Reports reveal that City are £12.2m in the red!

£12m!
By Sean Wozencroft
July 31 2003

Deloitte & Touche's Annual Football Finance Review has revealed that City are £12.2m in the red. City's debt level last year was the ninth highest in the Football League, behind the likes of Wolves, Manchester City and Nottingham Forest.

Spending at Ninian Park has rocketed over the last few years with the arrival of multi-millionaire Sam Hammam. Though these figures suggest that there is something to worry about, Chief Executive David Temme insists that our financial state remains healthy.

Temme told The Western Mail: "There is a danger of looking at these figures in isolation. There is no need for anyone to panic. The financial situation at Cardiff is very good.

"Our turnover in 1997-98 was £1.5m a year. In 2001-02 it was £6.3m - that's a 305 per cent growth in five years.

"Deloitte & Touche value our playing squad at £4.9m and that puts us in the big league. Out of the 92 clubs we're 23rd on that front."

Temme continued: "You have to look at a club's ability to satisfy its borrowing over a period of time.

"You have to look at things like the value of players and annual turnover.

"It shows how far this club has gone forward that when it comes to player assets we're on the page Manchester United are on.

"There is planned growth at this club. We are in a position where we understand our debt level and what we need to do to trade. The way forward for the football clubs is to ensure there is non-football revenue to enable the football side to flourish.

"That's why new stadia are so important."

So it seems that there is nothing to worry about - we are still on track. If Sam Hammam was to walk away from the club, we'd be in serious trouble, but for now at least, sit back and enjoy the ride.