Pacemaker
Alan Waddle
- Joined
- Jun 27, 2020
- Messages
- 623
- Reaction score
- 23
A sobering read for Football League clubs and highlights the huge sums won and lost on promotion or relegation from the PL.
https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance-europe.html
Championship clubs’ losses
Operating losses reported by Championship clubs decreased by 10% to £361m in 2021/22, an average loss of £15m per club.
The improved financial performance is attributed to the changing club mix, accounting for a £89m decrease in operating loss.
Clubs that participated in the Championship in both 2020/21 and 2021/22 reported an increase of 17% in operating losses (£322m), led by Cardiff City and AFC Bournemouth who reported an increase of £28m and £25m respectively, primarily due to the reduction in parachute payments received by both clubs.
The pre-tax loss reported by Championship clubs in 2021/22 was £283m, a decrease of £9m on 2020/21. However, this loss would have been significantly higher without Stoke City and Coventry City, who recognised profit from loan write-offs of £120m and £29m respectively. Writing-off loans from owners highlights a degree of financial commitment from the club owners, however, the reliance on such loans implies an inability to cover the expenses through club generated revenue.
Excluding these two clubs, the pre-tax loss that competed in the Championship in each year increased 66% to £406m (2020/21: £245m).
As Championship clubs emerge from the pandemic, and a number of club owners continue to invest significantly to subsidise club operations, a continuous spotlight on the financial sustainability of clubs remains a necessity to ensure their long-term future. In recognition of this, the EFL has in place a full-time team responsible for reviewing the position of its clubs in a continuous manner.
Perhaps an illustration of why fans hopes for signings for the season ahead are likely to be a little underwhelming.
Meanwhile despite the above WOL reporting that Cardiff are linked to the signing of Aaron Ramsey
https://www2.deloitte.com/uk/en/pages/sports-business-group/articles/annual-review-of-football-finance-europe.html
Championship clubs’ losses
Operating losses reported by Championship clubs decreased by 10% to £361m in 2021/22, an average loss of £15m per club.
The improved financial performance is attributed to the changing club mix, accounting for a £89m decrease in operating loss.
Clubs that participated in the Championship in both 2020/21 and 2021/22 reported an increase of 17% in operating losses (£322m), led by Cardiff City and AFC Bournemouth who reported an increase of £28m and £25m respectively, primarily due to the reduction in parachute payments received by both clubs.
The pre-tax loss reported by Championship clubs in 2021/22 was £283m, a decrease of £9m on 2020/21. However, this loss would have been significantly higher without Stoke City and Coventry City, who recognised profit from loan write-offs of £120m and £29m respectively. Writing-off loans from owners highlights a degree of financial commitment from the club owners, however, the reliance on such loans implies an inability to cover the expenses through club generated revenue.
Excluding these two clubs, the pre-tax loss that competed in the Championship in each year increased 66% to £406m (2020/21: £245m).
As Championship clubs emerge from the pandemic, and a number of club owners continue to invest significantly to subsidise club operations, a continuous spotlight on the financial sustainability of clubs remains a necessity to ensure their long-term future. In recognition of this, the EFL has in place a full-time team responsible for reviewing the position of its clubs in a continuous manner.
Perhaps an illustration of why fans hopes for signings for the season ahead are likely to be a little underwhelming.
Meanwhile despite the above WOL reporting that Cardiff are linked to the signing of Aaron Ramsey
