Blackpool FC accounts released for 2016/17 promotion season

Blackpool Football Club made a loss of 2.2m during the 2016/17 season
Blackpool Football Club made a loss of 2.2m during the 2016/17 season

Accounts just released by Blackpool Football Club show it made a loss of £2.2m in the season it was promoted back to League One.

This is up from £1.7m the previous year, meaning the club is currently losing £42,000 every week.

The report, which covers the financial year up to May 31, 2017, also shows the club’s turnover was £3.8m, down from £4.4m in 2016.

The club was left with a year end balance of £6m, down on £6.8m the previous year and down from £9m two years ago.

Spend on players and managers wages in the financial year was £2.5m, having spent £2.6m the previous year during the relegation season from League One.

The report states the impact of November’s High Court judgement creates “material uncertainty” over the carrying value of the inter-company debts which stand at £27.1m.

The auditors found “insufficient evidence” that Blackpool Football Club (Properties) Limited and Blackpool Football Club Hotel Limited will be able to repay “any or all” of the debt.

The hotel made a small profit of £56,000, but it would have made a loss without extensive charges to the football club.

The club’s net assets stand at the value of £33.6m, down from £35.8m in 2016.

Gate receipts increased slightly from £608,225 to £660,764, mostly due to Blackpool’s involvement in the play-offs as well as reaching the fourth round of the FA Cup.

But receipts from season ticket sales plummeted from £718,438 to £223,801.

Sponsorship and advertising was down from £143,840 to £80,711.

Bar and food sales remained at a similar level, increasingly slightly from £345,275 to £346,510.

The club made a loss of £161,322 in transfer fees, having made a profit of £838,094 in 2015.

During the year the club had 118 employees, up four from the previous year, but this was calculated before the recent round of redundancies which will mean the figure is now much lower.

The figure is also likely to include stewards and other match-day staff.

A loan of £104,881 was made to former chairman Karl Oyston.

The report says the club was in a “further period” of transition having been relegated from League One, going on to add the team “exceeded expectations” to clinch promotion via the League Two play-offs.

The report added: “The directors are now focused on achieving promotion back to the Championship.”

However, November’s High Court judgement, where the Oystons were ordered to buy out Valeri Belokon for £31.27m, was listed under the section titled: “principal risks and uncertainties.”

These accounts were drawn together while Owen Oyston was still hopeful of appealing the judgement, a request that has since been denied.

The auditors were unable to find sufficient evidence that the holding company and its subsidiaries will continue to trade as a going concern for 12 months from the date of this report.

To read the full report, click here.