QuoteKey point from that article is we made an operating profit of €107,000 in 2010. The accumulated loss figures were done to death last year, they mainly date back to 2005 and examinership.
The Irish Times - Thursday, July 28, 2011Shamrock Rovers posts profit for 2010
WINNING THE league title and hosting Italian football giants Juventus in a glamour European fixture appears to have helped Tallaght-based Shamrock Rovers to post a profit last year.
Latest abridged accounts for Shamrock Rovers FC Ltd show accumulated losses were reduced to 513,692 in the 12 months to the end of November 2010 from 620,570 in the previous year.
This indicates that the club, which is owned by a group of its fans, posted a profit for the year of almost 107,000. Share capital of just more than 500,000 meant the club closed the year with a deficit in its shareholder funds of 63,457.
Shamrock Rovers won the 2010 league title securing a draw against Bray Wanderers on the final day of the season. This bridged a 16-year gap since its previous league win. In addition, it lost the FAI Cup Final on penalties in front of a bumper crowd of 36,000 at the Aviva Stadium. The club had a good run in the Europa League, beating Israeli side Bnei Yehuda and hosting Juventus in front of a full house in Tallaght.
Its successful run has continued this season, with the Hoops winning the All-Ireland Setanta Cup and once again challenging for the league. Earlier this month, Rovers beat FC Flora of Estonia in the Uefa Champions League.
The Hoops last night took on FC Copenhagen in Denmark in the next round of the competition and will host the return leg in Tallaght next Tuesday.
This marks a remarkable turnaround for Irelands most successful club. Rovers was placed into examinership in 2005, owing 2.4 million and was relegated to the First Division. It won promotion back to the top flight in 2006 before moving to a new stadium in Tallaght two years ago.
[COLOR=#417394]http://www.irishtimes.com/newspaper/...301499702.html[/COLOR]
Key point from that article is we made an operating profit of €107,000 in 2010. The accumulated loss figures were done to death last year, they mainly date back to 2005 and examinership.
Done to death? To the best of my recollection nobody ever offered anything approaching an explanation for them.
While any profit is good, €107k is not a huge profit considering you had the Juventus game, won the league and made the cup final.
#NeverStopNotGivingUp
Buy yourself some fresh grapes pal.
Did I say something that was inaccurate?
#NeverStopNotGivingUp
Originally Posted by Mr A
Our finance director explained it in great detail to the members on our forum when that article from last year about accumulated losses came out.
Uefa prize money isn't paid until the end of the competition.
Not sure what your point is here? It'd still be in the figures quoted whether or not it's been paid.
You do realise that that profit figure is not the exact amount of money made or held by Rovers. It could be considerably higher or considerably lower.There will be alot of adjustments made to those accounts with the final recommendation of the the auditors as well as certain unrealistic expenses such as depreciation/amortisation of assets and accruals been posted.
The accounts being quoted from are the audited accounts (post any adjustments), which were filed last week with the CRO.
What I remember was people confusing accumulated losses with debt. The amount of people that thought Rovers lost 600,000 last year was incredible. Even the usual accounts packwolves here..
The Model Club
Tell all the Bohs you know
that we've gone and won two-in-a-row
and it's not gonna be three
and it's not gonna be four
it's more likely to be 5-1.
I'd have to be in agreement with Mr.A on this one regarding the profit levels. For winning the league, having 3-5000 at every home game, getting to the cup final, high profile Europa league game with Juventus, not forgetting a packed house with Real Madrid. Those profit levels you'd imagine should have been a lot higher. It really backs up the question of a severely high expenditure rate.
and handed a free publicly funded Stadium at a knock down rent
Sack the board they're doing a terrible job.
In fairness, profit in a league winning season, that sort of recklessness is unheard of..
The Model Club
Tell all the Bohs you know
that we've gone and won two-in-a-row
and it's not gonna be three
and it's not gonna be four
it's more likely to be 5-1.
So say Shamrock Rovers are runners up this season, go out of the cup - with reduced prize money anyway, a percentage drop of average attendances. Lose to Copenhagen that figure of €107k would turn negative surely.
I know the above is worse case scenario but remove prize money (as no clubs should factor this really into a budget) well expenditure to income ratio is not great.
i believe the question that these accounts raise (for me) is not whether SDFC are at risk because of their relatively small profit, but whether all the other clubs can survive given how far behind SRFC most are - in terms of facilities, a really loyal fanbase, branding, crowds, new stadium etc.
The SDFC model looks really good, how do we get a competitive league that drives a reasonable profit for most clubs?
I'm not snipping at Rovers, i just worry for the survival of the league, unless we can get more attractive and competitive. If Rovers are and indeed the league are to florish we need profits.............
In fairness, wouldn't a Shamrock rovers fan generally be the first to give such same arguments to other teams. If you're going to start dishing out childish remarks at least please prove me wrong first.
It's a funny one, there's two ways of looking at it:
- In the past clubs that would have enjoyed a similar success would have racked up sizeable losses and/or debt in order to achieve it usually leveraging against fixed assets, Rovers on the other hand have achieved great success and managed to turn a profit at the same time.
- On the other hand, as has been pointed out had Rovers narrowly finished second, went out of the cup in the semis and Europe in the previous round would they have posted an unhealthy loss with nothing to show?
Perhaps Rovers are right to use their position of relative strength (good facilities, good crowds and small debt) and spend to take advantage or perhaps they are risking their stability, I suppose time will tell.
DFX or anyone else, I'm being obtuse but could someone explain accumulated loss in layman's terms? How are these losses covered and how do they differ from level of debt?
The losses could be partly directors loans or other members loans from years before they had to be non refundable under the FAI rules couldn't they? Not necessarily money owed to "real" creditors.
Upwards to the vanguard where the pressure is too high.
A setup to fund B ...
B funded by A ...
Therefore B "owes" money to A!
Q.E.D.
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