Operating losses narrowed at Sheffield Wednesday FC to just under £5m in the season when the club secured automatic promotion to the Championship. But chairman Milan Mandaric said much work was still needed to repair years of ‘mismanagement’ on and off the field.
Turnover in the year to 31 May 2012 increased by £1.5m to £10.9m helping the club reduce operating losses to £4.9m – down from £6.8m in 2011. Despite the reported operating loss, the club said cash outflow from operating activities was only £1.2m compared to £6.7m in 2011.
Operating losses narrowed at Sheffield Wednesday FC to just under £5m in the season when the club secured automatic promotion to the Championship. But chairman Milan Mandaric said much work was still needed to repair years of ‘mismanagement’ on and off the field.
Turnover in the year to 31 May 2012 increased by £1.5m to £10.9m helping the club reduce operating losses to £4.9m – down from £6.8m in 2011. Despite the reported operating loss, the club said cash outflow from operating activities was only £1.2m compared to £6.7m in 2011.
Match receipts and other football income accounted for £6m of turnover with broadcasting revenue bringing in £1.2m. Average home league attendances increased from 17,816 to 21,338 and the number of season ticket holders also rose from 12,549 to 12,943.
Mandaric said, ‘Having now been at the club for almost two years the true enormity of the task that lies before us has become apparent. Be under no illusion of the task that lies ahead to repair the damage years of decline have inflicted on this business.’
During 2012, the Owls invested £174,000 in new assets, £1.2m in the transfer of player registrations and repaid part of the advanced payment of TV revenues from the Football League.
Mandaric added, ‘Financial prudence must be instilled throughout the football industry, and no clearer example of the need for this principle can be seen at Hillsborough. The Financial Fair Play regulations that come in to force for the start of the 2013/14 season will help this process’.
Charlton Athletic, who also earned automatic promotion from Division 1 last season, reported operating losses half as big again last week.