Southampton Finances 2022/23

A Change Of Heart

Southampton’s 2022/23 financial results covered a “disappointing” season, which culminated in the club finishing rock bottom of the Premier League.

They did better in the cups, eliminating Manchester City on the way to the semi-finals of the EFL Cup and reaching the fifth round of the FA Cup, but that was little compensation for relegation to the Championship after 11 years in the top flight.

As a sign of the club’s problems, they dismissed no fewer than three managers in less than 12 months: Ralph Hasenhüttl in November 2022, Nathan Jones in February 2023 and Ruben Selles after the season concluded.

Ownership

This was the first full season under the control of Serbian media mogul Dragan Solak, who bought 80% of the club for £100m in December 2021 via his investment vehicle Sport Republic Limited. He acquired his stake from Chinese businessman Gao Jisheng, who had controlled the club since 2017, with Katharina Liebherr retaining the remaining 20%.

Profit/(Loss) 2022/23

Southampton’s pre-tax loss shot up from £15m to £87m, as revenue fell £5m (3%) from £151m to £146m and profit from player sales dropped £24m from £31m to £7m. Operating expenses rose £36m (19%) to £224m, while net interest payable was up 76% from £9m to £17m.

The loss after tax was even higher at £94m, due to a £7m tax charge.

The main reason for the reduction in Southampton’s revenue was broadcasting, which fell £7m (6%) from £115m to £108m, due to worse performance on the pitch. In contrast, match day rose £1.8m (10%) from £17.4m to £19.2m, while commercial was slightly higher at £18.4m. In addition, other operating income decreased from £0.5m to £0.3m.

Southampton’s wages rose £9m (8%) from £113m to £122m, while player amortisation increased by £17m (48%) from £35m to £52m. Other expenses were up £9m (25%) from £36m to £45m.

Unsurprisingly, Southampton’s £87m pre-tax loss was one of the worst financial results in the Premier League last season, only surpassed by Aston Villa £120m and Everton £89m to date, though some other clubs also posted large deficits in 2022/23, such as Newcastle United £73m, Nottingham Forest £67m and Wolves £67m.