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’s revenues for the 2023-24 season increased from £28.6m to £32.2m, the club’s operating loss almost doubled to £11.9m as costs also rose. The club’s £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 £150m owed to his company Gibson O’Neill 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: “The management of the business and the execution of the company’s strategy are subject to a number of risks which principally occur around football, employees, and finance related matters.
“The 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.
“The 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.”
The accounts outline how a run to the quarter-final of the Carabao Cup added almost £2m to the club’s revenues, while sponsorship and commercial revenues increased from £7.7m a year earlier to £9.4m. It also recorded a £17.1m profit on player transfers.
