The end of the 2024-25 season gives us a chance to reflect on the financial accounts for Southampton FC in #FM22 
Having missed out on qualification for the Champions League, as per the 2023-24 season, reaching the QFs of the UEFA Europa League went some way to make up for the reduction in prize money. Despite this, prize money still fell by £24.6m.
A fifth-place finish in the PL in the season just gone, having lost 4th place to Chelsea via defeat to Spurs on the last game of the season, means it will be Europa League football again for the Saints.
Sponsorship rose significantly on the back of new deals being struck by the marketing department, with a new main kit sponsor paying £15m making up the majority of the bump (a rise from £8m). This saw the club ranked 11th in the PL for total sponsorship income.
A reduction in the value of player sales saw income from transfers fall by £16.7m. Salisu (£43m - Leeds), Richards (£14.5m - Leeds), Ismaila Sarr (£13.5m - Flamengo), Ward (£3.4m - Union Berlin), Lyanco (£2.7m - Bournemouth) were the only cash sales
The remainder came from previous deals with staggered payments from debtor clubs. Net transfer debt, i.e. cash owed to the club, now stands at £3.99m.
All of the above resulted in a reduction in cash inflow of £31.1m over the period in comparison to the previous financial year.
All of the above resulted in a reduction in cash inflow of £31.1m over the period in comparison to the previous financial year.
This reduction in cash in during the period, and a lack of CL cash generation meant that there had to be a tightening in the transfer market.
A reduction of nearly £50m in player expenditure in comparison to 2023-24 meant that the squad was largely kept the same.
A reduction of nearly £50m in player expenditure in comparison to 2023-24 meant that the squad was largely kept the same.
With the vast majority of the £94.9m being made up of payments to creditor clubs, the only transfer outlays were on Alderete (£17.5m - RB Leipzig), Elkjær (£9.25m - FC København), López (£1.3m - Independiente Santa Fe), Bentancourt (£750k - Atlético Nacional).
Despite this, cut to player acquisitions, player wages rose 12.87% as existing player contracts were renewed, with the club choosing to retain players and protect their market value. These include Pobega, Swedberg, Pérez, Walker-Peters, and Mykolenko.
Saints rank 11th in the PL for salary expenditure, so their consistency in European qualification is impressive.
Player loyalty bonuses rose too, as new contracts were signed, by some 44%, which also explains the rise in agent fees despite the slowdown in player acquisitions.
Player loyalty bonuses rose too, as new contracts were signed, by some 44%, which also explains the rise in agent fees despite the slowdown in player acquisitions.
Whilst some cuts were made, resulting in a cash outflow reduction of £15m, all told the Saints saw their closing cash balance fall by nearly £20m over the financial year. This represents a cash shortfall of over £383k/week.
Looking specifically at the impact of player costs on the accounts, total player payments rose 19% and made up £2.5m/week of total expenditure.
As a ratio against sales turnover (minus player trading), this shot up to 61%, an increase of 13%.
As a ratio against sales turnover (minus player trading), this shot up to 61%, an increase of 13%.
Player trading saw a positive net spend of £7.6m, again, an indication that there was a reduction in the club's ability to push in the transfer market after missing out on CL qualification. Given the lack of CL football going into 2025-26, further cuts are likely for the Saints.
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