Lincoln City 2023 Accounts: A Breakdown

City have released their 2023 accounts, following another successful year in League One.

Below, I have done a small breakdown of the accounts, with a number of different topics included such as players sales and future developments of the club.

Competition Success and Prize Money

City continued their positive trajectory finishing 11th in League One under the management of Mark Kennedy. There was a notable improvement following the January transfer window, with changes made to the playing squad.

Cup competitions were a mixed bag for City. A first round exit in the FA Cup at non-league side Chippenham Town was a disappointment, but there was an exciting run in the Carabao Cup, which ended in the fourth round against Premier League Southampton. The EFL Trophy saw City reach the quarter finals before losing to Accrington Stanley on penalties. Despite doing well in the Carabao Cup; the run wasn’t anywhere near as profitable as a potential FA Cup run. City made just £55k from the competition.

It was good to see a successful fourth consecutive year back in League One as we made progress under new head coach Kennedy but it was a poor FA Cup run meant prize money in cup competitions wasn’t as lucrative as the board would’ve hoped.

Players Incomings and Outgoings

City’s player sales amounted to £600,000 overall. The majority of this money came from selling Cohen Bramall to Rotherham and letting Anthony Scully depart on transfer deadline day to Wigan, while money was also made on former club captain, Tom Hopper.

City’s use of sell-on fees has been a success with the club making money on Harry Toffolo’s move to Premier League Nottingham Forest. The left-back is now City’s record sale, with the latest add-ons taking his transfer fee to around £640,000.

The club also made more money on Jorge Grant as he made the move to Scottish Premiership side Hearts, while there was a minor add-on after James Jones sealed promotion to League Two with Wrexham.

Transfer fees for incoming players exceeded £400,000. Ethan Erhahon joining the club was considered a statement signing – although the fee hasn’t broken the previous transfer record set by John Akinde’s £325,000 transfer. There were also fees paid for Danny Mandroiu, Dylan Duffy and Jay Benn, while Reeco Hackett was also included in the current financial year due to the time of his signing.

Overall, our business involving players joining and leaving the club has to be considered a success. The sales of Bramall and Scully were smart with both players having less than a year left to run on their deals, and we have seen evidence of future add-on fees making money for the club. City paid fees for five players in the financial year and they are all still with the club. Erhahon, Mandroiu, Duffy and Hackett are all crucial first team players in Michael Skubala’s plans, while Benn is progressing well on loan in the National League with Solihull Moors.

Total salary costs are mid-table in League One, although they are still below average.

Average League Attendance and Matchday Revenue

Matchday revenue was down for City, but only marginally, with extra income from Carabao Cup gate receipts.

As revealed a few months ago, there was a decline in iFollow (EFL Digital) purchases. This leans towards an increase in illegal streaming of City games rather than paying the traditional £10 fee to watch.

League gate receipts were also down with a slight fall in average attendance at the LNER Stadium. The average number has dropped off by just below 500 from the League Two title winning season in League Two to the 2018/19 campaign. The average gate dropped by about 250 following Michael Appleton’s last season with the club – a campaign that saw the club endure poor home form.

The ‘fall in attendance’ narrative that is portrayed online isn’t as substantial as many think. Success brings fans into a football ground, and under the Cowley Brothers, success was a yearly thing for us. The club have been attempting to solidify their position in League One over the past few seasons, and a slight drop in attendances is likely given the lack of promotion success that was seen between 2017 and 2020.

Annual Loss

City made an annual operating loss of £2.6 million, but as previously mentioned, this figure has been written off by the Jabara Family. The club has been affected by the current financial climate, with continued inflationary pressures making operating costs significantly higher once again.

As I’ve previously mentioned, a loss was expected but more investment from the Jabara family shows their ongoing commitment to City. I’ve said it before, but we are extremely lucky to have such passionate people that care about our club and aim to drive us forward on and off the pitch.

Fan Engagement

It was a positive year for City with fan engagement. In the ‘EFL Valued Supporters Survey’, City ranked 3rd out of the 72 Football League clubs, while the club scored 90% in the “EFL Family Excellence Award’. City also scored 5th out of the 92 professional football clubs in the country in the ‘Fan Engagement Index’.

2022/23 marked another positive year for us in fan engagement. It’s clear to see that this is very important to everyone at the club, and it’s extremely positive to see the club excel in that area once again.

Future Developments

The club expects the Stacey West Community Hub development to be complete in May 2024. The development will help City develop its infrastructure and further help the clubs impact on the community, in collaboration with the Lincoln City Foundation and other community groups.

There were significant infrastructure investments in the summer alongside the Stacey West development. This notably included mains water and power improvements as well as a pitch water recycling system. Investment continued into improvements in the fan village and the Elite Performance Training Centre.

Head coach Kennedy and assistant Danny Butterfield departed the club, with Skubala joining as a replacement. The former Leeds U21 head coach is viewed as a long term fit for the club. Since the end of the financial year, City paid a six-figure transfer fee for Ethan Hamilton (the ninth time since the club’s return to the EFL).

The Jabara Family

Further investment from the Jabara family means they are now the largest shareholders in Lincoln City Holdings.

Since their investment, City have progressed on and off the pitch and everyone should be grateful of their commitment to the football. The future looks bright for us, with plenty of positives to look forward to. The transfer fees paid for Erhahon and Hamilton show we have a commitment to securing a future in League One and looking forward to a potential challenge towards the

Championship in the next few years. With a committed board alongside a new long-term head coach, the future prospects of City are bright.