Swansea City confirm latest accounts

Swansea City has published its accounts for the year ending July 31, 2023, reporting a pre-tax loss of £17.9m.

Turnover increased by £1.8m from the previous year to a figure of £21.5m, including a significant £600,000 jump in commercial revenue.

Player trading produced a profit of £4.5m; this figure does not include the sale of Joel Piroe to Leeds United, which occurred after the end of the financial year reflected in these accounts. 

Operating expenses decreased slightly despite significant inflationary pressures that drove up certain costs during this financial year. Just as rising living costs are a primary concern for our supporters, increasing operational costs are a major challenge for Swansea City and all football clubs in the EFL.

While losses have increased, Swansea City remains in compliance with EFL Profit and Sustainability rules. 

It is important for supporters to note that expenditures counting towards Profit and Sustainability regulations are not the same as the headline figure reported in these accounts, as they include costs associated with the operation of the club’s academy and women’s team.

Across the year, Swansea City’s majority ownership continued to support the club financially through additional share capital. Several Convertible Loan Notes (CLNs) were also converted into equity across the financial year, reducing the overall debt burden on the club.

The recent news regarding an improved five-year broadcast deal for the EFL, effective from the start of the 2024-25 season, is one that is welcomed by the club. This development will provide Championship clubs with additional revenue, although broadcast income in this division remains vastly inferior to that in the Premier League.

The revenue and competitive gap between the Premier League and the Championship have stood out in concerning ways this season. The three clubs currently occupying the relegation places in the Premier League are the three clubs promoted from the Championship last season, and three of the top four teams in the Championship are those that were relegated from the Premier League. 

This state of affairs makes it all the more disappointing that discussions with the Premier League on a new revenue sharing agreement remain at a standstill. There had been progress heading into last autumn that raised expectations a new deal would be reached for the 2024-25 season at the latest. The Premier League, however, has still not submitted a formal offer. 

It is essential for the competitiveness of both divisions that a new revenue sharing agreement is reached, and Swansea City is working collaboratively with other EFL and like minded Premier League clubs to do all we can to help bring about that outcome.

Swansea City chairman Andy Coleman said: “I am committed to the twin goals of building a financially sound and sustainable business model and putting a team on the pitch that can compete for promotion. 

“These accounts represent the financial year prior to my appointment as chairman and much of the budget had already been set for the 2023-24 financial year before my arrival in Swansea in August 2023. 

“The 2023-24 season has been a challenging one. We have been working diligently to put the building blocks in place to turn around the footballing and financial performance of Swansea City.

“Much work remains to be done. The Championship is a very unforgiving environment, and we hold no illusions about how difficult it is to succeed on the pitch and off it.

“As I look forward to the 2024-25 season and financial year, I am encouraged by the work being done to expand revenue, increase profit, and strengthen the business model of Swansea City.”