Mansfield Town’s latest financial revelations, as analysed by football finance expert Kieran Maguire, paint a mixed picture for the club, which operated in League Two during the financial year.
The Stags’ recent financial results may show a small profit of £14,000 for the calendar year 2023, but a deeper dive into their financial structure raises serious concerns. Over the years, the club has accumulated losses amounting to a staggering £6.5 million.
Without the support of companies owned by their chairman John Radford, the club would have posted significant losses for 2023 as well. This raises questions about the long-term sustainability of the club’s financial health and their dependence on the owner’s financial backing.
Owner-Backed Sponsorships: A Lifeline?
A key factor keeping Mansfield Town afloat is the sponsorship deals from businesses also owned by Radford. While this may seem like a smart short-term strategy, it only highlights how reliant the club is on the goodwill of their owner. Such sponsorship deals have been crucial in helping the club break even, but they paint a picture of a football club that is far from financially independent.
Another glaring issue is that Mansfield does not own their stadium, further underscoring the club’s reliance on external parties, particularly Radford’s business interests. Although the club was able to negotiate a reduction in stadium rent from £240,000 to just £47,000 per year, this cut was made possible only because the stadium is owned by another company within Radford’s business empire, effectively negotiating with themselves. While it may appear like a clever cost-saving move, it also points to the lack of ownership and control the club has over its key assets.
Rising Wage Bill Despite Outsourcing
Another worrying trend is the sharp increase in staff numbers—30 additional employees in 2023 alone. Despite this, much of Mansfield’s wage bill is essentially paid by other companies within the Radford Group. This raises questions about whether such practices comply with the Profitability and Sustainability Rules (PSR) set by football authorities. When commenting on this matter, football finance expert Kieran Maguire humorously quoted Morrissey, “Well I Wonder,” implying there may be grey areas in this arrangement.
Mounting Liabilities
Mansfield Town’s total liabilities exceed £5.6 million, which includes £3.6 million owed to group companies and £400,000 in unpaid taxes. These liabilities further illustrate how heavily the club is entangled in its owner’s web of companies. This raises concerns about what would happen to Mansfield should Radford decide to pull his financial support or sell his interest in the club. Such a situation could leave the club financially vulnerable, with significant debts hanging over its head.
A Complex Corporate Structure
Mansfield Town is ultimately controlled by RSCPBR B Ltd, a company that was formed just two weeks before the end of the financial year. The club’s ownership structure is far from straightforward, with a series of similarly named companies (RSCPBR Ltd, RSCPBR A Ltd, RSCPBR C Ltd, and RSCPBR 1) all connected to the club’s finances. This labyrinthine corporate structure only adds to the lack of transparency surrounding Mansfield’s financial health, making it difficult for fans and stakeholders to fully understand who controls what and how decisions are made.
Conclusion
Mansfield Town’s financial situation is precarious at best, despite showing a nominal profit in 2023. The club’s heavy reliance on its owner’s companies for sponsorship, wages, and even stadium rent suggests that it lacks the financial independence needed for long-term stability. It’s shaky at best, and some may feel that it circumnavigates the rules put in place to prevent financial mismanagement. It is certainly a model that would seemingly fall foul of an independent football regulator.
The mounting liabilities and complex corporate structure add further layers of concern. While the club has been able to stay afloat thanks to Radford’s backing, the question remains: what happens if that backing disappears? Without a more sustainable financial model, Mansfield could be heading for troubled waters.
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