This morning we take a look at the impact of profit and sustainability on the January window in 2025 for the Swans. It was actually Swansea, Hull, Cardiff, Stoke, West Brom and Leeds who challenged the rules and got a positive outcome last year.

The way declarations are made is retrospective. So, the accounts declared are for the previous year/season. Losses do not include spending on things like the women’s team, academy, stadium and training ground though. So the recent rumour of an input of funds to better the academy at Swansea - and in turn improve the academy training centre won’t be included in any profit and loss.

2022 - pre tax loss of £4.6m
2023 - pre tax loss of £13.2m
2024 - pre-tax loss of £17.9m

On these figures which at the time allowed a £39m loss over three declarations the Swans ducked under the wire by around £4m. That should tell you how close these things are.

Now since a change in the regulations last year the three year reporting period has a ceiling of £41.5m. £39m has been scrapped. There’s some dispute on the new ceiling being applied on the returns over the previous three years. That way the Swans and all Championship clubs will gain £2.5m over a three year period. Either way though it can’t be bad news. It’s just that clubs in the Championship wanted a bigger increase.

On the 2024 returns Coleman states, “These accounts represent the financial year prior to my appointment as chairman and much of the budget had already been set for the 2023/24 financial year before my arrival in Swansea in August 2023. ”

Yes, we know. He was Swansea Chairman from May 2023, and he negotiated his position from very early on that year. That was said to either distance himself from the removal of Russell Martin and the following legal wrangle that took some sixteen months to finalise. Or as some suspect, August 2024 was an incredibly positive month for the Swans with millions being recieved in player transfers. It’s all a bit odd which financial expert Kieran Maguire also picked up on.

However, water under the bridge.

We reported the £21m investment details last week. You can read that in the link below.

⚽️ Swans new investment formalised

Plus the Swans will have already alerted the EFL if there are issues with this years declarations. That way the EFL can action plan the clubs finances. That pre declaration rule is a must. We have to be honest here there’s little to criticise since Andrew Coleman arrived regards the club finances. Other opinions are available. Based on what we know only the club will be aware of what they have spare in yet another year (2025) where losses will be reported in the millions. And this is the issue, and as we have already stated, there could be a billion in funds available but it’s not about that. It’s all about the flexibility the Swans have to work within the guidelines. A ceiling of around 75% can only be spent on player salaries and contracts that much we do know, but the overarching rules are mischievous at best. Staff and ancillary outlays are included we are advised as this makes up the profit and loss figures.

The 75% ceiling of each yearly declaration is something the Swans work within. The average overspend across the Championship is £108m. How Leeds manage is a good question. Many of their players are on £50k a week (fact checked) via Charlie Wyatt, he also states that for their Championship season Leicester City’s Conor Coady was on £80k a week. It’s odd to think of now but so was André Ayew when the Swans were in the Championship. It sort of explains why these guidelines are now in force. However unfairly.

The practice of injecting cash into a club via loans and or a different vehicle of investment isn’t clear. The question of the Swans new investment (21m) which diluted club shares has to be clearer. Take a look below.

The whole financial thing is misunderstood by the normal fan, a staple to the game in the past but now just a bothersome noise. It’s as much a clear and transparent ruling as mud. The Swans have little leeway to spend this month, yes they do have some money but the first offer for Joe Low is a clue. Working from there could well be a positive for Joe to come to Swansea. He won’t have ‘agreed’ a salary but his agent (those folk who are so mysterious they form body shapes and visit Matt Le Tissier) will know the finer detail. This is the Swans problem this month, they just haven’t got that much money at hand and have to work hard to protect what they have. It isn’t a reluctance to spend, it’s a reluctance to see the club teeter on the brink as the Swans have been so many times in history and in recent years.

It’s just that half of what we know isn’t understood or bothered about by the many who just want it all now. That’s the other half of those who couldn’t care, and just want Premier League football at any expense.

Still, that’s made it all clearer I’m sure.

Artwork by Swansea Independent

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