Mountfield HK Hockey Club Faces financial Challenges despite City Support

Hradec ⁣Králové, Czech Republic – ⁤Mountfield HK, a professional hockey club based in Hradec Králové, is grappling with meaningful financial losses despite increased support from the city. The club’s financial report for the period⁣ ending April 30, 2024, revealed a loss of 15.1 million crowns, a significant increase from the 7.2 million crown loss reported previously.

According to the city’s mayor, the current ⁣season is also projected to end with a loss. Over the⁤ past three accounting periods, the club’s cumulative ‍losses have reached 36 million⁢ crowns. The last profitable season for Mountfield HK was in 2020/2021, when⁤ it reported a profit of 1.2‍ million crowns.

City’s Commitment and Financial Stability

The⁣ mayor emphasized ‍the ‍importance of resolving the⁢ previous year’s losses to ensure the ⁤club’s eligibility for subsidies ⁢from the city of Hradec ‍Králové. “Mountfield⁣ HK ⁣cannot get into the situation of the company in⁤ difficulties, as it could not ⁤accept subsidy money from the town ⁣of Hradec Králové,” the mayor stated.

Last year, shareholders covered a 15 million crown deficit, with each contributing 2.5 million crowns. ⁣An upcoming allocation of ⁣16 million crowns is intended to address the previous year’s loss, with the remaining funds earmarked to offset anticipated losses for the current 2024/2025 ⁢season, which concludes on April 30.

Projected⁢ Losses and Playoff Performance

The mayor anticipates that the current⁤ season’s losses will exceed six million crowns, necessitating further discussions on how to cover the⁣ deficit. The final loss ⁤amount will depend on the ⁢team’s performance in the⁤ hockey extraleague⁣ playoffs, including the number of home⁤ games played. ‍The team has advanced to the semifinals and is scheduled to play ⁢its frist game against Pardubice ⁣at home on Thursday.

Increased Financial Contribution

The city and Mountfield have agreed to increase‍ the regular annual contribution by ten percent, bringing it to 24.75‍ million crowns. This adjustment will raise the total contribution from ⁣both⁢ shareholders by 4.5 million crowns to⁣ 49.5 million crowns, effective this season. The city councilors approved this measure in march.‍ For‍ approximately ⁤a decade⁤ prior,the level of financial ⁤support from shareholders had remained constant.

“Our goal is to avoid increasing the loss and trying to reduce it with efficient management,” the mayor said. As part ⁣of cost-saving measures, the club has reduced its support for its hockey farm in ⁢Cologne from eight million to ⁢four million crowns. ⁣The ⁤city has also increased its oversight of the club’s management, according to the mayor.

Financial Overview and History

In the 2023/24 season, the club’s expenses totaled 192 ⁤million crowns, while‍ its income reached 177 million crowns. The average attendance at⁤ matches decreased by eight percent to 4,195.

Mountfield HK has been ⁢a part⁢ of ⁤the⁢ Extraliga in Hradec Králové since 2013, following its relocation from České Budějovice. The current shareholder agreement between the city and Mountfield,established in 2018,was initially set for six years but was extended by both parties in 2022 until ⁢the end of the ⁤2025/26 season.