The Swiss Ramble takes a look at the finances of Rotherham United. This is a summary of some of his main points. Much more detail is available on his Substack page.
While the frequent transition between England’s second and
third tiers is probably a source of frustration, this review of the finances
will underline the challenge Rotherham face in bridging the gap and competing
with much better resourced clubs.
Rotherham United have been owned by Tony Stewart, the
founder of ASD Lighting, since 2008, when he rescued the Millers from a crisis.
The club had twice entered administration, being deducted a total of 37 points
as a result of their various financial issues, while there were also problems
with the stadium.
As a self-made businessman from Sheffield, Stewart has
adopted a strategy of sensible financial management, which makes a lot of
sense, given the club’s troubled history, but makes life difficult in a world
where many owners seem happy to fund constant losses in an attempt to reach the
proverbial next level.
Stewart has provided £5.0m of owner funding in the last
three years, as well as a £2.0m capital injection in March 2020. This included
£4.3m in 2023/24 alone, which is a fairly strong indication that the chairman
remains committed to the club.
Very few clubs make money in the incredibly competitive
Championship, so Rotherham’s £1.7m loss was one of the best results in 2023/24,
only behind the four clubs that managed to generate a profit, namely
Southampton £17m, Watford £13m, Coventry City £9m and Blackburn Rovers £3m.
Rotherham have now lost money five years in a row, but they
have managed to restrict the magnitude of their losses, so the net deficit over
this period was just £6.6m. The club said that it “continues to be financially
sustainable in an increasingly volatile industry”, which is fair comment, given
these figures.
Indeed, only one club has done better in the Championship
over the last five years from a financial perspective, as Rotherham’s £6.6m net
loss was only just behind Plymouth Argyle’s £6.5m. At the other end of the
spectrum, six clubs lost more than £100m in this period.
Unlike many clubs, Rotherham have rarely made big money from
player sales, only generating a profit above £2m twice in their history, with
last season’s £2.8m actually being the highest ever. As a result, their profit
from player sales in the last five years was a paltry £7.3m.
Rotherham’s £16.6m revenue was rock bottom in the Championship,
below Preston North End £16.9m, Huddersfield Town £18.2m and Hull City £21.2m. This
was less than a fifth of the clubs recently relegated from the Premier League,
who benefited from sizeable parachute payments, namely Leeds United £128m,
Leicester City £105m and Southampton £85m.
Broadcasting is very important to Rotherham’s business
model, accounting for 58% of total revenue in 2023/24, which was the fourth highest
in the Championship, only behind three clubs with parachute payments.
Even though they were relegated, Rotherham’s average
attendance actually increased from 10,148 to 10,677 in 2023/24, which is
testament to the club’s supporters. Crowds
have significantly grown since the opening of the purpose built AESSEAL New
York Stadium, which was completed in July 2012.
Just getting to the Championship so frequently in the past decade
shows how much Rotherham have punched above their weight. This is particularly
impressive, given the club’s focus on financial stability, as opposed to the
costly gambles made by many of their rivals.
This conservative strategy is unlikely to change any time soon,
based on the club’s comment after the latest accounts, “Safeguarding the
long-term future of football in Rotherham will always be at the forefront of
our priorities.”
That may not be as exciting as some fans might like, but it’s
difficult to argue with this sensible approach, given some of the major issues
currently faced by a number of clubs, including one just a few miles down the
road from Rotherham.
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