Cardiff City in £13.6m accounts loss for 2011/12

Cardiff City recorded losses of £13.6m in the year up to the end of May 2012, according to the Championship club's latest financial accounts.

While turnover rose by £4m, including £2.3m from reaching the Carling Cup Final, other costs increased such as the wage bill and interest on loans.

Some £1.6m was paid out when manager Dave Jones and his staff were sacked in 2011 and Malky Mackay brought in.

The directors said many of the historic financial issues had been resolved.

The losses are an increase on the previous year's £11.8m deficit, but the club are currently 10 points clear in the Championship and will hope for a major financial boost from reaching the Premier League.

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While their funding is not guaranteed, the new investors have indicated that providing the business develops as planned, they will continue to support the club in the foreseeable future ”

Cardiff City directors' report
Keith Morgan, a Cardiff City fan and director of Mazars accountancy firm, said the £13.6m loss was worrying, but the club's overall debt of just over £83m was not as serious as it first appeared.

The directors said in their report: "The club continues to face the challenging financial environment presented by the Championship competition, as illustrated by the operating loss year-on-year, despite significant turnover growth - these gains being absorbed by increased direct football costs.

"Since May 2010, the club has seen substantial new investment, principally from Malaysian businessmen, which has continued during the year to the end of May 2012 and thereafter.

"The new investment has stabilised the club's financial position, allowing the club to work towards the delivery of a coherent and sustainable business strategy, as formulated by the new board and its management team."

The directors admitted the immediate future contained "significant challenges" but the Malaysian investors had made further funds available and entered into negotiations with creditors to reschedule payment plans.

"In addition, while their funding is not guaranteed, the new investors have indicated that providing the business develops as planned, they will continue to support the club in the foreseeable future and provide additional finance in order that it can settle its liabilities," said the report.

Increased sponsorship
The club also hopes that the rebranding of the team's main colours from blue to red and featuring a dragon on the team badge will help secure "future commercial opportunities".

The accounts revealed that the Bluebirds' turnover was £17.5m for the year to last May, compared to £13.6m in 2011.

More than £2.3m of the increased turnover was attributed to the Bluebirds reaching the Carling Cup Final at Wembley, which they lost to Liverpool on penalties.

There was also increased sponsorship, including £1m in shirt sponsorship with the club carrying the "Malaysia" name.

But the boost in income was more than offset by increases in expenditure such as the wage bill for players and other staff. This reached £18.5m, up £5m on the figures for 2011.

Increases in administrative expenses and interest on loans also played a part.

The accounts also show that the debt to Langston, the company represented by ex-City owner Sam Hammam, is put at £19.2m, with a one-off payment of £5m due if City reach the Premier League while the debt is outstanding.

Mr Morgan said the losses showed the club could not run at Championship level sustainably, but added that the overall recorded debts of £83.1m "overstates the reality of the position".

He said £37.4m was due to Malaysian backer Vincent Tan and his associates, which would disappear if this was converted to shares.

The £19.2m due to Langston could also be "greatly overstated", said Mr Morgan, because there had been speculation about settling the debt for significantly less.

FAISAL HAS GREAT TALENT - CHARLESWORTH

Faisal Saari, the dimunitive Malaysian striker that will play for Mumbai Magicians in the Hockey India League received an accolade from Australian master coach Ric Charlesworth. Read all about it exclusively at www.malaysianhockey.blogspot.com

MISBUN JUNIOR QUITS BAM

It was bound to happen sooner or later as Misbun Ramdan Misbun, who was crowned as the national champion turned his back on the Badminton Association of Malaysia by submitting a resignation letter to the national body.

Within 24 hours two talented youngsters, Chan Kwong Beng being the first and Ramdan have walked out of the BAM bastion in Stadium Juara, casting serious doubts on the ability of the national body to hold on to players and thus throwing into limelight once again the issue of turning professional, where the players opt for private clubs instead of the national body.

Word has it that Ramdan will now go under the tutelage of his father Misbun Sidek and if one were to turn the clock back to two years ago, it was the refusal of BAM to let the son train under the father that led the latter walking out of the national set-up.

Interestingly BAM banned another shuttler Tan Chun Seang was banned for a 2-year period from any competitions in Asia after he walked out of the national team to become an independent player in July 2011. 

The shuttler was not allowed to  compete in any competition in Asia  by BAM coaching and training committee.

Chun Seang had previously been banned after a similar clash two years ago but this time, the sanctions were softened up, allowing the young shuttler to travel and play in a European league and European tournaments.

Now the big questionmark is does BAM have the guts to impose similiar sanctions on these two players who walked out of the national training camp?

The time has come for BAM to realise that their wall is crumbling and all the arrogance has a price to pay. The fact that the top shuttlers are shunning the Malaysian Open is a concern and it goes on to show that all's not well in the BAM.

TENGKU ABDULLAH SPEAKS HIS MIND ON MALAYSIAN FOOTBALL

FAM Deputy President Tengku Abdullah Sultan Ahmad Shah was kind enough to grant this blog an exclusive interview today where he touched on various issues on Malaysian football, ranging from the calls for HRH Sultan Ahmad Shah to step down as the FAM President to the new season of the M-League. He also touched on the "forgotten: Road Map of FAM that was drawn up by Robert Alberts in 2006. 

Kindly note that this was an exclusive interview and please watch the video for more. Those who want to use the quotes are requested to quote this blog as the source. However feel free to contact the blogger for special arrangements on lifting rights.

Excerpts of the interview are as follows:

On HRH Sultan to step down:

"Tuanku Sultan has done to the best of his ability. He may not be the super President but he has kept us together all this while.

On the AFF Cup Performance:

"I cannot speak on behalf of the coach."

On the Road Map of FAM in 2006:

"Did not adopt the Road Map drawn up by Robert Albert in 2006. It is the administration that has to answer. My time has expired to review that Road Map."

Possibility of Taking Over as FAM President:

"I shall not be the candidate. Don't think I should be the candidate. The call for change is to get a new man. But let's cross the bridge when we come to it."

The new MSL Season:

"Pros and cons about the big money. Players are happy so we are happy. But they must be able to perform. The ceiling cap on salaries was not effective thus done away with."

NOT A WISE STATEMENT ZOL

The National Sports Council Director General Dato Seri Zolkples Embong has been quoted as saying that the term of sports leaders in national sports associations ought to be limited to a two times Olympic cycle, in other words eight years.

And if they failed to deliver then its curtains for these leaders.

And the Sports Commissioner was fast to echo those sentiments while the folks at Wisma OCM have somewhat been silenced, refusing to comment on the statement of Zol, lest they face another suit.

Zol's statement has its merits but it was made without much thought, more of jumping on the bandwagon in the chorus of calls seeking for a change of leadership at the Football Association of Malaysia.

There are many ineffective leaders but this country, at least in sports, practices the doctrine of democracy though not the doctrine of collective leadership.

We all know that the NSC dictates terms with regards to the programs, hiring of personnel and holds the purse with regards to financing national sports associations.

So lets agree, for arguments sake, that Zol's proposal should not even be discussed but adopted whole heatedly, in the spirit of a new beginning of 2013.

But will Zol agree that the NSC and NSC staff also practice the doctrine of collective responsibility and vacate their positions at the end of the 8 year cycle. Before you get into the argument that they are mere staff, lets change it to contractual staff to handle the NSA's as was done with the 1998 Jaya Program.

Will Zol also issue such directives to State Sports Council Directors to vacate their seats should their states fail to do well in two consecutive Malaysia Games?

For that matter will Zol be prepared to vacate his DG seat should we fail to get gold at Rio in 2016.

Over to you Sir.