Brentford have clearly come a long way, as they were playing in League Two only 15 years ago. Supported by owner Matthew Benham, who fully bought the club in June 2012, both in terms of financial contributions and a smart, data-led recruitment policy, the club has made great progress on and off the pitch.
However, last season Brentford swung from a £9m pre-tax
profit to an £8m loss, a decline of £17m, as significant investment in the
squad led to a £35m (21%) increase in operating expenses from £166m to £201m,
while net interest payable quadrupled from £1m to £4m. This was partially offset by a significant
improvement in profit on player sales from £6m to £25m, though revenue was flat
at £167m.
The club said that it had done well to maintain revenue at
the same level, despite external economic pressures and a drop of seven
positions in the league. That led to a
£7m (6%) reduction in broadcasting income from £135m to £128m, though this was
offset by commercial income rising £8m (38%) from £20m to £28m. Match day was
unchanged at £11m.
Nevertheless, they have been profitable in three of the last
six seasons, generating a £38m net surplus in this period. In fact, in the five years up to 2022/23,
they had the highest profit in the Premier League by some distance with £46m,
which was more than three times as much as the two other profitable clubs over
that period, namely Brighton £15m and Manchester City £12m.
There is a colossal difference between Brentford’s financial
position in the Premier League and the Championship, with their club record
£167m being almost 11 times as much as the £15m peak before promotion.
Player trading becomes
important
Premier League clubs increasingly generate good money from
player trading, so even after Brentford’s significant growth last season, their
£25m profit is actually the lowest to date in 2023/24, as they were surpassed
by Manchester City £139m, West Ham £96m and Manchester United £37m.
Player trading was a key element in Brentford’s strategy in
the Championship, with large profits from this activity being used to offset
operating losses. Indeed, in the three seasons up to 2020/21 they generated an
impressive £96m. In fact, Brentford’s
player trading model was so good in the Championship that they were actually
mid-table of Premier League clubs in terms of profits from player sales in the
five years up to 2022/23, even though three of those seasons were outside the
top flight.
Following promotion, they no longer needed to sell players
to balance the books, so only made £10m in the first two seasons in the Premier
League, but it looks like player trading has once again become important.
Brentford’s average attendance is just over 17,000, which
means that crowds have increased by nearly 50% from just under 12,000 in the
last season at Griffin Park. The number of season tickets was up from 11,193 to
11,393, while the club said that 97% of season ticket holders renewed going
into the 2024/25 season.
Brentford’s wage bill increased by £15m (16%) from £99m to
£114m, setting a new club record, as the club invested in the squad to match
its Premier League rivals, including contract extensions for players that have
performed well. This means that wages have more than quadrupled in just four
years.
Based on every metric, there is little doubt that Brentford
have massively outperformed their budget.
Looking at 2022/23, which is the last season when we have accounts for
all Premier League clubs, they had the lowest wages per point with £2.2m,
better than Brighton £2.6m and Fulham £3.6m.
Brentford’s gross financial debt increased by £36m from £62m
to £98m, largely because the club took out a £37m overdraft with Barclays,
secured on TV money. The loan from owner Matthew Benham was unchanged at £62m,
as was the £0.5m owed to Bees United.
In the last 10 years, Brentford’s major source of funds has
been the £64m put in by Benham, boosted by £40m external loans (including the
overdraft), £34m from operating activities and £19m from the land sale. This has largely been used on £84m of player
purchases (net) and £63m infrastructure investment (stadium and training
ground). As well as the new stadium,
there has also been significant redevelopment of the Jersey Road training
ground complex, renamed as the Robert Rowan Performance Centre.
Brentford’s financial performance took a turn for the worse
last season, as they reported a loss for the first time in the Premier League
after two years of profits, partly due to finishing lower in the league.
Revenue was flat, but there were steep increases in wages
and player amortisation, as the club continued to invest in the squad. However,
even after the growth in staff costs, the club is still operating with one of the
lowest budgets in the division, so Brentford are very clearly punching above
their weight.
This season should be better financially, thanks to the
Toney sale, allied with better performances on the pitch, but life in England’s
top flight is a recurring challenge for clubs the size of Brentford. That said, there are few clubs better at
beating the odds than Brentford, so few would bet against them.
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