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Interest Payments
Director Pay
Notes in Accounts

Notes on the Accounts

This page is all taken directly from the club accounts for 2009. It is included so that you can see exactly what the board have said, and the state of loans from board members to the club.


Financial Overview

 Whilst we seem to be trading on the same basis as all football clubs, I would prefer that the business should have no debt and should be building up a reserve. With the financial world in turmoil over the last 18 months this has been a big wake up call for all football clubs, who now know that their banks are not as accommodating as they were before the collapse of the financial world. Nevertheless, we are working to a plan which will enable us to trade within our financial means but we also need to be aware that for us to encourage players to join us they will expect to be paid at the right level of remuneration in the Championship. Thus, this will mean that year on year we will have to generate revenue from player sales in order to meet the financial requirements of the business.

Football Team

It is imperative that we have a group of players that can more than compete in the Championship.

However, history has shown us that we have been too generous with players' wages only to find that sometimes these players are no better and in fact on certain occasions of a lower standard, than those that we currently have. The Board is firmly of the belief that the Club can survive in the Championship with a mixture of seasoned professionals and younger players who, at this stage of their careers, command lower salaries.

Auditor's Opinion

In forming our opinion on the financial statements .....  At 30 June 2009 the groupís current liabilities exceeded its current assets by £8,042,000, following a loss for the year of £1,987,000.

These conditions indicate the existence of a material uncertainty which may cast significant doubt about the groupís ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group was unable to continue as a going concern.

Going Concern

The directors acknowledge that the football club, similar to many other Championship clubs, will be likely to continue making operating losses. Therefore the group and company remain reliant upon their ability to raise finance through other means.

The support of the group's directors and shareholders has been evident in the past and continues to be of significant importance. During the year to 30 June 2009 loans totalling £3,355,000 were made available by directors of the group, and since the year end a further £2,415,000 has been made available from the same source. The loans are repayable within the next two years, however directors have indicated that they may be extended thereafter, if necessary. In addition, the bank overdraft facility of £1m continues to be made available by the bank. The group's bankers have indicated that, so long as the group continues to operate within its financial plan, regular renewal of the facility will be available.

The group has prepared detailed cash flow forecasts for the period to 30 June 2014. Those forecasts show that the group and company do not currently have facilities in place to fund all of the projected cash requirements over the next twelve month period. The projected shortfall to 30 June 2010 is £6,500,000.

However, the directors are confident that sufficient additional funds will be sourced as and when they are required and given the significant variable of player trading and the high cost of securing borrowings which may not be required, the group has not sought to secure guaranteed finance to fund its cash flow projections in full for the forthcoming twelve months.

The directors consider that additional shareholder funding will be necessary and discussions are ongoing to secure this. The directors will continue to manage the group's resources and seek to increase income and control costs at all times. The summer transfer window saw significant income generated through player sales and the group acknowledges that player trading will continue to be a key strategy year on year. The group has also invested significantly in its Academy and Recruitment departments.

The directors are confident that the going concern basis is appropriate, and believe that shareholder funding will be forthcoming in the period required.


Current directors' loans include £1,468,000 owing to Valley Grown Salads, a company controlled by two of the directors, G and V Russo (see note 26).

In January 2009 Valley Grown Salads ("VGS"), a company controlled by G and V Russo lent the Group £1,820,000 (the "January loan") and in September 2009 VGS agreed to delay repayment. The loan was originally due to be repaid in four equal instalments from monies due from The Football Association Premier League Limited ("the FAPL") the last instalment being due on 31 July 2009. These instalments were made available to the Club with the agreement of VGS when received from the FAPL. Further short term funding of £650,000 was provided by G Russo at the end of July 2009 (the "July loan") and a further £1,250,000 was provided in August 2009 by G Russo (the "August loan").

On 29 September 2009 it was agreed that the January loan, the July loan plus a previously loaned amount of £163,000, totalling approximately £2,633,000, would be consolidated into a single loan from VGS. The loan will be due for repayment upon demand and will accrue interest at an interest rate of Barclays Bank base rate plus 3.5% per annum, payable monthly. VGS has been granted security over the Vicarage Road Stadium, by way of debenture ranking behind the existing secured creditors, in respect of this consolidated loan. The August loan of £1,250,000 from G Russo is repayable in three instalments over the next twelve months on receipt of the proceeds of player transfers agreed in August and will accrue interest at a rate of 7% per annum.

In October 2009, the Company agreed to reimburse VGS, the company controlled by G and V Russo, the sum of £172,500 relating to expenses incurred by VGS in preparing for the Extraordinary General Meeting held on 1 December 2008. The amount payable is outstanding as at 30 June 2009 and is included within accruals.










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