Article Taxonomy: Financial Results

The financial benefits of a year in the Premiership are demonstrated by the latest financial results from Blackpool FC.  After making a loss of £6.7m the previous year, the club has reported record profits of £20.9m.

Turnover rose from £9.4m to £51.7m.   Just £3.5m was spent on new signings and the wage budget reached £12.1m.  Overall costs rose to £30.7m.   The figures are believed not to include the sale of star midfielder Charlie Adam to Liverpool and other departures.

Profits at Wolverhampton Wanderers have dropped by nearly £7m compared with last year, but the club still managed to record a pre-tax profit after player trading and net interest charges of £2.2m in the year to 31 May 2011.   The figures take into account record £7m buy Steven Fletcher and other acquisitions.

Operating costs increased to £37.9m compared with £29.8m in 2009-10 mainly due to players’ wages.  Turnover was up to £64.6m compared with £60.4m in 2009-10 largely because of the new three year Premier League television deal.

Aston Villa haved announced losses of almost £54m for the year ended 31 May 2011, up from £37.6m.   American owner Randy Lerner has put £25m of his own money into the club over the past two years to keep it on an even keel.

The figure includes the money spent to bring Darren Bent to the club in January last year, but does not include the sales of Ashley Young to Manchester United and Stewart Downing to Liverpool which went through last year.

Arsenal have reported a pretax profit of £49.5m in the six months to end of November compared with a loss of £6.1m a year earlier.   Football turnover was up from £97.6m to £113.5m.  Cash reserves increased from £110.4m to £115.2m.

Manchester United’s bank balance has fallen by almost £100m in six months, according to the club’s quarterly accounts, as a result of buying back bonds, player arrivals and stadium improvements.

The latest accounts show that while revenues continued to rise as a result of increased TV income and corporate hospitality revenue, plus new commercial contracts, higher wages contributed to sharply increased operating costs.

Chelsea FC has announced losses for last season of £67.7m compared with £70.9m the previous year despite a record turnover of £222.3m bosted by the increase in Champions League and broadcasting revenue.  

They are still some way short of complying with Uefa’s financial fair play regulations.  By now the club was supposed to be breaking even.   However, chairman Bruce Buck claimed that the club’s free spending days were over, noting ‘We would expect this to be reflected in our results for the current financial year.’

It’s a rare thing when a football club makes any profit, let alone a substantial one, but West Bromwich Albion have done just that.   The club made a profit of £9m in the year to 30 June 2011 after a successful first year back in the Premier League which saw them finish 11th.   As a result the club was able to reduce its net debt from £10m to £2m.