Swans confirm accounts for financial year ending 31 July 2020

edited April 27 in Swansea City

One for the (qualified or fag packet) accountants on the forum 😀

Swansea City has reported a pre-tax profit of £2.7m for the financial year ending July 31, 2020 in its latest set of accounts, which are in the process of being filed at Companies House.

This follows a loss of £7m from the previous year (July 31, 2019) and a further loss of £3.2m from the financial year ending July 31, 2018. All figures are before taxation.

Turnover for the year was down to £50m compared to £68m for the previous year, largely due to the decrease in the club’s parachute payments as a result of relegation from the Premier League in 2018.

Broadcast revenue was £38.9m compared to £51.6m the previous year, while commercial revenue dropped to £2.6m from £3.4m. Matchday income also fell to £4.8m from £6.5m.

It is worth noting that the club, as with the rest of society, had to deal with the effects of Covid-19 and matches being played behind closed doors with no supporters from March 7, 2020. The initial three months of the pandemic will be reflected in these figures, in particular the drop in matchday revenue.

Total operating costs, including player amortisation and impairment costs of £10.7m (£29.6m in 2019) amounted to £64.5m compared to £103m the previous year.

The club employed an average of 321 members of staff - including playing staff, backroom staff and part-time matchday staff - during the year at a cost of £40.2m. This compared to 359 staff members at a cost of £48.9m the previous year – a reduction in staff costs of £8.7m.

The accounts include the sale of Oli McBurnie to Sheffield United, but not Joe Rodon to Tottenham Hotspur.

No dividends were paid to shareholders during the financial year.

“A clear profit is very pleasing,” said Swansea City chief executive Julian Winter. “Naturally, the club is still adapting to relegation from the Premier League, balancing the tricky conundrum of being competitive on the pitch and financially prudent off it.

“But an overall profit on the back of a loss the previous year shows a great deal of progress on the road to our overall business model of being financially stable. The reduction in parachute payments has, of course, been taken into consideration following a second season competing in the Championship.

“While the economic effects of the Covid-19 pandemic won’t be clear until next year’s accounts are published, the initial period when competition was suspended and the subsequent drop off in matchday revenue is reflected in this latest set of figures.

“The club’s paramount focus remains being able to be financially stable for the long-term, not just for its supporters but also for its proud community.”


Comments

  • I worry for the team dynamic next season if we aren’t promoted. The break up of the team is likely with the probable departure of Roberts being one of the big concerns. All the loanees will have returned. Ayew will be gone and this may be the final season for Routledge who would need to be used sparingly even if he pushes the boat out for another crack of the whip. It will also probably be a post Cooper summer transfer window as he will likely be snapped up by one of the lesser Premier League teams. Every season brings with it its own complicated twists and turns.

  • Could be a chance to reset again , no premier league contracts to service .

    Ayews wages could allow us to sign 3 quality players

    Keepers position covered with Benda and Hamer ,

    Centre backs Cabango , Bennett , Joel , Cooper

    Full backs , Bidwell , Manning , Naughton , Freeman Tisvongo.

    Midfield

    Fulton , Grimes , Smith , Dhanda , Byers , Oli Cooper

    Strikers , Lowe , Cullen Whittaker , Routledge

    Recruitment will be vital , the squad of players are there for a good side

    Depends on what happens with Cooper .

  • Malc,

    From the recent Structured Dialogue Minutes zoom meeting recently, Gareth Davies, when asked if funds would be available for squad strengthening gave the following reply - " the general view of the club is that it needs to be clever, trading players and that means buying as well as selling. We will have money available for a transfer budget in the summer. We recognise that we have a number of players out of contract and we will need money to strengthen the squad for next season."

    Of the loanees, Woody, Guehi and Conor, no doubt Guehi will be the more difficult to replace and regarding players being sold, Roberts and Cabango will be targeted.

    Will Cam Evans have stepped up a level when he returns from Irish football while does SC see Brandon, Joel, Benda and Liam as genuine first team starters next season. Cash will be more plentiful should we gain promotion via the Play Offs but if it's another season in the Championship are the players I mentioned adequate replacements.

    If that PL place is achieved I have a feeling though that SC will look to bring in Woody on a permanent basis.

  • Colin ,

    That is why recruitment is important , I think the players you have mentioned are potential replacements , given a chance nobody knows how they will do.

    My view was on not gaining promotion , that is why I didn't include Connor Roberts ,

    In my opinion on Freddie i would like to see our keepers given a chance .

  • You’ve left out Garrick from the front line Malc

  • So these accounts include the sale of McBurnie, but not Rodon, presumably he will then be shown in the 2020/21 accounts that will be filed next year.

    Any profit we made there will probably be offset or at least significantly eaten up by loss of match day revenue and a reduction in our (final) parachute payment.

    2021/22 accounts will be the most interesting if we don't get promoted. On the positive side, no more crippling Ayew wages and (fingers crossed) fans back in to generate matchday revenue. On the downside, no more parachute payments, and the probable necessary loss of one of our few remaining saleable assets (Roberts, Grimes or Cabango basically).

  • Thanks , should have learned a bit more being on loan , the pressure of relegation would have been tough .

    enaitch
  • Unfortunately yes . Will be a difficult decision for him to leave the Swans the club he loves ,

    The club would want to sell him .

    Jackaremeenaitch
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