By David Owen
March 5 – Cardiff City managed only a modest profit during their brief return to the Premier League in 2018-19, in spite of a near four-fold increase in turnover.
The Malaysian-controlled Welsh club have posted a pre-tax profit of £2.5 million on turnover of £122.6 million for the year to end-May 2019. This compares with a pre-tax loss of £39.4 million on turnover of £32.8 million in their promotion season.
The year under review was dominated, ultimately, by the death in a plane crash of Emiliano Sala. The Argentinian player was killed on January 21 last year before he could play a single game for the club. He had just been signed from Nantes for “an undisclosed club record fee”.
Executive chairman Mehmet Dalman acknowledged that the club was “shaken to the core”.
Cardiff have since become embroiled in a dispute over the forward’s €17 million transfer fee.
A note in the newly-published accounts states: “In respect of an ongoing contractual dispute with another football club that arose in January 2019, the club has lodged an appeal with the Court of Arbitration for Sport (CAS) against an earlier ruling by FIFA.
“Although the directors, after taking legal advice, are of the opinion that the appeal has good prospects of success and will achieve a favourable outcome, no decision has yet been made by CAS and is not expected until mid-2020.
“Due to the uncertainty involved, the directors have prudently included adequate provision in these accounts should their appeal be unsuccessful.”
A separate note indicates that a provision of £19.5 million was charged to profit or loss during the year.
The accounts show that administrative expenses leapt from £12.4 million to £59.6 million, with operating profit weighing in at £2.1 million versus an operating loss of £34.1 million in 2017-18.
While the Bluebirds’ player-related wage bill jumped, as would be expected in the wake of promotion, from £31.2 million to £42.5 million (and from £20.6 million in 2016-17), overall staff costs were up only £5.2 million to £53.65 million. This implies that non player-related staff costs dipped considerably from just over £17 million in 2017-18 to just over £11 million in the latest period.
Directors’ remuneration was certainly well down at £485,000. The corresponding 2017-18 figure was £1.43 million. However, the 2017-18 accounts indicate that in addition to this, a further £5.7 million was paid to “other key management personnel” in respect of “contractual salary and bonus payments”.
Creditors falling due within a year stood at a hefty £226.9 million as at 31 May 2019. Of this, £113.5 million is categorised as “amounts owed to group undertakings” which are interest-free and repayable on demand.
A further £40.1 million is classified as “loans from shareholders” and £40.9 million as “other loans”. Interest is said to accrue at 7% on £14.8 million of the loans from shareholders.
Cardiff is controlled by Vincent Tan, or Tan Sri Dato’ Seri Vincent Tan Chee Yioun as the accounts allude to him. Tan was recently reported to have sold half his stake in Major League Soccer’s Los Angeles FC. http://www.insideworldfootball.com/2020/03/03/cardiff-owner-tan-sells-lafc-stake-valuing-mls-club-700m/ The Malaysian reduced his controlling stake in Bosnian champions FK Sarajevo last year, but remains a major shareholder of Belgian club KV Kortrijk.
Contact the writer of this story at moc.l1734806092labto1734806092ofdlr1734806092owedi1734806092sni@n1734806092ewo.d1734806092ivad1734806092