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Fulham accounts show cost of seeking promotion

As is well known, Championship clubs spend heavily in an effort to secure promotion to the Premier League. Fulham (Fulham Football Leisure Limited) lost £21.3m in 2016/17 and the loss would have been £38m had it not been for profits from player sales. The total losses of the company over time are a staggering £295m, despite participation in the Premier League.

Turnover was down from £36m to £34.9m or 3.1 per cent. The strategic report states, 'Parachute payments from the Premier League fell by £4.2m and amortization on player registrations increased by £7.4m following significant investments in the summer of 2016. Increased commercial revenues partly offset these costs, as did profits on disposal on player registrations totalling £17.4m (2016: £7.3m).'

Reference is made for proposals to redevelop the Riverside Stand which will add a new dimension to a charmingly old fashioned ground at Craven Cottage. However, this involved a write off of the design and planning costs incurred on a previous proposal amounting to £7.1m.

58 per cent of income comes from central awards, i.e., principally parachute payments. Gate receipts went up from £5.6m to £6.6m. Average Championship attendances went up by 9.3 per cent from 17,566 to 19,199. Sponsorship and commercial activities raised just under £6m, a healthy figure, but perhaps reflecting the advantages of being located in a prosperous part of London.

Staff cost as a percentage of revenues were up from 100.3 per cent to 106.3 per cent. This is a high figure, but not that unusual in the Championship.

Group directors were paid £995,000 with the highest paid receiving £726,000. This represents 2 per cent of the revenue of what is a medium-sized company.

The company is a subsidiary of Cougar Hadco London Limited owned by Mr Shahid Khan. The point is made more than once in the accounts that he will continue to support the club financially. The parent company advanced £29m in 2017, having advanced £32m in the previous year.

The Price of Football site takes a detailed look at Fulham's finances here: Fulham

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