Swansea City Pay For Premier League Ambition
Wed 25th Jan 2012 | Money & Finance
Swansea City’s latest accounts have revealed the true cost to them becoming the first Welsh club in the Premier League.
Securing Premier League football contributed to a loss of £8.2m in Swansea City's financial results for the year ending May 30, 2011.
The accounts released by the club earlier this week reflect the cost of the club's liabilities which arose immediately after the final whistle was blown at Wembley in May when they beat Reading in the play-off final.
They include player and football management bonuses, additional transfer and loan fees, compensation to Football League relegated clubs, plus the loss of the club's share of Wembley gate receipts ceded to the losing play-off finalists.
However, the Board of Directors is confident that the increased profit from the club's first campaign in the Premier League will cancel out those losses and the club will end the financial year at May 31, 2012, in a sound financial position.
The club's operating budgets for 2011-12 are structured for this to happen in order to maintain the club's philosophy of running a financially stable football club.
A statement from the Board of Directors read: "The Board of Directors is pleased to announce that the club completed its third and most successful season in the Championship, gaining promotion to the Premier League and is proudly wearing the mantle of being the first Welsh club to do so.
"While the accounts reveal an overall loss after tax of £8.2m, which was consequently unavoidable after our Wembley win, the large amount of income generated in the Premier League has subsequently enabled these liabilities to be adequately met in the current financial year.
"The accounts for the current financial year ending May 31, 2012, will be adversely affected by an increase in operating costs, particularly payroll, but our resolve is to realise sufficient profit to counter the 2010-11 loss and our operating budgets are structured to make this happen.
"With regard to the future, our immediate goal is to consolidate our position in the Premier League and ensure we survive this season. Our long term goal will cater for Swansea City remaining as a top flight club and to continue to contribute in part to the feel good factor and prosperity in the local community.
"We will not, however, do this in any way that puts the club's financial stability at risk. This remains paramount in our management philosophy.''
Swansea celebrated 10 years since the club was saved from extinction yesterday (24th Jan) when the club was bought for £1 by a group of local businessmen and fans.
Huw Jenkins, who became chairman a year after the takeover, said: "Without the work of the board, club, council and supporters we wouldn't have a football team to support right now.
"We can all feel immense pride at the development of our club in the past ten years. It has been an amazing journey, and I hope we will all be reflecting on yet more success in ten years' time."
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