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Big losses at Boro

Middlesbrough had reported losses of over £30m with the club battered by the pandemic: https://www.gazettelive.co.uk/sport/football/football-news/middlesbrough-fc-reveal-30m-losses-23433844

Steve Gibson has been an exceptionally generous owner and hasn't got that much in return, but perhaps this season will bring cup and league success.

COVID meant hardly any gate receipts in the year. Broadcast income was due to IFollow. Commercial income was down over 40%.  Boro had the foresight to take out business interruption insurance which paid out £2.75m. Furlough claims were £589k.

Wage bill up by 13%. Wages were £186 for every £100 of income, way above the 70 per cent recommended by Uefa. Average weekly wage was £12,500.

Middlesbrough owe over £120m to Steve Gibson’s holding company, as well as £7m in transfer fees and £17m in unpaid tax, despite borrowing nearly £8m from the EFL in the year.   In any other sector of the economy, this would be seen as a business in dire trouble.

Since the year end Boro have bought players for a net £7.8m. The club has deferred some tax payments which have now recommenced.

Middlesbrough total losses are almost £233 million.  The club has large liabilities, mainly due to the parent company and taxes. Sadly the club uses a company law exemption to avoid publishing a cash flow statement, notes Kieran Maguire of the PriceofFootball.




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