The figures show a that turnover remained similar to that of the club’s first season in the Premier League, at £143.4m, against £139.4m — but there was a swing from £11.3m profit in 2017/18 to a £21.2m loss in 2018/19.
The change can be attributed to three main areas. Firstly, an increase in player wages, secondly player amortisation (transfer fees) and thirdly the additional costs of the change in the management team at the end of the season.
The accounts also show that the club fully complied with Premier League Profitability and Sustainability (Financial Fair Play) regulations for the period.
The club has once again taken the step of making the annual accounts – including an annual statement from chairman Tony Bloom – publicly available to all supporters, click here for the full set of accounts.
The Chairman’s Statement
These accounts relate to our second season in the Premier League, which really was a season of two very different halves. After significant investment during the summer transfer window, we had an excellent first half of the season. We again triumphed over Manchester United at the Amex, and, for the first time, we recorded three consecutive wins in the Premier League — a sequence which also saw Glenn Murray score his 100th goal for the club.
Going into Christmas, back-to-back wins over Huddersfield Town and Crystal Palace, on a memorable December night at the Amex, were followed by a Boxing Day draw with Arsenal, and victory over Everton in our last match of 2018. That put us in an excellent league position going into the New Year. Unfortunately, our league form dipped quite considerably in the second half of the season, and our Premier League survival was assured only two games before the season’s end. Despite our poor league form in the second half of the season, we embarked on a memorable FA Cup run and, although we eventually lost to Manchester City in the semi-final, that day at Wembley was another memorable occasion for the club.
Over his four-and-a-half years as manager, Chris Hughton did an exceptional job, of that there is no question. However, as the season ended, I felt it was the right time for a change in leadership for our senior men’s team. That is never easy with a good man, and a good manager, and Chris is both of those. Ultimately I took the decision as I felt we needed a new direction and a new style - building on the excellent foundation Chris’ tenure provided, having taken us from the lower reaches of the Championship into the Premier League.
With Dan Ashworth firmly in place as the club’s technical director following his arrival from The Football Association in February, we appointed Graham Potter as head coach, supported by his backroom team — Billy Reid, Bjorn Hamburg and Kyle Macaulay. The group — who had worked together at both Swansea City and Ostersunds - were joined on the first-team staff by club legend Bruno, who announced his playing retirement at the end of last season, and our existing goalkeeping coach Ben Roberts. The early signs this season have been encouraging, with some impressive performances.
We were delighted that our women’s team retained their Women’s Super League status in their first full season at the top level, and this summer we invested further in the squad, under Hope Powell’s leadership, with the aim of continuing our development and progress this season.
The club has also made a significant investment off the pitch, with work beginning on a £25 million training ground improvement, which includes a separate women and girls’ hub at the American Express Elite Football Performance Centre ensuring that all players will enjoy the same state-of-the-art facilities.
Our continued Premier League status is really important in helping us establish a longer term stronger financial footing. It also boosts our national and international profile, and recently we published a detailed economic and social impact report outlining the club’s contribution to the local community. It made fascinating reading and showed that the club’s contribution annually to the local economy is now £212 million, with £54 million going into the exchequer.
We are responsible, directly or indirectly, for 2,200 jobs, with more than 90% of those people living locally in the Sussex area. The American Express Community Stadium hosted more than 100,000 people at non-matchday events; and spending in the local area by home and away fans added more than £8.5 million annually to the local visitor economy. These are truly excellent figures for our city.
A busy close season also saw us reach a new long-term agreement with American Express, extending our partnership to be one of the most successful and enduring in world sport. American Express has been a tremendous supporter of our club for a long time now, and our new deal takes their commitment to an entirely new financial level. We are thrilled that one of the world’s top companies will continue to partner with us, and we look forward to helping American Express meet its local and international objectives for many years to come.
Community and supporters
Our fan base is growing faster than ever at home and abroad, with our global audience hitting an astonishing 150 million people around the world in our second full season in the Premier League. Notwithstanding our growing international presence, we also remain entirely committed to our local community, not least through our multi award-winning charitable arm Albion in the Community (AITC).
The Economic and Social Impact Survey showed that AITC’s work across Sussex has had a hugely positive impact on the local community valued at more than £28 million a year - making AITC one of the biggest charities in the south-east of England. Using the popularity of football and Brighton & Hove Albion, AITC engages more than 43,000 people each year, focusing largely on getting people active, helping them lead healthier lives, and raising aspirations and academic achievement.
AITC chairman Martin Perry and his team deserve huge credit for their achievements, and we are also grateful to the players and club staff for their enthusiastic support of AITC’s endeavours.
Martin, who has announced he will step down from the club’s board in September 2020, will continue to chair AITC and take up the role of honorary vice president of the club. His achievements for our club, and community, are well known, and on behalf of all Albion fans, I would like to say well done and thanks to Martin. This club would not be where it is today without the 20-year-plus commitment Martin has made.
I would also like to take this opportunity to thank our board of directors for their support - the majority give the club their time and expertise without charge. Our chief executive Paul Barber, now in his eighth season with our club, was promoted to the role of deputy chairman last season, and he continues to do a superb job, leading the club and overseeing our progress, success and growth, both on and off the pitch. I also thank the players and staff across all areas of the club. We are extremely fortunate to have such a committed, talented and professional team, working together to drive our club forward to a bright future.
Looking ahead
During the summer, we outlined a new vision for the club. For myself, Paul, and the board of directors, we believe it is essential that we continue to challenge ourselves and those around us, to ensure we keep moving forward with purpose and ambition. The last couple of years have been about stabilising, ensuring our survival, and doing everything we can to stay in the Premier League. Our new vision - to be a top-ten club in the Premier League, and a top-four club in the Women’s Super League - is designed to set our sights higher than just survival in the top leagues (however important this is). We have not put a timescale on it, and we are under no illusions this is a tough goal we are setting ourselves, but we are up for the fight.
We have a great team of people all around the club, great support from our fans, from our commercial partners, and from the wider community. Our new vision is not a target for this season or even a specific point in time. Just like our aim to be a Premier League club when we opened the Amex on promotion from League One, our new vision is a long-term aspiration, and is intended to inspire our club to even greater achievements.
Tony Bloom
Chairman