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Financial challenges for Swansea

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Swansea City AFC may yet retain their place in the Premier League, but they face considerable financial challenges in doing so. Data provided by the author of the Swiss Ramble blog demonstrates that the main factor is a constrained revenue base with a huge reliance on broadcasting income.

Swansea are one of eight Premier League clubs to report a loss in 2015-16.   They went from a £1m profit the previous season to a loss of £15m before tax or a £20m operating loss.   This was partly because revenue was down 7 per cent to £97m.   Only Bournemouth and Watford have smaller revenues in the Premier League.   Profit on player sales was also down by £12m compared with the previous season.

Broadcasting revenues were down 7 per cent to £79m, reflecting a 12th rather than eighth place finish. TV revenues account for 82 per cent of total revenue.   Match day revenue is the second lowest in the Premier League.  Bournemouth, who have a small ground, have the lowest match day revenue.

The wage bill was up 16 per cent at £82m.  The wages to turnover ratio at 84 per cent was the second worst in the Premier League.   However, only £16m was spent on player additions, the lowest figure in the Premier League.

On the positive side, the club only paid out £0.4m in interest.   The gross debt was reduced from £25m to £1m, the lowest in the Premier League.