Published: 09/03/2010 15:30:15 | Modified: 12/03/2010 00:18:26
Author: Mark Pennell | All Contributors
Kent finances a 'sorry tale'
Kent’s record financial losses were described as a ‘sorry tale’ after the club revealed the shocking news to their membership ahead of the county’s Annual General Meeting at their Canterbury headquarters later this month.
Having suffered a then record £700,000 deficit for 2008, chairman George Kennedy assured members budgets were in place and would be adhered to - yet the club’s books for 2009 show that not to be the case after announcing huge post tax losses of £802,452 for the year ending October 31.
The accounts show that the cost of making seven staff members redundant amounted to £150,000, while the county’s supposed money-making move in hosting pop concerts lost a further £190,000 after the Sugababes and James Morrison attracted poor audiences in June.
In announcing the figures, Simon Philip, who replaced Alister Dunning mid-way through the 2009 season as the club’s honorary treasurer, said: “Lessons clearly need to be learned from the sorry tale of the past few years. Firstly our budgetary and management accounting processes have been overhauled and we now have a far higher level of insight into the performance of the business and where we are spending our money.
“Further cost savings have been identified and considerable management focus, across all aspects of the business, is being given to ensuring that every pound spent secures the maximum possible value. We are also able now to identify, much more quickly, areas of the business where sub optimum performance is occurring and take corrective action.”
Mr Philip also informed supporters that the executive board were in the process of creating a five-year financial plan, but confirmed that success on the field was still uppermost in their minds.
He added: “The easiest way to cut our losses would be to dismantle the team and replace our much valued, high performing players with cheaper, less talented alternatives. This is a route that nobody wished to entertain (as evidenced by the success in retaining the nucleus of the team for at least the next two summers). Instead, a decision was taken to deploy a huge amount of additional effort and energy by the committee, much of it unseen, into generating additional revenue streams, controlling costs and getting the redevelopment scheme under way."
As for his vision for the hugely delayed £8.2m re-development pan, Mr Philip added: “ The scheme should enable us to change our business model completely and generate the revenues needed to enable us to remain a competitive cricket force. Until the scheme has been completed and the facilities are up and running, the aim will be to try to steer a path between investing in cricket and not damaging the long term health of the club.”