Article Taxonomy: Financial Results

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

Debt up and a hefty loss at Liverpool

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Net debt at Liverpool now stands at £87m and the club lost £40.5m in the ten months to 31 May 2012. This compares with £49.3m in the previous twelve month period with the club changing its accounting dates to coincide with the football season.

Essentially the club is paying out for expensive signings in the first year of Fenway Sports Group’s ownership with the emphasis now on what managing director Ian Ayre described as a ‘frugal’ and ‘prudent’ transfer strategy in which talented players are brought in on sensible contracts.  

Villa cut losses

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Aston Villa have cut their annual losses to £17.7m in the year to 31 May 2012 compared with £54m the previous year.  The wage bill was cut by £13,8m and £26m was made from the sale of players.  Owner Randy Lerner waived £20m of interest he was due on £107m of loans.

Football journalist David Conn has tweeted that this looks like a process of downsizing.   Income was down £11.6m or 12.6 per cent to £80m.  Attendances were down by an average of 3,500 to 33,783.   It looks like a case of a club whose ambitions no longer match its history or its potential.

Profits down but cash reserves up at Arsenal

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The latest six monthly results for Arsenal show that profits are down year on year but cash reserves are up.   This will increase the pressure to spend money on players in the summer, although Arsene Wenger still claims that the club can finish 2nd in the Premiership this year.

United profits up

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Manchester United has reported a 74 per cent rise in profits for the second half of 2012, driven by rising  revenues.   Pre-tax profits for the last six months of the year were £22.3m.  

With the new Premier League broadcasting deal next season, and a good chance of continuing success in the Champions League, profits should continue to rise.   The club also considers that the new Premier League financial rules will be of benefit to them.

Financial boost at Celtic

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Celtic have reported a big boost to their turnover and profits in the six months to December 2012.   The profit from trading was just under £15m compared with a near break even figure of £0.18m in the same period last year.   Turnover increased by 71 per cent from £29.27m to £50.06m.  Net bank debt fell from £7.05m to £130,000 making the club virtually debt free.

Big losses at Oxford United

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Oxford United lost £750,00 last year and are expected to lose a further £660,000 in 2013.   One factor has been falling attendances that have fallen by around 2,000 to a season’s average of 5,977, costing the club £200,000.   Even against the background of a difficult economic climate, this is a big fall, particularly in relation to comparable clubs.

Lower losses at Owls

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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.

Big projected loss at fan run club

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Fan-run Chester FC look set to lose £75,000 this season.   The BSB North leaders made a profit of £107,826 in their first season after they were formed following the winding up of one time Football League club Chester City.   Last season they made a small loss of £2,970.

Big operating loss at Charlton

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Charlton Athletic made an operating loss of just under £7.5m in its League 1 promotion season, compared with £6.13m the preceding season according to accounts lodged at Companies House.   Profit of just over £1m on the disposal of players reduced the operating loss to £6.45m.   However, the preceding year, £2.8m in profit was realised from player sales, reducing the operating loss to £3.3m.