Brentford FC Sees Big Swing Back to Profitability
Club sees record earnings despite reduction in player sale revenue
Club chairman Cliff Crown says the Bees aim to not just survive but thrive in the Premier League. Picture: Brentford FC
March 30, 2023
Brentford FC has announced its highest ever profits after the club swung back into the black following a period of losses during Covid.
Its profit before taxation was a record £29.9 million in the year to end June 2022 despite gains from the disposal of players falling from £44.3 million in the previous year to £4.6 million. In 2021 the club lost £53.2 million prior to profits on player trading meaning that the club was under pressure to sell its best assets but this reduced as money from the Premier League started to flow.
A strong financial footing helped the club retain its place in the Premier League as it finished 13th after its first season back in the top flight for 74 years as well as making significant investment to grow the Club’s on-field and off-field capability.
The boost to earnings was helped by the return to full capacity of its ground after Covid-19 restrictions ended.
A prudent transfer policy still allowed it to sign players of the calibre of Christian Eriksen on a six month contract and most of the top playing talent was retained at the club.
There was also a huge leap in commercial revenues which soared from £4.1 million in pandemic hit 2021 to £15 million the following year comprising more than 10% of the total revenue of £140.9 million which exploded from just £15.3 million the previous year.
The main reason for such a huge increase in revenue was a rise in central distributions from the Premier League, as well as strong growth in commercial and matchday revenue streams following the return of fans post-pandemic into the new Gtech Community Stadium.
This boost allowed the club to reduce third party debt from £19.9 million to a few hundred thousand with £15.7 million held in cash.
Matthew Benham’s total investment in the group at financial year end 2022, was £104 million comprising both equity and loans. This sum includes £22.8 million of loans specifically in relation to the stadium project.
The significant turnover increase was somewhat offset by increased administrative expenses of £45.4m, driven by player wage and player amortisation growth, a natural consequence of investment in a playing squad capable of competing at Premier League level.
The club won a host of off-field awards including being voted Sport Organisation of the Year at the prestigious Sports Industry Awards and ranked first in the Premier League for Matchday Fan Experience in league-wide survey.
Cliff Crown, Chair of Brentford FC, said, “The impact created by the promotion to the Premier League has been game-changing for the Club. Promotion was a culmination of years of planning, investment and hard work throughout the Club. As you will read, our financial results, fuelled by central broadcasting distributions and increased commercial revenues, are positive. It is not uncommon for newly promoted clubs to make a healthy profit in their first season in the Premier League, which we managed to do.
“We were also able to resist interest in our players. We did not need to sell our players to balance the books, which had been fundamental to our business model in recent years. It is worth noting however, that despite the scale of the Premier League broadcast distributions, we do not discount player trading in the future. In recent years, whenever we have sold a player, we have been able to reinvest in the team. Thanks to strong recruitment, excellent player development and coaching and the application of the players, we have been able to improve the squad. We will aim to do this again in the future. Our investment strategy throughout the 2021/22 financial year has also enabled us to make further player acquisitions in the summer of 2022 which will be reported on in the next set of financial statements.
“These financial results reflect the Board's historic prudence in spending money wisely while concurrently building the Club's on-field and off-field organisation capability and investing in the Club's infrastructure.
“Looking forward, in a deteriorating economic environment in which higher salary and overhead costs remain essential to our retaining Premier League status, this financial performance will be difficult to repeat. The Board remain fully committed to building the Club in a financially sustainable and responsible manner.
“Our internal motto, right across the Club last season was simple – to thrive, not just survive. We were determined to be an asset to the Premier League. We did not, and do not want to be there just to make up the numbers and I am proud of the way our fans, our staff and our players responded and applied themselves to the challenge.”
Like Reading Articles Like This? Help Us Produce More This site remains committed to providing local community news and public interest journalism. Articles such as the one above are integral to what we do. We aim to feature as much as possible on local societies, charities based in the area, fundraising efforts by residents, community-based initiatives and even helping people find missing pets. We’ve always done that and won’t be changing, in fact we’d like to do more. However, the readership that these stories generates is often below that needed to cover the cost of producing them. Our financial resources are limited and the local media environment is intensely competitive so there is a constraint on what we can do. We are therefore asking our readers to consider offering financial support to these efforts. Any money given will help support community and public interest news and the expansion of our coverage in this area. A suggested monthly payment is £8 but we would be grateful for any amount for instance if you think this site offers the equivalent value of a subscription to a daily printed newspaper you may wish to consider £20 per month. If neither of these amounts is suitable for you then contact info@neighbournet.com and we can set up an alternative. All payments are made through a secure web site. One-off donations are also appreciated. Choose The Amount You Wish To Contribute. If you do support us in this way we’d be interested to hear what kind of articles you would like to see more of on the site – send your suggestions to the editor. For businesses we offer the chance to be a corporate sponsor of community content on the site. For £30 plus VAT per month you will be the designated sponsor of at least one article a month with your logo appearing if supplied. If there is a specific community group or initiative you’d like to support we can make sure your sponsorship is featured on related content for a one off payment of £50 plus VAT. All payments are made through a secure web site. |