Article Taxonomy: Financial Results

Articles on football club company financial results – interim or full-year.

Manchester United break more records

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Robust growth in the three key sectors of commercial, broadcasting and match day income helped Manchester United to achieve record profits and revenues in the three months to 31st March.

Underlying profits increased 25 per cent to a record £25m. Turnover rose a near 30 per cent to £91.7m. Sponsorship revenues increased 52.2 per cent. Group debt decreased by 15.9 per cent since June 2012 to £436.9m. Some analysts think that it could drop to £100m in a few years if the Glazers do not pay themselves dividends.

Crystal Palace improve financial results

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Crystal Palace have reported a trading loss after tax of £2.2m for twelve months to June 2012.   This compares with a loss of £9.4m in the previous corresponding period.   It also compares well with recent results from other Championship clubs who do not benefit from parachute payments or wealthy foreign owners.   Charlton, Ipswich and Sheffield Wednesday have all reported larger operating losses.

The club also has £13.3m in hand in respect of player sales.   This is thought to be largely the result of the sale of Zaha to Manchester United.

Swans announce record profits

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The benefits of Premier League membership are reflected in record profits of £15.9m announced by Swansea City FC for the six months up to the end of November 2012.   The Swans are well placed to take advantage of the new Premiership television deal.    

It is planned to increase the capacity of the council-owned Liberty Stadium from 20,599 to 32,000 and there are plans for a new training facility.   A new shirt sponsorship deal is in the offing, the Swans having bought themselves out of their deal with 32Red a year early.

Scale of Ipswich losses raise concerns

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Concerns have been expressed about the future direction of Ipswich Town after the club recorded a loss of nearly £16m in the financial year ending June 2012. The club has found the Championship a tough competition this year with so many clubs with parachute payments or funded by wealthy owners.

Admittedly, Ipswich enjoy a benefactor in the shape of Marcus Evans who is now owed more than £72m by the club. But questions have been raised about how long his largesse can continue. There have been rumours of a £5m cut in the playing budget for next season.

Good financial results for Magpies

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Newcastle United have reported a profit for the second successive year of £1.4m. For most companies of their size, that would be disappointing, but in football it’s a good outcome to be in the black. The new Premier League television deal that begins next season should lead to even better financial results.

The wages-to-turnover ratio is over two-thirds and hence well above the recommended 50 per cent level, but it is still much better than at many Barclays Premier League clubs.

Boro rely on their benefactor

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Just how badly Middlesbrough need to get back to the Premier League is demonstrated by their latest accounts. They are not making the biggest losses of a Championship club, but they are reliant on £1m a month pumped in by their chairman and benefactor Steve Gibson. Strictly speaking, it is a loan provided by his company, but it still shows that backing a football club can be an expensive interest.

Southampton record good profit

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It is relatively rare for a football club to record a profit and Southampton must be pleased with the £900,000 they made in the last six months of 2012 after their return to the Premier League. It is the first profit they have made without player trading since 2005.

The benefits of being in the Premier League were clearly evident with revenues (excluding player trading) nearly trebling from £11.6m to £33.1m. Average attendances were up by 16 per ent.

Wage bill soars at QPR

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Queen’s Park Rangers lost £22.6m during their first season back in the Premier League, Although that figure, published in the accounts for QPR Holdings Limited, was £3m down on their final season in the Championship, turnover soared from £16m to £64m. Debt is up from £56m to £89m.

Their wage bill doubled from £27.6m to £56m even before a significant outlay on players over the last two transfer windows. Wages represented 76 per cent of £73.8m turnover even before this season’s escalation.

Rangers make operating loss

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Newco Rangers made an operating loss of £7.1m in the seven months to 31 December 2012.  This turned into an overall profit  before tax of £9.5m due to a one off accounting credit of £20.4m described as ‘non-recurring release of negative goodwill’ and there is certainly plenty of that around in Scotland as far as Rangers are concerned.