Argyle made a loss of close to £1.5 million in 2018/19

Plymouth Argyle made a loss of close to £1.5 million in their 2018/19 League One relegation campaign, according to figures released by the club.

The Pilgrims’ expenditure of £7,846,000 far exceeded the income of £6,375,800 but the shortfall was made up by owner/chairman Simon Hallett.

Argyle expect to make another loss this season, with Hallett again stepping in to provide the funding to cover that.

The medium term goal is for the club to be sustainable on its own terms, without the need for any intervention from Hallett.

The United States-based businessman has been keen to provide greater transparency over the club’s finances.

The publication of ‘Argyle Finances – building a sustainable future’, which was compiled by club director Paul Berne, is a significant step towards that.

It reveals, for example, that 70 per cent of Argyle’s expenditure in 2018/19 went on salaries.

Wages are paid to three key groups – players, non-playing football staff (the manager and his backroom team), and administrative staff – the people who run the club day-to-day.

The document states: “The other costs of running a football club are significant – costs other than wages are over £2m per year.

“Whilst significant, these costs are carefully managed.

“The costs of upkeep of the stadium, and the costs of simply having a football team (eg travel expenses) are significant, and cannot be avoided.

“Costs include investments, which are vital for the long term future of the club. Investments are made in stadium, infrastructure and other long-term assets.”

Wages accounted for 64 per cent of Argyle’s expenditure in 2017/18 and 60 per cent the previous season, when they were promoted from League Two.

When it came to non-wage expenditure in 2018/19, stadium upkeep costs included £145,600 in rates, £88,900 in pitch maintenance, £73,800 for water as well as £64,800 for heat and light.

Among football costs of £1,030,500 was £196,300 in policing and security and £191,900 in travel costs.

A section described as ‘academy costs/other’ accounted for £473,400.

There were also admin expenses of £491,100, which included legal and professional costs of £103,100.

rgyle’s income in 2018/19 showed a slight increase of £161,800 compared to £6,214,000 the previous season.

Revenue from tickets accounted for 42 per cent of that total, with 31 per cent coming from the EFL and prize money from various competitions.

Money from advertising and sponsorship of the club made up eight per cent of the expenditure.

Transfer income, as well as the club shop and programme, accounted for seven per cent each, with catering at six per cent.

The document states: “The long term stability of the club involves reliance upon ticketing income.

“However, it is vital to grow other income streams (eg advertising).”

Income streams for 2018/19 included £1,431,800 for season tickets and £901,400 for league home tickets.

That compared to £1,195,300 for season tickets the previous year and £1,131,600 for league home tickets.

Argyle received £829,700 in EFL distributions in 2018/19, plus a £632,500 EFL solidarity payment and £448,000 academy grant.

Overall, ticket income was £2,654,800 while football income was £1.973,100.

The document concludes with a ‘Fit for the future’ section. Under a section entitled ‘Stable Base’ it states: “Loans have been reduced through capital injections from shareholders.

“Development of the grandstand (capital spend in 2018/19 and 2019/20) has been funded by major shareholder.”

A section entitled ‘Future Outlook’ highlights the importance of the income to be generated by the redeveloped Mayflower Grandstand when it opens at the end of this year.



The document states: “Expenditure will outstrip income again for 2019/20 – shortfall to be funded by shareholders.

“The grandstand helps provide a platform for greater income.

“The club requires continued investment to improve to represent best quality (stadium, infrastructure, grandstand, etc.). The aim is to provide long-term assets for the club.”

The full document can be read : here

From Brent to Hallett to  this statement, the future seems to depend on profits from the redeveloped stand. Has anyone got any idea what this figure might be? has the Club ever made a prediction, or is there info on the profits made by other football clubs (or Exeter Chiefs) from similar ventures?

I’d say the future depends ( as it does at the majority of lower level football clubs ) on a Hallett-like figure making up the shortfall.

Ending the Brentmare and clearing out the Deadwood obviously added to costs.

£73,800 for water. .... and the expert architect firm makes no allowance for rainwater harvesting off new development, instead paying out for flood alleviation.
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There were also admin expenses of £491,100, which included legal and professional costs of £103,100

None of which covered HHP planning. Honestly

But Jimmy said we were now sustainable ?? Surely a Chairman wouldnt lie.....again

Interesting figures, just as well PAFC get above average crowds in the league, looks like they could run a tighter ship, guess Hallett will be advising on costs.

Do not forget the GT bars will be taken in house in 5 years time which will add to Argyle assets for no cost, plus the money from the profits will help cash flow.

With the advent at new year of 18200 available seats, surely if we can fill say 14k average the club would be close to equilibrium£ - we are one of few clubs in this and the next league where a latent fan base is possible to do it. The simple answer is winning football puts bums on seats and consequently alcohol & nosh is consumed - go Lowey!!

It's been obvious for a couple of years that the mankover has been draining the playing budget.

Yep.

But I thought Brent saved us from debt....

Bandwagon wrote:

With the advent at new year of 18200 available seats, surely if we can fill say 14k average the club would be close to equilibrium£ - we are one of few clubs in this and the next league where a latent fan base is possible to do it. The simple answer is winning football puts bums on seats and consequently alcohol & nosh is consumed - go Lowey!!

I think we struggled to get near that figure when we were last in the second tier. And if/when we get back there, costs will rise-freebies from bankrupt clubs will not be good enough!

I think player wages are unsustainably high in the lower leagues, they ought to halve them.

10 years time, bottom 2 leagues part time players?

I'm grateful for the honesty for once. I know only freaks and weirdo's want to know about things like how the club is being run, but this proves the point.

Grovehill wrote:

From Brent to Hallett to  this statement, the future seems to depend on profits from the redeveloped stand. Has anyone got any idea what this figure might be? has the Club ever made a prediction, or is there info on the profits made by other football clubs (or Exeter Chiefs) from similar ventures?

Speccy claimed between £1 & 2 million a year for what thats worth.

Hugh Watt wrote:

Grovehill wrote:

From Brent to Hallett to  this statement, the future seems to depend on profits from the redeveloped stand. Has anyone got any idea what this figure might be? has the Club ever made a prediction, or is there info on the profits made by other football clubs (or Exeter Chiefs) from similar ventures?

Speccy claimed between £1 & 2 million a year for what thats worth.

Seem to recall £1m being bandied about. Pie in the sky figure. That equates to just short of £20,000 a week. The club would have to go some to pull that sort of money in week in, week out.

Earwegoagain wrote:

I think player wages are unsustainably high in the lower leagues, they ought to halve them.

Those wages won't be all player wages. I wonder if wages relating to the redevelopment are included in those Wage figures.

How much was Tony Hopwood paid for working on HHP2 drivel / giving Brent Pavilions for 1 pound

The club is still paying the price for Brent.

Sorry but it does P--- me off to hear people slate James Brent, people have very short memories, let me remind you of this very simple fact, if it wasn't for James Brent you wouldn't have the luxury of that opinion, NOBODY ELSE WAS COMING TO SAVE OUR CLUB.

Love or hate him, your choice, but you are still able to watch Argyle on a Saturday because he came in at the 12th hour and did what he had to do, let me also remind you that this was a guy that had no interest in football what so ever and grew to love and support the club.

He made it clear from the start that once it was in a more stable position he would step aside, he is a man of his word, we are in a great position because of him, you would do well to remember that.

Look at Bury, that could well of been us.

Comment in the Erald to day!
The eternally grateful still luv him.

^^
Obviously Nool or one of his 136 Multis....
Deliar though has clearly taken a back seat and is more emollient across the board (yeah I nicked that word off Sky lol)

Cmon Ian desert the dying farm and join Argyles premier independant forum......again

Czarcasm wrote:

Hugh Watt wrote:

Grovehill wrote:

From Brent to Hallett to  this statement, the future seems to depend on profits from the redeveloped stand. Has anyone got any idea what this figure might be? has the Club ever made a prediction, or is there info on the profits made by other football clubs (or Exeter Chiefs) from similar ventures?

Speccy claimed between £1 & 2 million a year for what thats worth.

Seem to recall £1m being bandied about. Pie in the sky figure. That equates to just short of £20,000 a week. The club would have to go some to pull that sort of money in week in, week out.

Pie in the sky figures, I think. They expecting to host the Tory party Conference every year?  To make even a quarter of that you would need 2 events/week with 100 attendees (that assumes a margin of £25/head) Plymouth and the wider region cant support that number of large events. I would like to see the Club (or anyone else)  provide some evidence of what sort of profit similar ventures make  Anyone know what Exeter Chiefs non matchday income is?

Grovehill wrote:

Czarcasm wrote:

Hugh Watt wrote:

Grovehill wrote:

From Brent to Hallett to  this statement, the future seems to depend on profits from the redeveloped stand. Has anyone got any idea what this figure might be? has the Club ever made a prediction, or is there info on the profits made by other football clubs (or Exeter Chiefs) from similar ventures?

Speccy claimed between £1 & 2 million a year for what thats worth.

Seem to recall £1m being bandied about. Pie in the sky figure. That equates to just short of £20,000 a week. The club would have to go some to pull that sort of money in week in, week out.

Pie in the sky figures, I think. They expecting to host the Tory party Conference every year?  To make even a quarter of that you would need 2 events/week with 100 attendees (that assumes a margin of £25/head) Plymouth and the wider region cant support that number of large events. I would like to see the Club (or anyone else)  provide some evidence of what sort of profit similar ventures make  Anyone know what Exeter Chiefs non matchday income is?

According to their 2018 accounts - £1.75m