The 2025/26 season could not end quick enough for Watford, as they lost all of their last five matches, including three consecutive thrashings, when they were beaten by at least three goals.
As a result, they ended up in a lowly 16th in the Championship, which was their worst finish since 2009/10. Performances in the cup competitions were no better, as they crashed out at the first time of asking in both the FA Cup, hammered by Bristol City, and the Carabao Cup, eliminated by Norwich City.
Indeed, Scott Duxbury admitted, “We have to accept there were things we got wrong – and things that MUST improve over the close season.”
The chairman and chief executive added, “We’re not hiding from the unacceptable level of performance recently, it’s obvious this has been truly disappointing in the extreme.”
League Position
In truth, Watford have been on a downward trend for a while, having finished as high as 11th in the Premier League in 2018/19. They spent six out of seven seasons in England’s top flight before their most recent relegation in 2021/22, but next season will be their fifth in a row in the Championship. During this period, they have only once finished in the top half of the table – and that was in the first season after relegation.
Managerial Changes
This season’s struggles were highlighted by the club employing no fewer than three head coaches, which was a lot, even by Watford’s standards.
Following the dismissal of Tom Cleverley, former Real Valladolid manager Paulo Pezzalano was given first crack of the whip, but the Uruguayan was sacked after just ten games in charge.
He was replaced by returning manager Javi Gracia, but the Spaniard resigned in February, citing a lack of motivation. Interim Anderlecht coach Ed Still was next up, but he lasted less than three months before being shown the door.
That means that Watford have gone through an incredible 11 managers since the end of the 2020/21 season. Indeed, they have made 22 permanent appointments since 2014.
With admirable understatement, the Watford Supporters Board said, “It is clear that decisions taken at managerial level failed to provide the stability required for sustained success.”
The repeated managerial changes have clearly had an impact on Watford’s performances on the pitch, but how have things developed financially?
We will look at this using the latest available accounts, which cover the 2024/25 season, when they finished 14th under Cleverley.
Matters were not helped by the absence of Premier League parachute payments, marking the first season since 2014/15 that the club did not receive either full Premier League TV money or parachute payment income.
Profit/(Loss) 2024/25
As a result, Watford swung from a £12.8m pre-tax profit to a £16.0m loss, a decline of £28.8m in the bottom line, mainly due to a significant reduction in revenue, which more than halved, falling £31.6m from £57.6m to £26.0m.
This was exacerbated by lower profit on player sales, which dropped £13.5m (46%) from £29.3m to £15.8m.
This was partially compensated by a £14.5m (21%) decrease in operating expenses from £68.9m to £54.4m, as the club “implemented several cost saving initiatives and made efficiencies across the business”, while net interest payable fell by a third from £5.2m to £3.5m.
The main driver of Watford’s revenue decrease was, of course, broadcasting, which fell £33.4m (74%) from £45.0m to £11.6m, after the parachute payments ceased.
This was very slightly offset by an increase in commercial, up £1.6m (25%) from £6.2m to £7.8m, while player loans contributed £0.2m. Match day was basically flat at £6.4m.
Watford addressed the lower revenue by cutting costs, but could not do so to the same extent. The wage bill fell £4.9m (15%) from £33.0m to £28.1m, while player amortisation was slashed, dropping £4.1m (45%) from £9.1m to just £5.0m.
In addition, depreciation fell £1.1m (19%) from £6.0m to £4.9m, while other expenses were down £4.5m (22%) from £20.8m to £16.3m.
Although Watford would have been disappointed to post a £16m loss, especially after two profitable years, the fact is that it is absolutely normal for clubs to lose money in this ultra-competitive division.
As Duxbury noted, “Many Championship clubs lose at least £20m.”
