Watford Finances 2021/22

You Spin Me Round (Like A Record)

Watford’s 2021/22 financial results covered the first season back in the Premier League following their immediate promotion from the Championship the previous year. However, their stay in the top flight was short-lived, as they ended up in 19th place, so were relegated once again.

There were the usual changes in management, as head coach Xisco was replaced by Claudio Ranieri, who was then succeeded by Roy Hodgson. Moreover, the managerial merry-go-round has continued this season, as Rob Edwards (now doing very well with local rivals Luton Town) was replaced by Slaven Bilic, who departed in March with Chris Wilder currently in the hot seat.

That makes six coaches in two seasons, which does not exactly inspire confidence. Not least after this season’s upheaval so clearly contradicted June’s message from chairman and chief executive Scott Duxbury: “In Rob Edwards, we have appointed a manager we all totally believe in, and a manager who will lead and drive that change. We will be supporting Rob Edwards come hell or high water.”

Profit/(Loss) 2021/22

Watford’s pre-tax loss slightly reduced from £19m to £16m. Revenue shot up £71m from £57m to £128m following promotion to the Premier League, but profit on player sales fell £41m from £56m to £15m, operating expenses rose £23m (18%) and net interest payable increased £2m (34%) to £7m.

In addition, there was no repeat of prior year’s £2.5m insurance claim in other operating income.

The main driver of Watford’s £71m revenue growth was broadcasting, up £35m (71%) from £50m to £85m, due to the more lucrative Premier League deal, though commercial also grew an incredible £32m from £4m to a club record £36m.

In addition, match day increased £5.2m from £1.6m to £6.8m, due to the return of fans to the stadium, though player loans fell £1.0m from £1.5m to £0.5m.

Watford’s wages rose £14m (21%) from £65m (including hefty promotion bonuses) to £79m, but player amortisation fell £5m (16%) from £33m to £28m and player impairment decreased from £2.5m to £1.6m.

Other expenses increased £15m (71%) from £22m to £37m, mainly due to the higher cost of staging games with fans.