CHERRIES recorded a pre-tax loss of £55.5million in the club’s 2021-22 annual accounts, with a year end of June 30.
This is in stark contrast to the £17m profit recorded in the previous 12 months.
Cherries say this loss is “mainly as the club made a concerted effort to get back to the Premier League in its second season away”.
Cherries spent 2021-22 in the Championship, their second campaign outside of the top flight, and ended it by clinching promotion.
During the season, the club recorded an operating loss of £48.7m, having made a profit of £23.6m the previous year.
Much of the 2020-21 profit came by the way of player sales following relegation from the Premier League.
During the 2021-22 accounting period, Cherries sold the likes of Arnaut Danjuma, Diego Rico and Sam Surridge and spent transfer fees on Ryan Christie, Jamal Lowe, James Hill, Siriki Dembele and Kieffer Moore.
Despite still receiving £37.8m in Premier League parachute payments, the club’s turnover was down by £18.5m to £53.2m.
In 20-21, Cherries received £62.1m in parachute payments.
In a club statement, they say the drop in turnover “was mainly attributable to the reduced parachute payments receivable from the Premier League, although this decrease was offset by increased income from the return to full crowds and an active hospitality and events function after the Covid-19 pandemic”.
The club's full accounts can be read here.
Other figures of note show an increase in the number of staff hired by the club, rising from 339 to 580.
The club’s greenhouse gas emissions rose from 558 tonnes in 2020-21 to 667 tonnes in 21-22. The report states: “AFC Bournemouth Limited makes consistent effort to minimise greenhouse gas emissions through shared transport and encouragement and sourcing of energy efficient practices.”
It also reveals the club’s “highest paid director” received remuneration of £2m, a rise on the £1.8m in 2021.
Some notes have also been added including figures for after the year end, which will be fully included in the 2022-23 accounts, a period during which Bill Foley purchased the club from Maxim Demin.
It reveals the club spent £103.2m on 10 players since promotion back to the top flight. They include the likes of Marcus Tavernier, Marcos Senesi, Dango Ouattara and Illia Zabarnyi.
The accounts add how in February 2023, £30million was committed to fund the development of the new training facility at Canford Magna.
Discussing the accounts figures as a whole, Cherries’ chief executive officer Neill Blake said: “During the last financial year, our focus was to achieve promotion out of the EFL Championship, which was ultimately achieved.
“A strategy of targeted expenditure on valuable assets within the playing squad, along with supporting infrastructure, continued to be a key component of the club’s outlook. This underpins our ambition to compete in the Premier League on a regular basis.
“The directors maintain close control over cash flow and continue to develop and maintain policies with the aim of ensuring the club is run in a sustainable and successful manner. These policies are seen as vital in order to keep control over all club expenditure, in order to go some way to mitigating the risks arising from the inherent uncertainty over league status in the following season.
“We are very excited to see how the future of the club unfolds now that we have new ownership, with additional resources set to improve the club’s infrastructure, playing squad and global appeal.”
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