Lancashire Cricket Club Declare Financial Losses
November 8, 2011
Lancashire County Cricket Club have reported a loss of £2.114 million ($3.37m) for the financial year ending 31 December 2010.
The County Champions’ financial performance was influenced by the development of Old Trafford, the failure to be allocated a major Test match, as well as the impact of the global recession and the numerous challenges presented by the ongoing battle to secure the club’s legally granted planning permission for the remaining redevelopment of Old Trafford.
Despite the financial loss, phase one of the redevelopment of Old Trafford was successfully completed and included a new grandstand incorporating The Point, a state of the art conference and events facility, along with the successful turning of the cricket square.
Since the year end and following the final approval of the planning for phase two after the costly legal delays, the club has started further building work and has been allocated numerous international games through to 2016, which includes an Ashes Test in 2013.
Lee Morgan, the club’s finance and operations director, said: “The necessary redevelopment of Old Trafford was critical in securing the future of Old Trafford. The transitional period in building the new stadium was always going to create huge challenges, although the investment will result in the club being well placed for the long-term in ensuring international cricket remains at Old Trafford in a competitive and tough market.
“The majority of the club’s current debt has been raised to fund the building of The Point, which has already, and will continually prove to be, an important revenue generator for the business.
“It is important to note that the club will not take on any further debt to fund the rest of the redevelopment of Old Trafford which is scheduled for completion in early 2013.
“Although challenging times do remain for all county cricket clubs, with the certainty provided by our international match staging agreement and also the redevelopment of the stadium into one of the best in world cricket, we have every reason to be optimistic for a successful future of Lancashire County Cricket Club.”