Skip to main content

Losses in seven seasons out of nine for Bournemouth

From his Zurich fastness the Swiss Ramble reviews the 2019/20 accounts of AFC Bournemouth.

The club’s loss almost doubled from £32m to a club record £60m, largely due to revenue dropping £36m (27%) from £131m to £95m, partly offset by profit on player sales rising £20m to £23m.

The revenue decrease was mainly attributable to COVID, which contributed to broadcasting falling £35m (30%) from £116m to £81m, though match day was also down £1.5m (29%) from £5.0m to £3.5m. These reductions were partly compensated by commercial rising £1m (9%) to £11m.

The Cherries have now reported losses three years in a row, amounting to £103m, having made money in their first two seasons in the Premier League. Before that they posted four consecutive years of losses, including a hefty £39m deficit in the 2014/15 promotion season.

Without COVID, revenue can be estimated as £25m higher at £121m (8% less than 2019), as £18m broadcasting deferred to 2020/21 and £7m foregone (TV rebate £6m, match day £1m), meaning the club would have posted a £35m loss, around the same as prior year.

Following relegation from the Premier League,  TV income will fall significantly in 2020/21, albeit cushioned by £42m parachute payment, giving them much higher revenue than most other Championship clubs. Parachutes then fall to £35m (year 2) and £16m (year 3).

The wage bill fell £3m (3%) from £111m to £108m, as some senior members of non-playing staff took voluntary pay reductions. Nevertheless wages have risen £36m (51%) in the last three years, even though revenue has fallen £41m (30%) in the same period.

Due to the revenue fall, the wages to turnover ratio increased (worsened) from 85% to 113%, the highest in Premier League to date in 2019/20 and the worst in the top flight since QPR’s 129% in 2013.


Labels:

Comments

Post a Comment

Popular posts from this blog

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

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

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more