Chesterfield aim to rely less on owner funding as latest accounts show 'considerable loss'
Chesterfield want to ‘significantly reduce’ the reliance on owner funding, with the club’s latest accounts showing a loss of £2.3m.
The figures are for the Spireites’ first season back in the Football League in six years and the first full year since the Kirk family became the majority owners. The total loss of £2,382,893 is an improvement on the £3.3m loss for the previous financial period when the club won promotion from the National League but they still want to cut it down further.
Director and chairman, Ashley Kirk, wrote in his report: “These accounts once again show a considerable operating loss yet a big improvement from last year. Undoubtedly the increased revenues from being members of the EFL have played a large part in the reduction but running an ambitious club in the current football economy is an expensive business. The owners were comfortable with the level of investment required and continue to support Paul Cook and the football department as we develop and improve the squad. The club losses are underwritten by the continued capital injections by the Kirk family and we are more than comfortable with the debt reduction repayments on our outstanding external loans from the two councils and Sport England.
"We remain determined to reduce our reliance on owner funding as we strengthen our commercial and operational foundations, ensuring a more sustainable future for Chesterfield FC.”
Some of the main points from the accounts include:
- Turnover up from £5.5m to £7.8m
- Gross profit up from £4.7m to £6.8m
- Administrative expenses increased from £8m to £9.1m
- Operating loss down from £3.1m to £2.3m
- Loss for financial year down from £3.3m to £2.3m
- Money from gates and season tickets increased from £2.6m to £4.1m
- Wages and salaries up from £4.5m to £5.4m
- Transfer fees up from £15,000 to £343,466
Ashley said that the board has a clear strategy of its aims by the end of 2028 and these are:
- Promotion and to consolidate in League One
- Significantly reduce reliance on owner funding
- Modern facilities supporting elite performance and player development
- Strong governance, commercial growth and supporter engagement
Sadly, the club was rocked by the heartbreaking death of Ashley’s brother, Phil Kirk, who passed away last August from cancer at the age of 59. In the accounts it says that Phil’s wife Sharon, who is now effectively the owner of the club, has ‘pledged’ to continue with her husband’s ‘vision to provide a legacy for Phil and has made future commitments around the future of the club.’
“Whilst reaching the play-offs and achieving the highest average attendance in many years was a great effort and built on solid foundations laid in the promotion season, the past year has been overshadowed by the death of my brother Phil,” Ashley continued.
"I would like to take this opportunity to remind all investors that without the ambition, direction and financial support provided by Phil and his wife Sharon the club would not be celebrating its second season in the Football League and indeed, it probably would not even be in existence. Phil loved the club and was so proud to become the owner. It is a great shame that he never had the opportunity to see the future years of league football that his investment and passion will bring to our club.
"Together, as a club, a community and a family of supporters, we are working tirelessly to bring Phil’s dream to life and to honour and build upon the legacy he so passionately created.”
Ashley, who thanked Sharon for her ‘continued support and resilience’, went on to describe the backing they have received from everyone as ‘truly humbling’ in what has been a ‘truly horrible period.’
Looking forward, Chesterfield has reached out to the new Independent Football Regulator (IFR) to be a ‘pilot club’ with a view to getting its governance, financial controls and processes in line with the requirements at the earliest opportunity. From next season, all 116 clubs will begin applying for provisional operating licences which will require submitting strategic business plans, financial forecasts and evidence of governance and supporter engagement. Clubs will have up to three years to transition to full licences, during which the IFR will monitor progress and impose conditions on ‘at-risk’ clubs to help control costs.