Exeter announce a profit with ambition of the Championship
EXETER City manager Gary Caldwell admits that it will be incredibly difficult, but that the dream of getting the Grecians into the Championship is very much possible.
As a fan-owned club, City have one of the smallest budgets in League One, but are on course for a mid-table finish and a third straight season in the third tier.
It has been a season of ups and downs for Exeter. In early September, City were top of the table after an incredible beginning to the campaign. That was followed by the worst run in 28 years as they were 13 games without a victory and slipped into the relegation zone on New Year’s Day, before recovering and climbing back up the table.
Prior to last night’s clash at Leyton Orient, Exeter were 12th in the table with 54 points - two adrift of the 56 they managed last season.
It comes at a time the club’s latest accounts were published, showing the club continues to be profitable, despite a £1m increase in wages. The Grecians made a profit of £325,182 last season although, without player sales, the club would have made a loss.
“We continue to increase the playing budget based on affordability within our financial model and forecasts available,” club and Supporters’ Trust chairman Nick Hawker said in a statement accompanying the accounts.
“Our strategy, via our three-year business planning process, is to fund further year-on-year improvements to the first team in a sustainable fashion, by allocating some of that increased turnover and profitability into the playing budget.
“As important as our financial results are, and even as impressive as they are, it is important that we do not lose sight of the incredible contribution made by our investors... our supporters... our fans.
“I sincerely believe you are the reason we are able to attract first class sponsors, you are the reason we continue to produce outcomes beyond what might reasonably be expected given our constraints, and you are the reason everybody involved with Exeter City FC are driven to achieve still more.”
Figures to June 30, 2023, lodged with Companies House show the Grecians made a £312,000 profit in their first season back in League One, down from more than £1.2m in 2022 and almost £3m in 2021. The figures show Exeter made a profit of just under £1.4m in transfer fees during the season - which included manager Matt Taylor leaving to join Rotherham United for a compensation fee the club, as well as the sales of Alfie Pond to Wolves, Matt Jay to Colchester United and Tim Dieng to Gillingham.
City’s turnover rose to more than £5.8m during the season thanks to a rise in average attendances, as well as a £500,000 rise in solidarity payments. Wages rose from £3.974m to £4.9m following promotion to League One as players moved into new purpose-built facilities at their training ground, while fees were paid for striker James Scott, defender Will Aimson and winger Demetri Mitchell.
The figures do not include the sales of Josh Key, Sam Nombe or
Archie Collins, nor the £1m-plus sell-on fee from Ethan Ampadu’s move from Chelsea to Leeds United, which happened after June 30.
Commenting on the accounts, football finance expert Kieran Maguire said that Exeter showed that a fan owned club can both progress on the pitch and be sustainable. However, in a further tweet, he said that realistically, he didn’t think that the model can take a club much further than League One.
Caldwell admits that while it would be tough, he doesn’t think that it would be impossible for Exeter to reach the Championship while being owned by the Supporters’ Trust.
“I don’t think there should be a ceiling for a fan-owned club,” the Scot said, speaking to SkyBet. “I’m always someone who strives for more, to do better and improve every area of the football club. For me, coming into the club, it’s been good to see the board and the club wanting to achieve more and push for the Championship. It’s going to be extremely difficult; we have the second lowest budget in League One this season, but the budget has grown since I’ve been at the football club.
“It’s not to say that the club isn’t trying to do more and to improve the squad and staff, that’s who we are, and we have to be sustainable first and foremost, but we’ve continually evolved and grown and if we stick to that plan then one day, we can achieve the dream of getting to the Championship and beyond. It’s how you do that in small increments rather than one big jump, you don’t increase the budget by one huge amount, you gradually grow it and improve the squad and every department in the football club and this club has done that for plenty of years now and will continue to do so in the future.”