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Wimbledon in good financial health

AFC Wimbledon are looking forward to construction work starting on their new stadium in the summer. In the meantime, they have given considerable financial help to their tenants at Kingsmeadow, Kingstonian.

The turnover for 2016/17 was about £740k higher than the previous year at £4.675m. The major reason for this increase was additional central funding from the EFL and the Premier League solidarity payments which also reflected the extra payments following promotion to League One. As a result, these payments were over £600k higher than in the previous years. Sponsorship and advertising were over £600k higher.

The main turnover items were:

  • Match receipts and prize money £2.719m
  • Youth development income £602k
  • Sponsorships and advertising £590k
  • Bar and catering £400k

In 2016-17 the club had very good attendances, averaging comfortably over 4,000 for league games. Taking account of the increased income from solidarity payments, and a profit of £355k from the sale of players, the club felt able to increase the playing budget. Total staff costs accounted for two-thirds of turnover.

To terminate Kingstonian's licence at Kingsmeadow the club paid contractual compensation of £80,500 and a donation of £69,500. 'After extensive discussion, the boards concluded that it was important and morally right to help Kingstonian secure their future by making a further substantial donation on completion of sale of the stadium.' A donation of £1m was agreed. The payments to Kingstonian turned an operating profit of £57k into a loss after tax of £1.13m.

The annual report notes, 'In a small company, which is what the football club continues to be, cash is a crucial issue. The bank balance is monitored on a daily basis.'

'Once a season is under way, the finances are largely predictable, with season tickets paid for and corporate sponsorships already sold (and, by and large, collected). The major factor than then affects the results is attendances, since they directly affect areas such as bars, merchandise sales etc.'

The club is committed to the first stage of building a new stadium close to their historic home at Plough Lane. This will have a capacity between 9,000 and 10,000 of a 20,000 stadium. The stadium will be funded largely by a £14m contribution from Galliard Homes and the proceeds of the sale of Kingsmeadow to Chelsea, with the balance to be financed from borrowings.

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