The announcement of the AFC Bournemouth accounts is usually a time of the year that brings at the very least a cautionary raised eyebrow, or a gasp at the sheer eye-watering numbers mentioned in regards to the Cherries finances.
This is still a club and a fan base that remembers winding-up petitions and CCJ’s almost as much as old heroes and trips to the dark and dingy grounds up and down the country.
But with the background of the worldwide COVID-19 pandemic, people in isolation cut off from loved ones and schools closing across the UK, worrying about our beloved football club and things out of the supporter’s control, somewhat takes its place in the very back of our minds. In context, understandably to many, it’s just not worth thinking about.
Even thoughts of how the 2019/20 Premier League campaign is decided if it cannot be completed seems irrelevant, even though AFC Bournemouth’s existence in the top flight of English football could be decided over conference calls rather than on the football pitch.
So then, those numbers regarding the financial accounts for AFC Bournemouth up to the year ending 30th June 2019.
The club recorded a loss after tax for the period of £32.4million, compared to a loss of £10.9million the previous year.
Turnover was down by £3.7million. from £134.9million in 2018 to £131.1million in 2018.
The drop in turnover was down to the Cherries finishing position in the Premier League which resulted in a smaller cut of television revenue from domestic television rights.
The club also spent a lot of money during the transfer window on new additions to the squad and improved contracts to existing players. This saw registration cost additions for the year rising to £94.2million, from £55.8million in the previous period. With players and staff costs increasing to £110.9million in 2019 from £101.9million in 2018.
AFC Bournemouth chief executive Neill Blake told afcb.co.uk…
“…During the financial year, the club’s focus was to consolidate its position in the Premier League through targeted expenditure on assets and expertise in the playing squad and supporting infrastructure…
“…The club sees retention of key staff as a key ingredient to success and the directors considers the financial position of the company to be satisfactory.
“Shortly after the year end, the club sold three players for a profit of £22.6million. Clearly, if these sales had been made before 30th June 2019, this would have removed a large portion of the loss for the year.”
Blake was referring to the sales of Tyrone Mings to Aston Villa for £26.5million, Lys Mousset to Sheffield United for £10million and Connor Mahoney to Millwall for a fee of £1million, which will all feature in AFC Bournemouth’s accounts this time next year.
However so will the purchases of three additions to the squad during July and August, which reportedly included £4million on Luton Town defender Jack Stacey, £15million on Huddersfield Town midfielder Philip Billing and £13.7million on Arnaut Danjuma Groeneveld, which somewhat eats into the profit that Blake is referring to within a month of receiving it.
The full accounts also refer to a non-interest bearing loan owed to AFC Bournemouth’s parent company AFCB Enterprises Ltd, owned by Maxim Demin.
This loan olds a fair value of almost £100million.
Of this £100million, £41m is repayable in August 2020, £26m in January 2024 with £33m on demand. Hopefully, Max won’t want his money back in August. We sold Tyrone last year to 2/3 clear the previous year’s loss. Does that mean we will have to sacrifice someone else come the summer? – Join the conversation, click here.