.
£450,000 from club income.
£800,000 total
Not necessarily, that is a worst-case scenario. But as things stand yes. Who is to say whether other people will stump up some dosh. There have been other contributions from people and business of £100k a pop so there are people out there still. But there no guarantees or commitments.
*As most of the donations are tied to the Lewes FC Women i.e. FA grants, if the women get relegated is this right?
£000,000 from directors/former directors
£000,000 in donations.
£450,000 from club income.
£450,000 total
I can’t be sure, but I think this money, the £350,000 is attributable to the women’s involvement in the Championship and from the licence arrangements. So, if we go down, I would imagine much of it will be lost. With club income set to decrease dramatically and other clubs in the Championship indicating investment investment investment, it is hard to see if we stay up this season, which I think we will, how on earth we can compete next season. We can’t and staying up this season while we can still afford a decent squad is a mere stay of execution.
*But club income will stay at about £450,000?
Let’s face it, who will want to watch the women outside the highly commercial and publicised top two flights and the men also in a badly funded team scrapping for relegation.
Gates will decline.
Income from the bar and concessions will wilt.
Membership will drop without all of the razzmatazz.
Will Lyle and Scott want to pay a shed load of money annually with the crown jewels a failed project? Probably not.
It is not unreasonable to see income decline to £300,000 maybe.
*So, you are saying the worst case scenario is going from –
£600,000 from directors/former directors
£350,000 in donations.
£450,000 from club income.
£1.4 million total.
To
£000,000 from directors/former directors
£000,000 in donations.
£300,000 from club income.
£300,000 total?
Yes, unlikely but certainly not inconceivable.
*How will we make up the shortfall if the women stay up without the £600,000 from Ed Ramsden?
The board have already indicated there will be tough financial choices to be made next season. The board will have to make financial sense of a puzzle. Our playing budgets are £600,000 per annum and Ed is taking away his £600,000 per annum contribution.
*So, we’re buggered?
Not necessarily, but more than likely.
*Not necessarily?
Budgets will need to be cut, most of the paid non-playing employees can be made redundant and we can bring the catering back in-house. This will bring in significant revenue. We can stop frittering vast sums of money on wasteful exhibition tournaments and cut down on the general unnecessary waste such as paying for training facilities when we have our own. There are large cuts that can be made.
There fortunately many other considerations. As I have alluded to above there is nothing that says that there will not be further personal donations. OK, certainly they will not be on the level of those from Ed Ramsden. There is certainly nothing that says if the board finally gets its act together to reach out to local businesses that we cannot get a nice sponsorship income in from the town. And as I mention in the corresponding blog to this, we are currently a very attractive option for people wanting to invest and take over the running of a high profile but small football club.
*Interesting but worrying times?
The legacy of the leadership of Lewes FC over recent years was always going to be dire. I for one will be delighted to see some of the characters and what they have brought to the club fizzle out and disappear, there undying support er…. dying. Mark my words you won’t hardly see many of the people in the leadership of the last five years, you are accustomed to seeing piggy backing around the Pan on the back of Ed Ramsden’s generous donations. Sure, the club will need surgery but that will not necessarily be a bad thing if it is built up again as a proper community football club for men, women and Lewes.
The Rights of Fans. 