“ THE LATEST CARDIFF CITY ACCOUNTS “

The club made a £29 million loss while finishing 18th in the Championship?


£29m loss to May 2022, up from about £12m the previous year.


After virtually spending no money and selling Kieffer Moore


£24.4 million loan at nine per cent from an unnamed party - that’s nearly £50 million we owe at nine per cent to people who aren’t Vincent Tan???

£50 million at 9% is beyond interest that’s going out of the club and not what everyone said that the debt was owed to Tan








Keith Morgan, a football finance expert, comments on the latest Cardiff City FC (Holdings) Ltd accounts for the year ended May 31, 2022.



The accounts were signed off by Chair Mehmet Dalman on February, 24, 2023 and the accompanying group strategic report by CEO Ken Choo on the same date. The audit report was signed off by auditors BDO on February 28, 2023.

Summary:

The accounts show an operating loss for the year of £28.9m (2021 £12.1m) and a loss after tax of £26.6m (2021 £12.0m).

As a consequence of the above losses and other adjusting transactions the balance sheet deficit as at May 31, 2022 rose from £36m as at May 31, 2021 to £56m.








Profit and loss account

Turnover fell dramatically in the year from £55.2m in 2020-21 to £20.0m as a consequence of losing income from “parachute payments” and despite an increase of £3.5m in gate receipts in the post-Covid pandemic period.

Efforts were clearly made to reduce operating costs to try and offset at least part of the loss of income with player salaries down by approximately £4m although it should be noted that the majority of player salary savings would have occurred after the balance sheet date with 11 players whose contracts had expired coming off the payroll in June 2022. The 14 players brought in to replace them (and three other loan signings) were at significantly lower salary cost.

Administration costs were down by £11.4m from £30.9m to £19.5m. This was principally due to a reduction in the cost of amortising (depreciating) and making an impairment provision for the playing squad where this cost reduced by £11m compared to 2020-21. There was a profit on player sales of £4.2m (2021 £2.9m).

Interest payable in the year of £2.4m was slightly up on the 2021 figure of £1.9m

Directors` remuneration was down significantly to £143k (2021 £550k) with the highest-paid director paid £121k (2021 £413k). The accounts do not disclose which other director(s)received remuneration in the two years. The reduction is almost certainly as a result of the CEO Ken Choo moving to a part-time role at the club.

Balance sheet

The value of the playing squad as at May 31, 2022 had been written down to £2.5m from a value at the previous year end of £10.5m. Player addition costs in the year were only £1m with players originally costing over £14m leaving the club at a profit of £4.2m compared to their written down value.

The club`s stadium asset stood in the accounts at £77.6m.

As at May 31, 2022 a total of £7.7m was due to the club, including £4.6m of transfer fee installments.

The main liabilities in the May 2022 balance sheet were amounts of £73m due to Vincent Tan and his family and £25.8m due to Tormen Finance, a company in which Mehmet Dalman has a significant interest – this loan carries interest at 9%. This amounted to £98.8m of total debts due of £123.4m (up from £113.4m in 2021). The balance of debts due included £12m of accruals (including season ticket money received in advance) , transfer fee installments payable of £2.6m and the remaining balance of an EFL pandemic support loan of £5.5m.

There continues to be full provision in the accounts at £20.7m for settlement of the Emiliano Sala dispute with FC Nantes, as has been the case since 2019.







There are important matters to note in respect of the debt due to Vincent Tan.

a) There were new loans of £19.8m made by him in the year, with repayments to him and his family of only £1.1m.

b) In the year he converted £6.6m of debt due to him into shares.

c) Just after the year end, in June 2022 he converted a further £19m of debt into shares.

d) Of the total due to Vincent Tan £51.2m carries interest at 7% and rights to convert into shares. The rest carries no interest and has no conversion rights.

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There are important matters to note in respect of the debt due to Vincent Tan.

a) There were new loans of £19.8m made by him in the year, with repayments to him and his family of only £1.1m.

b) In the year he converted £6.6m of debt due to him into shares.

c) Just after the year end, in June 2022 he converted a further £19m of debt into shares.

d) Of the total due to Vincent Tan £51.2m carries interest at 7% and rights to convert into shares. The rest carries no interest and has no conversion rights.

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Contingent liabilities

The Companies Acts require companies to disclose material liabilities which might arise in future, dependent upon certain events occurring. In the balance sheet notes is a disclosure of a potential liability of £4.9m relating to player contracts and these will refer to amounts payable should a player achieve certain targets such as appearances, goals, international caps etc. plus any share of transfer profits due to a former club should a player be sold on. The notes state that such events will probably not occur so no provision is needed for this in the balance sheet.






Related party transactions

In the year consultancy fees were paid to WMG Group in respect of the services of Mehmet Dalman and £1.7m was paid in loan interest to Tormen Finance.










Post balance sheet events

Some significant events have occurred between the May 31, 2022 balance sheet date and the date the accounts were signed off by the directors on 24 February 2023 which are noted in the accounts

a) As noted above, Vincent Tan converted a further £19m of debt into shares.


b) Further loans of £24.4m were made to the club at 9% interest by an unnamed party.

c) New players were acquired at a cost of £5.4m.

d) Legal actions regarding the Emiliano Sala case are ongoing.

Other matters

The directors’ reports accompanying the accounts reveal two other important points.

a) The club is negotiating with the EFL to have the current transfer embargo under EFL rule 52.6 fully lifted.

b) Preliminary plans are progressing for the construction of a new training facility for sole use of the club first team to be held under a 150-year lease with the aim of completion in time for the 2025/26 season. This is not the same facility currently being developed in Llanrumney for the club to hire for its Academy teams

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Related party transactions

In the year consultancy fees were paid to WMG Group in respect of the services of Mehmet Dalman and £1.7m was paid in loan interest to Tormen Finance.

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Interest payable in the year of £2.4m was slightly up on the 2021 figure of £1.9m

Directors` remuneration was down significantly to £143k (2021 £550k) with the highest-paid director paid £121k (2021 £413k). The accounts do not disclose which other director(s)received remuneration in the two years. The reduction is almost certainly as a result of the CEO Ken Choo

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The main liabilities in the May 2022 balance sheet were amounts of £73m due to Vincent Tan and his family and £25.8m due to Tormen Finance, a company in which Mehmet Dalman has a significant interest –

this loan carries interest at 9%. This amounted to £98.8m of total debts due of £123.4m (up from £113.4m in 2021). The balance of debts due included £12m of accruals (including season ticket money received in advance) , transfer fee installments payable of £2.6m and the remaining balance of an EFL pandemic support loan of £5.5m.

There continues to be full provision in the accounts at £20.7m for settlement of the Emiliano Sala dispute with FC Nantes, as has been the case since 2019.

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The club`s stadium asset stood in the accounts at £77.6m.

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There continues to be full provision in the accounts at £20.7m for settlement of the Emiliano Sala dispute with FC Nantes, as has been the case since 2019.

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The value of the playing squad as at May 31, 2022 had been written down to £2.5m from a value at the previous year end of £10.5m. Player addition costs in the year were only £1m with players originally costing over £14m leaving the club at a profit of £4.2m compared to their written down value.

Latest Championship Table:

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The accounts show an operating loss for the year of £28.9m (2021 £12.1m) and a loss after tax of £26.6m (2021 £12.0m).

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Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

The facts are after 13 yrs we are still not debt free as promised time and time again and the debt is owed to
Other parties which you denied it was £50mill.

Wez, Tans last fan still sticking up and backing Tan.

We are in this awful position on and off the pitch due to Tan, NO ONE ELSE.

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

The facts are after 13 yrs we are still not debt free as promised time and time again and the debt is owed to
Other parties which you denied it was £50mill.

The million is no different from the previous years accounts tho , nothing has changed

9% interest! Who’d we get the loan off? Wonga?

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

The facts are after 13 yrs we are still not debt free as promised time and time again and the debt is owed to
Other parties which you denied it was £50mill.

The million is no different from the previous years accounts tho , nothing has changed

I said we owed more than £25 mill to other parties you denied it.

And it’s £50mill.

Tan is a joke and going to destroy the club and lose his money. Quicker he sells the better for him. We only heading one way and unfortunately that's Downward

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

The facts are after 13 yrs we are still not debt free as promised time and time again and the debt is owed to
Other parties which you denied it was £50mill.

The million is no different from the previous years accounts tho , nothing has changed

I said we owed more than £25 mill to other parties you denied it.

And it’s £50mill.

No I never your making that up, you said we owe dalman 30 million which we don't, we obviously owe 50 million to all creditors coz it was in the 2021 accounts nothing has really changed in respect to overall debt as Tan wrote off 6 million and converted 19 million after these account periods in hune 22 , either your making it up what I supposed to of said or your getting me confused with another posters ? .

Basically a massive loss due to loss of parachute payments and players still on premiership contracts but says that may 22 a lot of these players would of left , so be interesting to see what the accounts would look like next season during to massive wage reduction .but no parachute payments at all , our losses are looking the sane as other championship clubs but this is unsustainable in the long run .the football bubble I feel at some point in the championship is going to burst .

SO BASICALLY
We are spending less every season, struggling more, borrowing more from other parties at 9% which you denied and our worth in value is getting less.

What happened to our club being “ DEBT FREE “ 13 years later???

If you look at it properly coz 9f the 19 million debt to conversion after the accounts in June 22 the ckib is in the sane position basically Tan has taken the extra losses ?.

The facts are after 13 yrs we are still not debt free as promised time and time again and the debt is owed to
Other parties which you denied it was £50mill.

The million is no different from the previous years accounts tho , nothing has changed

I said we owed more than £25 mill to other parties you denied it.

And it’s £50mill.

No I never your making that up, you said we owe dalman 30 million which we don't, we obviously owe 50 million to all creditors coz it was in the 2021 accounts nothing has really changed in respect to overall debt as Tan wrote off 6 million and converted 19 million after these account periods in hune 22 , either your making it up what I supposed to of said or your getting me confused with another posters ? .

So our debt is not owed all to Tan then yes or no?

Has our debt increased to other parties?

Wez he received £hundreds of millions from 2 promotions. We have had endless court cases costing us beyond £mill. He has been in total control for 13 yrs , he runs our club and it’s been run so badly it’s beyond belief and that’s down to him yes or no Wez?

Wez he received £hundreds of millions from 2 promotions. We have had endless court cases costing us beyond £mill. He has been in total control for 13 yrs , he runs our club and it’s been run so badly it’s beyond belief and that’s down to him yes or no Wez?

Yes it's down to him but the accounts show without him the club is bust 10s of millions a year hes put in and written off since covid ? .

Can someone please explain if part of Tans debt has 'no conversion' rights does this mean he cannot make the club, in effect 'debt free'

Im no accountant whatsoever, but with cut backs over the last two years to the bone, and our losses still increase?

There has been a lot of talk on this board, and a lot being summarised by some as 'at least all the debt is owed to Tan'.

Its clearly not if what I am hearing is correct.

Also Tan not taking a penny out of the club? Can it not be argued that 9% interest to his company, again if Im reading this correctly, is not classed as making a profit against a loan?

Wez we are worse than before he arrived . Squad virtually worthless, higher debts and lower in the league and a Regime clueless, you have to admit

Can someone please explain if part of Tans debt has 'no conversion' rights does this mean he cannot make the club, in effect 'debt free'

Im no accountant whatsoever, but with cut backs over the last two years to the bone, and our losses still increase?

There has been a lot of talk on this board, and a lot being summarised by some as 'at least all the debt is owed to Tan'.

Its clearly not if what I am hearing is correct.

Also Tan not taking a penny out of the club? Can it not be argued that 9% interest to his company, again if Im reading this correctly, is not classed as making a profit against a loan?

Look at the income drop of the accounts 50 to 20 million there's your loss , but as the accounts says the wage bill would be dramatically reduced in next set of accounts due to players contracts finishing .

Wez we are worse than before he arrived . Squad virtually worthless, higher debts and lower in the league and a Regime clueless, you have to admit

the losses are the sane across the championship, Bristol lost 38 million they are a similar sized club .

Wez we are worse than before he arrived . Squad virtually worthless, higher debts and lower in the league and a Regime clueless, you have to admit

the losses are the sane across the championship, Bristol lost 38 million they are a similar sized club .

Not interested in other clubs just ours .

Wez, The picture is Tan has run our club for over 13 yrs and we are NO better off, worse on and off the pitch, despite promise after promise of a debt free club and now borrowing of other people , so yes you 100% are sticking up for him, without a doubt , Shocking

Although it must be said, the higher net worth an owner boasts doesn’t always correlate to the success of the side on the pitch or even how they operate in the transfer window, with some clubs’ position on the list sure to be a surprise.

With the season entering the final stages, we’ve ranked every Championship club in order of their owners’ net worth…



QPR – Tony Fernandes, Ruben Gnanalingam, and Lakshmi Mittal – £12.89b

Stoke City – The Coates Family – £7.81b
Blackpool – Simon Sadler – £3.3b
West Brom – Guochuan Lai -£2.2b
Bristol City – Stephen Lansdown – £2.16b
Sunderland – Kyril Louis-Dreyfus – £1.75b
Blackburn Rovers – The Venky’s – £1.66b
Preston North End – Trevor Hemmings – £1.16b

Reading – Dai Yongge and Dai Xiu Li – £789.76m

Cardiff City- Vincent Tan – £623.49m

Huddersfield Town – Dean Hoyle – £415.66m
Birmingham City – Paul Suen – £374.10m
Coventry City – Doug King – £333.25m
Burnley – Alan Pace – £249.50m
Middlesbrough – Steve Gibson – £218.64m
Wigan Athletic – Phoenix 2021 Limited – £174.68m
Sheffield United – Abdullah bin Musa’ed – £166.26m
Rotherham United – Tony Stewart and Joan Stewart – £149.64m
Millwall – John Berylson and Richard Smith – £145.48m
Watford – Gino Pozzo – £99.76m
Hull City – Acun Ilicali – £83.13m
Norwich City – Delia Smith and Michael Wynn-Jones and Mark Attanasio – £24.94m
Swansea City – Stephen Kaplan and Jason Levien – £12.96m
Luton Town – Support-owned

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Why would Mr Tan need to borrow money if he has his amount of wealth?
EFL and HMRC need to look deeper in money laundering at all clubs as what other reason would a billionaire need to borrow money off a millionaire ?
Genuine question.