A good season on the pitch for Southampton FC has been matched by a good set of financial results for 2013-14. Southampton have more than exceeded the expectations of the pundits, some of whom were forecasting relegation at the beginning of the season.
A good season on the pitch for Southampton FC has been matched by a good set of financial results for 2013-14. Southampton have more than exceeded the expectations of the pundits, some of whom were forecasting relegation at the beginning of the season.
Indeed, some of them seem to be affronted that Southampton are still in the mix at the top of the Premier League along with the conventional ‘top’ clubs. Unfortunately, it looks as if the club’s reward is going to be a place in the Europa League which is an interminable competition that can sap a club’s performance in the Premiership. However, it still a considerable achievement. Hopefully, the injury to keeper Frazer Forster will not prevent it being achieved.
Some of the credit for the club’s success must go to club owner Katharina Liebherr who is relatively low profile but supportive of the club. Some of the low profile may be down to the fact that she is Swiss which carries an image with of it being stable and reliable but a little staid compared with more exotic owners from the Gulf States, Russia, Malaysia or Thailand.
However, given that some foreign owners have interfered in their club’s affairs in a way that alienates supporters, there is much to be said for Liebherr. She has just loaned the club another £20m on top of £29m she has loaned already, given her a total exposure of around £50m.
When her father sadly died in 2010, there were reports that she might sell the club. However, she has persisted with it, although she is still plagued with reports that she is going to sell.
The club showed a pre-tax profit of £33.4m for the first time since it was in administration in 2009. This compares witha £6.5m loss in 2012-13. Like other Premier League clubs, it has benefitted from the new broadcasting deal with revenues up from £46.9m to £79.4m. This means that it accounts for three-quarters of total revenue.
Commercial income increased by a relatively small amount from £6.7m to £8.3m and is way behind the sums earned by clubs like Manchester United and Arsenal. It must be an area for further attention if the club is to sustain itself at the highest level. The club recognises the importance of this challenge, but states that it cannot be achieved overnight.
Overall revenues were up from £71.8m to £106m. Wages were up from £44.1m to £55.2m, but the wages to turnover ratio decreased from 65.5 per cent to 59.3 per cent. This compares favourably with most Premiership clubs.
The club did benefit from a £32m profit on player sales which is one of the factors that led to scepticism about its likely performance this season. However, Katharina Liebherr insisted that this money be reinvested in the club.
I am not completely unbiased about Southampton as my son-in-law is a season ticket holder and I have more friends that support the Saints than any other Premier League club. Nevertheless, the club is clearly on an excellent trajectory.