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Good prospects at Norwich despite big loss

Norwich City have published their 2018/19 accounts. Being champions of the Championship was costly as a combination of income down £28m due to parachute payments expiring and costs constant due to promotion bonuses. Revenue was at its lowest since 2010/11.

Turnover in 2018/19 was £33.7m and therefore significantly lower than the prior year (2017/18: £61.7m). Despite positive gains on disposals of player registrations the Group’s results show an operating loss before tax of £39.4m (2017/18: operating profit before tax of £18.5m).

Match day income from the gate was £9.7m (29 per cent of total), broadcasting income was £9.3m (28 per cent of total) and commercial income was £8.5m (25 per cent). Catering is listed separately at £4.3m. This is not usual in accounts, but reflects the club's ownership.

Player purchase costs amounted to -£10.4m, which included instalment payments on previous transfers, plus the acquisitions of new players such as Emiliano Buendia, Moritz Leitner and Philip Heise. A figure of +£20.6m was raised through player sale transactions, with the majority in the form of instalments from the sale of players from previous reporting periods such as Josh Murphy, Alex Pritchard and James Maddison.

Following promotion to the Premier League the club anticipates a substantial operating profit in the financial year to June 2020. The total value of Premier League payments in 2019/20 will be in excess of £95m.

The club states, 'The prior year saw the investment of a significant sum in development of our Academy, an area that had suffered under-investment in previous years. The majority of this investment was financed externally via the Canaries Bond.'

The club has emphasised that there is no need to panic about the financial results, although being one of the few self-financed clubs in the Premier League does come with special pressures: Good prospects

The club remains open to offers of investment: Could be sold

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