By David Owen
June 21 – Crystal Palace have finally rounded off the 2016-17 Premier League financial reporting season, posting a pre-tax profit of £11.8 million for a period that ended almost exactly a year ago.
The south London club, which recovered from a dismal start to the 2017-18 season to retain its top-flight status under former England manager Roy Hodgson, benefited from a one-off £4 million boost to operating income, attributable to “compensation received (net of costs) after an award in favour of the club by the Premier League Managers’ Arbitration Tribunal.” It was reported in 2016 that the tribunal had ruled former manager Tony Pulis should pay Palace £3.7 million over a dispute. It was also reported that Pulis challenged the order in the High Court but a judge ruled against him.
The new accounts also include an update on Palace’s proposed £100 million stadium redevelopment, which won council backing in April. “One or two hurdles” are said to remain, including “final sign off from the mayor of London, land that must be purchased to facilitate the build and a further planning application for residential accommodation to replace the borough’s housing stock”. None of these issues are judged “insurmountable”, however.
There was also what the strategic report refers to opaquely as a “major income through a third party proposed investment”. While the investment was not completed, it resulted in a “large deposit being retained by the club” and “an entitlement to bonus”.
Chairman Steve Parish is said to have foregone this bonus and invested this and further monies back into the club. Notes to the accounts disclose that the highest-paid director (presumably Parish) received £2.15 million, up from £692,000, during the year. The post-tax figure of £1.14 million was, though, “reinvested into the club”. All told, the report states that £21 million of capital has been injected from directors and shareholders since January 2017. The January 2017 transfer window alone saw around £50 million committed to player expenditure, with “an initial cash injection made by the directors and shareholders of £13.5 million to fund the activity”.
Turnover rose sharply to £142.7 million from £101.8 million thanks to increased TV money. Gate receipts were down significantly, from £11.9 million to £10.6 million, but sponsorship and ad revenue climbed around 50% to £6.4 million. Staff costs reached £111.8 million, up from £80.6 million.
Creditors of the holding company CPFC 2010 increased by £60.6 million during the year to some £107.5 million. This was attributed mainly to “£34.3 million additional transfer fees payable along with £7.5 million of staff-related costs and £7.5 million of further shareholder funding via a new £13.5 million loan.”
Notes to the accounts also reveal that loans from the three directors totalling £6 million were repaid in the latest period “together with the associated interest of £274,000”. A Parish-controlled building projects company called VMM charged Palace £117,000 for services provided during the year and another Parish-controlled entity, Smoke & Mirrors Group, charged the club £234,000, up from £78,000, for rent.
Contact the writer of this story at moc.l1734800220labto1734800220ofdlr1734800220owedi1734800220sni@n1734800220ewo.d1734800220ivad1734800220