Bournemouth make big losses - and get fined
Bournemouth made a £38.3m loss in the Championship last season. The loss was mainly due to players' wages. The salary bill of £30.4m was more than double the club's turnover.
Wages went up by more than 76 per cent in one year, including performance bonuses for winning promotion. The ratio of salaries to turnover was 237 per cent. I cannot recall such a high ratio among top flight clubs.
Last season's wage bill topped that of Burnley, who were then in the Premier League, and was £10m more than promoted Watford. The club's Russian owner, Maxim Demim, has pumped in millions of pounds and net debt doubled to £40.3m.
However, the income from the Premier League's TV money will be at least £66m and should cover expenditure even with further increases in wages and transfer spending.
The club had to pay a fine of £7.6m for breaching financial fair play rules. Under Football League rules, clubs are permitted to lose only £6m per season.