For many people the only time they used hear about Falkirk's finances are once a year when the official financial results are announced.
Falkirk's financial position shows them to be in the lowest tier of teams in the SPL, with their natural competitors being Dundee United, Motherwell and St. Mirren. Any analysis of Falkirk has to be compared to these other sides, and footballing ambitions should be similar to those other sides too.
The big event in the finances of Falkirk came from the sale of Brockville, and the move to Westfield. This was such a benefit as to allow the club to be run with no debt, and therefore no borrowings. Up to St Mirren selling Love Street Falkirk were the only team in the SPL to be in this position. The latest results show the position to be not as rosy as it was.
Last year this site said "The financial mess that led to the 1998 liquidation seem well and truly buried, and the current board looks like they know what they are doing." The changes the board has made over the last couple of years now make that comment seem questionable at best.
In the chairman's report it says
"After two top 7 finishes we backed our management team by significantly increasing our first team budget to push for a top six place. Our timing was bad, as the economic downturn had a major impact on our sponsorship and commercial income. As a result we faced huge potential losses and running out of cash. Cost savings were implemented and directors and others put up loans of over £300,000. It was the cup runs that saved our situation. ........ In the current season (09-10) we have cut our first team budget and implemented severe cost savings across the whole organisation. ...... We are looking to raise funding through share issues and debentures."
The auditors make the following comment "...... the operating loss in 2009 .... and projected loss in 2010 ..... indicate the existence of material uncertainty which may cast significant doubt about the company's ability to continue as a going concern".
This is a hugely demoralising situation to be in given the optimism of only a couple of years ago. In addition to the above the board note that "the main risk facing the company is relegation from the SPL ... this would result in vastly decreased available revenues and profits ".
It would seem that the board took their eye off the ball, after years of prudence. As with many other clubs in Scotland and England they seem to have tried to "live the dream" rather than to manage the business. With relegation a possibility the club prospects are not good.
This site hopefully presents to you the financial results in words that we can all understand. All the numbers quoted about the club have come from the club's own accounts. If a mistake has been made in this, and you spot it, then PLEASE let us know, the aim is to be as honest as can be. If you have more accurate information then please get in touch.
Also if you have any suggestions on what else should or could be looked at please get in touch. The intention of the site is not to try and influence your opinion on the way the club has been run, just to give you the facts, and let you draw your own conclusions.