Trust Elections 2023

[tavyred]

I think some greater insight into how much income we generate and where it’s spent would be really useful.

I think a greater understanding for all would also help manage expectations.

We’ve raised £3/4m+ in transfer fees recently and still seem to be skint? Why?

SJP is too small and we’ve got ourselves promoted into a league where with our ownership model and its inherent financial limitations we struggle to compete.
Simple really,

 

[yticretexe]

Thanks for this. I am absolutely not an accountant so the details of this stuff is beyond me. A very detailed report was published earlier this year so I assume we will get the same next year.

https://www.exetercityfc.co.uk/siteassets/pdf/exeter-city---supporter-focused-report-2021-22---final.pdf

Thanks for this I don’t think I’d seen.

I think my biggest question from this (and I’d need to see the next report to confirm) is why we had sustainable income 4.5m in 21/22 but were only forecasting revenue of 3.8m in 22/23.

We would’ve expected a bump in income from the EFL and also should’ve anticipated an increase in attendances or at least maintenance of the the 5400 from 21/22.

Obviously forecasts can be flexed but have we and do we remain overly prudent with our budget setting which leaves us playing catch up in January where we’re rushed and there’s a premium? Were these forecast based on the budget set at the start of the year or the 9 month position when the report was released?

According to this report we forecasted a 2.1m operating loss which was out performed by a whopping 1.3m!! Not sure if it’s a reporting error but hopefully now having a CFO means our forecasts can be more realistic.

Hard to go off this in isolation but strange to see a forecasted reduction in revenue post a promotion season.

 

[Grecian Max]

Was having a read through the Trust Strategy 2020 (previous one was 2015, so I assume this every 5 years?)

It was mentioned in 2015 the “pursuit of external investment as an extension of the model” that ultimately didn’t “materialise”

What was the background behind this? I can’t find anything else but wondered if anyone ITK would know?

 

[elginCity]

We can scratch our heads, ponder and speculate all we wish about the make up of the £900K loss. We need to see the detailed figures if we are to understand properly....

S'true but considering the FD was talking about the figures y/e May 2023, think it's a fair assumption that this 'loss' would be due to the significant cash 'investment in property, plant & equipment' at the Cliff and SJP (incl pitches etc) ? The training ground work only started in spring 2022, and doesn't reflect in the accounts linked to above i.e y/e June 2022 ?

 

[Djg123]

SJP is too small and we’ve got ourselves promoted into a league where with our ownership model and its inherent financial limitations we struggle to compete.
Simple really,

Yep, so the trust model is basically capped at league two level or below. Sounds Very unambitious to me, yet any question of diverting away from it on here is met with outrage ps this isn’t 2003 anymore we can stop being scared now the trust have control of any future ownership investment or purchase…

 

[Phillip]

Yep, so the trust model is basically capped at league two level or below. Sounds Very unambitious to me, yet any question of diverting away from it on here is met with outrage ps this isn’t 2003 anymore we can stop being scared now the trust have control of any future ownership investment or purchase…

That's as maybe but I'm always amused by this concept of "ownership investment". Usually a financial investment implies some form of return. Investing in a League 1 Football club is basically signing yourself up to bonfire vast amounts of your money and be endlessly criticised by fans for not spending more.

 

[tavyred]

Yep, so the trust model is basically capped at league two level or below. Sounds Very unambitious to me, yet any question of diverting away from it on here is met with outrage ps this isn’t 2003 anymore we can stop being scared now the trust have control of any future ownership investment or purchase…

The trust model has its pro’s and cons and always has done, those cons are compounded for us by us not owning our stadium and that stadium being too small unfortunately.
Brentford (I believe) are an example of a club who were saved by its trust as we were, but maybe made the wise choice of getting out of the way when a rich owner came along.

 

[SEA Grecian]

Thanks for this I don’t think I’d seen.

I think my biggest question from this (and I’d need to see the next report to confirm) is why we had sustainable income 4.5m in 21/22 but were only forecasting revenue of 3.8m in 22/23.

We would’ve expected a bump in income from the EFL and also should’ve anticipated an increase in attendances or at least maintenance of the the 5400 from 21/22.

Obviously forecasts can be flexed but have we and do we remain overly prudent with our budget setting which leaves us playing catch up in January where we’re rushed and there’s a premium? Were these forecast based on the budget set at the start of the year or the 9 month position when the report was released?

According to this report we forecasted a 2.1m operating loss which was out performed by a whopping 1.3m!! Not sure if it’s a reporting error but hopefully now having a CFO means our forecasts can be more realistic.

Hard to go off this in isolation but strange to see a forecasted reduction in revenue post a promotion season.

There was discussion on this thread when the report was published. https://www.exeweb.com/forums/threads/supporter-report-2021-2022.64293/
And there is some interesting background to the publishing of the report on this podcast. https://podcasts.apple.com/mm/podcast/interview-exeter-city-chairman-nick-hawker-and/id1482886394?i=1000631153511

 

[Alistair20000]

S'true but considering the FD was talking about the figures y/e May 2023, think it's a fair assumption that this 'loss' would be due to the significant cash 'investment in property, plant & equipment' at the Cliff and SJP (incl pitches etc) ? The training ground work only started in spring 2022, and doesn't reflect in the accounts linked to above i.e y/e June 2022 ?

No. Those expenditures are capital expenditure not profit and loss items except to the extent of any depreciation charges on those asset.

 

[Grecian Max]

The trust model has its pro’s and cons and always has done, those cons are compounded for us by us not owning our stadium and that stadium being too small unfortunately.
Brentford (I believe) are an example of a club who were saved by its trust as we were, but maybe made the wise choice of getting out of the way when a rich owner came along.

I just can't see in the long term City getting much beyond the basement division without a stadium to support it.