The numerous losses on the pitch this season sees Rotherham United currently at the bottom of The Championship, but off the field, the losses in the club's latest accounts put them somewhere near the top when it comes to responsible fiscal management in a league where spending often far exceeds income.
The Millers posted a loss before tax of £1.1m for the 12 months to June 30 2023, a season where it brought in more, and spent more, and finished 19th to remain in The Championship for at least another year.
Comparative losses were £1.7m in 2022, £705,928 for 2021 and £1.2m in 2020. A profit before tax of £2.74m was recorded for 2019.
Championship Clubs follow Profitability and Sustainability rules which dictate what losses clubs are permitted to incur over a rolling three-year period. In its simplest form, clubs cannot exceed losses of more than £39m over a three-year period.
Accounts filed with Companies House show that income mostly came from being in the second tier - £8.4m in "central distributions" compared to £3m when the club was in League One. Likewise, TV money vastly increased, from £45,000 to £475,000 due to more Championship games shown live and a slice of a much larger broadcast deal.
Match income and season ticket sales remained the same as the previous year at £2.6m but the accounts also show that season ticket sales for the current season were in excess of 7.200, up from 6,700 the previous season. The financial period also included Rotherham United's New York Stadium hosting four well-attended games at UEFA Women's Euro 2022.
Other aspects of the accounts include commercial income going up to £3.1m from £2.9m. The accounts highlight the importance of related company, ASD Lighting, which again provided £1m in sponsorship and advertising.
Club chairman Tony Stewart OBE, founded ASD Lighting over 40 years ago. For the same financial year as the football club, the Rotherham manufacturer posted gross profits of £8.1m and an operating profit of £500,000 from a turnover of £21.3m.
In total, turnover for the year at Rotherham United was £15.7m, an increase from the £9.9m the previous year.
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The main expenditure went on wages, which exceeded £10m for the first time.
The accounts again show that during the year Rotherham United was charged £1m by RU Estates, another Stewart family company, that was created to develop the AESSEAL New York Stadium. RU Estates is listed as a debtor on the ASD Lighting accounts, owing £13m, repayable over nine years.
Also listed is a long term loan from the EFL to guarantee PAYE (£1.7m), which is interest free and repayable in 2025.
Kieran Maguire, a lecturer in football finance at the University of Liverpool, has analysed the results and points out on social media that Rotherham United "have excellent wage control by Championship standards." paying out 66% of income on wages compared to troubled clubs like Reading and Birmingham that paid more than they brought in (150% of income) on wages.
In League One, a Salary Cost Management Protocol (SCMP) operates where a club’s "player-related expenditure" should not exceed the sum of 60% of the relevant turnover.
Maguire also highlighted the low average wages and transfer fees. The Millers total squad cost at the end of the season of £1.3m can be compared to the Championship average of £27.8m and the squads of former Premier League teams built with millions in parachute payments.
Written before the current disappointing season (on the pitch, at least) got underway, the RUFC accounts read: "With collectivism and togetherness at the AESSEAL New York Stadium and a feeling that the players and all staff once again worked extremely hard to secure their Championship status for 2022/23. We will focus our efforts on recruitment and training to add further strength to staff and players.
"First Team staff will work closely with the Academy in a renewed emphasis to develop young players to play in a first team squad.
"Our Management team will continue to make use of the facilities at our Roundwood training site whilst identifying innovative ways to measure and improve player's fitness and skills.
"The Club will continue to work alongside and support our Community Trust which continues to deliver sport, education and confidence to the local community.
"Season ticket sales for 2023 are in excess of 7200. ASD Lighting Plc has agreed to sponsor the Club for another season. Other Sponsors secured include AESSEAL (Naming Rights), Mears, Eric Twigg Foods, J Bennet, KCM, IPM, Hughie Construction, Guardian Electrical and Equisolve and many more all secured for another season.
"We look forward to an exciting season in the Championship. Up the Millers."
RUFC website
Images: RUFC
The Millers posted a loss before tax of £1.1m for the 12 months to June 30 2023, a season where it brought in more, and spent more, and finished 19th to remain in The Championship for at least another year.
Comparative losses were £1.7m in 2022, £705,928 for 2021 and £1.2m in 2020. A profit before tax of £2.74m was recorded for 2019.
Championship Clubs follow Profitability and Sustainability rules which dictate what losses clubs are permitted to incur over a rolling three-year period. In its simplest form, clubs cannot exceed losses of more than £39m over a three-year period.
Accounts filed with Companies House show that income mostly came from being in the second tier - £8.4m in "central distributions" compared to £3m when the club was in League One. Likewise, TV money vastly increased, from £45,000 to £475,000 due to more Championship games shown live and a slice of a much larger broadcast deal.
Match income and season ticket sales remained the same as the previous year at £2.6m but the accounts also show that season ticket sales for the current season were in excess of 7.200, up from 6,700 the previous season. The financial period also included Rotherham United's New York Stadium hosting four well-attended games at UEFA Women's Euro 2022.
Other aspects of the accounts include commercial income going up to £3.1m from £2.9m. The accounts highlight the importance of related company, ASD Lighting, which again provided £1m in sponsorship and advertising.
Club chairman Tony Stewart OBE, founded ASD Lighting over 40 years ago. For the same financial year as the football club, the Rotherham manufacturer posted gross profits of £8.1m and an operating profit of £500,000 from a turnover of £21.3m.
In total, turnover for the year at Rotherham United was £15.7m, an increase from the £9.9m the previous year.
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The main expenditure went on wages, which exceeded £10m for the first time.
The accounts again show that during the year Rotherham United was charged £1m by RU Estates, another Stewart family company, that was created to develop the AESSEAL New York Stadium. RU Estates is listed as a debtor on the ASD Lighting accounts, owing £13m, repayable over nine years.
Also listed is a long term loan from the EFL to guarantee PAYE (£1.7m), which is interest free and repayable in 2025.
Kieran Maguire, a lecturer in football finance at the University of Liverpool, has analysed the results and points out on social media that Rotherham United "have excellent wage control by Championship standards." paying out 66% of income on wages compared to troubled clubs like Reading and Birmingham that paid more than they brought in (150% of income) on wages.
In League One, a Salary Cost Management Protocol (SCMP) operates where a club’s "player-related expenditure" should not exceed the sum of 60% of the relevant turnover.
Maguire also highlighted the low average wages and transfer fees. The Millers total squad cost at the end of the season of £1.3m can be compared to the Championship average of £27.8m and the squads of former Premier League teams built with millions in parachute payments.
Written before the current disappointing season (on the pitch, at least) got underway, the RUFC accounts read: "With collectivism and togetherness at the AESSEAL New York Stadium and a feeling that the players and all staff once again worked extremely hard to secure their Championship status for 2022/23. We will focus our efforts on recruitment and training to add further strength to staff and players.
"First Team staff will work closely with the Academy in a renewed emphasis to develop young players to play in a first team squad.
"Our Management team will continue to make use of the facilities at our Roundwood training site whilst identifying innovative ways to measure and improve player's fitness and skills.
"The Club will continue to work alongside and support our Community Trust which continues to deliver sport, education and confidence to the local community.
"Season ticket sales for 2023 are in excess of 7200. ASD Lighting Plc has agreed to sponsor the Club for another season. Other Sponsors secured include AESSEAL (Naming Rights), Mears, Eric Twigg Foods, J Bennet, KCM, IPM, Hughie Construction, Guardian Electrical and Equisolve and many more all secured for another season.
"We look forward to an exciting season in the Championship. Up the Millers."
RUFC website
Images: RUFC