Hull City football club made a £20m loss despite seeing increased turnover and significant profit on the sale of players.
Accounts for Hull City Tigers Limited have been published for last season, showing that the club saw its turnover rise from £15.2m a year earlier to £18.1m. But operating losses almost tripled to stand at £20.6m, with the club’s wage bill being more than its entire turnover.
The accounts make clear that the club is dependent on the support of its parent company, Acun Medya Holdings, with debts rising to more than £22m. The accounts - which cover the first full year under the control of owner Acun Ilicali - show that money from TV and the Football League was the club’s largest source of income at £8.2m. Ticket sales rose slightly to £3.9m but there was a fall in other match day income to £2m. The club brought in £15.3m in player sales and spent £8.4m on bringing in new players.
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The club ended the 2022-23 season in mid-table but are faring better this year, with the team currently in the play-off positions and having put an end to a four-game Championship losing streak with a 1-0 win over Milwall at the weekend.
The accounts say: “The business had a full-year of unrestricted attendances at matches with increased attendances. Together with an increase in broadcast revenues, this enables us to achieve an increase in turnover of 17.6%, however with this there were increased costs resulting in an operating loss.”
The accounts show a big rise in the company’s wage bill, which almost doubled to £23.7m. But it is not the only Championship club where wages exceed turnover, with Middlesbrough reporting a similar position last month.