English Premier League club, Southampton Football Club, has reported a net loss of £76.1million for the fiscal year of 2019/20 ending in June 2020, due to the significant impact of the devastating Covid-19 pandemic.
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Key highlights of its FY 2019/20
- Southampton FC incorporated by St Mary’s Football Group Ltd, posted a decrease in the overall revenue down to £126.6m which represents a nosedive of £23m compared to £149.6 reported in the fiscal year of 2018/19, with the net loss before tax up from £41m.
- As a consequence of the English Premier League ending before 30 June 2020, broadcasting revenue fell to £93.5m compared to £112.8m in 2019 – a drop of £19.3m, despite the Saints finishing 11th in the 2019/20 Premier League season (five places higher than the previous season).
- With the suspension of the league in March 2020, until Project Restart, which led to matches played behind closed doors, matchday revenue fell to £14.5m with a £2.5m drop compared to £17.0m in 2019.
- Project restart also coated them an additional £1.5m of net additional costs of sales and administrative expenses in order to enable the men’s first-team squad to train and conclude the 2019/20 season in a COVID-19 secure environment.
- The Saints reported that the total 2019/20 revenue foregone as a highlight of the significant impact of the devastating Covid-19 pandemic over the financial year was £10.3m, with a further £20.9m revenue deferred into the year ended 30 June 2021.
- However, the club said revenue would have shown up a £8.2m (5.5%) increase up to £157.8m for the 2019/20 fiscal year, had it not been lost or deferred due to the ongoing Covid-19 crisis.
- The transfer business was significantly impacted as the Summer 2020 transfer window did not open until July 2020, after the financial year ended. The sales of Charlie Austin and Gallagher in the Summer 2019 window helped see a profit of £13.9m compared to £20.9m made in 2019.
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What the Southampton FC MD is saying
Southampton Managing Director, Toby Steele, said:
- “As with many companies and industries, the group is in the midst of a challenging financial environment due to the impact of the Covid-19 pandemic. This is reflected in the financial results for 2019/20 and necessitated the group to restructure its debt facility during June 2020. Despite these challenges, our group-wide staff have shown great resilience, facilitating a smooth return to training and matches for men’s and women’s teams across all age groups, as well as the return of fans, albeit briefly, during season 2020/21.
- “We also have great pride in the work of the Saints Foundation, in particular the collaboration with group staff in the ‘Saints as One’ initiative during the early stages of the pandemic. The ongoing support of our fans, many of whom purchased a 2020/21 season ticket at a time when the return of football was unknown, is greatly appreciated and it is our hope to get fans back where they belong, supporting all our teams in person, in greater numbers as soon as possible.”
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Wow! Due to covid-19 pandemic, it gonna be tough. I hope they bounce back financially