Does player trading strategy work for Southampton?

The authoritative Swiss Ramble has cast his eye over the recently published 2019/20 accounts of Southampton FC from his Zurich fastness.   Like many clubs across Europe, Southampton have become increasingly reliant on player trading as a source of funds.   However, Saints have pursued this route more than some other clubs, possibly to the detriment on their performance on the pitch.   Following quotes from the Swiss Ramble's Twitter account.

'Player trading has been a key part of Southampton's strategy. In the five years up to 2018/19 they made a hefty £205m profit from this activity with only Chelsea £332m and Liverpool £306m ahead of them. For more context, Arsenal, Manchester City and Manchester United only made £170m, £147m and £60m respectively.'

Southampton 'explained that their ability to generate profits from player trading was significantly impacted by the summer 2020 transfer window not opening until July, after the financial year ended. Transfer market also depressed by the pandemic reducing clubs’ spending.'

'That said, profit from player sales has declined two years in a row, from £69m in 2018 (mainly Virgin van Dijk to Liverpool) to £21m in 2019, then £14m in 2020. The 2021 accounts will include the sales of Pierre-Emile Höjbjerg to Tottenham Hotspur and Harrison Reed to Fulham.'

Saints 'have now reported losses in the last two seasons, totaling £117m, which has almost entirely wiped out the preceding five consecutive profitable years, which were worth £126m in total, including £42m in 2017 and £35m in 2018.'

'Very few Premier League clubs post operating profits, but Southampton’s loss is (currently) one of the highest this season, though nowhere near as bad as Everton £175m.'

' Revenue has now fallen three years in a row by 31% from the £182m peak in 2017 to £127m in 2020, mainly due to less TV money (absence of Europa League £13m and COVID-impacted Premier League revenue), though match day has also dropped £8m (35%).'

'Due to the impact of the pandemic, the club's £127m revenue looks like it is one of the smallest in the Premier League, though other clubs are likely to be lower after they publish 2019/20 accounts. Either way, miles below the “Big Six”, e.g. Manchester United £509m, Chelsea £407m.'

'Directors remuneration nearly halved from £2m to £1.2m with the highest paid director seeing pay decrease from £728k to £598k. This is relatively low for the Premier League, especially compared to Manchester United £3.1m and Spurs £3m.'