The author of the Swiss Ramble blog takes his customary in depth and meticulous look at Swansea City’s finances in his latest post. In many ways, the Swans have been seen as a model of the way in which a ‘smaller’ club can succeed.
The author of the Swiss Ramble blog takes his customary in depth and meticulous look at Swansea City’s finances in his latest post. In many ways, the Swans have been seen as a model of the way in which a ‘smaller’ club can succeed.
All Premiership clubs particularly want to stay up this year to enjoy the riches of the new broadcasting contract. However, the need is particularly pressing for Swansea City. They are more dependent on television revenue than any other club in the Premier League other than Crystal Palace.
Broadcasting revenue accounts for 82 per cent of their revenue, with 11 per cent coming from commercial income and just seven per cent from match day. This reflects the fact that they have not increased ticket prices in the five years they have been in the Premier League.
Although they have not made a loss since 2011, and broke through the £100m revenue barrier in the last financial year, they return one of the smaller profits in the Premier League. In 2014-15 the after tax profit was £1.1m, a reduction of £0.6m. In part this reflects how much such figures are affected by player sales.
Although most of their contracts are performance related, at 69 per cent the wages to turnover ratio is one of the highest in the league, although well below where it has been in the past.
In the longer run, there are issues about the stadium, which is on a long lease from the City Council, to sort out. The immediate imperative is to avoid relegation.