By David Owen
March 27 – Huddersfield Town managed to remain narrowly in profit during its second and, for now, final season in the Premier League. The Yorkshire club posted a pre-tax profit of £3.9 million for the year to end-June 2019, down from £29.7 million the previous year.
This was achieved on turnover down by nearly £6 million to £119.3 million due principally to a decline in TV and league cash. The Terriers were scrapping to stave off descent to English football’s third tier when the season was put on ice as a consequence of the COVID-19 pandemic.
With employee costs little changed at £64.2 million, up from £62.6 million, the main interest in the new accounts lay in their explanation of the club’s debt position. Pure Sports Consultancy Limited owner Phil Hodgkinson took over from Dean Hoyle as ultimate controlling party just after the 2018-19 year-end in early July.
A lengthy strategic report signed by Hodgkinson discloses that the year-end net debt balance consisted of £45 million owing to Hoyle, down from £49.4 million, and £31.7 million – up from just £700,000 – owing to “other lenders”. This was offset by cash balances of £13.8 million.
Notes to the accounts reveal further that a formal arrangement has been put in place for repayment of £45 million of “directors’ loans”. One-third of this sum is said to be repayable “within five business days of the last day of the summer 2020 transfer window”. Further tranches of £10 million are repayable by end-August 2021 and 2022 respectively. The remaining £10 million has no fixed repayment date.
A separate note discloses that the “right to the central funds distribution for the 2020-21 season have [sic] been assigned to the creditor for repayment” of a £31 million bank loan.
In the wake of the period under review, the club has been involved in player transfer deals, including the sale of Philip Billing to Bournemouth, which may bring in cash estimated at a net £15 million-£20 million.
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