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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.


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