The latest set of financial accounts released by Carlisle United reveal the true extent of the financial impact of coronavirus on the club’s income.
The significant profit in 19/20 and the cash in hand at the start of the year have proved crucial in managing the loss of about £1.6m of normal business income due to coronavirus, the club said.
“Tough operational decisions have been made by 1921 Ltd directors early to reduce our costs, furlough staff and conserve cash wherever we could – this still has to continue,” said Blues chief executive Nigel Clibbens.
The standout results are as follows:
- Ticket income at £75,000 (down by £675,000)
In a normal year, ticket income is circa £900,000 (2018/19: £934,000 – the last full season) in total, with £550,000 from walk-up match ticket income and £350,000 from season ticket income. The club is unusual in League Two in that their walk-up is much bigger than season ticket income.
In the first nine months of this financial year, the club would normally expect to earn about £750,000. Given the success of United’s season on the pitch to that point, the Blues would have hoped to earn even more.
Only 9,000 fans attended in 2020/21, earning the club about £75,000. Ticket income is therefore down by roughly £675,000 in comparison to a normal year, due to coronavirus.
- Walk-up match ticket income at £30,000 (down £425,000)
Total walk-up income to the end of March was £30,000 from five games with fans, compared with £425,000 in 2019/20 and £475,000 in 2018/19 in the first three quarters. That’s a drop of about £425,000.
The walk-up match ticket income from the very limited non-season ticket holders at the four home games with 2,000 fans was £20,000. They earned £10,000 from the Southend game as all those who attended (1,000 fans) purchased match tickets.
Overall, those last four games were break-even financially. Carlisle say they are pleased they weren’t financially loss-making, but that wasn’t the motivation.
“We wanted fans in to help the cheer the team on to wins and to hopefully be a stepping-stone to many more fans in future,” the club said. “Whether it’s coincidence or not, we earned 13 points from a possible 15 when our fans were in the stadium.”
- Season ticket income £45,000 (down £250,000)
Season ticket income to March 31 was £45,000. This compares with £275,000 in 2019/20 and £300,000 in 2018/19, a drop of about £250,000.
The £45,000 is from fans who generously bought tickets and have not been refunded. The club thanked these fans for their “superb” support.
After Southend, they were able to come to only four season ticket games and have been forced to watch the remaining 18 on online streaming service iFollow.
- Other business income £400,000 (down £275,000)
This comprises commercial income, retail and other matchday income. In a normal year, other business income is roughly £900,000 in total. In the first three quarters of this financial year, the club would expect to earn about £675,000.
So far they have only earned about £400,000, meaning other business income is down by another £275,000 versus a normal year, again due to coronavirus.
Retail has held up well so far and most of the reduction to date is due to much lower commercial income (expected given the pressure business supporters are facing).
So, in total, with fans at only five home games, in restricted numbers, ‘lost gate income’ was £675,000 and other business income was down by another £275,000.
A total shortfall of £950,000 of normal income in the nine-month period.
This ‘lost’ normal income is in line with the estimate for the first three quarters (seven playing months at £150,000 per playing month September to March) after adjusting from the £75,000 of ticket income actually earned.
This is on top of £345,000 of ‘lost’ income from March 2020 to June 2020. That makes approximately £1.3m of ‘lost’ normal income from March last year to March this year.
As coronavirus restrictions remain, this continues to increase at the rate of about £150,000 per playing month.
The club say they continue to be facing the same full-year shortfall in normal income of £1.2m highlighted in September 2020, before the season started.
With the £345,000 normal income lost in late 19/20, that will take the total ‘lost’ normal income due to coronavirus to about £1.6m by June 30.
The impact of the ‘lost’ normal income is before mitigations from things like cost savings and other exceptional replacement income (from iFollow, Government support measures, Premier League support, Football Fortune, and donations in lieu of refunds not claimed).