Tue 31 Mar
Time to read: 4mins
Derby County have today announced their latest financial results.
Derby County have today announced their latest financial results.
The financial year to 30 June 2014 saw Derby County Football Club maintain its position as one of the best supported teams in the country, reporting a turnover of £20.2 million, representing an increase of 31% in comparison to the £15.4 million turnover recorded in 2013.
This significant increase had a number of contributing factors both on and off the pitch. On a matchday, crowds were up 20%, the number of season ticket holders reached over 22,000 and as a direct result of the success on the pitch, the Club had the financial rewards of reaching the Sky Bet Championship Play-Off Final in May 2014. While the Club was ultimately unsuccessful at Wembley Stadium in the aforementioned match, strong foundations were created, which in May 2014, included local businessman Mel Morris taking a stake in the Club and a seat on the Board of Directors.
Commercial relations also continued to remain strong with existing partners and the Club continues to look for new commercial opportunities. November 2013 saw the Club announce a 10 year stadium naming rights deal worth £7.0 million. The deal with the isotonic sports drink manufacturer iPro saw Pride Park Stadium re-named as the "iPro Stadium". It is believed that this is one of the biggest independent deals of its kind in the history of the Football League.
The main source of external funding during this financial year continued to come from the Club’s majority shareholder, North American Derby Partners LP. Between 1 July 2013 and 30 June 2014, in addition to the commitment shown by the shareholders in converting all of the £22.5 million loans to equity, it was also agreed that the upside in revenues reported above was to be reinvested on the pitch, together with additional funding from the shareholders. Asva result of this strategic decision, despite the increases in revenue and funding from the shareholders, the Club continued to return a consistent loss of £7.0 million compared with £7.1 million in the prior year, which sits well alongside fellow Championship competitors.
This financial year was the second year in which the Football League Financial Fair Play (FFP) regulations were in force, which continues to provide a significant challenge of balancing success on the field with the financial constraints of this regulatory framework. Both the current and future forecasted financial results put the Club in a position to meet the assessment criteria.
Looking at the financial results expected for the 2014/15 season, they stand to remain just as robust and similarly for future years, as Phase One of the 2015/16 Season Ticket campaign saw sales of over 18,000 compared to 15,000 at the same time last year.
Derby County’s President & Chief Executive Sam Rush commented: “The 2013/14 season was a year which saw a number of major changes, both on the football and business side.
“A change in footballing philosophy and a restructure of the football operations saw Steve McClaren and his coaching staff appointed in September 2013, in addition to the development of the football operations and scouting network.
“An appearance in the Play-Off Final at Wembley Stadium last May followed, after the team achieved a record points total in a season and were also the Championship’s leading goalscorers – in addition to increased attendances.
“Off the field, our Commercial operations once again thrived and continued to be successful, notably with the stadium naming rights deal with iPro.
“Strong foundations were laid during the last financial year and an infrastructure was implemented across all areas of the business.
“During the last financial year we also saw local businessman Mel Morris join the board of directors and he, along with the rest of the Ownership Group, remain strong in their desire to move Derby County forwards.
“The commitment of the Ownership Group, as well as astute management across the Club, means that we are in a healthy position where Derby County is debt free; the increase of 31 per cent in revenue compared to the previous year is a significant rise.
“Looking ahead to the current financial year, the 2014/15 season, we fully expect the financial figures to paint a similar picture. The rise in crowds, the development of our ticketing operations and the stadium naming rights deal with iPro, as well as the continued backing of the Ownership Group continue to place the Club in a very healthy position."
He added: “Future investment shall see significant improvements to the Training Centre as part of the Club achieving Category One status for the Academy last summer, which falls in line with our footballing philosophy.”
