Last year AFC Bournemouth announced that they had made a £14million profit, after tax.
However, a change in the accountancy period meant that it only covered an 11 month period and crucially did not include July 2017, a month where AFC Bournemouth would have had large spending on transfer fees, signing on fees and agent costs, as the Cherries signed Nathan Aké and Asmir Begovic from Chelsea for a combined total of around £30million and signed Jermain Defoe on a free transfer from Sunderland.
So a big hit was expected for the accountancy period ending 30th June 2018 and indeed that is what has transpired.
AFC Bournemouth recorded a loss after tax for the period of £10.9million.
The accounts included player registration cost additions for the period of £55.8million and staff costs of £101.9million.
During the accountancy period, the club completed the purchase of the 57-acre former Canford Magna Golf Club for £3.75million plus fees, with “its intended use being a new training complex”.
The club also reached a £4.75million settlement with the Football League, relating to a Financial Fair Play fine incurred during the Championship winning campaign.
Bournemouth owe its British Virgin Islands parent company £45.6 million and its US based minority owner £26.5 million #AFCB pic.twitter.com/G75WU4p8K3
— Kieran Maguire (@KieranMaguire) March 27, 2019
Summary of #PremierLeague finances published to date for 17/18. Key issues are wages rising much faster than income & most clubs make operating loss. Those in the Championship thinking promotion is a gravy train perhaps should think again. pic.twitter.com/rkN2JyHzcp
— Kieran Maguire (@KieranMaguire) March 27, 2019
(To view the full accounts, click here).
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 directors continue to maintain close control over cash flow and continue to develop and maintain policies with the aim of ensuring the club is run in a sustainable and successful manner.
“These policies are seen as vital in order to keep control over all expenditure that the club commits to…”
Your say…
NornIron wrote…
Turnover down, profit down, people being paid more and performance (league position) down. Cash in the bank down and debt…. well it’s hard to tell. On the other hand, assets are probably up. There is the tangible asset of the land which is nice but doesn’t represent a huge deal against the liabilities etc. If it were a public company that’d represent a bad year.
That’s about the point at which traditional accounting rules stop though. The debt is a single source debt with a friendly benefactor. The balance sheet doesn’t reflect the actual value of assets since it can’t in the same way a normal business shows stock plus cash (for example). The turnover in the short term is pretty guaranteed to within a percentage point or two. Some assets (Brooks, Wilson, Ake, Howe) could be worth fortunes or could walk for free. So that could be spun to say we are in brilliant shape.
I enjoy reading the accounts but they can’t be treated the same way as a traditional business.
My summary: last year wasn’t great and I’d hope for better next year. A lot could depend on the terms of the Peak 6 buyout. We’re in fine enough shape but one man’s whim could sink us. As you were really. – Join the conversation, click here.
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