By David Owen
April 27 – AFC Bournemouth, the south-coast club growing accustomed to life in the English top flight, have reported a profit for their first-ever season in the Premier League. For the year to 31 July 2016, the Cherries posted pre-tax profits of £3.4 million. This compared with a restated loss of £39.4 million the previous season.
The accounts were completely transformed by Premier League TV money. Turnover rocketed from £12.9 million to £87.9 million, though oddly income from hospitality and events actually eased down from £1.29 million to £1.26 million. Staff costs doubled from £29.6 million to £59.6 million.
Player registration cost additions were almost £70 million, against £13.2 million and amortisation costs rose to £13.2 million from £3.7 million.
The wage bonanza extended into the boardroom, with the highest-paid director receiving remuneration of £1.07 million, up from £517,000.
The accounts included interesting detail on debt. At the year-end, the company owed minority shareholder, US-based Peak6 Football Holdings, a £19.6 million non-interest-bearing loan, secured over assets.
It also owed its British Virgin Islands-registered parent, AFCB Enterprises, a non-interest-bearing loan secured over assets with “a book and fair value” of £33.6 million. Previously repayable in February 2018, this loan now has no fixed repayment date.
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