Phil Sumbler
The harsh reality of life in the Championship hit home for Swans fans on Friday when the club confirmed a £4.6m pre-tax loss or the financial year ending July 31, 2021.
The loss comes on the back of a season where football was largely played behind closed doors and also saw significant income coming into the club with the sale of Joe Rodon as well as convertible loans and the last of the parachute payments.
Whilst the twelve months we are currently in will see a likely increase in match revenue the loss of the other payments could cause a concern for Swans fans in twelve months when the next set of accounts are revealed and points to the need to potentially cash in on some of our assets in the summer.
The loss follows a profit of £2.7m from the previous year (July 31, 2020) and a loss of £7m from the financial year ending July 31, 2019. Turnover for the year was down to £27.5m compared to £50m for the previous year.
Broadcast revenue was £21.6m compared to £38.9m the previous year, while commercial revenue dropped to £1.2m compared to £2.6m. Matchday income also fell to £1.7m from £4.8m, however this was due to no supporters being allowed into stadiums, while the income arrived from fans who decided to leave their season ticket monies in the club.
The club’s only borrowing came in the form of two interest free loans from the EFL that were made available to all Championship clubs as a result of the pandemic, and convertible loan notes that came as a result of director Jake Silverstein’s investment in August 2020. This funding was also matched by Swansea Football LLC.
“These accounts covered an extremely uncertain period for all clubs with the entirety of 2020-21 league season played behind closed doors,” said Swansea City chief executive Julian Winter.
“It was also our final year of receiving parachute payments following relegation from the Premier League, with the club continuing to commit to a long-term model of being financially stable.
“We remain hugely appreciative of our fans who continued to show their immense support for this club during the pandemic, with supporters opting to keep their monies in the club despite not being able to go to games.
“Our loyal supporters continued to spend their hard-earned money with the club despite the uncertainty brought about by the pandemic, for which jobs and the cost of living would have been a concerning one within the community.
“The club remains in a comparatively positive financial position within the Championship as we strive to be sustainable whilst ensuring we remain competitive on the pitch in order to achieve our long-term ambition of returning to the Premier League.”
