Cardiff City FC has reported a loss of £11.6 million in their annual accounts for the year ending May 31, 2024. The club attributes the loss to significant investments made during the financial year, aimed at establishing a more stable and prosperous future. The losses increased by £231,000 compared to the previous year, resulting in a balance sheet deficit of £30.8 million. These investments include the development of a new academy in Llanrumney and securing a 150-year lease for a new training base for the first team, costing £1.7 million. Additionally, running costs saw a £1.1 million rise, partly due to a one-off payment to terminate the lease of the old academy site.
A substantial portion of the investment, £7.5 million, was directed towards the playing squad, marking a £2 million increase from the previous year. Despite the losses, the club received notable income streams during the same period, with exceptional gains of £18.4 million. A significant portion of this income, £12 million, stemmed from litigation claims. Cardiff City Supporters’ Trust chair Keith Morgan indicated that a considerable portion of the gains could be attributed to the club’s ongoing legal claim against FC Nantes following the tragic death of Emiliano Sala in 2019.
In terms of turnover, the club recorded £23.2 million, a £3.4 million decrease from the previous year, mainly due to reduced sponsorship, advertising, and commercial income. Operating costs, which reflect the day-to-day expenses incurred by the club, reduced by £1.2 million to £10 million. Owner Vincent Tan and associated parties injected an additional £11.8 million in loans, with Tan’s loans not accruing interest. The club’s debts include £37.3 million owed to Tormen Finance Inc. and £68 million owed to owner Tan.
Despite the losses incurred, Cardiff City remains compliant with the profit and sustainability rules set by the EFL, which allow for losses of up to £15 million per year over three years. The club expressed optimism about the future, stating that while reducing operating losses remains a priority, the recent investments in the first team squad, the academy development, and the upcoming construction of a new training ground will position the club on a more stable and stronger footing moving forward.
In a statement, the club acknowledged the need for continued hard work to sustain the positive trend in reducing operating losses. The investments made in infrastructure, player development, and facilities are expected to yield long-term benefits, paving the way for a brighter future for Cardiff City FC. The financial accounts also reveal the potential for additional income from ongoing litigation, but these are not factored into the reported figures. Cardiff City FC remains focused on strategic growth and financial stability as they navigate the challenges and opportunities in the world of football.