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.
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