Skip to main content

Blades happy to pay the price of promotion

The annual report of Blades Leisure Limited has a justifiably celebratory tone. It notes that the 2018/19 season was a 'landmark' one for Sheffield United. 'The Club's long term strategy is to be a self-sustaining, globally recognised Club competing in the top tier of English football.'

It considers that 'The Club has a tremendous opportunity this season to make its mark on the global stage and it is critical that we optimise this ... We will invest in globalising the Sheffield United brand.' The truncation of the season is therefore a particular blow for the Blades. No one knows what is going to happen about European qualification which would have been the next stage in their development.'

Financial losses for the year ending June 2019 were £21.5m, up from £2m, 'demonstrating the exceptional cost of promotion to the Premier League.' They would have been even higher without player sales. In particular David Brooks went to Bournemouth for a club record fee 'far in excess of our own valuation of the player.'

Turnover went up marginally from £20.9m to £21.5m, but costs went up from £23m to £45m. Media income of £8.6m represented 40 per cent of total revenue. The league performance in the 2018/19 season resulted in selection for eight home televised fixtures and nine away fixtures contributing to a further increase in net income of £1.0m.

Match day revenues saw a steady increase in the Championship with greater uptake of hospitality packages. New LED perimeter boards protected against a slight decrease in ticket revenues. 'The season saw the introduction of the "Sky red button" which enabled Sky customers to gain live access to all midweek fixtures which has made the sale of evening fixtures much more challenging.'

Profit on player trading increased by £5.8m to £14.2m. This 'continues to represent a key element in our strategy to be a self-sustaining Club. Our Academy continues to be a key element of our financial strategy. It must continue to make significant returns.'

Kieran Maguire of the PriceofFootall comments: 'Over the last decade Sheffield United had income of £133 million, wages of £152 million (£114 in wages for every £100 of income) and operating losses of £129 million.'/p>

Labels:

Comments

Post a Comment

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s
1 comment
Read more

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is
Post a Comment
Read more

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl
Post a Comment
Read more