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Saints record big profit

Southampton recorded a £43.7m profit in 2016-17, but the outcome was affected by player trading payments: Saints accounts Turnover was up by £60m to £182m, but £52.5m of that was broadcasting revenue from the new Premier League deal, emphasising the importance of avoiding relegation. Broadcasting income accounts for 78 per cent of income, although that is not untypical for a Premier League Club outside the top six.Commercial revenue was up by 27 per cent, but that was from a low base and it accounts for 8.5 per cent of income overall. Boosting this is a challenge for a club that lacks a major global profile.Player wages went up by 29 per cent, but the wages to turnover ratio fell slightly to 62 per cent which is not too far out of line with the recommended level of 50 per cent.
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Seat design at London stadium was wrong

Senior officials responsible for the development of the London Stadium have admitted that they 'got it wrong' over the design of the retractable seats that have become one of the biggest contributors to the stadium's financial problems. The £8m cost of removing and reinstating the retractable seats each summer could have been avoided, the London Assembly's budget monitoring committee was told yesterday.David Edmonds, the former chairman of the London Legacy Development Corporation, said that the seats were one of three big issues facing the stadium. The others were failing to secure a naming rights partner (not surprising given all the problems that have been encountered) and being unable to attract more events to the venue.Edmonds also admitted that the LLDC was forced to give into West Ham United's demands during negotiations to rent the stadium as they were the only bid left. 'West Ham were very hard, very tough negotiators,' he said. He also admitted…

Prosecutors investigate AC Milan sale

Italian prosecutors have opened an investigation into the sale of AC Milan to Chinese businessman Li Yonghong: Investigation It follows three “reports of suspicious transactions” transmitted in recent months by the Bank of Italy financial information unit to the Guardia di Finanza — the Italian police force that deals with financial crimes — Gazzetta dello Sport newspaper reported.There have been doubts about the financial stability of the consortium that bought the club using offshore funds. The club is also in trouble with Uefa for breaching financial fair play regulations.

West Ham in new London Stadium dispute

Relations between West Ham and the London Legacy Development Corporation (LLDC) seem to have deteriorated since the Moore Stephens report, commissioned by London mayor Sadiq Khan, which predicted a £140m loss over ten years. Sadiq Khan is clearly unhappy with the deal reached by Boris Johnson.The club are already involved in a lengthy court case with the LLDC over expanding stadium capacity, but now there is a new dispute over services they say were promised to them.The club have asked for draught beer to be provided in all stadium bars, but the LLDC insist that West Ham should pay for the pumps. West Ham pay the £150,000 licence fee to show Sky Sports on televisions inside the stadium, but some of the screens carry LLDC adverts. The LLDC wants compensation if they are displaced. West Ham say the LLDC should pay for the hosts/hostesses in the directors' and corporate boxes, but the LLDC say the club should pay.West Ham want to replace the green cover that goes over the running…

Bolton take relegation hit

The 2016-17 accounts for Bolton Wanderers and their parent company show the impact of relegation from the Championship: Financial results. Bolton are, of course, now back in the Championship and have every hope of staying up, although they are operating on one of the lowest budgets in the Championship.Former owner Eddie Davies wrote off an eye watering £198m of debt, but there is still £22m of hard debt remaining. This includes £10m left in by Eddie Davies.Relegation saw turnover slump from over £24m to £8.3m. The most important factor here was the decline in broadcasting revenue from £12.9m to £1.7m. Gate receipts fell marginally from £3.3m to £3.1m. Operating losses went up from £8m to £12.9m.On the more positive side the wage bill of £12.6m was down by £6m. In 2011 it was £56m. The wages to turnover ratio of 63.4 per cent was lower than fifteen Championship clubs in 2016/17. In 2013 it was well over 100 per cent. Expenditure on sales and administration was cut by £4m whic…

Tough times in League Two for U's

It is difficult to get as much information about lower league clubs from Companies House filings as they are allowed to produce 'exemption accounts' which give less detail.I am therefore reliant on Kieran Maguire of the Price of Football for tweeting about Colchester United: '[They] owe over £19 million to Jobserve who, along with Aspire Media Group, have underwritten the club’s total losses of £23.5 million and are keeping the club afloat. Rent will be about £150k a year from 2018'The club lost £58,000 a week in 2016/17.Colchester is a prosperous and growing centre, but there are good travel links to London and many incomers undoubtedly support London clubs in the Premier League. The attendance at the U's home game last Saturday was 2,772.

Bluebirds report big losses

Cardiff City (Holdings) Limited filed their annual accounts on line at Companies House yesterday where they can be read free of charge. They run to 34 pages and you probably need an accountancy qualification to make full sense of them, but I will try and pick out some highlights.Like all clubs seeking to access the promised land of the Premier League, Cardiff City reported big losses but they are backed by their owner Vincent Tan. Loans from overseas shareholders (principally Vincent Tan) amounted to £115m. It is stated, 'the Group has the support of the controlling shareholder and consequently, liquidity risk is no longer a significant factor for the Group.'The operating loss for the year ended 31 May 2017 was £18.35m. To put it another way, the club was losing over £400,000 a week. Revenue was down from £33.2m to £28.7m as a result of the reduction in parachute payments which are such a key element for many Championship clubs. Accumulated losses to 2017 were £139m.It i…