It is well known that the Championship is a challenging division financially. Medium-sized clubs such as Charlton have to compete with clubs with wealthy benefactors or parachute payments. Hence, it is no surprise that the latest accounts show continuing financial losses.
In the 2012/13 the club reported overall losses of £7.4m, although profits on player trading reduced this to £6m. Turnover was up by £3.4m, largely reflecting increased television revenue and solidarity payments following promotion to the Championship.
It is well known that the Championship is a challenging division financially. Medium-sized clubs such as Charlton have to compete with clubs with wealthy benefactors or parachute payments. Hence, it is no surprise that the latest accounts show continuing financial losses.
In the 2012/13 the club reported overall losses of £7.4m, although profits on player trading reduced this to £6m. Turnover was up by £3.4m, largely reflecting increased television revenue and solidarity payments following promotion to the Championship.
Of particular concern is the fact that the wage bill was the equivalent of 101 per cent of turnover, twice the level recommended by sports business experts Deloitte.
New Charlton owner, Belgian multi-millionaire Roland Duchâtelet runs a network of clubs across Europe and expects them to breake even. This cannot be achieved in the short to medium term at Charlton, even if they stay in the Championship.
Duchâtelet thinks that financial fair play will level the playing field, but that will not happen that quickly, if at all, as the domestic scheme faces legal challenges from richer clubs.