Bournemouth slump to UK£32m loss for 2018/19

Bournemouth slump to UK£32m loss for 2018/19
English top-flight soccer outfit AFC Bournemouth recorded a loss of UK£32.4 million (US$38.2 million) for the 2018/19 financial period, their second consecutive loss in as many years.

The club saw losses rise by UK£21.5 million (US$25.3 million) from the UK£10.9 million (US$12.8 million) for 2017/18. This was compounded by a UK£3.7 million (US$4.4 million) decrease in turnover to UK£131.1 million (US$154.5 million). This was attributed to lower finishes in the Premier League.

In comparison, a record high position of ninth for 2016/17 saw the Cherries post a UK£14.7 million (US$17.3 million) profit, the last time they were in the black.

Bournemouth also revealed that non-Premier League revenue remained “broadly similar” at UK£15.5 million (US$18.3 million), which the club say reinforces their “continuing off-field progression”.

Additionally, staff costs increased from UK£101.9million (US$120.1 million ) year-on-year to UK£110.9million (US$130.7 million). Player registration cost additions for the year were UK£94.2million (US$111 million), compared with UK£55.8million (US$65.7 million) in the previous period. 

These results also highlight Bournemouth’s reliance on Premier League income, particularly broadcasting, as a major source of revenue, with the club being notably limited in their matchday income due to their modest 11,300-seater Vitality Stadium. The next smallest venue in the top-flight is Burnley’s Turf Moor, which holds just less than 22,000.

“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,” said Bournemouth chief executive Neill Blake.

“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.

“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 UK£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.”

With the Premier League now suspended until at least 30th April, due to the coronavirus pandemic, Bournemouth find themselves in the relegation zone down in 18th place, with Watford and West Ham above them on goal difference.

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