Swans confirm latest accounts
4th March
Swansea City has reported a loss of £14.6m for the financial year ending July 31, 2016.
However, as in previous years, the club is currently on course to record a post-£10m profit for the current financial year (to July 31, 2017) to counter those losses and maintain the club's long-standing sound financial philosophy.
Turnover for the year was £97.2m compared with £103.9m for the longer 14-month period to July 31, 2015.
Total operating costs, including player amortisation costs of £17.3m, amounted to £117.5m compared with £120.8m for the previous 14 months.
A profit of £6.1m on player sales, most notable Jonjo Shelvey to Newcastle, reduced the loss on ordinary activities before tax to £14.6m for the year.
There are a number of key factors which accounted for the losses following a profit of £1.1m for the previous 14 months to July 2015.
1. A reduction in the number and profit of player sales for the year;
2. The timing of player sales, notably Ashley Williams and Andre Ayew, which fell outside the financial year for accounting purposes;
3. An increase in the size of the playing squad;
4. The cost of changing the football manager mid-season;
5. The loss of Premier League TV revenue for a 12th place finish compared to the previous eighth position secured in season 2014-15.
6. Continued investment in the club's training facilities;
7. Increased costs in securing Category One status for the Academy.
Swansea City chairman, Huw Jenkins, commented: "Running a financially sound football operation remains paramount to the football club.
"At the same time, we recognise the importance of continued investment in the infrastructure and playing squad, as we demonstrated during the recent January transfer window with the acquisition of Martin Olsson, Jordan Ayew, Luciano Narsingh and Tom Carroll.
"As we have done for many years, we will continue to work hard to find the right balance between growth, success on the football field and sound financial practice.''
