Glamorgan have announced much-improved results for the 2015 financial year aided by the impact of hosting an Ashes Test.
Cardiff staged the opening match against Australia – ending late on the fourth day – which along with an agreement with creditors to write-off large amounts of debt have allowed the club to announce EBITDA (earnings before interest tax depreciation and amortisation) of £1,201,119. The equivalent figure for 2014 was £579,297, with an operating loss of £88,237.
But Glamorgan’s chief executive, Hugh Morris, warned that the allocation of international matches in future years would render it difficult to maintain such figures and called upon the support of spectators to help the club deal with the likelihood of “a much reduced profit.”
Glamorgan hosts two ODIs this season – one each against Sri Lanka and Pakistan – and a decent array of limited-overs matches in future seasons. But there are no further Tests allocated for the ground at present.
“We are pleased with these financial results which reflect the hard work that went into successfully staging the first Investec Ashes Test match, driving incremental revenues across the business and good discipline around the control of expenses at the club,” Morris said
“However, we must acknowledge that our programme of major matches in 2015 will not be repeated in 2016 which combined with the ongoing need to invest in our venue, our professional team and our community projects, is likely to lead to a much reduced profit.”
Crucial to Glamorgan’s survival was an agreement reached with creditors to write off around 70% of the debt that threatened to drag the club under. In all, creditors including former chairman Paul Russell, Allied Irish Bank and Council agreed to write-off around £11,500,000 in debt.
“The completion of the financial restructuring is a watershed moment for the club,” Glamorgan treasurer Hamish Buckland said. “It has been a tough journey from the difficult days of 2011, but we now have a firm financial base from which to move forward. Much work still needs to be done to continue to improve financial performance in a tough and competitive market, but the foundations have been built.”
The club also hopes to develop its non-cricket business. They recently won permission to host up to three major concerts at their ground each year, with Simply Red the first to appear in July.
“The staging of music events, the continued success of our year-round catering and events business and the growth of our cricket membership and following will be critical if we are to stay on track in the years ahead,” Morris said.
“First and foremost, we are a cricket club and we continue to rely on the support of our members and ticket buyers who are absolutely critical to us.
“We’ve added to the squad during the off-season and we’ve got a new head coach in Robert Croft who is determined to build on the progress we have made in the last couple of seasons.
“That should be an exciting proposition for Glamorgan supporters and we are looking forward to the new season with great optimism.”
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