The accounts reflect the 2019/20 season, which was the fourth under the ownership of Fosun and the second in the Premier League.
In terms of results on the pitch, the team recorded a two-point improvement on the previous season, the best top flight points haul since 1979/80, and a second successive 7th placed finish, meaning the best back-to-back finishes since 1961.
The club also competed in European competition for the first time in nearly 40 years, competing in the Europa League and recording memorable victories over established European teams such as Torino, Besiktas and Olympiakos, before eventually succumbing to a quarter-final exit to eventual winners Sevilla FC.
In an unprecedented moment for football and society, the Premier League and Europa League were halted by the Covid-19 pandemic, resulting in a number of matches taking place behind closed doors for safety reasons, and causing permanent losses to matchday revenues, such as ticketing, corporate hospitality, catering and sponsorship.
All fixtures following the Premier League restart in June and Europa League restart in August, and revenues in relation to these fixtures, will be reflected in the group’s financial results for the year ending 31st May 2021.
Broadcasting revenues for the season were also impacted by rebates due to broadcasters following disruption of the Premier League campaign, and several commercial operations were also closed from mid-March in line with government guidelines, with retail and non-matchday corporate events and catering, museum and stadium tours mandated to close.
As a result of all of these factors, revenue reduced to £132.6m (£172.5m in 2019).
Despite the challenges, the period saw continued significant investment in the playing squad, including the permanent signings of player of the season Raul Jimenez and Leander Dendoncker, as well as the significant acquisitions of Pedro Neto and Patrick Cutrone.
In addition, there was also investment in exciting future prospects such as Luke Matheson, Bruno Jordao and Meritan Shabani. Altogether, this resulted in a net player trading loss of £42.4m (£25.9m in 2019).
Overall, the financial loss for the year, after interest and tax, was £39.3m (profit of £19.5m in 2019).
It is important to note that, had broadcast revenues from suspended matchdays not been deferred, the club would have achieved a profit of £17.6m for the year, even with the permanent loss of matchday revenues for the final five home games of the season.
The full accounts can be accessed by clicking here.
