Why is the Turnover at Stevenage so high?

A detailed look at the latest Stevenage Borough accounts suggest that outside money is propping up the club. And when compared with the latest Hereford United accounts, there are several differences which are worth reporting.

In brief, the turnover at Stevenage for the period to May 2004 was £1,799,635, a rise of £400,000 over the previous year (Hereford's turnover was £1,078,859) Where the income comes from is not detailed but gate money can't come to as much as Hereford last season as the average attendance at Broadway Hall was only 2002. At Edgar Street the average was 3704.

As the gate receipts at Hereford were reported as £586,882, it has to be assumed that those at Stevenage are unlikely to be more than £400,000. Gate receipts at Hereford are about 55% of turnover, so assuming those at Stevenage are much the same it suggests a turnover of less than £1 million.

Questions therefore may be asked as to where the rest, around £750,000, of turnover comes from.

On the expenditure side, the wages paid at Stevenage are twice that at Hereford. Figures say that wages are £1,013,979 for the Hertfordshire club whereas only £543,780 was spent at Edgar Street. The Stevenage squad is currently five or six players bigger than Hereford's.

Administrative expenses at Stevenage are stated at £187,711 against £140,612 at Hereford.But perhaps the biggest difference in the club is the comparison in the "cost of sales".

At Stevenage they report £1,662,415 and at Hereford £705,798. That is a difference of over £18,000 per week in the cost of running the club!

Finally from the accounts Stevenage report a loss of £110,791 whereas Hereford report a profit of £292,162 which did include a contribution of £138,750 from transfer fees.

The Stevenage chairman, Phil Wallace, is the top shareholder with 90% of the
shares in Stevenage. Their report also says that the directors acknowledge the year end deficit... and will continue to support financially the company.

It has to be assumed that the directors at Stevenage bailed out their club to the tune of around £750,000 last season. They must be rich men.

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