Discover and read the best of Twitter Threads about #bcfc

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I recently wrote about the importance of the cash flow statement in assessing the financial performance of a football club, focusing on the Premier League. Since then I have had a few requests to do the same for the Championship, so let’s take a look in the following thread.
A club’s profit and loss account is easy to understand, i.e. basically revenue less expenses (mainly player wages), but this is a notional profit based on the accountants’ accruals concept, which can be very different from actual cash movements.
This is important, as the main reason that football clubs fail is cash flow problems. It does not matter how large your revenue is (or your profits are), if you do not have the cash to pay your players, suppliers or indeed the taxman, then you will find yourself in trouble.
Read 41 tweets
Sheffield Wednesday have finally published their accounts for the 2017/18 season, when they finished 15th in the Championship. Manager Carlos Carvalhal left the club by mutual consent in December, to be replaced by Jos Luhukay. Some thoughts in the following thread #SWFC
As a technical point, it’s worth noting that #SWFC have changed their accounting close date from May 31st to July 31st, so the 2017/18 accounts covered a 14 month period, meaning a small £1.2m increase in turnover, but an additional 2 months of expenses.
#SWFC swung from a £20.8m loss to a £2.6m profit, entirely due to £38m once-off profit from selling the Hillsborough stadium. Revenue was only up £1.8m (8%) to £25.2m, while expenses surged £18m (41%) to £63m. Profit on player sales rose £1.7m to £2.3m.
Read 48 tweets
Sunderland’s 2017/18 financial results covered a second successive relegation. Having finished bottom of the Premier League in 2016/17, they repeated this feat in the Championship to drop into League One. Some thoughts in the following thread #SAFC
This was the last season under former owner Ellis Short before Stewart Donald bought the club in May 2018. Since then, the financial picture at #SAFC has greatly changed, but it is still instructive to look at these financials to understand the reasons for their fall from grace.
Following relegation #SAFC loss almost doubled from £10.2m to £19.9m, as revenue basically halved from £123.5m to £63.7m and profit on player sales fell £26.5m to £6.6m. Offset by once-offs: £8.2m profit on sale of Charlie Hurley Centre; no repeat of 16/17 £9.7m Alvarez payment.
Read 45 tweets
Although Derby County’s fans will be bitterly disappointed after losing to Aston Villa in the 2018/19 Championship play-off final, it might still be worth looking at their 2017/18 accounts to show how the club is trying to meet its financial challenges. Some thoughts follow #DCFC
#DCFC went from a £7.9m loss to £14.6m profit, mainly due to £40m from selling & leasing back Pride Park Stadium. Revenue was only up £0.6m (2%) to £29.6m, though this was the club’s highest in the Championship without parachute payments. Profit on player sales fell £12m to £4m.
Main reason for #DCFC revenue increase was an away FA Cup game at Manchester United, which meant match receipts were up £0.5m (5%) to £9.1m. Broadcasting also rose £0.2m (2%) to £8.1m, due to higher Premier League solidarity payment, but commercial was down £0.1m to £12.4m.
Read 46 tweets
Brentford’s financial results for 2017/18 covered “yet another season of consolidation and progress”, when the Bees finished 9th in the Championship under head coach Dean Smith, their fourth consecutive top 10 place. Some thoughts in the following thread #BrentfordFC
#BrentfordFC loss widened from £1.0m to £3.9m, due to “increased football related costs”. Revenue was stable at £12.7m, due to ”similar on-pitch performance and attendance year-on-year”, while profit on player sales rose £1.3m to £14.1m.
#BrentfordFC revenue was flat at £12.7m, as ticketing income fell £0.4m (12%) to £3.1m, offset by increases in commercial, up £0.3m (15%) to £2.3m, and broadcasting, up £0.1m (2%) to £7.3m. Other operating income dropped £0.3m to £0.2m.
Read 39 tweets
Leeds United’s 2017/18 accounts covered the first season under owner Andrea Radrizzani, when they finished a “disappointing” 13th in the Championship, sacking two head coaches (Thomas Christiansen & Paul Heckingbottom), before appointing Marcelo Bielsa. Some thoughts follow #LUFC
#LUFC posted a £4.3m loss, compared to a £1.0m profit the previous season, despite revenue growing £6.6m (19%) from £34.1m to £40.7m and profit on player sales doubling from £9m to £18m, due to “investment in both player registrations and salaries and scouting expenses”.
The main reason for #LUFC £6.6m revenue growth was a £5.5m (33%) increase in commercial income to £21.8m (catering, merchandising and the Selby-Warrington boxing fight), though gate receipts also rose £1.1m (11%) to £11.3m. Broadcasting was flat at £7.7m.
Read 41 tweets
Aston Villa’s 2017/18 financial results covered their second season in the Championship with Tony Xia as chairman following relegation from the Premier League. They finished 4th, but narrowly missed out on promotion after losing in the play-off final. Some thoughts follow #AVFC
Following that defeat, #AVFC “experienced significant liquidity problems”, including a missed tax payment to HMRC, which led to a rescue by billionaire businessmen Nassef Sawiris and Wes Edens, who injected £68m of funding with NSWE SCS becoming the club’s controlling owners.
#AVFC loss increased by £21m from £15m to £36m, as revenue dropped £5m (7%) from £74m to £69m and profit on player sales fell £11m from £27m to £16m. On the other hand, the club received £3m compensation for HS2 rail project, which will go through part of the training ground.
Read 42 tweets
Wolverhampton Wanderers 2017/18 financial results covered a successful season, when the club was promoted to the Premier League as champions after a six-year absence, led by head coach Nuno Espirito Santo under the ownership of Fosun International. Some thoughts follow #WWFC
#WWFC loss shot up from £23m to a breathtaking £57m, largely due to increased expenditure on players and wages plus an estimated £20m on bonuses and additional transfer fee payments following promotion.
#WWFC revenue rose 11% (£2.6m) from £23.8m to £26.4m, as commercial increased £1.4m (15%) to £10.6m and gate receipts were up £1.3m (20%) to £7.8m, but broadcasting was flat at £8.0m. Profit on player sales was £5.9m higher at £8.1m.
Read 39 tweets
Preston North End’s 2017/18 financial results covered a season when they finished in an impressive 7th place in the Championship , just missing out on the play-offs. Alex Neil replaced Simon Grayson as manager in July 2017. Some thoughts in the following thread #pnefc
#pnefc made £2.6m profit before tax compared to a £0.4m loss the prior season, even though revenue fell very slightly (1%) to £13.3m. In contrast, profit on player sales increased £7.5m to £9.7m. Profit after tax up from £0.9m to £2.6m, as there was a £1.3m tax credit in 2016/17.
#pnefc £0.2m revenue decrease was due to falls in both match day, £0.3m (8%) to £3.4m, and commercial, £0.2m (6%) to £2.8m. This was partially offset by a £0.3m (5%) rise in broadcasting, due to a higher solidarity payment.
Read 37 tweets
Nottingham Forest’s 2017/18 financial results covered the first full season under the ownership of Evangelos Marinakis (80%) & Sokratis Kominakis (20%), who bought the club in May 2017 from Fawaz Al-Hasawi, when they finished 17th in the Championship. Some thoughts follow #NFFC
#NFFC reported a £6m loss before tax compared to a £32m the prior season, though the £38m drop is a bit misleading, as it was largely due to loan write-offs decreasing from £40m to £5m. Revenue rose £1.9m (9%) to £22.7m, but profit on player sales fell £4.7m to £10.1m.
#NFFC £1.9m revenue increase was due to more broadcasting revenue from the EFL, up £0.8m (10%) to £9.0m, and higher ticketing income, up £0.9m (14%) to £7.4m, as attendances grew by 21%. Commercial income was flat overall at £5.2m, while player loans rose £0.2m to £1.1m.
Read 36 tweets
Sheffield United’s 2017/18 financial results covered their first season back in the Championship after six years in League One, when they mounted an unlikely challenge for a play-off place before finishing a creditable 10th. Some thoughts in the following thread #SUFC
#SUFC reduced the loss from £5.7m to £1.9m, highlighting the “significant impact” of promotion. Revenue rose 76% (£8.7m) to £20.0m, but this was more than offset by the cost of operating in a higher division, as wages rose £8.9m (89%) to £19.0m & other expenses up £1.9m to £8.5m.
However, it is worth noting that #SUFC lower loss is essentially driven by higher profit on player sales, which rose £5.6m to £8.4m. If this is excluded, loss was actually larger in the Championship than League One. In addition, no repeat of prior season £0.6m player impairment.
Read 36 tweets
Middlesbrough’s 2017/18 financial results covered the season after relegation from the Premier League when they reached the Championship play-offs by finishing 5th before losing in the semi-finals. Tony Pulis replaced Garry Monk as manager in December. Some thoughts follow #Boro
Following relegation #Boro moved from a pre-tax £6.9m profit to a £6.4m loss, as revenue halved from £121m to £62m, though profit on player sales was up £4m to £15m. After tax, the decline was even steeper (from £11.5m profit to £6.6m loss), due to prior year’s £4.6m tax credit.
#Boro £59m revenue decline was very largely driven by broadcasting’s £55m fall from £102m to £47m, as the £42m parachute payment was much lower than Premier League £99m distribution. Commercial also decreased £2.9m (26%) to £8.3m and match day was down £1.6m (18%) at £7.1m.
Read 33 tweets
Queens Park Rangers 2017/18 financial results covered a season the club described as one “of rebuilding and reflection”, as they finished 16th in the Championship, after which manager Ian Holloway left to be replaced by Steve McClaren. Some thoughts in the following thread #QPR
#QPR loss significantly increased by £32m from £6m to £38m, largely due to booking a £20m FFP fine (for previous misdemeanours); a £15m reduction in the parachute payment driving a £17m (35%) decrease in revenue from £48m to £31m; and profit on player sales down £7m to zero.
All three #QPR revenue streams were down. As well as broadcasting slumping £15.1m (43%) to £20.2m, due to the lower parachute payment, commercial fell £1.2m (17%) to £6.3m, while gate receipts were £0.3m (6%) lower at £4.9m.
Read 36 tweets
Birmingham City’s 2017/18 financial results covered a season when they finished 19th in the Championship, only avoiding relegation on the final day, and had three managers: big-spending Harry Redknapp, Steve Cotterill and Garry Monk. Some thoughts in the following thread #BCFC
#BCFC loss before tax more than doubled from £16.4m to a barely credible £37.4m, primarily due to massive investment in the squad: wages rose £16.1m (71%) from £22.5m to £38.6m, while player amortisation increased by £5.0m from £2.6m to £7.6m.
The higher #BCFC loss arose even though revenue grew by 9% (£1.6m) to £19.1m and profit on player sales was up £1.9m to £2.1m. All revenue streams increased: broadcasting £0.6m (9%) to £7.6m, match receipts £0.6m (13%) to £5.1m and commercial £0.4m (6%) to £6.5m.
Read 37 tweets
I published a study last week on where Premier League clubs source their money and what they spend it on by reviewing the clubs’ cash flow statements over the last decade. Today I do a similar exercise on Championship clubs – where the picture is very different.
In the 10 years between 2008 and 2017 Championship clubs had over £2.8 bln of available cash with the vast majority of financing £2.5 bln coming from their owners (loans £1.9bln and shares £0.6 bln)
So an incredible 87% of Championship clubs’ cash came from owner financing with just 7% from operating activities. This is in stark contrast to the Premier League with 54% from operations and 42% from owners. There was also £41m from (net) player sales & £45m from bank balances.
Read 22 tweets

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