By David Owen
April 9 – The near 20-fold increase in broadcasting revenue associated with the club’s brief return to the Premier League helped Middlesbrough rebound into profit for the year to 30 June 2017.
The Teesside outfit posted a £6.9 million pre-tax profit which, though modest in comparison with many rivals in England’s top tier last season, marked a big improvement on the £32 million loss racked up in 2015-16, its last promotion season.
With staff costs doubling to £64.9 million, and cost of sales jumping from £40.5 million to £89.5 million, the turnover boost was insufficient to produce a profit at the operating level. However, an £11.3 million gain on player sales in the latest period was enough to convert that £4.1 million operating loss into pre-tax profit. Disposals included Adam Reach to Sheffield Wednesday, Ghanaian international Albert Adomah to Aston Villa and former England man David Nugent to Derby.
Broadcasting accounted for more than £100 million of Boro’s £121.4 million of turnover in 2016-17, a season which saw it finish 19th in the Premier League, with the fewest victories of any team, and hence return to the second-tier Championship for the current campaign.
Gate receipts and sponsorship and commercial revenue both climbed, but merchandising income fell from £3.11 million to £2.97 million.
The club – controlled by chairman Steve Gibson by virtue of his 75% stake in The Gibson O’Neill Company whose biggest activity in turnover terms is a transportation company called Bulkhaul – was stated in the accounts to owe £93.6 million to group undertakings, unchanged from the prior year.
Amounts owed to group companies are said to be repayable on demand. However, a “signed letter of support” has been obtained stating that the loans “will not be recalled within 12 months of the signing of these financial statements”.
The balance-sheet at 30 June 2017 also included a bank loan of £8.58 million, up from £5 million a year earlier. This was said to be part of a £10 million multi-option currency facility repayable by 15 July 2017, secured by the assignment of future Premier League income bearing interest at 2.25% over LIBOR.
Contact the writer of this story at moc.l1731635637labto1731635637ofdlr1731635637owedi1731635637sni@n1731635637ewo.d1731635637ivad1731635637