The authoritative Swiss Ramble reviews the 2024/25 accounts of Bristol City. What fokllows is an extract of some of his main points. Despite the improvement on the pitch, Bristol City’s pre-tax loss significantly increased from £3.3m to £18.6m, mainly due to a much lower profit from player sales, which dropped from £21.7m to £6.0m.
This was exacerbated by a reduction in revenue, which fell
£2.5m (6%) from (restated) £42.8m to £40.3m, though operating expenses were cut
£2.5m (4%) from £65.4m to £62.9m and net interest payable decreased £0.4m (16%)
to £2.3m.
Bristol City’s £40.3m revenue is actually the highest in the
Championship – if you exclude clubs that benefit from parachute payments. With the exception of Leeds United, no club
without parachute payments has generated more annual revenue in the history of
the Championship than Bristol City.
City chief executive Tom Rawcliffe observed, “Although the
loss is evidently larger than last year, it is in line with expectations and
highlights the positive financial impact a large player sale and successful
player trading model can have.”
The main driver of the lower revenue was commercial, which
fell £5.8m (23%) from £25.4m to £19.6m, though match day was also down £0.3m
(4%) from £7.7m to £7.4m. This was partially offset by broadcasting, which rose
£3.7m (37%) from £9.7m to £13.4m.
City’s profit on player sales decreased from £21.7m to
£6.0m, which was mainly from the sale of Tommy Conway to Middlesbrough, as many
of the departures were on free transfers. The previous season benefited from
the “significant” deal that took Alex Scott to Bournemouth.
Bristol City have lost a hefty £157m before tax in the last
decade, only managing to generate a profit once with £11m in 2018/19. They had
been steadily reducing their losses since the COVID-impacted £38.4m deficit in
2020/21, until last season’s higher £18.6m loss.
Despite last season’s blip, City have done pretty well with
player sales, generating an impressive £108m in the last seven years, which
included a couple of seasons when the transfer market was deflated by the
pandemic.
City’s 22,283 attendance was in the top ten in the
Championship in 2024/25, though a fair way below Leeds United 35,707,
Sunderland 29,948, Derby County 29,018 and Sheffield United 27,477.
City’s commercial income fell £5.8m (23%) from £25.4m to
£19.6m, mainly due to commercial and retail income decreasing by £6.5m (27%)
from £24.1m to £17.6m. The club said
that the decrease was largely attributable to a concert-free summer, unlike
previous years when the ground hosted shows by the likes of Elton John, Kings
of Leon and Take That.
Partly due to development at the Ashton Gate stadium,
commercial income has risen by around a quarter in the last three years. It is
likely to further increase with the new sports and convention centre. Even after last season’s reduction, City’s
£19.6m commercial revenue was the third highest in the Championship, only
surpassed by Leeds United £43m and Leicester City £33m.
City’s wage bill rose £1.0m (3%) from £34.9m to £35.9m,
which is effectively a new club record, as the £36.0m in 2022/23 was inflated
by that season covering 13 months, following a change in the accounting date. Wages have partly been driven by the huge
growth in non-playing staff, due to the enhanced number of events, which has
required greater levels of permanent and casual staff.
City’s debt is not really an issue, so long as Steve
Lansdown remains a friendly owner, which he has frequently demonstrated by
converting his loans inot equity. This added up to a hefty £81m in the last six
years, including £7.5m in 2024/25.
In the last ten years, most of City’s available cash came
from the owner, who provided £191m, though they also generated £124m from
player sales. Much of this has been used
to cover £149m operating losses, but the club has also made £85m of player
purchases and invested £57m in infrastructure.
As Richard Scudamore, the former chief executive of the
Premier League, said, when he recently joined City’s board of directors,
“Bringing Premier League football to the city of Bristol is long overdue.” However, the lifelong City fan added, “The
size and passion of the fanbase, together with the stability and excellent
facilities that the Lansdown family has provided, do not in themselves make
that inevitable.”
Bristol is one of the country's major cities, so a top flight club is a realistic aspiration, although it is also a strong rugby area (as evidenced by the use of Ashton Gate).
Comments
Post a Comment