Sheffield United posted a profit of £17.5 million in their first year back as a Premier League club despite extensive losses caused by the COVID-19 pandemic.
The surplus is only the second posted by the south Yorkshire club in more than a decade, which underlines the value of Premier League football.
The club’s financial accounts for 2019-20 revealed that their turnover shot up to £143.1 million from £20.8 million in 2018-19 following promotion to the top flight. The 2019-20 turnover represents a record high for the club.
What are the significant figures?
Much of the increased turnover came from broadcasting revenue, which saw the Yorkshire club receive £116.8 million in the year to July 31, 2020 (up from £8.3 million the previous financial year).
Sponsorship also rose sharply to £14.8 million from £2.9 million, while staff wages soared to £77.9 million (up from £40.7 million the previous year, a figure that included promotion bonuses).
How did the club manage to post a profit?
United served notice in February that their accounting period had been nudged back from the usual June 30 year end to July 31, 2020.
This meant the figures covered the entire extended top flight season, which did not finish until July 26. It also ensured the buyback of Bramall Lane, the club’s Shirecliffe training ground and other properties belonging to previous owner Kevin McCabe were included in the 2019-20 figures.
What else did the accounts reveal?
The accounts for Sheffield United Football Club, part of the Blades Leisure Limited group, reveal £38 million was spent buying back those properties as part of the High Court ownership case settled in Prince Abdullah’s favour during September, 2019.
These included Bramall Lane and Shirecliffe, along with a development centre on Crookes Road in the city, plus the hotel and serviced office centre that sit adjacent to the stadium. The Court set a deadline of last July to complete the deal.
A mortgage is understood to have been taken out to cover the outlay.
How did COVID-19 impact the club’s finances?
Projected turnover for the first season back in the top flight had been £155 million but losses attributable to COVID-19 — including both broadcasting rebates and lost ticket revenue — brought that figure down substantially.
According to the newly released accounts, this reduction was made up of £8.7 million (lost broadcast income), £2.5 million (lost revenue) and £467,171 (increased costs) after the season was, first, delayed and then completed behind closed doors.
How does this compare to previous years?
United’s only previous profit in the past decade came in 2013-14, the year Prince Abdullah joined forces with McCabe as joint owners. But that was largely down to McCabe writing off a substantial loan before going into partnership with the Saudi businessman.
Otherwise, the release of the annual balance sheet each year has brought a sharp intake of breath with United losing £21.3 million last year.
In 2017-18, United’s accounts showed a £2 million loss — though only thanks to an £8.4 million in players sales, believed to be substantial sell-on clauses in the deals that saw Kyle Walker and Harry Maguire leave south Yorkshire for the Premier League.
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