`HEALTHY` FOOTBALL CLUB MAKES A LOSS
'Healthy' football club makes a loss
CHAD website, 09 October 2006
MANSFIELD Town Football Club made a loss of almost £260,000 in the year-ending June 2005 –– but accountants insist the football club's financial state is still 'healthy'.
Financial statements for the year ending 30th June 2005 show an operating loss of £259,000 compared to a profit of £409,000 in 2004, which has been blamed on reduced turnover and a drop in attendances.
But club accountants Hollis and Co say the club has reduced its spending to partially compensate for the fall in income and has more than £1.5m in net assets and £392,000 in the bank.
A statement said: "The football club is in a healthy financial state to move forward –– it owns its own stadium without any borrowings on it and operates tight control over its expenditure.
"During the year, the amount owed by Mr Haslam to the club has decreased by over £100,000 and we understand it has decreased even further in the period since 30th June 2005."
And chief executive Keith Haslam said he believed the club's financial position was something to be proud of.
"We have to realise that at this level, it can be a struggle when there's a drop in attendance," he said.
"If you look at the bottom two divisions, probably 70 per cent of the clubs have been in administration while Mansfield Town hasn't –– and I think we're in a very strong position for a club of our size."
At the end of June 2005, Mansfield Town Football Club was valued at £1,577,622 –– although more than £1m of that was made up of debts to the club.
This included £242,593 of a controversial personal loan taken out by Mr Haslam, while holding company Stags Ltd –– which Mr Haslam owns 74 per cent of –– owed the club £585,728.
The physical assets of the football club were valued at £611,527 and Mr Haslam paid himself a salary of £65,343.
The accounts for 2006 are expected to be released by the end of this year.