Dundee United 2015/16 Season

[Waffelz]

800k operating loss. Shock

[Zetterlund]

The accounts of a Mr B Snake were released concurrently and also show a record profit, of 6.2 million Australian dollars.

[Granny Danger]

The £1.2m profit the club made in the previous financial year was less than they made from 'exceptional financing gain' which makes the profit from these accounts all the more impressive.

It also means the company goes from being £600k in the red to over £3 million in the black (subject to whatever tax they will pay on the profits).

That's a huge turnaround and it won't include the Ciftci money either.

[Red 'N Yellow]

What's happened to Muirhead and Erskine? When your operating loss is 800k surely you can't afford to just freeze players out the squad? Imagine we would have been happy to extend Muirheads deal and take Erskine off your hands in January.

[Pull My Strings]

I do love the fascination with our operating loss during a year in which the club posted an actual profit of almost £4M.

Oh noes, the operating loss!

[Gibby82]

I do love the fascination with our operating loss during a year in which the club posted an actual profit of almost £4M.

Oh noes, the operating loss!

I get what you're saying. But not a tad worrying considering the capricious nature of youth development and transfer fees? What happens when we don't sell any players?

[Pull My Strings]

I get what you're saying. But not a tad worrying considering the capricious nature of youth development and transfer fees? What happens when we don't sell any players?

I'm not suggesting that we ignore the underlying costs of the business in the complacent belief that we'll always sell players just that the results should taken as a whole. In a year in which we made a shitload of money we also spent more than we could otherwise afford but still much less than we could actually afford during that year. Presumably different spending decisions would be taken if we weren't also generating exceptional income.

[Dee Man]

No impending administration then? Disappointing.

[Gibby82]

Presumably different spending decisions would be taken if we weren't also generating exceptional income.

I hope you're right, man.

[Gibby82]

Wee thing from Twitter on our operating losses over the past few years:

2011 -£311K

2012 -£479K

2013 -£100K,

2014 -£114K

2015 -£799K

From the statement:

'The profit for 2015 was underpinned by a 4% increase in revenues to £5.82m, reflecting positive on field performance with the Club securing a top six finish for the eighth consecutive year and a second consecutive domestic league cup final in reaching the 2015 League Cup Final.'

So why such a vast difference between the operating losses of the past two years?

[ArabianKnight]

Wee thing from Twitter on our operating losses over the past few years:

2011 -£311K

2012 -£479K

2013 -£100K,

2014 -£114K

2015 -£799K

From the statement:

'The profit for 2015 was underpinned by a 4% increase in revenues to £5.82m, reflecting positive on field performance with the Club securing a top six finish for the eighth consecutive year and a second consecutive domestic league cup final in reaching the 2015 League Cup Final.'

So why such a vast difference between the operating losses of the past two years?

Costs for changes to the stadium (lighting and seating) and money towards redevelopment of Gussie.

Probably along with paying part of the overdraft off etc.

[Fifespud]

Wee thing from Twitter on our operating losses over the past few years:

2011 -£311K

2012 -£479K

2013 -£100K,

2014 -£114K

2015 -£799K

From the statement:

'The profit for 2015 was underpinned by a 4% increase in revenues to £5.82m, reflecting positive on field performance with the Club securing a top six finish for the eighth consecutive year and a second consecutive domestic league cup final in reaching the 2015 League Cup Final.'

So why such a vast difference between the operating losses of the past two years?

Payments to the ex manager as his share of the transfer fees?

I'm with Dee Man on this one - but here's hoping we're wrong.

[Gibby82]

Costs for changes to the stadium (lighting and seating) and money towards redevelopment of Gussie.Probably along with paying part of the overdraft off etc.

Gussie would account for about £200k, roughy? Seating/lighting already accounted for in previous accounts, no?

Payments to the ex manager as his share of the transfer fees?I'm with Dee Man on this one - but here's hoping we're wrong.

Be interesting to see exactly how much he, and others, received.

[Deeboy]

They couldn't go into admin, they have no debt through the books.

[Granny Danger]

I do love the fascination with our operating loss during a year in which the club posted an actual profit of almost £4M.

Oh noes, the operating loss!

I think that it's understandable that we consider the implications of the operating costs given that next year we will be playing in the Championship.

Even if we cut the playing staff wages considerably there will still be costs that we won't be able to cut at all and others where we will only be able to make minimal cuts. Al this against a backdrop of significantly lower income.

Our best bet to avoiding a serious financial problem next seasonis winning the Scottish Cup and reaching the knock out stages of the UEFA Cup.

[Daydream]

I do love the fascination with our operating loss during a year in which the club posted an actual profit of almost £4M.

Oh noes, the operating loss!

Daft question, but how can there be a profit and a loss in the same year?

[Fifespud]

Daft question, but how can there be a profit and a loss in the same year?

Imagine you have 50k credit card debt. You're earning 25k a year but you're spending 30k. You've a structural deficit of 5k a year, you're basically 'losing' 5k a year 'operating' hence 'operational loss'. One year you win 40k a year on the lottery. This 'exceptional item' gives you an overall profit for the year of 35k - but the operational loss of 5k still exists and unless you make cutbacks on your living expenses the following year you will still 'lose' another 5k again that year.

You use the 35k 'profit on exceptional items' to pay back some of your credit card debt.

This is basically the situation United are in, they've been buying a lot of lottery tickets for a long number of years and last year their numbers came up.

[Alert Mongoose]

The Gussie park expenditure would surely be capitalised though? Paying off Jackie and various staff players is most likely the increase in costs for the year.

[Pull My Strings]

Imagine you have 50k credit card debt. You're earning 25k a year but you're spending 30k. You've a structural deficit of 5k a year, you're basically 'losing' 5k a year 'operating' hence 'operational loss'. One year you win 40k a year on the lottery. This 'exceptional item' gives you an overall profit for the year of 35k - but the operational loss of 5k still exists and unless you make cutbacks on your living expenses the following year you will still 'lose' another 5k again that year.

You use the 35k 'profit on exceptional items' to pay back some of your credit card debt.

This is basically the situation United are in, they've been buying a lot of lottery tickets for a long number of years and last year their numbers came up.

Lottery tickets, ffs.

[Gibby82]

The Gussie park expenditure would surely be capitalised though? Paying off Jackie and various staff players is most likely the increase in costs for the year.

The pay offs for Jackie and his pals would be in next year's accounts, would they not?