[Albion] Albion announce £122.8m profit for the 2022/23 season

[chaileyjem]

I don't know, we've often bought straight-into-the-first-choice-team players - eg Cucurella, Estupinan and Pedro - but they're usually limited to one per window. I reckon we might buy 2 or 3 this year, and I don't think we'll sell anyone apart from Undav and maybe a couple of other loanees that aren't likley to step up to PL

Pedro has been a success from the off and you’d probably add Verbruggen to the list. But what sort of signings were Milner, Dahoud, Igor , Fati and Baleba though ? I guess we’d hoped that we’d have got more out of all of em but injuries, age, Attitude, and learning the RDZ way have got in the way. But more than just squad players ?

 

[Coxovi]

What a bloke Bloom is.

Sticks in 406m of his own dosh and only gets back 33m, 17 years after he started helping the club financially.

Without TB its impossible to imagine anything resembling this level of success for our club/fans.

122m profit for a club whose star striker was signed for a grand and a set of Track Suits!!

Bet that 33m bought a lot of peace at home!

 

[Zeberdi]

@El Presidente's analysis can be found here:

Brighton & Hove Albion 22/23 Financial Report: Complete Control - The Daily Seagull

In-depth analysis of Brighton & Hove Albion's 2022/23 financial results, from the Price of Football's Kieran Maguire.

www.northstandchat.com

I never thought I would say this about reading annual financial reports (and I’ve read many over the years as board/committee member for various charities/orgs) but I really enjoyed reading that - @El Presidente

 

[Winker]

"Player sale profits are volatile and erotic" - I know you like accounts @El Presidente but that is a bit extreme isn't it?
That's one of your videos I won't be wanting to watch!

 

[Giraffe]

@El Presidente's analysis can be found here:

Brighton & Hove Albion 22/23 Financial Report: Complete Control - The Daily Seagull

In-depth analysis of Brighton & Hove Albion's 2022/23 financial results, from the Price of Football's Kieran Maguire.

www.northstandchat.com

This is superb. Well worth the read.

 

[Shropshire Seagull]

For players who didn't look interested most of the season.

Leicester is a fantastic example of how things can go sour very quickly - despite winning the Premier League in 2017, and making huge profits that year, then selling Maguire, Chilwell, Drinkwater, Mahrez and Fofana for a combined £300m, they have managed to incur the wrath of the EPL and the EFL in recent seasons. Thankfully, with TB and PBOBE at the helm, it's very unlikely we would ever get into that situation.

I do wonder how the tragic loss of their chairman in that helicopter crash has contributed to their demise?

 

[BN9 BHA]

Oops!

Must be really confusing when you have so many

 

[El Presidente]

It’s the price to pay for having a split personality.

Regards

EP

 

[nwgull]

Pedro has been a success from the off and you’d probably add Verbruggen to the list. But what sort of signings were Milner, Dahoud, Igor , Fati and Baleba though ? I guess we’d hoped that we’d have got more out of all of em but injuries, age, Attitude, and learning the RDZ way have got in the way. But more than just squad players ?

I disagree. They're all good players who more than hold their own in the PL, but none of them are definite starting 11 players when fully fit and available. There's not many players in our squad that are, to be fair - probably 6 or 7 at most - and it's this sort of player that I can see us buying one or two of in the summer.

 

[chaileyjem]

I disagree. They're all good players who more than hold their own in the PL, but none of them are definite starting 11 players when fully fit and available. There's not many players in our squad that are, to be fair - probably 6 or 7 at most - and it's this sort of player that I can see us buying one or two of in the summer.

Agreed - but as Ansu Fati has shown its supremely difficult to know that before signing them.

 

[Harry Wilson's tackle]

Wow. Tremendous.

This made me laugh:

There is an extremely high correlation between wages and final league position, but the club finished 13th in the league wage table (and could be lower when Fulham and a small club from London get round to publishing their results for 22/23 too).

 

[WATFORD zero]

Fabulous news, I don't expect this to have any impact on our strategy. Sell a couple in the summer for big money and bring in a handful of potentials all U21's and possibly 1 experienced player to bolster the squad

THIS. If the plan is working this well why on earth would you change it

 

[Lewes Punk]

@El Presidente's analysis can be found here:

Brighton & Hove Albion 22/23 Financial Report: Complete Control - The Daily Seagull

In-depth analysis of Brighton & Hove Albion's 2022/23 financial results, from the Price of Football's Kieran Maguire.

www.northstandchat.com

It's a great read - thanks El Pres.

Tiny point of order. Wasn't it Dick Knight who struck the original partnership with Amex, rather than TB?

 

[jcdenton08]

It’s the price to pay for having a split personality.

Regards

EP

Ever played any of the Tropico games? Might be right up your street

 

[Gabbiano]

A question for the accountancy and tax folk here.

How is it that the club have managed to pay as little as £10m tax on £133m pre tax profit (7.5%)?

Yes the same loopholes exist for every club and we can praise the club for clever accounting, but it all feels a little warped.

 

[Jim in the West]

The Athletic report includes the following:

"Brighton’s windfall coincides with De Zerbi considering his future due to reservations about the scale of squad strengthening to compete for a top-six finish again."

I'm sorry, Andy, it doesn't....the "windfall" presented in the latest accounts relates to the period ended 30th June 2023. It's only just been publicly announced, but the Board will have known the financial results last summer, and probably quite a bit before then. There will be another "windfall" announced 12 months from now, possibly even greater, given it will include the sales of Caicedo and Sanchez, plus the Europa League money.

The club haven't suddenly discovered a whole load of money which will make them rush out to spend it in response to RDZ's "reservations". As others have said, this won't change our strategy (if it was going to make a difference, we would have seen that in last summer's transfer window, and the January window).

 

[mwrpoole]

A question for the accountancy and tax folk here.

How is it that the club have managed to pay as little as £10m tax on £133m pre tax profit (7.5%)?

Yes the same loopholes exist for every club and we can praise the club for clever accounting, but it all feels a little warped.

I'm going to suggest that previous year losses can be offset against future year profits?

 

[Jim in the West]

A question for the accountancy and tax folk here.

How is it that the club have managed to pay as little as £10m tax on £133m pre tax profit (7.5%)?

Yes the same loopholes exist for every club and we can praise the club for clever accounting, but it all feels a little warped.

I'm surprised you haven't read Note 11 to the accounts

There's a couple of nice little tables showing how the tax charge is calculated. However, in essence, there are various adjustments that are made to the financial accounts in order to calculate the tax charge. Principally these are:

- Some items of expenditure may not be allowable for tax purposes
- You can offset tax losses from previous years (if you have them - and there are rules about how much, and which, tax losses can be utilised)
- Deferred tax (BIG WARNING - see below)

I'm being very simplistic here, partially for brevity, but partially because it's years since I did any meaningful tax accounting.

In the case of the 22/23 BHAFC accounts, the club will have utilised some of the tax losses from prior years (to the extent possible) [nb: there are still loads more losses to use in future years]. In addition, the actual charge in the accounts will be impacted by a rather theoretical concept called Deferred Tax. I'm sure there are many others who can explain this better than me, but in essence it takes account of the timing difference between certain things being allowed for tax, and certain things being allowed (or not allowed) in the P&L. Someone else is welcome to start a separate thread on the niceties of Deferred Tax....

 

[Greenbag50]

The downside is that other clubs now know we have money to spend when we overhaul squad in summer.
Who’s out I wonder?

 

[Tim Over Whelmed]

So glad Tony’s getting a substantial repayment from the capital loans he’s provided to the club. I would hate to see the amount of interest he could have earned on over £400m over the years. He is an absolute live saver and stellar bloke to boot. I can’t think of a more loved Premier League Club owner.

Hopefully, these figures puts into perspective all those that ‘demanded/expected’ us to spend above our sustainable levels to pad out the squad in January or replace our Midfield last summer. Paul Barber always said that the long term objective is for the Club not to be reliant on TB for financial investment- this feels like a significant step in the right direction.

When you think most commercial loans are going to be at least 10% ish in the current climate, the repayment for this season alone wouldn't have covered the interest on £400m, bloody 'ell!