Swans made a £14m loss but not all bad

Our poor showing over the last couple of seasons has led the Swans to make their highest loss in our history but its not as bad as you may think.


Swansea have confirmed a loss of £14.6million in their latest set of annual accounts.

The club had recorded a profit of £1.1million in the previous figures for the 14-month period up to July 2015.

Huw Jenkins had warned earlier this season that the latest set of accounts would show a significant loss for the year ending July 2016, and that has proved to be the case.

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Turnover was £97.2million compared with £103.9million from the previous accounts, with total operating costs also down to £117.5million from £120.8million.

There was a profit made when it came to players sales, with Jonjo Shelvey's £12million move to Newcastle contributing to a £6.1million figure.

The club state there are several reasons behind the amount lost, which is the highest the club has recorded since promotion to the Premier League in 2011. Their figures for the 2012-13 season saw the club record the largest pre-tax profit (£21million) in the Premier League.

They include the fact that the sales of Ashley Williams and Andre Ayew fall outside the current figures, but will be represented in the next batch of accounts, as well as the cost of terminating the employment of Garry Monk and several of his coaching staff during the 2015-16 season.



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Additionally, the loss in revenue from a lower Premier League finish (dropping from 8th in 2015 to 12th last season), a larger playing squad and continued investment in the club's training facilities and academy set-up.

However, the club claim they are on course to post a profit of over £10million for the current financial year, which concludes at the end of July.

Swansea City chairman, Huw Jenkins, commented: "Running a financially sound football operation remains paramount to the football club.

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"At the same time, we recognise the importance of continued investment in the infrastructure and playing squad, as we demonstrated during the recent January transfer window with the acquisition of Martin Olsson, Jordan Ayew, Luciano Narsingh and Tom Carroll.

"As we have done for many years, we will continue to work hard to find the right balance between growth, success on the football field and sound financial practice.''


Read more at http://www.southwales-eveningpost.c...0179945-detail/story.html#KkdbDtYb6Qey4qZx.99

 

Where's the money gone? What about the £13million for Jonjo?

 

The reasons given are:

(a) the sales of Ashley Williams and Andre Ayew fall outside the current figures, but will be represented in the next batch of accounts - This is a red herring. The sales fall in a different financial period and will be accounted for later

(b) The cost of terminating the employment of Garry Monk and several of his coaching staff during the 2015-16 season - This is part and parcel of running a club and the possibility of terminating employment should be considered when setting the annual budget

(c) The loss in revenue from a lower Premier League finish (dropping from 8th in 2015 to 12th last season) - We cannot bank on finishing 8th in every season when setting the budget!

(d) a larger playing squad - without more figures we can't say a lot about this although the report does say
"operating costs also down to £117.5million from £120.8million". Players wages form the major operating cost.

(e) continued investment in the club's training facilities and academy set-up. - Again, without more figures we cannot really comment on that.

All in all, the reasons seem a bit wooly and a more stringent budget setting regime/key decision making process, possibly with a change in some of the key decision makers, is required.

I read this report the day after the Burnley result. Not a bad day to throw out "bad news".

 

The next set will have Guido's and Bob's severance payments!

 

Policing has gone up as well....All in all it is better than what was expected and was predicted last time, Next audit predicts a £10m profit but how they come to that is only a prediction in reality...

 

In Huw we trust.

He`s a big Swans fan .................................................. apparently.

 

The truth is, it is all down to Jinx's transfer screw ups, and manager selections, Jinx has been really poor these last few seasons, I bet the boardroom take over has a few inbuilt hidden fiddles as well!!......................

 

The American owners are keeping a low profile these days. Haven't heard their names mentioned since New Year.

 

£14m is far less than many thought and much of it has to do with the money paid out to the past board and current boards payments after the takeover, Plus payments made to Ex managers and whopping signing on fees for players and their agents. A lot of money has been shelled out on the Landore development and money has been invested in our academy that was promoted to the top league status. Policing costs have risen and Insurance costs have also risen. The last few seasons has not generated income that it can due to the takeover costs and poor showing in the league......£14m loss has been a surprise and much less than was thought and when you take into account that the profit we have made on a few players has not been counted then the loss is very small to what it could have been.... And in my opinion all investments towards the Academy and the Landore developments I don't see as losses and see them as investments.

 

Dai! Any realistic businessman would se that 'investment' is not a Profit/Loss item. And Landore spend would not hit the P&L. So that is no reason for the loss. And if you think 14 mill is small,,,,, it is not for an organisation that has little assets. And note that this loss is after a profit on transfers.

 

Its an investment Blue. It is a valuable asset that will never lose its value.....If god forbid we ever get into a financial mess as bad as Cardiff then we will always have Landore as a profit making venture just for the land....It will never come to that as a professionally established premiership club who is on the up again.....£!4m loss due to change over and investment is peanuts to a team that earns £100m a year and is still at the top of the league table of best run clubs and we will be back in profit like we have been during our time in the premiership with a predicted £10m profit for the next financial year....

 

That last line is so typical how sneaky the club has turned into of late whitey .
Also , Gomis is having a super year on loan and will be sold in the summer for a reasonable rate after signing that extension before leaving IMO .

 

Not totally sure valley but didn't Liverpool retain some of that money fron a sell on clause ?

 

I believe they did.

 

I see that the Statutory Accounts have yet to be filed at Companies House - they have until 30 April.

 

It has turned out pretty good for us as it looks today with a debt much less than many expected and very easily managed back towards a profit with a few million not taken into account owed because it is outside the financial year.

 

A £14 million debt is a £14 million debt, irrespective of how much more debt was to be expected.

 

I guess you mean a Loss rather than a Debt, Dai?

 

Yes and that is not much for a premiership team today

 

It means we're starting the next financial year at minus £14 million quid.