Big Losses At Charlton Athletic

Relegation threatened Championship side Charlton Athletic have reported big losses in the year to June 2008. Losses were up 16 per cent, £11.5m compared with £9.9m in 2007 (operating losses were £8.6m). Turnover was down 26 per cent from £35.9m to £26.7m, a figure that includes parachute payments which run out at the end of the season. Ticket income, sponsorship / banqueting and retail income was down 21 per cent from £16.8m to £13.2m. The wage bill fell 30 per cent from £34.3m to £23.7m, but wages were still a worrying 89 per cent of turnover, although this was down from 96 per cent in 2007. The total cost of running the club was £41.7m and the club is losing £31,507 a day. Interest charges were up from £0.8m in 2007 to £2.9m in 2008. The club sold players to the value of £24m and paid out £12m for new ones. The club was only kept going by directors coming up with £14.7m for a corporate bond issue that provided working capital and allowed short-term debt to be paid off. If the club cannot secure its place in the Championship it faces a sharp fall in season ticket sales (which fell by only 2 per cent) and other revenues, placing the club in jeopardy even with severe economies. Charlton is thought to have been a reasonably well run club and these figures illustrate the challenges that face smaller clubs who lose Premiership status.