Albion post £7m loss in latest set of accounts
WEST Bromwich Albion have posted a pre-tax loss for the second year running as the club saw revenue tumble following its relegation from the Premier League.
In its newly published annual accounts for the year to June 30, 2019, West Bromwich Albion Holdings made a pre-tax loss of £7 million, a slight improvement from £7.5 million in 2017/18, while revenue fell by £54 million to £70.8 million.
This was the club’s first season in the Championship since 2010 following its relegation from the Premier League at the end of the 2017/18 campaign.
The drop in turnover was due in large part to a fall in media-related income, from £102 million to £52.8 million, as a result of moving from the Premier League to Championship TV deal.
Albion have now vowed to invest in bringing younger players through to the first-team as it battles to meet Financial Fair Play regulations which relate to professional football clubs not spending more than they earn and falling into problems which might threaten their long-term survival. A statement accompanying the annual accounts said: “The board is aware of the risks which affect the group. It has analysed previous seasons in the Premier League and Championship and tried to implement lessons learned from this experience.
“The long-term policy of the club is to return to the Premier League and improve its infrastructure year on year.
“The board actively monitors and considers the role of Financial Fair Play regulations in how it operates. These regulations require the board considers all aspects of how any player transfer or wage agreements entered into are beneficial to the club. Furthermore, if the club remains in the Championship for a prolonged period, this will have a direct impact on the trading practices and wage structures to which the club will adopt and commit.
“As a result – and in a calculated contrast to its Premier League strategy – the board has targeted a greater emphasis on the development of younger talent at first team level. It is designed to provide future funding opportunities which will help ensure a competitive squad being retained in the long term while fulfilling the requirements of Financial Fair Play.”
Gate receipts remained static for the 2018/19 season following the relegation, dropping slightly from £7.4m to £7.3m, while season ticket sales actually increased by 400 to 17,750. The club’s wage bill also fell dramatically from £92.2 million in 2017/18 to £46.8 million which the club said was mainly owing to clauses in players’ contracts which saw basic wages reduced on relegation.