The exceptional item came in a show of commitment from ownership group Fosun, who capitalised and transformed into equity £126.5m of shareholder loans.
The accounts reflect the 2020/21 season, which was the fifth under the ownership of Fosun and the third consecutive season in the Premier League.
In terms of results on the pitch, the team faced many challenges, including significant injuries to important players, and playing without supporters present for the duration of the season. However, the efforts of the team still resulted in a 13th-place finish with 45 points which, despite being lower than the 2018/19 and 2019/20 seasons, was still the third-highest finish the club has achieved since 1980.
All home matches in the year were played ‘behind closed doors’, aside from the final league game of the season, where a reduced capacity of 4,500 was allowed. Such circumstances resulted in permanent losses to matchday revenue streams, such as ticketing, corporate hospitality, matchday catering, sponsorship, advertising, mascot experiences and matchday programmes.
The suspension of all football on 13th March 2020 meant that the final nine Premier League fixtures of the 2019/20 season were played in June and July 2020, with two further UEFA Europa League games played in August 2020.
Deferred broadcast revenues were recognised upon the completion of these fixtures and are reflected in these financial results, in addition to the entirety of the 2020/21 season. However, broadcasting revenues were once again impacted by rebates due to broadcasters following disruption of the 2019/20 season.
Other commercial operations such as in-store retail, non-matchday corporate events and catering, museum and stadium tours were also mandated to close by the government because of the pandemic. While the retail business remained successful after a shift to online sales, and social distancing and safety measures allowed the store to reopen, other areas of the business remained closed throughout the year.
As a result of the increased number of matchdays within the financial year (47 league matches compared to just 29 in 2020), and despite permanent losses to matchday and associated revenues, overall commercial revenue increased to £194.1m (£132.6m in 2020).
Player trading in the year generated a net loss of £10.7m (£41.8m loss in 2020).
Income of £60.8m was generated through the disposal of players’ registrations, driven by the sales of Diogo Jota, Matt Doherty, Helder Costa and Tsun Dai, alongside crystalising contingent fees due for Ivan Cavaleiro and Pedro Goncalves.
This, however, was outweighed by higher amortisation and impairment charges on player registrations, totalling £71.5m, driven by continued investment in the first-team and Academy, including the acquisitions of Fabio Silva, Nelson Semedo, Ki-Jana Hoever, Marcal and Toti Gomes, amongst others.
Overall, the financial profit for the year, after interest and tax, was £18.4m (loss of £40.2m in 2020).
The full accounts can be accessed by clicking here.
