By Paul Nicholson
March 30 – English Premier League club Southampton, continually reported to be selling its top players and for sale itself, has reported a financial loss of £7.1 million for 2012/13. Before taking into account transfer spending the club made an operational profit of £8.7 million in the period which bridged the club’s first and second seasons back in the Premier League.
Most eye-catching of the Saints’ financial figures was the huge jump in broadcast revenue that comes with Premier League status. Revenue lept from £5.6 million in 2011/12 to £46.9 million in 2012/13.
Saints’ turnover was £71.8 million (up 213% from the 2012 figure of £22.9 million). Broadcast revenue account for £41.3 million of the £48.9 million increase.
The club increased its average league attendance from 24,427 to 30,807 and with this came a boost in match day income from £11.8 million to £16.9 million. With the club now operating at close to stadium capacity it is hard to see significant further growth in match day revenue without a major ticket price hike.
Commercial income also rose from £4.8 million to £6.7 million. This is slightly below par for a top half Premier League club. Saints are currently eighth in the league and playing a widely admired brand of attractive football,
But the skeleton in the financial cupboard is the cost of players to cement the club’s Premier League position. Not all the transfers have been successful and in the case of the clubs highest transfer, £14.6 million Dani Osvaldo, a complete disaster. Osvaldo was released earlier this season after a training ground fight with another player.
The club will enter the summer transfer window with £27 million in transfer fees owed showing on its books. The figures are being blamed on former chairman Nicola Cortese who spectacularly fell out with owner Katarina Leibherr in January.
Cortese has been replaced by Canadian Ralph Krueger who has a background in ice hockey in North America and most recently as head coach of the Swiss ice hockey team at the Sochi Olympics. Internally Gareth Rogers has moved up from financial director to CEO.
The club says it will not need to sell any players. Adam Lallana, Jay Rodriguez, Ricky Lambert and Luke Shaw are all in the running for England selection for Brazil 2014, and there is a crop of new young players coveted by other Premier League clubs emerging from the highly successful academy.
New director Hans Hofstetter said: “Whilst I perceive that we have inherited a difficult situation financially, there are now clear and structured plans in place to progress the club and avoid a similar situation from occurring again.”
But the reliance on the Liebherr family for cash has continued despite the club’s return to the Premier league. The family stumped up another £12.5 million during the financial year, and another £2.2 million in September 2013. It was at this point that Katarina Liebherr took a much closer interest in the business. The family has now invested £52.7 million in the club. £37.9 million of that has been converted into equity, reducing the club’s net liabilities to £1.6 million from £32.4 million in 2012.
So as long as the Liebherrs maintain their interest and the team keeps on playing the way it has been, then it will be a happy and stable time on the sunny South coast.
Contact the writer of this story at moc.l1734891236labto1734891236ofdlr1734891236owedi1734891236sni@n1734891236osloh1734891236cin.l1734891236uap1734891236