2021/2 - Accounts

New regime, same accounts

City’s (YCFC) financial accounts for 2021-22 were filed on June 7th 2023. They were spotted by an eager eyed supporter rather than being publicised on the club’s own website. That said, they bore a similar format to previous years, both in terms of layout and minimal content.

Once again, City filed the minimum requirement of a balance sheet which shows the overall financial position of City at the year end and did not include a profit and loss account which shows detailed income and expenditure during the year.

City’s accounts should be read in conjunction with those of the York Stadium Management Company (YSMC) and JM Packaging (JMP). Given JMP’s 75% holding in YCFC, it can be assumed that the values in the JMP accounts, where relevant, refer to the value of 75% of City’s total turnover and wage.

The 2021/2 accounts cover City’s first (full) season in the LNER, promotion to National League and a season of attendances (boosted by promotion) compared with the behind closed doors zero attendance of the previous covid ridden / covid aborted season.

The budget was set and money spent by the McGill regime, being filed in June 2023, the Henderson regime signed off the accounts.

Salient points include:

  • YCFC did not include a profit and loss account, so it is not possible to state how much City made (or lost) during the season. As per JMP accounts, YCFC turnover was £1,530,251. The previous 2 years had been £2,802,465 (2021) and £1,267,080 (2020). 2020 is probably the best comparison even though it included a mid March terminated season due to covid whereas 2021 will include a good chunk of Ben Godfrey money. As JMP owned 75% of City, it is reasonable that their accounts show only 75% of City's turnover, meaning the total City turnover was approximately £2.04m (2022), £3.736m (2021) and £1.689m (2020)
  • JMP accounts state the group’s total wage bill and deducting the JMP element, the rest (YCFC and YSMC) was £1,364,101, a figure that include social security and pensions contributions
  • JMP accounts state YSMC turnover was £857,257 making total YCFC and YSMC turnover of £2,387,508
  • Deducting wages from turnover, might suggest a surplus of £1.023m. Out of that comes all of City’s other expenses, rent, running costs, Steve Watson’s compensation, general day to day running costs, expenditure on the move to the new ground, runnings costs for 2 teams included. Even if (some or all) rent was pre-paid, then that pre-payment would be reflected as a cost in year
  • The accounts note Jason McGill signed a deal with the club to earn up to £650,000 from cup runs, transfers, and high attendances until April 1st 2026 in respect of football related income (including prize money from certain competitions, gate receipts over a fixed level, any transfer fees and any club assets sold). No provisions were made in the 2022 accounts and so presumably as at June 30th 2022 nothing was owing. Presumably future budgets would be based on such a commitment although it is proper accounting practice not to include possible prize money or transfer fees in any budget
  • The 2021/2 accounts showed debtors (people who owe us money) of £2.563m (down from £3.425m a year earlier), historically it has been about £200-300k. That might be the Godfrey money still due. Having joined Everton in October 2020 and made his England debut in June 2021, its debatable what monies were due to City from Norwich as part of his original transfer and indeed, if such monies would have been visible in the accounts in the year of his transfer (2020/1) or the following season. Indeed, City could both register as an asset (debt due from Norwich) in 2020/1 and turnover (cash received) in 2021/2. In June 2023, there were rumours that the Godfrey money due in instalments was paid as a lesser one off up front payment.
  • A new item in 2022 was “Gains on disposal of investment” of £6,946,190 which is believed to be the profit from the sale of BC. The sale price was noted as £7m having been valued at £7.5m a year earlier
  • YCFC account include a fixed asset of £479,808 in respect of BCH
  • YCFC accounts has £14,550,000 (down £60K in a year) for annual commitments for future minimal lease payments under non cancellable operating leases, note the words “non cancellable”
  • YSMC accounts showed a total equity of £ 1,639 (up from £1,186). Possibly the most notable item was that YSMC employed 17 people (as a monthly average), up from just 2 a year earlier. Perhaps the increase is partly attributable to the fact that City only moved to the LNER at the start of the second half of the financial year and all games at the stadium were played behind closed doors
  • YCFC accounts state a total of 49 employees, up from a year earlier, (which is slightly higher to those suggested in the JMP accounts, this will probably be down to how JMP classify employees and rounding of fractions
  • JMP accounts split employees by “group” and “company” (assumed to be JMP). With 80 in the group and 14 in the company, it is reasonable to assume the difference are those employed by YCFC and YCMS, that is 66 this year (up from 49 a year earlier. Notable are:
    • “Playing and management” numbers, which might be assumed to be City’s playing staff are up to 34 (from 32)
    • Group “Directors” numbers are 21 in 2022 (compared to 6 in 2021). As the JMP “company” employed just one director (that can be assumed as Jason McGill), then the number of YCFC and SMC directors can be assumed to have increased from 5 (in 2021 and line with the number of City board directors) to 21 a year later. Note, the definition of director is not included, the numbers may include people who have director in their job title rather than people who sit as board directors. Certainly, nothing at Companies House suggested such an increase.
    • YCFC / YSMC “Admin” numbers remained steady at 12.

Further information can be gleamed from accounts filed at Companies House for YCFC, Bootham Crescent Holdings, JM Packaging and York Stadium Management Company.

Health Warning: This analysis is provided by a layman with no accountancy training / experience but with an eye for numbers.

20+ Years Of City Accounts