Tonis comments in the EP haven't filled me with hope:
BRISTOL ROVERS: Cost of relegation revealed as Pirates announce annual loss of close to £1 million
By JamesMcNamara | Posted: February 16, 2016
THE financial cost of Bristol Rovers' relegation from the Football League was revealed today after a loss of close to £1million was confirmed in the club's annual accounts.
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Financial results for the year ending June 30, 2015, which are set to be approved at Rovers' annual general meeting on Monday, March 7, will show that the club's losses were up 68 per cent year-on-year from £566,408 to £949,966.
The significant hike was as a result of relegation out of the Football League for the first time in their 93-year membership – although the losses would have been comparable had Rovers not enjoyed a surprise windfall of close to £500,000 as a result of Rickie Lambert's switch from Southampton during the previous 12-month period.
"Any loss is disappointing, but I think the figures show a good performance when taken in the context of the circumstances," said director of finance Toni Watola.
"We also lost the revenue stream provided from our ground share agreement with Bristol Rugby to share the Memorial Stadium, which was somewhere around the £250,000 mark.
"The way the team performed on the pitch and the continued support of our fans helped to ensure that the losses were not greater. It could have been a lot worse."
Helping to balance out losses in revenue streams were the financial windfall of a profitable play-off semi-final at home to Forest Green Rovers as well as a trip to Wembley to face Grimsby Town on route to making a return to the Football League at the first time of asking.
A programme of cost-cutting across the club was also embarked on which included a reduction in the number of, in particular, administrative staff and match-day stewards to make savings on wages amounting to 24 per cent.
A culling of a majority of the squad that was relegated saw a number of high-earners released as manager Darrell Clarke set about rebuilding the playing squad with a budget that had to be cut from £1.7 million to £1.1 million.
"We had to cut our cloth accordingly like all clubs have to when they are relegated," Watola added. "You have to find a way to make those reductions without sacrificing the need to provide a playing squad that can be competitive."
The sales of players Michael Smith, to Peterborough United, Alefe Santos to Derby County, and Donovan Wilson to Wolverhampton Wanderers, combined to add just over £150,000 to the coffers.
A deal to sign Nathan Blissett from Kidderminster Harriers last November was the significant contributor in the £55,469 spent on bringing players to the Memorial Stadium across the period.
Elsewhere, turnover was down 14.9 per cent year-on-year from £4,328,341 to 3,681,398, while total debt increased by around 19 per cent with current liabilities exceeding assets by just over £7.2 million.
"The rise in debts are a combination of both the relegation and the on-going costs of funding our bid to build a new stadium," Watola said. "The directors along with the recent MSP loan have financed the club for a number of years.
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Once we win our legal battle with Sainsbury's we will be able to resolve all of those positions and return the club to an even keel before going on to build the new stadium."
Listed as 'capital development costs', an additional £2 million was spent on the on-going legal dispute with Sainsbury over the sale of the Memorial Stadium site, along with associated costs involved with the delayed UWE Stadium project.
Repayment of a high interest loan taken out with a company called MSP Capital in December 2014 still remains outstanding, with a figure of £2,730,548 owing at the end of the period.
The loan, which is charged at a rate of 1.2 per cent per month, is to be called in by the lenders in June 2016, and some of the proceeds from winning the on-going legal battle with Sainsbury's are earmarked to cover full repayment that is expected to be over £3 million.
The club are currently waiting for a verdict following the conclusion of a hearing to examine their appeal, but when asked if repayment of the sizeable loan was in any way a concern, Watola replied: "
Should we not get the result that we believe we deserve we have a Plan B to resolve it."
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