Parker Sale Boosts Charlton Profits - 31/10/2004

The sale of Scott Parker to Chelsea helped to boost annual pre-tax profits at Charlton to £11.2m compared with a £464,000 loss previously. The good results were, however, overshadowed by the furore surrounding the sacking of pitchside announcer, Big Brian Cole, after he had make derogatory remarks about Crystal Palace before the Carling Cup clash with the rival South London club. Operating profit rose from £2.8m to £4.6m in the year to 30 June while profit from player sales surged to £11.7m (up from £1.1m) with nearly all of this coming from the Parker sale. Turnover rose 21 per cent to £42.6m. Sales were helped by increases in the distribution of television receipts from the collective broadcasting agreements as well as additional prize money from the team's highest finishing position of 7th in the Premiership last season. TV and broadcasting income increased 29 per cent to £26.2m while match day operations generated a modest increase to £9.84m. Season ticket income was broadly static and chairman Richard Murray claimed that this was because so many fans took advantage of early purchase discounts. In fact the club, which has ambitious stadium expansion plans, is having difficulty in expanding its supporter base. Efforts to attract more supporters from Kent have run into criticism from Gillingham. A worrying sign is that the total cost of operating the squad went up 29 per cent to £27.6m, while total personnel costs amounted to 70 per cent of income, well above the recommended 50 per cent figure. The club is also going to have to spend some of its funds in the transfer window if indifferent on pitch form is going to be overcome to prevent it being drawn into a relegation struggle.