Cost savings help under-pressure English FA back into the black

By David Owen

February 16 – The Football Association, which is facing mounting pressure to reform from British MPs, has released figures detailing cost savings made as a result of an organisational restructure announced in July 2015. 

The governing body of English football said it had achieved £25.4 million of cash savings, comprising reduced payroll costs – £6.5 million, non-payroll costs – £7.5 million and interest payable – £11.4 million. It is forecasting further savings of £2.8 million in the current season to bring overall annualised savings against the previous financial plan to £28.2 million.

The disclosure came as the body announced record annual turnover of £370 million for the year to end-July 2016. It attributed the increase, from £318 million the previous year, to confirmation of Emirates as lead sponsor of the FA Cup, along with tournament income.

After-tax profit of £7 million was reported, versus a loss of £9 million in 2014-15. Restructuring and reorganisation costs of £3 million, down from £10 million, were recognised, while a total of £125 million, up from £117 million, was said to have been invested back into the game.

While broadcasting income remains the organisation’s biggest revenue stream, it said that Wembley Stadium had hosted a record number of events during 2015-16, resulting in a revenue increase for the year.

Martin Glenn, chief executive, said that the FA had announced “key commercial deals” at the end of 2016, including a new 12-year deal with Nike and an international broadcasting deal for the FA Cup. The FA was, he said, “extremely well positioned to support English football for the foreseeable future”.

Further analysis will have to await filing of the FA’s financial accounts at Companies House in coming weeks.

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