Millwall consistently beat the odds

Millwall finished a highly creditable 8th last season, just two points outside the Championship play-off places, which represented a decent improvement on the previous year.  The club’s ability to punch above its weight should no longer be a major surprise, given that Millwall have finished in the top ten on no fewer than five occasions since they were promoted from League One in 2016/17.

The Lions seem to be firmly established in England’s second tier, having competed in the Championship in 14 of the last 16 seasons, which is pretty good, given their financial disadvantages, compared to the rest of the division.

Unfortunately, the most recent available accounts are from the 2023/24 season, so these are a full year out of date, but the conclusions should still be clear.

Millwall’s pre-tax loss significantly widened from (restated) £12.0m to £19.1m, despite revenue rising by £2.0m (11%) from £19.4m to a club record £21.4m.

The deterioration in the bottom line was largely because operating expenses shot up £6.1m (19%) from £33.2m to £39.3m, while the club lost £0.4m from player sales, compared to the previous year’s £2.5m profit.

The revenue growth was driven by increases in match day, which rose £1.3m (21%) from £6.2m to £7.5m, and broadcasting, up £0.8m (8%) from £10.2m to £11.0m. In contrast, commercial was slightly lower, falling £0.1m from £3.0m to £2.9m.

The last time that Millwall made a profit was more than 20 years ago – and that was only £60k in 2001/02. In the last 10 years they have lost a hefty £99m, including £68m in the last five years alone, which was more than twuce as much as the £31m loss in the preceding 5-year period.

Unlike many clubs, Millwall have rarely made big money from player sales, only generating more than £2m profit twice in the last 10 years, with the highest being just £5.4m in 2018/19, thanks to George Saville’s move to Middlesbrough.

Unlike many clubs, Millwall have rarely made big money from player sales, only generating more than £2m profit twice in the last 10 years, with the highest being just £5.4m in 2018/19, thanks to George Saville’s move to Middlesbrough.

Millwall’s match day income rose £1.3m (21%) from £6.2m to £7.5m,, which was a new record for this revenue stream, mainly thanks to the highest average attendance in 70 years, as well as playing one more game at the Den.  Millwall’s average attendance increased by 12% from 14,767 to 16,544 in 2023/24, which was 75% more than the 9,407 low of the last decade (in 2015/16). There were record breaking season ticket sales of almost 9,000.

According to Soccerway, Millwall’s crowds were much smaller last season, falling to 14,634, but it is probably best to wait for the official club figures for a like-for-like comparison with previous years. Either way, this will have been towards the lower end of the table.

The club could do better commercially, given its location, which the club described as “close to the heart of the City of London”.

Millwall’s wage bill rose £3.0m (13%) from £22.6m to £25.6m, a new club record, reflecting investment in both the playing squad and the football management team. This means that wages have now increased eight years in a row, almost doubling since the first season after their promotion to the Championship in 2017/18.  In fact, Millwall have consistently punched well above their weight, as their league position has been better than their wages in all but one of the seasons since their promotion to the Championship, often by a considerable margin

Although not exactly pushing the boat out, Millwall have clearly ramped up transfer spend, as their £14m outlay in the last five years is nearly three times as much as the preceding 5-year period.  Despite the increase, Millwall’s £4.3m gross spend was still in the bottom half of the Championship.

Millwall have invested a fair bit of money in the squad since these accounts, breaking their transfer record three times in the past year, following the signings of Mihailo Ivanovic from Serbian club Vojvodina Novi Sad, Camiel Neghli from Sparta Rotterdam and Josh Coburn from Middlesbrough

Owner funding

Millwall’s £10m gross debt is very small compared to many other clubs in the Championship, miles below the likes of Leicester City £226m, Stoke City £151m, Blackburn Rovers £148m, Cardiff City £117m and QPR £104m. However, the amount that Millwall owed would be much higher without the owners waiving interest every year, as well as converting loans into equity on occasion.

Millwall’s owners have provided £92m of funding in last 10 years, which was almost entirely used to cover the club’s £78m operating losses with very little spent on either player purchases £8m (net) or on infrastructure £6m.   The £19.4m capital injection provided by the Berylson family in 2023/24 was actually their highest ever annual funding.  In total the owners have provided £111m of funding, including a chunky £49m in the last three years alone, which was entirely in the form of share capital.

Of course, owner financing is nothing unusual in the Championship, so Millwall’s £49m is nowhere near being the highest, a long way below the likes of Leeds United £180m, Leicester City £129m and Birmingham City £107m.  That said, the level of commitment from the Berylsons, particularly in recent years, cannot really be doubted.

After John Berylson’s sad passing, there was a question about whether his son, James Berylson, would continue to provide financial support to the club in the same way, but there has been no let-up in the funding to date.   There have been a few media reports about potential investors, including Saudi boxing powerbroker Turki Alalshikh, but the club has said that it is not for sale.

Development

Millwall’s best opportunity to generate more revenue is by developing the land adjoining the stadium. They have a regeneration plan to create affordable housing, student accommodation, retail and office space, a hotel and conference centre plus a stadium expansion.  This would increase the capacity at The Den from around 20,000 to 34,000 by adding an additional tier to each side of the existing ground.

The good news is that in May 2024 Lewisham council awarded the club a new 999-year lease on The Den and its surrounding area, bringing an end to a long period of uncertainty about this project.

The club has also purchased a 100 acre site in West Kingsdown in Kent to develop a new training facility with the intention of amalgamating first team and academy operations.

Millwall have consistently beaten the odds in the Championship, given their relatively low revenue and wages, though their business model has required the owner to cover the club’s losses, in order that they can be competitive.

Due to the ever increasing parachute payments, these losses have been increasing in the last few years, so the owners will need deep pockets for the foreseeable future.  That said, the development of the land around the stadium brings an intriguing aspect to the club’s future, as this could add much needed revenue growth.

Millwall’s strategy has been summarised thus, “The long-term plan around financial sustainability is focused around three key pillars, through growing a self-sustainable football investment model as part of continuous on pitch development; to grow club revenues and efficiencies within its business operations; and thirdly to drive new income streams through the wider stadium and land development.”

Despite the sustained use of classic “business speak”, the reality is that football today is big business, so these objectives do make a lot of sense. If they are achieved, they will help the club achieve its ambitions on the pitch, though, as always, actions will speak louder than words.