By David Owen
April 14 – Directors’ remuneration at Southampton almost doubled last season, as the south-coast club ran up a pre-tax loss of £41 million.
Accounts for St Mary’s Football Group Limited put directors’ remuneration at £2 million, compared with £1.05 million a year earlier. The increase is due partly to a one-off £365,000 payment in compensation for loss of office. This is believed to have been paid to vice-chairman Les Reed, who left the club in November 2018.
Emoluments for the highest-paid director climbed from £636,000 to £728,000. Total compensation paid to key management personnel reached £3.35 million, up from £2.99 million.
The accounts, filed recently at Companies House, show that Saints’ operating loss nearly doubled, from £33.6 million to £60.2 million. With profit on player sales tumbling from £68.9 million to £20.9 million, there was a £75 million negative swing at the pre-tax level, from a profit of £34.9 million to a £41 million loss.
In cash terms, proceeds from player sales still brought in nearly as much – £45.7 million – as the club spent on replacements – £53.5 million. However, there was a sharp run-up, from £36.7 million to £53.3 million, in amortisation.
A note in the accounts explains that additions to intangible assets for the year included £18.5 million relating to the acquisition of Danny Ings. It goes on: “The legal form of the loan and purchase agreement comprised a loan of the player for the 2018-19 season, followed by a capital commitment after the statement of financial position date. However, the substance of the transaction from an accounting perspective resulted in the capitalisation, and amortisation, of the player’s registration from the commencement of the loan period.”
The ex-Burnley and Liverpool striker was enjoying a fine season until it was halted in its tracks by coronavirus.
The accounts also state that on 1 July 2019 Southampton Football Club Limited acquired “the entire share capital of St Mary’s Stadium Limited and Southampton Training Ground Limited” from St Mary’s Football Group.
It was reported last month that Chinese property magnate Jisheng Gao had instructed brokers to sell his 80% stake for £250 million. Gao completed his acquisition of the Saints in August 2017 for £210 million.
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