AFC Bournemouth have announced a profit of £17 million for the financial year ending June 2021 (£60.1 million loss in 2020, £32.4 million loss in 2019).
These accounts, much like last years, have come with the world in the grip of the Coronavirus pandemic.
It includes a period of time when the 2019/20 campaign resumed following its suspension, with seven games of the Premier League remaining to be played. These games were played behind closed doors, ticket revenue was refunded and television companies were in a dispute with the Premier League over television payments.
The Cherries would go on to be relegated and subsequently would see a vast number of player sales in a bid to make up for both the loss of Premier League television revenue and lowering the playing budget in regards to ongoing wages. The Cherries posted a gain in player sales, totalling £55.8million.
AFC Bournemouth dropped into the second tier of English football knowing this would cause a huge shift in football clubs finances but also having to manoeuvre their way through the unprecedented scenario of having the entire Championship campaign played behind closed doors.
This saw an almost complete loss of all match day revenue and many sponsorships.
Due to this, as was the case last year, laying out a companies accounts side-by-side for analysis and comparison would be folly.
Turnover continued to fall, £71.7million in 2021, £95.4 million in 2020, £131.1 million in 2019.
AFC Bournemouth’s parent company A.FC.B. Enterprises Limited, a company registered in The British Virgin Islands and controlled by Maxim Demin, holds a non-interest bearing loan with a book and fair value of £128,564,000 (£126,295,000 in 2020).
To view the accounts, click here.
AFC Bournemouth chief executive Neill Blake said in a statement released on afcb.co.uk…
“During the last financial year, our focus was to continue to compete at the highest possible level of English football, initially by striving to remain in the Premier League and then through promotion out of the EFL Championship, while ensuring that the business was on a stable financial footing.
“A strategy of targeted expenditure on playing squad assets and supporting infrastructure, which management feel they can then add value to, continued to be a key component to the Club’s outlook and underpins the ambition to compete in the Premier League again.
“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 in order to go some way to mitigating the risks arising from the inherent uncertainty over league status in the following season.”
Your say…
AFCBade wrote…
Think the reduction in player costs was impressive but obviously reduced our chances of promotion. Would be interesting to see the year on year Norwich and Watford equivalent as they retained more of their prem squads.
Personally, I think the board did well on that as the fear of many (including myself) was being stuck with a huge wage bill in the champ like some other relegated clubs. The downside was losing loyal players like Surman, Franno and Daniels so abruptly.
The challenge will be keeping a lid on things IF we do go up this season.
Notmarcjackson added…
If I was Max I’d be pretty happy with that.
We’ve coped with the twin effects of relegation and covid very well.
The sale of players and reduced salaries is exactly what I would have hoped to see and will be more this year.
Admittedly we are still beholden to the largesse of Max and his BVI companies, but the biggest loser, if he decides to take his ball home, will be Max.
We even got to see the value of a tax asset this year. Whoop!
northstandmark said…
On the face of it, a not disastrous statement of accounts…? That will upset some!
Staff costs less than turnover is far from common around the leagues.
Goes without saying we won’t always be able to sell players for good fees every year, but it helps when you can. – Join the conversation, click here.
