| Swansea City finances on 10:10 - Jul 8 with 3458 views | KeithHaynes |
I will add this 👍 From the football Economics of football.
Swansea have been owned by an American consortium since July 2016, when Jason Levien and Stephen Kaplan bought a controlling interest in the club. They were joined in August 2020 by Jake Silverstein.
Coleman, an investor in MLS team DC United (where Levien is also involved), was appointed Swansea’s chairman, having acquired “a significant shareholding” and taking over day-to-day responsibility for the running of the club, leading to the departure of chief executive Julian Winter.
Only last month, there was another change to the ownership, when the club announced that Nigel Morris, a British businessman (with Welsh heritage), had made an investment into the club and joined the board of directors.
Following this investment, the largest shareholders are now:
Swansea LLC (Coleman, Kaplan, Levien and Silverstein) – 74.95%
Nigel Morris – 12.59%
Swansea City Supporters Trust – 9.42%
Swansea have lost money in four of the five sets of accounts published in the Championship, adding up to £40m. Worryingly, the losses have been getting bigger, so the club’s deficit in the last two seasons alone was a hefty £31m.
This is in stark contrast to the Swans’ time in the Premier League between 2012 and 2018, when they made money in five of the seven seasons. Over that period, their aggregate profit amounted to an impressive £36m.
Swansea’s pre-tax loss widened in 2022/23 from £13.2m to £17.9m, despite revenue rising £1.9m (10%) from £19.7m to £21.6m, mainly because profit from player sales fell £6.4m from £10.9m to £4.5m. There was hardly any change in operating expenses of £42.9m, though net interest payable rose £0.3m to £1.2m.
The main reason for Swansea’s revenue increase was commercial, which rose £3.2m (52%) from £6.2m to £9.4m, which was enough to offset reductions in both match day, which dropped £0.7m (17%) from £4.2m to £3.5m, and broadcasting, down £0.6m (7%) from £9.3m to £8.7m.
Swansea’s large loss is clearly not great news, as the club itself admitted, “The directors acknowledge the difficult financial and operational conditions the company, along with other Championship football clubs, are experiencing.”
This view was echoed by the Supporters Trust, “We are acutely aware that the results we are seeing today are all too commonplace amongst our Championship rivals, where the majority are also seeing mounting year on year losses.”
Player sales
The club said that “at the core of its strategy is a positive player trading model”, which is evidenced by Swansea generating an impressive £183m profit from player sales in the last nine years. Profitable departures since relegation to the Championship have included the likes of Flynn Downes, Joe Rodon, Oli McBurnie and Daniel James.
However, it is worth noting that the profit from player trading has now fallen five years in a row from the £46m peak in 2018, though the 2023/24 results should reverse this trend, mainly thanks to the big money sale of Joel Piroe to Leeds United.
Swansea’s average attendance dropped from 17,389 to 16,821, which was around 3,800 lower than the 20,600 or so that they consistently attracted in the Premier League. Following the decrease, Swansea’s 16,821 average attendance was in the bottom half of the Championship, far below Sunderland 38,653, Sheffield United 28,746, Norwich City 26,131 and Middlesbrough 26,012.
Wages have been cut by 75% (£74m) since the Premier League peak of £99m six years ago, first falling after relegation to the Championship, then further decreasing after parachute payments stopped.
Swansea’s £12m gross debt was one of the lowest in the Championship, far below the likes of Middlesbrough £159m, Birmingham City £149m and Blackburn Rovers £142m.
Owner funding
In the accounts, the board formally acknowledged “the continued generous financial support provided by the club’s beneficial owners”, which was fair comment, given that they had put in £45m up to June 2023. Since then, they have made a series of monthly capital injections, adding up to around £27m, which means their funding is up to £72m in total.
In the three years up to 2022/23, their £45m funding was one of the highest in the Championship, only surpassed by five clubs – and one of those was Reading, whose problems might give pause for thought.
The owners will certainly be looking for improvement on the pitch next season to justify their substantial investment, though they might need to again stump up some cash to strengthen the squad, if they want to have a realistic chance of promotion. | |
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| Swansea City finances on 10:19 - Jul 8 with 3435 views | ReslovenSwan1 |
Basic figures
Incomings revenue £21m
Expenses outgoings £42m
Loses £17m last year. Players trading balance £4m ?
£10m - £15m sales are not do easy these days sadly. Every year Swansea managed to generate ££12m +. Rodon Downes etc . Not this season or last. Now £3m here or there Obafemi Wood, Roberts Ntcham. | |
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| Swansea City finances on 10:32 - Jul 8 with 3418 views | raynor94 |
Essential reading for people who say the owners take money out, some of the debts of other championship clubs are eye watering | |
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| Swansea City finances on 11:03 - Jul 8 with 3378 views | KeithHaynes |
I think next years declarations will show some astute business from the past 23/24 season. | |
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| Swansea City finances on 11:13 - Jul 8 with 3360 views | Whiterockin |
Quote.
"Only last month, there was another change to the ownership, when the club announced that Nigel Morris, a British businessman (with Welsh heritage), had made an investment into the club and joined the board of directors."
Clearly an error. | | | |
| Swansea City finances on 11:19 - Jul 8 with 3351 views | ReslovenSwan1 |
I hope you are right but where does the missing £20m come from?
There has been no mass redundancies or big player sales. Money from add ons perhaps?
What is Coleman doing to close the gap? The player trading model of old is not now working so well.
James, McBurnie, Rodon, Downes. Those big sale deals have dried up. | |
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| Swansea City finances on 11:25 - Jul 8 with 3345 views | Boundy |
I've never truly believed they have taken money out , its just that what money they have hasn't been spent wisely. enough with more focus on player sales than providing a sustainable squad of players .IMO | |
| "In a free society, the State is the servant of the people—not the master." |
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| Swansea City finances on 11:48 - Jul 8 with 3315 views | Whiterockin |
Spot on. Incompetence by the owners whilst running the club is costing them a fortune. | | | |
| Swansea City finances on 11:52 - Jul 8 with 3304 views | Dr_Winston |
When you lose as much as we (and most Championship clubs) do, you have to concentrate on sales. The key is replacing what you sell.
Buy low, sell high is the aim. Use any surplus to keep buying low. | |
| Pain or damage don't end the world. Or despair, or f*cking beatings. The world ends when you're dead. Until then, you got more punishment in store. Stand it like a man... and give some back. |
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| Swansea City finances on 12:28 - Jul 8 with 3248 views | ReslovenSwan1 |
It is not easy. Incompetence is too strong a criticism.
What Huw Jenkins did was near miraculous. His detractors say he was just lucky. All I can say is he will be lucky again with Newport.
Swansea can easily balance the books like Rotherham. Their out goings are much lower than Swansea but they cannot keep their Championship status
Player trading has been a strength but it is getting more difficult. | |
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| Swansea City finances on 12:56 - Jul 8 with 3180 views | KeithHaynes |
I would say they haven’t, but there are still plenty getting paid a fair few quid, and that’s where we need to see productivity, a return on their salaries. Andrew Coleman is being paid by the LLC so we will never know what he is on.
However, that’s not my concern, nor anyone else’s, if he chooses to hide certain things within the LLC that’s up to him. He’s made it clear he won’t be divulging anything which I think is wrong, but he is investing so fair play.
This post has been edited by an administrator | |
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| Swansea City finances on 13:21 - Jul 8 with 3141 views | ReslovenSwan1 |
Ospreys have just confirmed St Helens as their new home. Further reductions in income pending. Why have one losing sports organisation when you can have two with two sets of infrastructure.
Loss of rent money and t presumably advertising money for the Swansea .com owned by SCFC
Synergies lost but room to grow for the Women's team. It is bad economics but St Helens will be very nice and "comfortable" for the rugby players. | |
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| Swansea City finances on 14:32 - Jul 8 with 3061 views | Whiterockin |
SCFC do not own the Swansea.com stadium, they lease it. Who knows when the lease runs out in thirty years the club may even move to St Helens, who knows what the future holds, at least there will be options in the city. | | | |
| Swansea City finances on 14:51 - Jul 8 with 3027 views | QJumpingJack |
swissramble questions the start date of Andy Coleman's tenure at the club.
Was it May or August 2023? | | | |
| Swansea City finances on 14:58 - Jul 8 with 3013 views | Whiterockin |
According to the club website in the May, it stated that he was taking up his position with immediate effect and taking full control. [Post edited 8 Jul 14:59]
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| Swansea City finances on 15:03 - Jul 8 with 2983 views | QJumpingJack |
Indeed.
May 2023 he made the comment about Marsh and Winter (bank holiday weekend on a Sunday evening)
But recently he said he started in August in relation to the club finances. | | | |
| Swansea City finances on 15:23 - Jul 8 with 2948 views | Whiterockin |
Distancing himself from the financial year ending July 31st and the July transfers? | | | |
| Swansea City finances on 15:30 - Jul 8 with 2932 views | ReslovenSwan1 |
It is a complex issue. It is a similar commercial lease that super markets have. If Swansea do not own the stadium how come they were going to expand it?
They notionally "own" the stadium and can do what they like with it ( such as build a new stand) but only for a limited period.
The council can take this risk because of planning controls. The council would not give planning permission for housing instead.
The club "own" the stadium for a fixed period. The club takes all revenue advertising concerts etc and pay the council a cut. A guy on another forum explained this type of lease. It is designed for commercial stores.
If SCFC redeveloped the stadium for £20m they would not simply hand it back to the council. The stadium is for football and that means Swansea city. The American know this.
It is not a straight forward rent. | |
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| Swansea City finances on 15:52 - Jul 8 with 2874 views | Whiterockin |
And pay the council £300K a year rent for the lease. | | | |
| Swansea City finances on 15:54 - Jul 8 with 2872 views | ReslovenSwan1 |
Winter left at the end of May but may have had holiday leave as end of June was written elsewhere. Either way Coleman did not have much time to make decisions.
New Chairman new manager ( unexpected) new recruitment. [Post edited 8 Jul 15:57]
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| Swansea City finances on 16:29 - Jul 8 with 2798 views | QJumpingJack |
why would he say August when he started in May? | | | |
| Swansea City finances on 16:51 - Jul 8 with 2762 views | Boundy |
3 months undeclared wages ? | |
| "In a free society, the State is the servant of the people—not the master." |
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| Swansea City finances on 17:49 - Jul 8 with 2711 views | KeithHaynes |
There is plenty of proof he started in May, like himself when he …
Started in May.
This is why I’ve always been sceptical, and the LLC stuff as well. | |
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| Swansea City finances on 18:59 - Jul 8 with 2643 views | QJumpingJack |
maybe at the next fans forum someone can ask him his official start date so we have an answer once and for all.
Mixed messages just add to the chaos. | | | |
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