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Pompey announce annual loss.

Well Pompey have annouced their annual figures for 2007/08 and they show a marked improvement over the previous year.

The full statement is included below but a quick look at the figures shows that with turnover up by 75% the loss is down from 58% to 24%. The club reveal they have loans of 44million and restructure the deals.

Interestingly the sale of Mendes, Muntari, Diarra and Defoe are not included as are the purchase of Crouch, Kaboul, Belhadj and Mullins and the club will have made a profit of in the region of 25million on those deals. There is no mention of the 'sale' of the former manager.

Read the statement yourselves and make your own minds up - remember these statements are designed to show a rosy picture.

Pompey Statement from Official Site

Portsmouth Football Club have reduced losses by 6.79m for the year ending 2007/08 - from 23.45m (2006/07) to 16.66m.

The club anticipates a further substantial reduction for 2008/09 and is on course to break even by the time Fratton Park is redeveloped to accommodate 30,000 fans by the season 2011/12.

The first phase of the redevelopment will see Fratton Park`s capacity increase by 5,000 to around 25,000 for the start of the 2010/11 season.

Turnover for the year rose from just over 40m to 70m, largely due to the increased revenue from the new three-year Sky TV contract - from 25m to 49m.

In addition there were increases in retail operations, sponsorship, match revenues, hospitality and as a result of the FA Cup success. These accounted for an extra 5m on the previous year.

The club anticipates turnover remaining at the same level but then rising by up to 50 per cent when the stadium redevelopment, with the addition of extra seating and corporate hospitality boxes, is complete.

Total staff costs rose from 36.8m to 54.6m for the club`s 635 personnel, but the overall amount as a proportion of the club`s turnover fell from nearly 92 per cent to 77.6 per cent. This was despite the payment of bonuses for winning the FA Cup and qualifying for the UEFA Cup.

The club`s aim is to reduce the wage bill further to fall in line with the Premier League guidelines of just over 60 per cent of turnover.

During the 2007/08 period the club invested around 4m in new offices, a new megastore, new ticket office and media centre and upgraded facilities at Fratton Park.

The business also diversified by buying South Coast Investments, a leisurewear business that includes the stores Animal and Quiksilver and also invested in a 25 per cent share in Quadrant Media, which runs three radio stations on the south coast.

The club also introduced a financial services division to provide alternative payment methods for season tickets, which were once again frozen.

The club has since introduced a five-month interest free option through Zebra Finance and a club credit card which allows payments to be made over a 12-month period. All season ticket prices have been reduced for next season.

The 2007/08 figures do not take into account fees agreed for the sale of players such as Pedro Mendes to Glasgow Rangers and Sulley Muntari to Inter Milan in the summer of 2008, or Lassana Diarra to Real Madrid and Jermain Defoe to Spurs in January 2009.

The purchases of Peter Crouch and Younes Kaboul in the summer of 2008 and Nadir Belhadj and Hayden Mullins in January are also not included.

The club currently has loans outstanding of 44m with Standard Bank and Barclays Bank. The club is in discussion to renew banking facilities.

PUP

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The Journalist

Writer: eastneydave Mail feedback, articles or suggestions

Date:Tuesday April 7 2009

Time: 7:05PM

Your Comments

Makes me feel just slightly less worried about my credit card bill(s)
hammersmithblue
Makes me feel just slightly less worried about my credit card bill(s)
hammersmithblue
I am so not surprised at this article. Bleedin' typical if you ask me!
PFCGino
I am so not surprised at this article. Bleedin' typical if you ask me!
PFCGino
The club currently has loans outstanding of 44m with Standard Bank and Barclays Bank. The club is in discussion to renew banking facilities. thats what the rags were on about but described it as begging in dubai.
ruffcider
The club currently has loans outstanding of 44m with Standard Bank and Barclays Bank. The club is in discussion to renew banking facilities. thats what the rags were on about but described it as begging in dubai.
ruffcider
So if I'm reading it right we have a debt of 44m and are operating at a loss of 16.66 million per year ... So logically, the operating costs will include interest (and I guess capital) payments against the loans .. so what this means is that we are still spending more than what have but in doing so are reducing our debts AND the cut backs we have made will go so way to help do that further - It is a step in the right direction surely ... Why the doom and gloom fellas ? .. It just tells us what Peter Storrie has been saying all along... It's tough but we are making inroads..
Chix
So if I'm reading it right we have a debt of 44m and are operating at a loss of 16.66 million per year ... So logically, the operating costs will include interest (and I guess capital) payments against the loans .. so what this means is that we are still spending more than what have but in doing so are reducing our debts AND the cut backs we have made will go so way to help do that further - It is a step in the right direction surely ... Why the doom and gloom fellas ? .. It just tells us what Peter Storrie has been saying all along... It's tough but we are making inroads..
Chix
The bit I find interesting is "The business also diversified by buying South Coast Investments, a leisurewear business that includes the stores Animal and Quiksilver and also invested in a 25 per cent share in Quadrant Media, which runs three radio stations on the south coast." So Pompey now own Animal and Quicksilver, or just some stores?
sneakay
The bit I find interesting is "The business also diversified by buying South Coast Investments, a leisurewear business that includes the stores Animal and Quiksilver and also invested in a 25 per cent share in Quadrant Media, which runs three radio stations on the south coast." So Pompey now own Animal and Quicksilver, or just some stores?
sneakay
Dave, am I right in thinking that the figures won't show the Muntari et al transfers because the year for the accounts would have closed in April 08? Certainly, they should have showed the purchase of Defoe in Jan 08 though. Next year's figures should show us well down in liabilities as the Muntari, Diarra, Mendes, Defoe money should show by then. Well where the hell did the press get all those figures of 90mil in debt etc?
Gandor1
Dave, am I right in thinking that the figures won't show the Muntari et al transfers because the year for the accounts would have closed in April 08? Certainly, they should have showed the purchase of Defoe in Jan 08 though. Next year's figures should show us well down in liabilities as the Muntari, Diarra, Mendes, Defoe money should show by then. Well where the hell did the press get all those figures of 90mil in debt etc?
Gandor1
The big thing for me is wages as a proportion of turnover down from 92% to 77%. That shows we're going in the right direction.
UKTony
The big thing for me is wages as a proportion of turnover down from 92% to 77%. That shows we're going in the right direction.
UKTony
the losses are coming down - and with the high profile departures last summer/january, even with arrivals, it would have come down even more. but we will have to keep letting players go - without replacing with similar quality - to keep doing this wont we? which again highlights our need to increase capacity/move, well get this redevelopment done and all that goes with it...
pompeyrug
the losses are coming down - and with the high profile departures last summer/january, even with arrivals, it would have come down even more. but we will have to keep letting players go - without replacing with similar quality - to keep doing this wont we? which again highlights our need to increase capacity/move, well get this redevelopment done and all that goes with it...
pompeyrug
Big numbers, big wages, small crowds limited by a small ground. Big headache!
storagematt
Big numbers, big wages, small crowds limited by a small ground. Big headache!
storagematt
Just means to me that a clear out of our top talent in the summer to be replaced by the chuckle brothers and humpty dumpty is a definite. If we find a buyer we might just be able to invest something back into the team. Otherwise if you thought we were stretched this season, just wait; we'll be in for a roller coaster ride of Alton Towers proportions!...PS. And quite where a Manager on massive wages fits into this is farcical. I reckon they must have employed Gordon Browns spin doctors to put this together...
pentonpompey
Just means to me that a clear out of our top talent in the summer to be replaced by the chuckle brothers and humpty dumpty is a definite. If we find a buyer we might just be able to invest something back into the team. Otherwise if you thought we were stretched this season, just wait; we'll be in for a roller coaster ride of Alton Towers proportions!...PS. And quite where a Manager on massive wages fits into this is farcical. I reckon they must have employed Gordon Browns spin doctors to put this together...
pentonpompey
This may be of interest: http://www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/5121744/Portsmouth-sold-Lassana-Diarra-and-Jermain-Defoe-to-balance-books.html
NinjaTim
This may be of interest: http://www.telegraph.co.uk/sport/football/leagues/premierleague/portsmouth/5121744/Portsmouth-sold-Lassana-Diarra-and-Jermain-Defoe-to-balance-books.html
NinjaTim
As always, the media are spinning this as 'poor old struggling Pompey', I don't think there's anything here we didn't already know. Including that we do need a buyer. But not as desperately as the scummers do!
tracyc
As always, the media are spinning this as 'poor old struggling Pompey', I don't think there's anything here we didn't already know. Including that we do need a buyer. But not as desperately as the scummers do!
tracyc
Thats quite true Tracy, but the truth is if we don't get a buyer then we're treading mud. No investment=No improvement.
pentonpompey
Thats quite true Tracy, but the truth is if we don't get a buyer then we're treading mud. No investment=No improvement.
pentonpompey
But that's not what was said Pets.. The ground redevelopment is planned new owner or not...
Chix
But that's not what was said Pets.. The ground redevelopment is planned new owner or not...
Chix
Chix, The ground might get developed, but without more investment it could just swallow up all our spare money, leaving little to develop the squad. We can't do it all, and i struggle to see where so many think it's going to come from?! Sascha has said more than once that his coffers shut, so we'll just have to wait and see won't we!
pentonpompey
Chix, The ground might get developed, but without more investment it could just swallow up all our spare money, leaving little to develop the squad. We can't do it all, and i struggle to see where so many think it's going to come from?! Sascha has said more than once that his coffers shut, so we'll just have to wait and see won't we!
pentonpompey
 

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