Glovers Chairman warns on Club losses.
Yeovil Town Football Club can confirm its financial results for the 12-month period ending 30th June 2016.
The final accounts show a loss of £450k compared to a loss of £692k the year previous, in what has been a challenging year for everyone involved with the club at Huish Park.
With the company accounts now recorded, chairman John Fry commented:
“As chairman, I have been overwhelmed by the loyal and unwavering support of our directors, staff, and supporters. I would like to place on record my thanks to everyone who has supported the club through what has been a very difficult period.
“I firmly believe the struggle we have experienced since our relegation from the Championship will give us the strength we need to build a stronger and more successful organisation for next season and beyond. I would particularly like to thank our Football Director, Norman Hayward, for his ongoing financial support and commitment to Yeovil Town. We are indeed fortunate to have a supporter director who cares passionately about the future development of the Huish Park stadium and the continued progress of our football club.”
Fry continued: "The size of our operational losses since being relegated from the Sky Bet Championship are unsustainable for a club of Yeovil's size. If allowed to continue, we would in the short-term encounter serious financial difficulties in running the club. I am therefore pleased to report our football club is now moving in the right direction, and through good management, we have substantially reduced our financial losses for the current season.
“The focus now is to make the business more efficient, through reorganisation and further cost reductions off the field. All lower league football clubs need the help of supporters to run their off-field operations on matchdays, and with the help of our recently formed Supporter Alliance Group, we should be able to substantially reduce our operational costs next season.
“As a club, our ambition is to build a sustainable business that will enable our football teams to play at the highest level in the footballing pyramid. To our supporters, this may seem like a distance away, but, with the right investment, we will have the resources, experience and commitment to achieve the longer-term vision for Yeovil Town. However, we all need to be patient, as our football and financial revival will take time. I am therefore asking our fans to stick with us during this difficult time and to keep believing in what we are creating at Huish Park.
“There were many positives to be taken from our first season back in Sky Bet League Two. The decision by the club directors halfway through the season to replace Paul Sturrock with Darren Way, and to bring in a number of experienced players, at a time when we were rock bottom of the division with only 11 points from 20 games, was a massive turning point in our season. Unfortunately, the costs involved with doing this - for players’ wages, and a huge medical bill for treating injured players - were the exceptional items of expenditure shown in the accounts, which contributed substantially to the club's £450k financial losses for the 2015/2016 season.
“No directors received fees, expenses or dividends during the accounts period. I can also report there were no fees paid by YTFC Ltd for the work undertaken to provide better supporter facilities at Huish Park Stadium. All revenues generated were channelled back into our football resources.
“All credit must go to our new football manager, Darren Way, his backroom staff and the group of committed players for changing the work ethic and team performance on the pitch during the second half of last season. In his first managerial position, Darren did a brilliant job steering the club away from the relegation zone, and through good management of the football budgets, not only brought our spending back under control but also on limited funds, started the process of building a squad made up of quality young players that in time will challenge for promotion. As a young manager, and with careful development, Darren has a very bright future in football management. Let's give him that chance.
“Over time, one of our main priorities will be to improve the level of the first-team squad, and in keeping with other EFL clubs, we will continue to look for opportunities to help develop young talent under the loan system and to supplement our income with transfer fees where this represents good business. Our Category 3 Academy and Young Player Development Policy is a major part of our plans for doing this. I am therefore pleased to report our Academy is now well established and producing our own top quality young players. Looking towards the future our aim is to have a number of homegrown players representing Yeovil Town in Sky Bet League One of the EFL.
“Our Player Related Expenditure, remained compliant with the EFL Regulations throughout the 2015/16 season. The fixed costs of the business, which are mainly football related payroll costs and the upkeep of Huish Park, were maintained within the constraints of the turnover figures. Further positive impact on turnover can be achieved through the sale of players to other EFL clubs. However, we have not had the benefit of doing this since our relegation from the Championship.
“In keeping with our stated aim of breaking even over the medium-term, we remain committed to spending the maximum permitted under the EFL Player Related Expenditure rules to provide the best first-team possible. However, as would be expected, our football wages continue to be the highest expense, shown in the accounts.”
In conclusion, the chairman said: “Progress continues to be made on all fronts in a challenging local economy, and with huge efforts being made behind the scenes to ensure the club is always moving forward with our local community. As always, we have continued to enjoy amazing support from our commercial partners and sponsors. I would like to place on record my personal thanks to those organisations and individuals who have invested in the club over the season and have contributed towards the running and development of our resources at Huish Park. We are optimistic about the future.
Thanks again to the supporters for their continued support of Darren and the first-team, in what is an ongoing building progress to get us back up to the high echelons of the EFL.”