Southampton reports profits

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The Championship club has reported pre-tax profits of £232,000 for the year ended May 31 2005, compared to £2.98 million the year before. Turnover fell by 10.0% to £44.83m from last year’s £49.82m, and includes an exceptional profit of £3.09m attributable to the completion and sale of the housing development on the club’s old ground, the Dell, since the club maintained a carried interest in the final outcome.

Broadcasting income for the year was down by £4.4m on the previous year to £20.1m partly as a result of the lower centrally negotiated deal between Sky and the Premier League, but largely as a result in the reduction in the size of the merit award, based on final league position, which fell from £5.0m to £500,000. Southampton Leisure Holdings, the company owning Southampton Football club, has

The real impact of the club’s relegation, the first time the club has been out of the top flight in 27 years, will be felt by the club in the following seasons if the club does not get promoted back into the PL. Television income from participating in the Championship competition is far below that from the Premier League, but Southampton will have the benefit of a parachute payment for two years based on 50% of the Basic TV award and 50% of the Overseas TV distributions. Earnings per share were sharply reduced from 5.6p to 0.3p as was the recommended dividend for the year at 0.5p down from 3.0p the year before.