News of Swansea City’s financial position hit home yesterday as the club announced further losses. The profit and sustainability rules are forever hanging over a club, and in Swansea City’s case like everyone else it’s a rolling three year issue.
Yesterday’s declaration is in the region of seventeen million, the year before around thirteen million and the season before that four million. That’s a rolling total of around thirty four million as we stand today. The assessment of each club’s finances is a combination of an historic assessment (looking at figures for the two previous completed season) and an assessment over the season currently taking place. The thirty four million loss over three years is close to the mark, we understand thirty nine million is the absolute ceiling. Plus there are things which the Swans do not have to include, academy investment etc … A brief look at the figures for this year are below.
Kieran Maguire, a football financial expert who is a season ticket holder at Brighton is currently working with the Swansea City Supporters Trust to get a better understanding of the Swans plight. He also had a face to face with the trust back in May 2023.
The situation is now very clear, the Swans are flying near to the ceiling of the profit and sustainability rules. The injections of money this season do make a difference to the overall picture and can give the Swans a bit more manoeuvrability. However, it’s quite simple these rules are set in stone to avoid clubs paying out more than they lose with a flexible ceiling dependent on investment. Kieran met with the trust last night and highlighted some of the immediate macroeconomic challenges ahead. It was an exceptionally revealing and informed evening. We understand information from that meeting will be reported by the trust very shortly. The football world is affected by impactive financial issues from outside of the game. Economic growth being a serious implication. Local unemployment too. The new SKY TV deal for Championship clubs in 2024/25 is yet to be agreed, that could increase the financial flexibility of all clubs in the Championship. Swansea City’s financial antecedence over the past five years is especially concerning despite numerous player sales.
This set of figures won’t include the sales of Joel Piroe, Joel Latibeaudiere (development award) Steven Benda, Oliver Ntcham, Russell Martin compensation ( half paid) Iwan Morgan’s deal to Brentford which all could see fifteen million or so into the coffers for next years accounts.
The other issue now seems to be the moving of Andrew Coleman’s appointment as Chairman. It is now stated he became Chairman on August 1st 2023. That’s fine although he was operating as club Chairman in May 2023. He and the club also released a variety of messages from him, and he on social media regards this. It could now be referring to him starting in August as opposed to May gives him a whole season as opposed to some of last summer as Chairman. It’s just another anomaly that we have become used to. With the accounts cut off being July of the previous year are the club now saying he wasn’t at the club having been announced as club Chairman eleven weeks before ? Not being clear on this more questions arise.
In July when Andrew Coleman (above) addressed the squad and staff in Spain at their pre season training camp as Chairman you would have thought the May starting date was obvious, now it isn’t. Even though the club announced in early May, "Swansea City is delighted to announce the appointment of Andy Coleman, a seasoned, successful business executive, as the club’s new chairman. Coleman has also acquired a significant shareholding in the football club – which has been approved by the EFL – and will act as operating partner of the club’s majority ownership group.”
Does this communication issue lay at the feet of the department that clarifies information from the upper echelons of the club. Another example of the head of communications failing in his job yet again ? Too busy carrying out a personal vendetta against this website when he should be concentrating on the basics of communication with a positive eye on Swansea City, not a negative one on us. It’s these amateurish mistakes that yet again highlight the plight of the club and not only financially. Another example of the club throwing good money after bad, no matter where it goes.
Is it another dilemma created by a club that seemingly isn’t always aware of its responsibility to the supporters, or is it yet another communication issue that hasn’t been fact checked properly.
And isn’t that the issue ?