By David Owen
February 11 – Soaring costs have taken their toll on profits at Crystal Palace, the south London Premier League club which recently received an injection of new money from US investors.
With the number of both players/coaches and admin/commercial staff on the Eagles’ books advancing considerably, staff costs surged by 48.5% to £68 million in the year to 30 June 2015, with overall operating costs reaching £95 million.
With turnover pushing through the £100 million barrier, mainly from TV, however, the club was still able to report pre-tax profits of a respectable £7.9 million. This was down from an impressive £23.1 million in 2013-14.
The top brass contributed to the cost increase. Notes to the accounts disclose that directors’ emoluments more than doubled year-on-year from £205,603 to £456,079. This amount was entirely paid to a single director, although the accounts do not disclose whether the recipient was Steve Parish who has been the public face of the ownership quartet who rescued the club in 2010.
The business review signed by Parish on behalf of the board noted that the total acquisition costs of new players in the 2014-15 season was £30.6 million. Summer 2014 arrivals included Fraizer Campbell, Martin Kelly, James McArthur and Ezekiel Fryers, while the club also added Jordan Mutch, Pape Souare, Wilfried Zaha and Lee Chung in January 2015.
The club’s new investors are Josh Harris and David Blitzer, owners of the NBA’s Philadelphia 76ers and the NHL’s New Jersey Devils. The two men have each taken 18% in the club, with Parish cutting his holding to the same level from 25% previously. The new money is expected to go on redevelopment of the atmospheric Selhurst Park stadium.
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