Swans reveal pre-tax profit despite Covid pandemic
SWANSEA City’s latest accounts have revealed that the club made a pre-tax profit of £2.7m for last year.
The figures, which go up to the financial year ending July 31, 2020, represent something of a substantial turnaround in the club’s financial situation, with the Swans posting a loss of £7m for the previous year and £3.2m for the year before.
The summer of 2019 saw the club let go of several first-team stars, including Daniel James and Oli McBurnie.
The latter’s sale of £18m has been taken into account in the latest figures, with the sale of James to Manchester United forming part of last year’s numbers. The £11m sale of Joe Rodon to Tottenham isn’t included in the latest figures.
The rebuilding of the firstteam squad has clearly played some part in easing the financial burden of falling out of the Premier League, with the club’s cut in parachute payments largely behind a fall in turnover, which slipped £18m on last year to £50m.
Broadcast revenues have also decreased to £38.9m from £51.6 the previous year, while commercial revenue was down from £3.4m to £2.6m.
Matchday revenues, unsurprisingly, fell due to the early impact of the coronavirus pandemic, which has forced all matches to be played behind closed doors since March 7, 2020. The club also revealed that its workforce was down from 359 members of staff to 321, a move it says resulted in a saving of £8.7m.
Swansea chief executive Julian Winter admitted that turning a profit was a hugely positive sign that the club was beginning to regain its financial stability.
“A clear profit is very pleasing,” he said.
“Naturally, the club is still adapting to relegation from the Premier League.
“But an overall profit on the back of a loss the previous year shows a great deal of progress.
“While the economic effects of the pandemic won’t be clear until next year’s accounts are published, the initial period when competition was suspended and the subsequent drop off in matchday revenue is reflected in this latest set of figures.”