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Southampton: 2017/18 finances show importance of PL safety for Saints

By Marc Walker

SOUTHAMPTON, ENGLAND - APRIL 14: General view inside the stadium prior to the Premier League match between Southampton and Chelsea at St Mary's Stadium on April 14, 2018 in Southampton, England. (Photo by Henry Browne/Getty Images)
SOUTHAMPTON, ENGLAND - APRIL 14: General view inside the stadium prior to the Premier League match between Southampton and Chelsea at St Mary's Stadium on April 14, 2018 in Southampton, England. (Photo by Henry Browne/Getty Images) /
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Southampton released their financial results for the 2017/18 season yesterday and showed the cost of a poor campaign overall for the club.

Whilst the sale of Virgil Van-Dijk saw them make a healthy profit, a 17th-placed finish in the league and a lack of income from European football and EFL Cup saw revenues take a significant hit.

A decrease in turnover of £29.6m from £182.2m in 2016/17 to £152.6m (also shown in the 2019 Deloitte Football Money League report) last season because of that poor domestic performance saw an overall operating loss of £12.5m (according to Adam Blackmore‘s interview with Saints Managing Director Toby Steele).

The club have tried to move away from the strategy of selling their players in recent years and tried to secure some of their best talents on bigger contracts following Europa League qualification.

For example, players such as Fraser Forster, James Ward-Prowse, Virgil Van-Dijk, Steven Davis, Ryan Bertrand, Shane Long, Dusan Tadic and Cedric all signed new terms ahead of the 2016/17 season.

SOUTHAMPTON, ENGLAND – DECEMBER 10: Ralph Krueger, Chairman of Southampton and Gao Jisheng, Southampton club owner prior to the Premier League match between Southampton and Arsenal at St Mary’s Stadium on December 10, 2017 in Southampton, England. (Photo by Catherine Ivill/Getty Images)
SOUTHAMPTON, ENGLAND – DECEMBER 10: Ralph Krueger, Chairman of Southampton and Gao Jisheng, Southampton club owner prior to the Premier League match between Southampton and Arsenal at St Mary’s Stadium on December 10, 2017 in Southampton, England. (Photo by Catherine Ivill/Getty Images) /

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This and other renewals further into the campaign equated to a rise of £19.4m in payments to the playing squad and could be part of the problem that Saints now encounter.

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An early exit from the Europa League in 2016 saw disappointment and the team then struggled at the bottom of the Premier League table during the following season.

The drop in position from 8th in 2016/17 to 17th in 2017/18 suddenly saw them lose around £17.5m in merit payments and their expenditure was now starting to catch up with the revenue generated.

Despite the club trying to grow commercially, the importance of staying in the Premier League is vital to Saints at this moment in time.

£107m of their income last season came from television and merit payments and income overall would reduce significantly should they be relegated to the Championship.

Saints’ fate remains in their own hands, but it has been documented how clubs such as Aston Villa have suffered in dropping to the second-tier after failing to get back up on a number of occasions.

If they do manager to stay up, players may well be moved out of the club to cut some extra costs – as seen in January with the departures of Steven Davis, Wesley Hoedt, Cedric and Manolo Gabbiadini.