Saints had a profit of just under 1 million on a turnover of 33 mill in first six months in PL, compared to 13.37 mill turnover last season. Shows where the big bucks are! P.s. on Echo site
That's great news, really; mentioned previously that I thought that we'd be around break-even despite the transfer expenses in the summer, but if we turned a slight profit in the first six months, we're all but assured to turn a pretty solid profit for the year as a whole, given that we didn't exactly break the bank in January. Which means two things...one, that the wage budget is, as many thought, quite small relative to the competition, and moreover that the new TV money can be reinvested without any pain to the financial standing of the club, should we stay up.
Just been confirmed on Sky. Very interesting point: players wages are 59% of turnover compared to 102% last season. Also the first time we have been in profit without including players sales.
Good news... Wages being 59% of turnover is also impressive. For comparison, QPR is at 91%... which is good considering last year it was 183%.
I just read that we took out a low interest £3.8m loan to pay for training ground improvements. The mystery BVI loan?
That loan was taken out at about the time of the brief stoppage at the training ground, so reasonable to think so. They discovered a problem that meant the dome had to be replaced, whereas they previously planned to keep it. Cash flow problem I imagine.
Will be interesting to compare with other clubs as they release their own figures. So far we compare pretty favourably to QPR! Anyone seen the statement from Cortese regarding FFP? He doesn't seem very impressed, although we already knew he voted against them of course: "Our results also demonstrate we are already operating within the spirit of likely new Premier League financial regulations in respect of average profits and losses over three years. We believe very strongly that each club should continue to be permitted to run their business â including their pay rolls - as they see fit. This is fundamental to the future integrity of football." Does kind of make you wonder why he cares so much if we're already complying with them...
Oh, also I'd be interested to see our figures in a year or two's time, £1m profit doesn't give you a lot to play with, and we're going to have to spend a lot more to become competitive in the top-half of the league...
Interesting read: http://www.bbc.co.uk/sport/0/football/21712482 Someone can start a new thread on that, but I'm too busy/lazy.
If revenue was 33 mil and the profit was 1 mil then that is onl a 3% profit margin, most businesses would go out of business with that margin, I know no other business need to buy thier employees so as we spent 30mil preseason that turns out to be a very good margin. Once we get a good squad together then we should be able to maintain a healthy future by buying just one good player every window and not get involved in the scattergun tactics of QPR, it really is the wages of players that push a club over the edge
http://www.dailyecho.co.uk/sport/saints/news/10276383.Massive_rise_in_Saints_revenue/ http://www.dailyecho.co.uk/sport/sa...essive_vital_stats_prove_why_survival_is_key/ http://www.dailyecho.co.uk/sport/sa...ese_s_statement_on_Saints__financial_results/ http://www.dailyecho.co.uk/sport/saints/news/10276619.Finance_officer_s_statement_on_Saints_figures/ http://www.dailyecho.co.uk/news/10276465.Liebherrs_invested___38m_in_Saints__rise_to_Premier_League/ Over the top or what?
A 3% profit margin wouldn't put a company out of business and that margin is actually pretty good for a football club. How many are there that make any profits before player trading? By the way, that profit for Saints excludes player trading where we would be running at a large loss for now.
By Sharpshooter it seems! Something has gone horribly wrong with some of the "edit" and "quote reply" functions though. Just get a big grey box and can't type into where the textbox usually is.
Southampton Executive Chairman - Nicola Cortese: “From where we started, it is a great achievement to have reached the Premier League in just three seasons. We have done this during a period when we have invested in all of our business areas, radically reformed how we operate the Club to conform to best practice and, at the same time, produced sound financial results. “Effective financial management is about making the right investments at the right price, at the right time. When combined with sound business decisions, commitment, a strong company structure and great ambition across the whole organisation, we have proved that only a modest outlay - when compared with most Premier League Clubs – is needed in order to achieve success. We fully intend to maintain our culture and a diligent approach to our financial affairs. “Our people at the Club have worked hard to achieve this result and I am proud of them and their contribution to our success. They all know that we can still improve further and that is our constant aim. We have a plan to compete at the top and all of our decision-making and investment spending is geared to achieve that. The creation of a state-of-the-art training facility at Staplewood - which is planned to be operational towards the end of 2013 - will be a shining and proud example of that. “Our results also demonstrate we are already operating within the spirit of likely new Premier League financial regulations in respect of average profits and losses over three years. We believe very strongly that each club should continue to be permitted to run their business – including their pay rolls - as they see fit. This is fundamental to the future integrity of football.” Saints' chief financial officer Gareth Rogers' full statement on the club's interim financial results for the Premier League, and the accounts for the 2011/12 season: “Our first six months in the Barclays Premier League show the dramatic impact promotion has had on the Club. However, the significant increase in turnover has not deterred us from our stated aim of financial prudence in the top division. "I am delighted to report the Club’s first profit without the aid of player trading since 2005 which demonstrates that prudence in football can be achieved whilst significant investment, both on and off the field, is still being made. Our wages to turnover ratio has also been reduced significantly and we strongly link remuneration to performance. “Another pleasing aspect is that non-broadcasting revenues are up across the board, representing a culture shift in the way we do business as a Club. This is vital for our continuing success as, in the long term, our aim to challenge and compete with the top clubs in the division cannot rely solely on broadcasting income. “Overall these are excellent results and back up the full year results from our promotion season in the npower Championship which was achieved on an underlying loss of only £2.4m, significantly down from the £11.5m loss that promotion from League One resulted in.”
Why do we need another thread? Cortese's comments are entirely related to this and are already being discussed here.
