£14.6m - a Premier profit for the Swans
SWANSEA City football club's board of directors have again been praised for their prudence after revealing the club is set to post a £14.6 million profit — or nearly a whole Joe Allen.
Phil Sumbler, chairman of Swansea City Supporters' Trust, which owns around 20 per cent of the club, said the figure was ongoing evidence of the board's principled approach to bookkeeping.
The club earned tens of millions of pounds for reaching the Premier League last summer but said that operating costs, in particular wages, had doubled from the promotion-winning 2010/11 season.
Mr Sumbler said: "To post a profit like that is testament to the great work done by the board of directors over the past 10 or so years.
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"Ever since they took charge they always worked to a principle. They are more than happy to back the team, but it will always be done within the club's limits.
"That has not changed with the Premier League. I think that is to be welcomed by all supporters."
The club said its turnover for the year up to May 31 was set to be £65.2 million, adding that the £14.6 million net profit was boosted by the £5 million received from Liverpool Football Club for manager Brendan Rodgers, plus support staff.
The £15 million sale of midfielder Allen will feature on the club's 2012/13 ledger.
A club statement posted on Swansea City's website said club directors will reiterate their resolve to generate enough profit to fund future growth and investment plans.
Much depended on the club's ability to remain in the Premier League, it added. The statement said work was well under way on the £2.5 million Landore training ground development and that the club's partnership with Swansea University aimed to deliver top-class training facilities at Fairwood, Gower.
It added that plans to increase the capacity of the Liberty Stadium were being discussed with the idea of a phased development over a two-year period, when the timing was right.
Club chairman Huw Jenkins reached for his chequebook this summer, with the club signing among others Ki Sung-Yeung (£5.5 million) Pablo Hernandez (£5.55 million) and Michu (£2m). Scott Sinclair (£6.2 million) and Allen travelled in the other direction.
The club recorded a £8.3 million loss at the end of 2010/11 season in the wake of the successful push for promotion from the Championship. During this memorable season, wages and salaries totalled £15.4 million.
Norwich City FC, who were promoted to the Premier League along with Swansea, are expected to publish their 2011/12 accounts in the coming weeks. At the end of the 2010/11 season the club reported a loss of £3.9 million and had an overall debt of £16.8 million. QPR, the other team to secure promotion, reported a £25.7 million loss at the end of May 2011, with a £56.1 million debt.
Swans fan Dean Phillips, 54, of Gorseinon, said: "I have been a supporter since the dark, old days, and the financial difficulties have been well-documented.
"I think it's absolutely right what the board of directors are doing. Hopefully we will stay in the Premier League for a couple of seasons — but if we don't, we need to balance the books."
Comments
by hairofthedog
Wednesday, October 17 2012, 8:56AM
“Having visited various areas of Cardiff for the first time since I lived there 10 years ago on Sunday, made me realise how far Swansea's status as a city has fallen. The one thing we have going for us is the football club, bringing in people from all over the UK every other week to spend money in pubs, restaurants and hotels, whilst also raising our profile around the world.
The club do pay the rent on the stadium, so why should they pay any more?
Perhaps the council should be paying the club an incentive bonus for every year they remain in the premeir league?”
by Lee468
Tuesday, October 16 2012, 3:36PM
“On a turnover of 64 Million Swansea and their staff will have paid a huge amount of tax.
Payers wages taxed at 40% £8,000,000
Employers and Employees NI £4,000,000
Vat at 20% of ticket Sales, Alcohol, Food, Replica kit, Programmes £3,000,000
Vat at 20% of Hospitality ?
Excise Duty on Alcohol ?
Business Rates ?
Police cost ? (which is already funded by Business rates and general taxation)
Coparation Tax on profit at 24% £3,000,000.
At a conservative estimate I make that £18,000,000 to £22,000,000.
I think that is more than enough tax pumped into the economy.”
by Philosoraptor
Tuesday, October 16 2012, 3:00PM
“Lezz, you know what you wrote is wrong, so why write it?”
by Philosoraptor
Tuesday, October 16 2012, 2:58PM
“@geoboy,
It is even more a shame that Reds have never been in the spotlight of the Premier League and probably will never get the taste of such a wonderfully powerful league.
Swansea, Wales' Premier and Richest Club. STID.”
by Stork
Tuesday, October 16 2012, 2:53PM
“Lee468
Perhaps the Ospreys and Swansea should pay a bit more ? What do you think ?”
by Lee468
Tuesday, October 16 2012, 2:42PM
“The Council do not own the Stadium that is owned by STAD CO. Both the Ospreys and the Swansea pay a hire per match to cover the costs of running the stadium.”
by geoboy01
Tuesday, October 16 2012, 2:41PM
“its great to hear that the swans are doing great and that their finances are in the black!
just a shame at the moment that their losses on the pitch are keeping them down in the second half of table LoL!!
Come On You Reds!!!!!!!”
by Neathboy234
Tuesday, October 16 2012, 2:24PM
“Quite a lot of people don't like success, perhaps it is because they are not successful in their own lives.
Huw Jenkin has done a fantastic and long may that last”
by JerryLew
Tuesday, October 16 2012, 2:10PM
“SAswan - well said - your comment has a down rating against it - I have hopefully corrected this. Come on The Swans.”
by SAswan
Tuesday, October 16 2012, 1:06PM
“some people just can't cope with success and have to bash it.
it's swansea city that have made the liberty stadium such a success.
20k crowds x 18 prem games a season equals nearly 400k punters all spending money in swansea”