Post by Macmoish on Sept 16, 2010 7:23:55 GMT
Such a surprise!
Guardian/Owen Gibson
FA left with £17m black hole after 'cost cutting' move to Wembley
• Accounts reveal true impact of departure from Soho Square
• Rise in wages also adds to governing body's financial worries
The Football Association's move from Soho Square to Wembley cost the organisation £17m, accounts released tomorrow will reveal. The switch was supposed to mark a new age of austerity but has proved a burden at a time when the FA was under severe financial pressure following the collapse of Setanta and the ongoing need to underwrite Wembley. The transfer to Wembley will produce savings but it will take four years to recoup the one-off hit.
The accounts for 2009 show the extent of the financial whirlwind that hit the FA during a period when its wage bill was also rising due to the recruitment, in 2007, of Fabio Capello and his extensive backroom staff to coach the England team.
The FA's inability to find a tenant for its former premises at Soho Square and, more significantly, the impact of Setanta going bust along with one of its overseas broadcasting partners, left a £60m hole to fill between 2010 and 2013. The governing body has sought to deal with that by cutting its overheads by 10%, reducing the FA Cup prize fund and other measures.
The one-off hit of £17m brought about by the move to Wembley is based on the forecast loss over the remainder of the lease at Soho Square. It is believed that the FA has subsequently negotiated a deal with its former landlord to exit the lease by paying a kill fee.
Insiders says the transfer to Wembley will save £4.5m a year on an ongoing basis. That figure is made up of £3m saved on the rent and rates that would have been due at Soho Square and £1.5m per year saved on operating costs at its new home.
The accounts also lay bare the painful legacy of the loans taken out to fund the construction of the £757m national stadium. The 2009 figures show the FA made total payments of more than £30m to its Wembley National Stadium Limited subsidiary. The FA general secretary, Alex Horne, said that the FA had budgeted to continue to subsidise Wembley to the tune of £20m per annum in 2010 and 2011 and £12m a year in 2012 and 2013.
Executives at WNSL insist they will break even by 2014, at which point profits should begin to flow back to the FA. As part of a 2008 refinancing, the FA also extended a £31.5m bridging loan to WNSL.
But Horne was also able to claim that the money flowing into the game from the FA had increased by £16m on the previous year to £103m. That was based on a £52m increase in turnover to £314m, thanks mainly to an increase in broadcasting revenues that flowed from ITV and Setanta before the latter went bust. Horne said he was "proud that we have been able to invest in the game at the rate of over £2m per week".
The accounts also show the extent to which the FA's wage bill continued to rise during the year, from £37.6m to £42.6m, as did the number of staff it employs, from 544 to 568. It puts the former down to the appointment of Capello and the latter to the fact that an increased number of Tesco Skills Coaches, paid for through a sponsorship deal, are included in the total. Horne has largely attempted to make savings without cutting posts but that approach may come under scrutiny given the pressure on the wider economy.
WNSL's accounts, also released tomorrow , showed it had reduced pre-tax losses from £31.1m to £15.6m. Its operational performance was described as "exceptional" despite continuing problems over the Wembley pitch. Further progress was made on selling the remaining box and premium seats, taking them to 91% occupancy. But the real test will come when the Club Wembley contracts, responsible for two thirds of Wembley's revenue, come up for renewal in 2017.
And the legacy of its chaotic and unweildy construction will endure until at least 2023, when the loans taken out to fund its construction are due to be fully repaid. According to the 2009 accounts, it still owes £309m to the bank under the terms of a refinancing agreement signed in 2008 and £62.4m to the FA.
www.guardian.co.uk/football/2010/sep/15/fa-wembley-fabio-capello
Guardian/Owen Gibson
FA left with £17m black hole after 'cost cutting' move to Wembley
• Accounts reveal true impact of departure from Soho Square
• Rise in wages also adds to governing body's financial worries
The Football Association's move from Soho Square to Wembley cost the organisation £17m, accounts released tomorrow will reveal. The switch was supposed to mark a new age of austerity but has proved a burden at a time when the FA was under severe financial pressure following the collapse of Setanta and the ongoing need to underwrite Wembley. The transfer to Wembley will produce savings but it will take four years to recoup the one-off hit.
The accounts for 2009 show the extent of the financial whirlwind that hit the FA during a period when its wage bill was also rising due to the recruitment, in 2007, of Fabio Capello and his extensive backroom staff to coach the England team.
The FA's inability to find a tenant for its former premises at Soho Square and, more significantly, the impact of Setanta going bust along with one of its overseas broadcasting partners, left a £60m hole to fill between 2010 and 2013. The governing body has sought to deal with that by cutting its overheads by 10%, reducing the FA Cup prize fund and other measures.
The one-off hit of £17m brought about by the move to Wembley is based on the forecast loss over the remainder of the lease at Soho Square. It is believed that the FA has subsequently negotiated a deal with its former landlord to exit the lease by paying a kill fee.
Insiders says the transfer to Wembley will save £4.5m a year on an ongoing basis. That figure is made up of £3m saved on the rent and rates that would have been due at Soho Square and £1.5m per year saved on operating costs at its new home.
The accounts also lay bare the painful legacy of the loans taken out to fund the construction of the £757m national stadium. The 2009 figures show the FA made total payments of more than £30m to its Wembley National Stadium Limited subsidiary. The FA general secretary, Alex Horne, said that the FA had budgeted to continue to subsidise Wembley to the tune of £20m per annum in 2010 and 2011 and £12m a year in 2012 and 2013.
Executives at WNSL insist they will break even by 2014, at which point profits should begin to flow back to the FA. As part of a 2008 refinancing, the FA also extended a £31.5m bridging loan to WNSL.
But Horne was also able to claim that the money flowing into the game from the FA had increased by £16m on the previous year to £103m. That was based on a £52m increase in turnover to £314m, thanks mainly to an increase in broadcasting revenues that flowed from ITV and Setanta before the latter went bust. Horne said he was "proud that we have been able to invest in the game at the rate of over £2m per week".
The accounts also show the extent to which the FA's wage bill continued to rise during the year, from £37.6m to £42.6m, as did the number of staff it employs, from 544 to 568. It puts the former down to the appointment of Capello and the latter to the fact that an increased number of Tesco Skills Coaches, paid for through a sponsorship deal, are included in the total. Horne has largely attempted to make savings without cutting posts but that approach may come under scrutiny given the pressure on the wider economy.
WNSL's accounts, also released tomorrow , showed it had reduced pre-tax losses from £31.1m to £15.6m. Its operational performance was described as "exceptional" despite continuing problems over the Wembley pitch. Further progress was made on selling the remaining box and premium seats, taking them to 91% occupancy. But the real test will come when the Club Wembley contracts, responsible for two thirds of Wembley's revenue, come up for renewal in 2017.
And the legacy of its chaotic and unweildy construction will endure until at least 2023, when the loans taken out to fund its construction are due to be fully repaid. According to the 2009 accounts, it still owes £309m to the bank under the terms of a refinancing agreement signed in 2008 and £62.4m to the FA.
www.guardian.co.uk/football/2010/sep/15/fa-wembley-fabio-capello