Losses widened at Middlesbrough Football Club as the club unsuccessfully chased promotion to the Premier League, new accounts show.
Accounts for Middlesbrough Football & Athletic Company (1986) Limited show that though the company鈥檚 revenues for the 2023-24 season increased from 拢28.6m to 拢32.2m, the club鈥檚 operating loss almost doubled to 拢11.9m as costs also rose. The club鈥檚 拢31.4m wage costs amounted to 97.3% of its turnover.
The accounts show how dependent the club is on chairman Steve Gibson, with nearly 拢150m owed to his company Gibson O鈥橬eill effectively written off after being converted to equity.
Middlesbrough finished eighth in the Championship during the season covered by the accounts, which cover the year ending June 24, 2024, missing out on the play-offs that provide a route to the riches of the Premier League. The club is currently fifth and in the play-off places as it chases promotion.
The accounts say: 鈥淭he management of the business and the execution of the company鈥檚 strategy are subject to a number of risks which principally occur around football, employees, and finance related matters.
鈥淭he biggest risk to the club is failing to perform competitively in the league in which it competes. This is managed by developing and recruiting a first team squad suited to the relevant league and employing a management team and support team with the requisite knowledge and experience. Notwithstanding this the risk of injuries to key players can make this difficult to control.
鈥淭he company operates in a challenging business environment and market sector where revenue streams can fluctuate significantly depending upon team performance on the pitch and costs can be unrelated to income being generated. The company continuously reviews the level of fixed costs incurred with a view to restricting unnecessary expense and matching costs to revenue streams to ensure the club operates within financial regulations governed by the English Football League.鈥
The accounts outline how a run to the quarter-final of the Carabao Cup added almost 拢2m to the club鈥檚 revenues, while sponsorship and commercial revenues increased from 拢7.7m a year earlier to 拢9.4m. It also recorded a 拢17.1m profit on player transfers.
