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Articles on football club company financial results – interim or full-year.
Manchester United achieved record annual revenues in the year to 30 June 2017. Revenues increased 12.8 per cent compared to the previous season to £581.2m, Earnings before deductions for tax, depreciation etc. increased more than 17 per cent to just under £200m. Pre-tax profits increased 7.7 per cent to £39.2m. The improved performance was largely due to higher broadcasting income and Europa League success.
Following an ownership fiasco involving an absent new owner who turned out not to have the readies (yet again), Morecamble were in serious financial trouble last season with players not being paid.
After the Shrimps’ new Brazilian owner Diego Lemos went AWOL, Italian businessman Joseph Cala claimed to have bought the club. He turned up at the Globe Arena and started giving it large, before Lemos returned as if he had never been away.
Fans generally have many, often justified, criticisms of club owners so it’s nice to see praise for a change. At Mansfield Town’s annual meeting Darren Shaw, representing Stags Fans United, credited finance director Jim Beachill for his steadfast work on the club’s finances saying ‘Fans really appreciate it.’ Dean Foulkes, chairman of the Stags Supporters Association was even more effusive: ‘The finances are incredible, brilliant. People are so excited to support the club.’
The interest in taking over clubs outside the Premier League is increasing. A shift in club and investor behaviours has highlighted that it is clubs outside the Premier League have many attractive qualities, resulting in 40% receiving formal or informal approaches from potential equity investors in the last 12 months.
BDO’s annual survey of football club finance directors questioned more than 50 clubs in the English Premier League (EPL), English Football League Championship (FLC), Football Leagues One (FL1) and Two (FL2) and the Scottish Premiership (SP).
Brighton chairman, poker player and chartered accountant Tony Bloom has increased his loan to the club to £170m. Getting a club into the Premier League and keeping them there is not a cheap hobby. The Bloom family has been involved with the club for about 50 years.
The Seagulls made a loss of £25.9m in the 2015-16 season. Similar figures are expected this season and covering those losses will push his investment towards £200m.
Manchester United has lifted revenue and profit guidance for the year. Reporting its latest quarterly results, it said that it expected ‘a strong finish to 2016-17 both on and off the pitch.’ It announced projected revenues of £560m-£570m for the year, up from £530m-£540m.
United fell into an operating loss of £4.1m in the three months to the end of March from a profit of £23.2m in the same period last year. Net income also fell into the red at a loss of £3.8m from a gain of £13.7m in 2016.
A profit of £180k at Gillingham in 2015 turned into a loss of £800,000 in the year ended May 2016. Turnover was flat at £5.68m.
The wage bill was up 10 per cent in 2016, but is less than Ibrahimovic earns in ten weeks, illustrating the gap between the Premier League and League One. The whole squad cost £80k and no player was signed for a fee in 2016.
A dispute with caterers Centerplate is to go to court in November 2017. Out of court settlements have been rejected.
Accounts for Serie A clubs for the 2015-16 season are now complete and Juventus come out on top on a number of criteria. Data from the author of the Swiss Ramble blog.
Juventus had the highest revenues at €351m. more than €100m ahead of Roma on €234m. The importance of Champions League success in television revenues is readily apparent. Juventus and Roma reached the group stages and they received a total of €195m and €154m respectively. Juventus had the highest wage bill at €221m, followed by Milan on €204m.
Swansea City AFC may yet retain their place in the Premier League, but they face considerable financial challenges in doing so. Data provided by the author of the Swiss Ramble blog demonstrates that the main factor is a constrained revenue base with a huge reliance on broadcasting income.
Sunderland face big financial challenges following their relegation to the Championship. Their latest accounts to July 2016 show a loss of £33m up from £26.6m. Only Chelsea and Aston Villa had higher losses and they had exceptional items in their accounts.