Southampton FC’s Turnover Decreases To £126.6m Due To Covid-19
By Taruka Srivastav | January 13, 2021
Despite finishing in 11th place in the 2019/20 Premier League season (five places higher than the previous season), Southampton FC’s turnover decreased to £126.6m (2019: £149.6m) due to Covid-19.
Broadcasting revenue fell to £93.5m (2019: £112.8m) as a consequence of the season ending after 30 June 2020, whilst match day revenue fell to £14.5m (2019: £17.0m) due to matches being played behind closed-doors.
The total 2019/20 revenue foregone as a result of the pandemic in the financial year was £10.3m, with a further £20.9m revenue deferred into the year-ended 30th June 2021.
If the revenue which should have been earned and recognised in the financial year had not been lost or deferred due to the pandemic, the 2019/20 revenue would have totalled £157.8m, being an £8.2m (5.5%) increase on the previous season.
The pandemic resulted in £1.5m of net additional costs of sales and administrative expenses in order to enable the men’s first-team squad to train and conclude the 2019/20 season in a COVID-19 secure environment.
£3.6m of costs that would ordinarily have been incurred in the financial year have also been deferred to the financial year ended 30th June 2021, as they’re directly linked to the matches played.
The ability to generate profit on the disposal of player registrations in the financial year was significantly impacted as the Summer 2020 transfer window did not open until July 2020, after the financial year ended.
The profit on the disposal of player registrations of £13.9m (2019: £20.9m) generated during the financial year arose from the sales of Gallagher and Austin in the Summer 2019 transfer window, together with contingent
transfer receipts in relation to previously transferred players being received during the season.
The amortisation of player registrations increased to £56.7m (2019: £51.0m) as a result of the purchases of Adams, Djenepo and the loan of Danso in the Summer 2019 transfer window.
A net loss before tax of £76.1m (2019: loss of £41.0m) was incurred.
Taking account of the impact on both revenue and costs, the total value of foregone profit before tax because of the pandemic is estimated to be £11.8m, with a further £17.3m of profit being deferred into the financial year-ended 30th June 2021.
If the profit which should have been earned and recognised in the financial year had not been lost or deferred due to the pandemic then the Group’s net loss for the financial year would be £47.0m.
Club Statement, Toby Steele (Managing Director) said: “As with many companies and industries, the Group is in the midst of a challenging financial environment due to the impact of the COVID-19 pandemic. This is reflected in the financial results for 2019/20 and necessitated the Group to restructure its debt facility during June 2020.
Despite these challenges, our Group-wide staff have shown great resilience, facilitating a smooth return to training and matches for men’s and women’s teams across all age groups, as well as the return of fans, albeit briefly, during season 2020/21.
We also have great pride in the work of the Saints Foundation, in particular the collaboration with Group staff in the Saints as One initiative during the early stages of the pandemic.
The ongoing support of our fans, many of whom purchased a 2020/21 season ticket at a time when the return of football was unknown, is greatly appreciated and it is our hope to get fans back where they belong, supporting all our teams in person, in greater numbers as soon as possible.