| Swansea City 23M debt 22:47 - May 30 with 9931 views | KeithHaynes |
The authoritative Swiss Ramble reviews Swansea City’s 2020/21 accounts, when they swung from £2.7m pre-tax profit to £4.6m loss. Revenue fell £22m to £28m (lower parachute payment & COVID impact) and profit on player sales down £5m to £12m, largely offset by big cost reduction.
They swung from a pre-tax profit of £2.7m to a loss of £4.6m, as revenue fell £22m (45%) from £50m to £28m and profit from player sales dropped £5m (30%) to £12m, partly offset by total expenses reducing by £17m (26%) and £3.3m insurance claim. Loss after tax was £4.1m.
The main reason for the £22m revenue decrease was broadcasting, which dropped £17m (44%) from £39m to £22m, mainly due to lower parachute payment, though COVID also drove reductions in match day, down £3.0m (63%) to £1.8m, and commercial, down £1.8m (31%) to £4.1m.
Although a loss is rarely good news, the £4.6m deficit was one of the better results in 2020/21 with five clubs posting losses above £20m. As chief executive Julian Winter said, “The club remains in a comparatively positive financial position within the Championship.”
In their seven seasons in the Premier League (between 2012 and 2018), profits amounted to an impressive £36m. Performance has deteriorated in the last three seasons in the Championship, but this has only resulted in a relatively low net loss of £9m.
Since relegation from the Premier League, revenue has dropped by £99m (78%) from £127m in 2018 to £28m, very largely due to less TV money in the Championship (£83m decrease), though commercial and match day are also down £10m and £6m respectively.
Revenue decline has been cushioned by Premier League parachute payments, though these have fallen in each of the three years since relegation: 2019 £43m, 2020 £34m and £2021 £15m. Last season was the final tranche, so 2021/22 revenue will be even lower.
Commercial revenue fell £1.8m (31%) to £4.1m, comprising £3.1m commercial income and £0.9m other, the lowest since 2011 and down from £14.5m three years ago. This is mid-table in the Championship, a fair way below the likes of Stoke City £12m, Norwich £8m and Bristol City £8m.
Reliance on player sales
The club noted that £12.5m profit from player sales was “used to partially fund the operating loss”, though down from prior year’s £17.8m. Mainly came from sale of Joe Rodon to Spurs. This is still pretty good.
The Swans have become quite reliant on player sales, adding up to £144m in the last five years, compared to £46m in preceding 5-year period. This season’s profit will be lower (Connor Roberts to Burnley and Jamal Lowe to Bournemouth), so more player trading likely this summer to balance the books.
If forecast player sales are not achieved, they would need to find further sources of funding to maintain cash flow. The auditors noted, “This represents a material uncertainty which may cast significant doubt about the club’s ability to continue as a going concern.”
Average attendance in 2019/20 (for games played with fans) was 16,151, which was in the bottom half of the Championship. Down 4,500 (22%) since relegation. The club slashed ticket renewal prices for the 2021/22 campaign.
Wages
The wage bill fell £11m (28%) from £39m (excluding £1.7m onerous contracts) to £28m, which means that wages have been cut by £63m (69%) in the three years since relegation (revenue down £99m in same period). Club’s lowest wage bill since £17m in 2011.
Following the decrease, the £28m wage bill is mid-table in the Championship. Less than half of Watford £68m, Norwicj £67m and Bournemouth £57m (though the first two included hefty promotion bonuses). Number of staff reduced from 409 in the Premier League to 244.
Despite the reduction in wages, the wages to turnover ratio increased from 77% to 101%, though this was actually one of the lowest (best) in the Championship. The vast majority of clubs in this division have unsustainable ratios well above 100% (incredibly six are over 200%).
Debt
Gross debt rose £21m from £2m to £23m, including £13.6m convertible loan (as a result of director Jake Silverstein’s investment in August 2020) and two interest-free EFL loans amounting to £7.5m. This is the club’s highest debt since 2015.
Despite the increase, the £23m gross debt is one of the smallest in the Championship, far below Stoke City £212m, Bournemouth £165m, Blackburn Rovers £152m and Watford £139m. However, almost all debt in this division is from the clubs’ owners, so is “soft” in nature.
The club have bought the land at the south end of the stadium, while acquiring 100% of the company responsible for the Liberty Stadium management. This would facilitate stadium capacity expansion, but this would only be considered after a return to the Premier League. | |
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| Swansea City 23M debt on 23:32 - May 30 with 4152 views | ReslovenSwan1 |
The concern for the owners might be the collapse of the transfer market for non elite players. Joe Rodon might be the last of the big Swansea £10m+ sales. If the club see derisory offers for Piroe (£5-7m) then the chosen model is in trouble. (Balancing the books by selling players).
Martin might not be the right man if he cannot sell big. He would then have to develop in house players Benda Garrick the Ollie and Brandon Cooper. League 1 clubs rate Whittaker and Joseph. All 6 a potential grafters. | |
| Wise sage since Toshack era |
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| Swansea City 23M debt on 23:42 - May 30 with 4118 views | Dr_Parnassus |
Which is why a manager with a long track record of youth development is vital for this club.
It’s all done and dusted now but last summers managerial decisions could haunt this club for a long long time. The lack of foresight from January on was very scary. Probably the worst moment yet for the owners.
It’s clear we can’t keep sacking managers and staff, but we have handicapped ourselves with one of the most unsuitable managers for our situation that we could have chosen.
One that almost demands massive signings to be able to play the way he wants to. Who hasn’t been able to use Premier League youngsters effectively and one who cannot adapt a way of playing to the limited squad numbers we may be facing. | |
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| Swansea City 23M debt on 08:34 - May 31 with 3986 views | onehunglow |
LOOK,
Let us nail this falsehood right now.Martin will not be able to bring in the player he wants to play as he dreams as we are have this debt and the owners.
It is a fantasy
We need a man who can indeed see talent in young and indeed older players who fit our resources. Martin is incapable of developing players as is evident with the goalkeeper and defence.
It is about survival and we need a coach who can get us scrapping and if necessary win ugly ,collect points and stay in the Champ. Getting relegated will not be attractive in any way although it seems the super fans would be quite happy to see us in the Vanarama playing pretty passing football no doubt in front of 2000 fans .
Never have we needed an experienced coach at the helm and Russy simply aint what we need.
We are still a proper club | |
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| Swansea City 23M debt on 10:37 - May 31 with 3904 views | KeithHaynes |
He will be doing that, and the judgement in his performance will be taken as the season progresses. He won’t be sacked, he won’t leave and the new season preparations will be as best as he and the club can do.
Thereafter results will dictate his longevity.
It isn’t much more simple than that. | |
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| Swansea City 23M debt on 11:05 - May 31 with 3869 views | onehunglow |
I m loathe to reply to that so I ll take the A train out of this . | |
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| Swansea City 23M debt on 11:09 - May 31 with 3877 views | KeithHaynes |
I can’t see how it can be any different. | |
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| Swansea City 23M debt on 11:38 - May 31 with 3847 views | PawelAbbott |
We do seem to have shot ourselves in the foot in terms of loan signings.
2 loan signings this season that were rarely used even though they had a good pedigree, is unlikely to persuade any club to send us their youngsters who are on the verge of the first team.
Developing our own youngsters should be the long-term strategy. Something we didn't see much of last season. | | | |
| Swansea City 23M debt on 12:17 - May 31 with 3814 views | magicdaps10 |
That seems to be the indication that has caused a bit of concern, the over use of loaning players in the last few years, paying a loan fee for some and part if not all of their wages.
The push is certainly to get players in permanently that we can nurture, hopefully help the first team and then sell at a profit. | |
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| Swansea City 23M debt on 12:27 - May 31 with 3808 views | bennytheblue |
£144 million of player sales in last 5 years….that’s massive no? Is that since the hedge fund took over? Doubt many other clubs have generated that in the championship? No doubt the academy will be producing in the next few years so you should be fine | | | |
| Swansea City 23M debt on 13:32 - May 31 with 3722 views | ReslovenSwan1 |
The hedge fund did not take over as far as I know. People need to look up what a 'hedge fund' actually is before spouting off about it.
People love to use the 'hedge fund' link because hedge funds have historically had problems with a few rogue elements like Bernie Madof for example.
In general hedge funds are open only to the well healed and have less regulation with the FSA for example in the UK. "High risk investments for those that can afford to lose the money". Painting the US owners as hedge funders makes them look more reckless and sinister to the average south Wales fan. This fake narrative saw the fans going down the legal route in blind faith in British justice and ending up down a blind alley.
For normal high street financial advisors it is prohibited putting football shares in investment portfolios or pensions. It is super high risk. The FSA will not compensate any investor for bad advice and high risk investments. People are encouraged to go g for FSA registers advisors.
Levien and Silverstein are sport investors not hedge fund managers, Kaplan is a retired owner of a firm that did have a hedge fund wing. The other 30 or so could be operatining under hedge fund rules but this is not confirmed.
The £23m is currently debt but i expect it to be reduced to £9m as the Convertible loan note is converted. This would not happen if the legal case was still pending in my opinion. Notionally the £2m carried over plus the £7m loss last a season. Presumably to keep the club debt free players to the value of £9m will need to be sold. Piroe clearly does not intend fulfilling his 3 year contract so he must go in any case. Sadly for Swansea the days of £20m players are over I suspect for 3-4 years. [Post edited 31 May 2022 13:34]
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| Wise sage since Toshack era |
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| Swansea City 23M debt on 13:34 - May 31 with 3703 views | onehunglow |
If we are entrusting this coach with developing young players ,why bring in a Man City kid, and never pick him,even when we desperately needed height.
Joseph another young lad that has potential the type we need to bring on.
We either develop kids or we get in experienced but much older Pros to see out their careers. This because we are short of funds.#
We cannot afford the luxuries of a coach's fancies. | |
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| Swansea City 23M debt on 13:47 - May 31 with 3684 views | ReslovenSwan1 |
Martin has often talked about the "pathway" but only Cabango is is the first team squad. It seems particularly sad to me the the players the "Club" has invested a lot of time and money and not getting a shout.
Players like Benda, Brandon Cooper, Garrick, Ollier Cooper, Whittaker, Cullen and Joseph. Martin does not seem to rate any of them apart from young Ollie perhaps. I believe these guys if played would still have seen Swansea 15th or around there and maybe would have developed to be better than Fisher, Manning, Christie, Wolf, Burns, Smith and Bennett.
When you are developing a precise style like Martin wants can you afford big roster turnovers every season.? | |
| Wise sage since Toshack era |
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| Swansea City 23M debt on 14:39 - May 31 with 3637 views | jasper_T |
Half that total wasn't generated in the Championship, it was selling PL players while in the PL or immediately after relegation.
The two seasons of developing players for other clubs will have set us back, no question. Cabango's the only one who has emerged and he had to fight tooth and nail to get games over loanees Guehi and Wilmott, and was fortunate that Rodon and van der Hoorn had so many injury problems. We've been lucky that some almost-ready players brought in last summer have flourished and look like they could be worth significant amounts, as a gap has been created in the academy production line. The next prospects have either had very limited amounts of football for their ages, or are very young. | | | |
| Swansea City 23M debt on 14:43 - May 31 with 3620 views | onehunglow |
Agreed.
It's what I wad trying to put over,badly it seems.
It has been clear Martin has not developed or even tolerated young players.
Cabango has been messed about even though he has been a real warrior .
I feel for him,really I do.
It's why I also mention young Kyle Joseph who has not had a chance. If we are going to invest in young players,then pick them . | |
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| Swansea City 23M debt on 15:14 - May 31 with 3608 views | Fireboy2 |
As usual an informative post jasper👠| | | |
| Swansea City 23M debt on 15:29 - May 31 with 3566 views | pikeypaul |
He won’t leave ?
Everone would have said exactly the same about Potter and Cooper.
But they soon found out what the sellout scum and hedge fund hyenas were about and soon walked.
No reason why Martin would not do the same now he knows what greedy scum he’s working for. [Post edited 31 May 2022 15:31]
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| Swansea City 23M debt on 15:52 - May 31 with 3524 views | onehunglow |
It's basically a free for all where they all grab what they can when they can.
Martin WILL do when it suits HIM.Nobody else. And that is fair enough | |
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| Swansea City 23M debt on 15:56 - May 31 with 3514 views | Whiterockin |
This is true, but he would need to be successful with us to make him an attractive proposition for other clubs. Remember if anyone wants him they have to pay and that won't be done unless he gets results. | | | |
| Swansea City 23M debt on 16:02 - May 31 with 3503 views | Lorax |
Whatever concerns our owners have must surely pale to insignificance compared to other clubs in our division.
Other clubs have very much larger debts and much larger wages to income ratios.
The fact here is, the entire league is in trouble unless the players wages come down. It is the stupidly high wages that is killing football. The Premier league has driven this. Even below average players expect 30-40kk per week in the EPL and when the club gets relegated, 5-6 players on 30k per week is a problem. | | | |
| Swansea City 23M debt on 16:11 - May 31 with 3490 views | onehunglow |
Well Potter didnt really have that much success but Brighton gobbled up up like lightning and he's been a revelation.
Maybe Russ will go the same way . | |
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| Swansea City 23M debt on 16:51 - May 31 with 3469 views | magicdaps10 |
The thing is OHL, proper football people will see things that the majority of fans won't as was the case with Potter.
I think Martin will be seen in the same vision as Potter, he is a fresh young manager who like Potter has come into a club that is clearly not an easy place too work... If he carries on this style then I am sure a club higher than us will come calling.
Martin has a lot too learn as does/did Potter but these clubs are understanding of this, atleast the ones who know what they are doing and have a forward thinking attitude.
There again OHL, football changes very quickly and it could so easily stop in its tracks....i can only summise as I have above, we shall see. | |
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| Swansea City 23M debt on 17:24 - May 31 with 3443 views | jasper_T |
Potter beat Arsenal at the Emirates with a Swedish side. His reputation wasn't built on one season with us, but three promotions and a Europa League knockout qualification.
The FA Cup run wouldn't have hurt, though. | | | |
| Swansea City 23M debt on 17:39 - May 31 with 3408 views | Dr_Parnassus |
Has he been a revelation though?
Brighton have spent akin to a small country since arriving in the EPL, one of the biggest spending clubs on the planet. I would probably say top 10 in the world… yet they were barely scraping 40 points together prior to this season where they only finished 9th.
Take their modest team name away, in fact - take every single team name away in the EPL and replace them with a generic number so you cannot have any pre conceived prejudices regarding historical team names etc..
Now decide which club should be where after looking at their 5 year spend… you would think they had severely under performed.
I shall find the global figures and come back to you. You will be shocked | |
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| Swansea City 23M debt on 17:55 - May 31 with 3389 views | Dr_Parnassus |
Brighton rank 11th on the planet for net spend over the last 5 seasons. 7th in England.
1) Man City
2) Man Utd
3) Barca
4) PSG
5) Inter
6) Everton
7) Villa
8) AC Milan
9) Chelsea
10) Arsenal
11) Brighton
Higher than Liverpool, Real Madrid, Atletico, Bayern Munich and Juventus.
In those 5 years their league position is as follows:-
9th
16th
15th
17th
15th | |
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| Swansea City 23M debt on 17:59 - May 31 with 3396 views | Lorax |
Oh cut it out mun. If you have proof they have milked thr club then post it, otherwise the best thing is to stop posting such absurdities.
Language like that isn't welcome on here anymore. | | | |
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