Southampton announces profit while in takeover talks

After turning a profit for last year, English Southampton still is holding takeover talks.

SISU Capital Limited made a formal offer for the club, which could be the largest investment windfall since Southampton went public in 1994.

The club needs an investment infusion now that it does not have parachute payments. Southampton also wants to keep its current roster of players, with no desire of a sell-off with a chance to gain Premier League status.

At the same time, the club announced a GBP 200,000 profit for the year ending 30 June. That was GBP 3.5 million better than the club posted the previous year. Notably, player trading profit for the was reduced to GBP 7.5 million from 11.2 million. Turnover settled at GBP 23.2 million.

The biggest cause for financial concern is that gross debt was at GBP 24 million versus assets of GBP 8.1 million. That has hindered the club's efforts at borrowing, and has made investment a must.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.