On a hot day, one could write a piece about SeinäjokiStadion Oy, which owns OmaSp-stadion, and the SJK group, now that the financial statements for all companies’ last fiscal year are available.
Sarajärvi stated in the Urheilulehti interview, linked many times above, that the revenues from the stadium’s events cover all of its costs. This is difficult to observe from the financial statement, as according to the statement, the company made a loss of 588 thousand euros on a turnover of 528 thousand euros:
Based on the financial statement, the company has also not been able to amortize its bank loans according to the payment plan, and the increase in deferred liabilities of nearly 400 thousand euros also suggests that most of the interest expenses on the loans have gone unpaid:
However, according to the notes to the financial statements, the situation is under control, and there is no fear of losing equity, because the value of the stadium exceeds its book value. The valuation report prepared in 2023 was likely written by Fincap’s valuation director, who then moved to become OmaSp’s chief appraiser? Negotiations are also underway with the financier regarding the restructuring of debts:
That reference to debt restructuring likely refers to an accord, as with the current payment schedule, the debt would be settled in approximately 44 years.
At the beginning of the year, I wrote about the financing needs of this “himmeli” (complex structure), as follows:
Here is a summarized compilation of the results for the fiscal year ending November 30, 2024:
SJK does not prepare consolidated financial statements, but I compiled a summary of the group’s assets and liabilities clearly outside the related parties from the financial statements:
The accounts payable and accounts receivable in the table likely include, in part, intercompany debts between the group companies and the stadium. Accounts payable exceeding 1.6 million euros and total short-term liabilities exceeding 3 million euros clearly indicate, in my opinion, the weakness of the financial situation.
The SJK parent company’s balance sheet fixed assets primarily consist of shares in subsidiaries and the stadium, and current assets consist of intercompany receivables and expenses capitalized on the balance sheet of the Academy teams. These expense capitalizations have beautified the result for several years, but they were only disclosed in the most recent financial statement. The auditor did not give SJK a clean report but also drew attention to the matter:
The auditor’s report was naturally not included in the financial statement published on the club’s website. The publication of the financial statement by April 30 is one of the requirements for a league license.
I understand that this “himmeli” built over the years is by no means simple to dismantle, but is it still reasonable for the bank, in any timeframe, to continue propping up this loss-making business? The stadium’s 10 million euro debts will never be paid by a football team when the primary challenge is to get the club to be self-sufficient.
PS. In this whole setup, cash management optimization has been taken to an incredible level; companies operating with a combined balance sheet of 21 million euros had nearly 5000 euros in cash at the end of the fiscal year.