If it wasn't needed already Bristol City fans were given another stark reminder about the ongoing financial impact of the last two years by manager Nigel Pearson in the build-up to Saturday's Championship clash against Peterborough United.
When asked about transfer plans, the manager simply responded, "as it stands at the moment, I can't see us spending any money" as to his expected transfer budget, further reinforcing the challenges for him and the club that lie ahead as they look to remain competitive but also negotiate the EFL's Profit & Sustainability rules.
That's a result of the £38.4m losses posted in December for the financial year ending 2021, as the club's inability to raise significant transfer revenue meant they couldn't offset an ever-increasing wage bill.
Discussions with the EFL over potential lost transfer "add-backs" remain ongoing but how does City's financial landscape compare with their rivals across the division with the vast majority now having submitted their accounts for the relevant accounting period.
We've listed them from the largest profits down to the biggest losses with a brief summary, and the four clubs yet to submit their financial results are included at the end.
Bournemouth - £17m profit
The Cherries’ fall into the Championship and the loss of matchday revenue was significantly eased by raising £55.8m from play sales including Nathan Ake (Manchester City), Aaron Ramsdale (Arsenal) and Callum Wilson (Newcastle). They also halved their wage bill from £107.9m to £57.9m, due to departures, either via transfers or contract expiry, and relegation clauses kicking into various players’ agreements.
Sheffield United - £9.5m profit
The period covers the Blades second season in the Premier League, hence the healthy figure in the black as their turnover stood at an impressive £115m. They did also reduce their wage bill, from £77.9m to £56.5m, which helped balance the books albeit with the club then finishing rock bottom of the division and leading to relegation into the Championship.
Huddersfield Town - £2.6m profit
The Terriers managed to raise £21m from player sales - Karlan Grant to West Brom and Terence Kongolo to Fulham - but also reduced their wage bill by 19 per cent, from £30.3m in 2019/20 to £24.6m following the departures of highly-paid individuals who were with the squad in the Premier League. It was also the second season for the club to be in receipt of parachute payments following their relegation in 2018/19.
Peterborough United - £1.08m loss
Posh reduced their losses from the previous season by £2.5m as they gained promotion to the Championship, albeit while being unable to maximise matchday revenue due to the pandemic and playing the entire season behind closed doors. Their figures were helped by the sale of Ivan Toney to Brentford, a deal that could be worth £10m to the club plus any further add-ons that could be accrued should he be sold by the Bees.
Luton Town - £1.9m loss
The model of how to run a club on modest means but remain competitive and, in the case of this season, potentially successful. The Hatters’ wage bill was just £14.1m, one of the lowest in the Championship.Their transfer activity almost balanced out with £2.6m spent on new arrivals, and £2.2m received in sales.
Barnsley - £4.2m loss
Despite the relatively low number in the context of the rest of the division, the Tykes’ losses actually rose from just £280,000 in the previous 12 months to £4.2m due to a 14 per cent drop in revenue and 22 per cent rise in wage expenditure to £14.3m. The club received £7.9m in transfer revenue, based on instalments from previous deals.
QPR - £4.5m loss
The Rs made a £17.6m transfer profit, predominantly from Ebere Eze’s move to Premier League Crystal Palace for £19.5m. That ensured the club were able to dramatically reduce their losses, even in the pandemic, from £16.3m to £4.5m, despite a £3.8m reduction in other revenues.
Coventry City - £4.7m loss
The Sky Blues almost doubled their wage bill - from £5.9m to £11.8m - and received modest income in the transfer market, just £1.8m of profit, but were still able to keep losses to a minimum. That was primarily due to a £5.1m increase in turnover following their promotion from League One, including broadcast revenues and solidarity payments plus supporters purchasing ‘Championship Club Membership’, payments that guaranteed them priority access to season tickets but were essentially to help keep the club afloat during the pandemic.
Blackpool - £4.8m loss
Despite eventual promotion, losses rose by £2.2m because, like other successful clubs in 2020/21 they were unable to benefit in terms of matchday revenue. The Seasiders did still raise £770,000 in season ticket sales, with those supporters not seeking refunds, while they received £579,000 from streaming income.
Stoke City - £5.4m loss
The Potters made a profit of £45.3m selling and leasing back the bet365 Stadium and Clayton Wood training ground to bet365 (we know). That transaction occurred a month before the EFL changed the rules on such practices. That enabled Stoke to keep their losses to relatively low levels as they made just over £12m on player sale, predominantly from Nathan Collins joining Burnley, but had one of the highest wage bills in the division at £50m in what was their final year of receiving parachute payments.
Blackburn Rovers - £6.6m loss
Blackburn managed their way through the pandemic-hit season primarily by the £17.3m sale of their training ground to Venkatashwara London Limited, a new branch under the ownership of Venky's London Limited, who own the club and have subsequently leased it back. That significantly helped offset a wage bill that increased from from £25.6m to £25.7m and represents 177 per cent of turnover. Blackburn’s figures did not include the sale of striker Adam Armstrong to Southampton as that will appear in the next set of accounts.
Hull City - £8.15m loss
Published back in October, before Acun Illicali’s purchase of the Tigers, Hull were the first Championship club to submit their accounts for 2020/21. Relegation from the Championship and playing matches behind closed doors saw income fall from £15.11m to just £6.86m. That was, in part, offset by a wage bill that was halved from £17.75m in 2019/20 to £8.44m in 2020/21, but the club raised just £2.87m in player sales, compared to £22.75m the previous year.
Cardiff City - £11.2m loss
The Bluebirds slightly reduced their wage bill from £27.6m to £26m, but profits on player sales stood at just £2.9m, compared with 2019 as £13.7m was made. This was the second season of the club being in receipt of parachute payments with owner Vincent Tan lending £16m to cover costs during the pandemic, increasing the club’s debt to £109.5m.
Millwall - £13.1m loss
The Lions wage bill grew by 10 per cent to £20.8m, while reductions in revenue led to what is a record loss, increasing from £10.9m the previous year. Profit on player sales grew marginally from £100,000 to £700,000 but the Lions have been unable to post a profit for the 19th straight season.
Preston North End - £13.5m loss
PNE’s losses doubled amid the pandemic with their wage bill also rising from £17.6m to £20m. They were unable to offset this with any significant player sales, raising just £1m in transfer revenue, down from £7m the previous year. That was despite the exits of first-team stars Ben Pearson and Ben Davies, but they left for minimal fees due to their expiring contracts.
Nottingham Forest - £15.5m loss
Forest’s sale of Matty Cash to Aston Villa and a historic loan write-off helped keep losses under £20m, after initial operating losses of £34.4m, as owner Evangelos Marinakis converted £12m of loans into equity. However, Forest also recorded a wage bill of £37m that equated to £202 for every £100 of income.
Middlesbrough - £30.8m loss
Boro trimmed their wage bill from £30.9m to £26.9m but the end of parachute payments coupled with the impact of the pandemic of revenue meant they recorded sizeable losses. They did make a £4.2m profit on player sales but that included £7.2m spent on incomings and loan deals to try and remain competitive.
Reading - £35.7m loss
The Royals were docked six points in November after their losses exceeded the EFL’s threshold over a four-year period, by £18.8m. For the financial year ending 2021, Reading confirmed a wage bill of £32m with plans to reduce it to £21m for their next set of accounts.
Bristol City - £38.4m loss
The Robins have blamed the collapse of the transfer market for their worrying figures as after posting a profit in 2018/19, their losses continue to rise against an unsustainable wage bill. Player sales plummeted from £25.6m to £6.2m, while player salaries grew by six per cent to £35.3m which the club has since looked to reduce considerably.
Fulham - £94.4m loss
The Cottagers experienced a steep rise in their wage bill in the Premier League - from £72m to £113m - plus around £60m was spent on infrastructure projects such as the redevelopment of the Riverside Stand at Craven Cottage. To fund the losses, Fulham borrowed £151million from owner Shahid Khan in 2020/21 and a further £93m since the end of the season.
Clubs yet to submit accounts
Four clubs in the division are yet to submit their accounts for 2020/21: Birmingham City, Derby County, Swansea City and West Brom.
In the case of Birmingham, their parent company Birmingham Sports Holdings Ltd have confirmed losses of £3.8m over six months until December 2021 on the Hong Kong Stock Exchange but that is obviously a different accounting period.
West Brom were due to file their accounts on March 31 but instead published a document to Companies House shortening the accounting period, effectively granting themselves a further three months to detail their results.
Swansea’s accounts last year were released at the end of April, while Derby County are still to publish their figures for the 2018/19 and 2019/20 seasons, let alone 2020/21 as the Rams remain in administration, in dispute with the EFL over their accounting and in the midst of a protracted takeover.
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