FC Volendam ended the 2022/’23 financial year with a loss of more than three million euros. This is evident from figures presented by the club. The shortage is much greater than at the controversial information evening in March this year. At that time it involved an amount of between 1.2 million and 2 million euros on a budget of ten million euros.
On the information evening in De Jozef, chairman Jan Smit clashed openly with the chairman of the Supervisory Board, Jaap Veerman. The latter already warned that the deficit would increase if FC Volendam were to maintain their position in the Premier League. In that case, bonuses and premiums would be paid out, making the deficit of 1.2 million presented by the board too rosy in Veerman’s eyes. At the time he mentioned an amount of around 2 million euros.
Now it turns out that that estimate was even too low. Under pressure from Veerman’s statements, Smit revealed that evening that he would personally guarantee 1.2 million euros if Volendam were to fall deeper into the red.
Low score
The only reason for concern is the score that the KNVB has given for FC Volendam’s annual figures. The KNVB has given the club FRS (financial rating score) of 6. The Football Association assesses the financial health of clubs with a score of between 0 and 40 points. Clubs that score less than fifteen points must show a financial recovery plan to the KNVB. In this case, FC Volendam must write a plan.
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The final figures can be found in the 2022-2023 annual report that the club published on the website today. Due to the sporting step up, turnover at FC Volendam increased from 7.7 million to 11.2 million. At the same time, the club was faced with a significant increase in costs. For example, Volendam spent almost 5 million euros on salaries, compared to 2.9 million a year earlier. The item other operating costs almost doubled: from 4.8 million to 8 million euros. The forecast for the year 2023/’24 shows that operating costs will drop considerably and that revenues will rise considerably. As a result, the club expects to present positive figures next year.
Million dollar transfers
After FC Volendam suffered a loss of more than half a million euros in ’21/’22, the figures are now deep red, while equity is missing. On the other hand, Volendam will collect the necessary transfer money this financial year. The club sold Carel Eiting and Derry John Murkin. Volendam will receive a resale percentage for the transfer of former player Micky van de Ven from VfL Wolfsburg to Tottenham Hotspur. In the latter case, the amount involved is approximately 4 million euros. However, that amount will be paid out over a number of years.
Because these transfer funds fall outside the presented financial year, there is no reason to panic for the time being. The club says in the annual report that there is ‘no reason that the continuity of the activities is not guaranteed’. However, with the current spending pattern, FC Volendam will also be forced to bring in income from transfers next season in order to avoid financial problems.