Swansea City have posted pre-tax losses of £13m in their latest set of accounts.
The figures cover the year ending July 31, 2022, and coincide with the final season of parachute payments following the club's relegation from the Premier League. They also include the sale of Flynn Downes to West Ham United over the summer, which was believed to be for a price tag of around £12m.
It follows on from a pre-tax loss of £4.6m the previous year, and a profit of £2.7m from the financial year ending July 31, 2020.
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The end of the club's parachute payments have been cited as a key reason for the sharp fall in turnover, which dropped from £27.5m to £19.7m.
Broadcast revenue dropped dramatically from £21.7m the previous year to £9.2m, but commercial revenue increased from £1.2m to £3.2m.
The return of fans on the back of the Covid-19 pandemic also drove a rise in matchday income from £1.8m to £4.2m.
Total operating costs were reduced to £43m from £47.8m in 2021, while the club spent £1.7m less on staff members compared to the £27.7m recorded last year, despite more than doubling employees from 244 to 510.
Those employees include playing staff, backroom staff and part-time matchday staff, with the club claiming the rise in numbers was largely due to a rise in casual matchday staff.
No dividends were paid to shareholders during the financial year, with the club receiving support by the ownership through a series of Convertible Loan Notes (CLNs) that have been converted into equity. The club claims this move means its overall debt position has improved, although the size of such debts isn't yet clear.
Commenting on this latest release, chief executive Julian Winter said: “These latest accounts cover a season where the club’s Premier League parachute payments came to an end, which is the principal reason why such a financial loss has been reported.
“However, the return of supporters to stadiums following the pandemic has been crucial for us to build up our matchday income following nearly 18 months without anyone being able to come to matches.
“The reporting period also covers a time where we appointed Russell Martin as our head coach, with a clear return to a playing style and identity that is synonymous with this club, as well as a commitment to giving young players an opportunity to thrive.
“When a club sees its parachute payments end, there is a clear need to operate sensibly financially and to avoid decisions that jeopardise the long-term future of the football club. The club continues to be supported by ownership and the conversion of loan notes that has taken place in recent months is a positive step in terms of improving the club’s debt position.
“Whilst reporting a financial loss is far from uncommon for clubs operating at this level – or indeed even higher – we remain in a comparatively positive financial position as we now look forward to what will be an important summer for the club.”
The news comes amid reports in the US that the club is set to receive fresh investment, with three American-based businessmen eyeing up a move that could inject as much as £10m into the club.
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