By David Owen
April 12 – The South London club Crystal Palace have announced a pre-tax loss of £58 million for 2019-20. This was after the accounting period was extended until the end of July. The Eagles are the third Premier League side so far to have adopted this business tactic, in spite of the inclusion of an extra month’s wages in operating costs for the period as a consequence.
Chairman Steve Parish said the approach, also adopted by Burnley and Sheffield United, “does accurately reflect the business reality of the situation imposed on us and we feel gives the most accurate view of the financial performance of the club for the 2019-20 season”. Parish also said that, over the two seasons affected by the pandemic, “the overall income loss to the club will be around £30 million”.
Headline financial information released on the club website put 2019-20 turnover at £142.3 million, down from £155.4 million the previous year, when the gain from the Aaron Wan-Bissaka transfer enabled a modest profit to be registered.
The staff cost: turnover ratio for the latest period was put at 93%, implying a wage bill of around £132.4 million. Operating expenses were put at £154.1 million and the operating loss before depreciation, amortisation and impairment at £11.7 million.
The club disclosed that it had taken out an “external” loan of £30 million “late in the 2019-20 financial period”, while also deferring “some payments”. However, it added: “We still had a zero net debt position at the period end with healthy cash reserves (£58.4 million).”
It went on: “Although the group is showing a net liability position this mainly comprises an intercompany loan facility from the parent company, Palace Holdco UK Ltd, which charged no interest and will continue to support the group and its subsidiaries.”
The club looks to have secured another season of top-flight football under former England boss Roy Hodgson.
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