Quote Juan Cornetto="Juan Cornetto"Do the 2011 accounts show any income from the Harris compensation or was that all finalised in 2010? '"
It's never become clear but I would have expected that to all have been recognised when it was agreed - so earlier than 2010 (2008 IIRC).
Quote Juan Cornetto="Juan Cornetto"And was there any saving from the 2010 HMRC provision brought forward into 2011?'"
Impossible to say whether they over or underprovided but either way the results over a two year period are still very good given they take the HMRC into account. The 2011 figures are also affected by donations to the Leeds Rugby Foundation (£120k, 2010 £nil), a return of the mysterious management charges payable to Leeds RUFC (£136k, 2010 £nil) and ongoing management charges payable up to the Caddick group of £55k (2010 £55k).
Although there is still an intention to progress with it my guess is that a debate was had with the auditors as to whether it would be appropriate to capitalise any of the presumably not insiginificant architect's, legal and planning costs associated with the aborted S Stand project. A prudent move given the uncertainty of that (to the public at least) would be to write it off through the P&L rather than capitalise it. However there have been £337k additions to Land & Buildings which I can't immediately pin down so maybe not. Separately, the £750k of additions to Plant and Machinery are presumably primarily the new scoreboard and big screen.
Quote Juan Cornetto="Juan Cornetto"While the 596K profits before tax are excellent does it mean the club would have made a loss without the GF & CC income?'"
My view in previous years has been that Leeds are break even if they don't get to finals and make profits when they do - which is probably the kind of basis that management budget on. It may now be that the company is profitable at a lower level without success rather than just break even.
This isn't a "normal" kind of business that looks for big, consistent profits as there are non-remunerative costs which the club can ramp up or down to a degree relating to local and junior development and the charitable foundation. Certainly, however, Caddick does not give the impression that he is interested in stumping up cash to fund losses at the Rhinos.
Quote Juan Cornetto="Juan Cornetto"With so many SL clubs in poor financial health, the loss of income from SL's major sponsor is of concern. There needs to be some serious thought to a restructure of SL to turnaround the decline in crowds and entertainment value.'"
The loss of engage sponsorship money is really quite trivial in the overall scheme of things (about £50k per club a year) and more than offset by the recently-increased TV deal and any sub-sponsorships the Stobart deal permits/facilitates.
I'm not sure how you have decided that crowds are in decline as the facts determinedly suggest otherwise.
It has to be agreed, however, that Leeds are a special case. They are an extreme example of the fact that clubs which own and can exploit their own stadia (or other, similar, facilities) have the potential to perform much better financially than those which rent - even when renting is on favourable terms.
I note that Leeds include this year £106k of "Development land" in stock so it may be that the next stage in the business plan is to diversify away from the current reliance on that risky RL market and move into property development
I understand there is some knowledge of this sector on the board.
