Southampton: Saints announce BIG loss in latest financial accounts

On a Friday that produced news in the world of football for other reasons, Southampton released some notable financial accounts for the year ending June 2019.

The main point to take from them is that the club’s drop down the league has produced a financial conundrum to solve.

Overall, Saints made a £34m loss during the 2018/19 season which, on paper, is a remarkable change from their £29m profit from the previous year.

However, the 2017/18 figure was largely thanks to the world record sale of Virgil van Dijk to Liverpool which saw Saints make a profit of over £60m after signing him from Celtic back in 2015.

As Managing Director Toby Steele pointed out in a recent interview with BBC Radio Solent’s Adam Blackmore though, this loss does not take into account some of the fees received for players that were sold after June 2019.

Southampton owner Gao Jisheng (C) attends the English Premier League football match between Southampton and Chelsea at St Mary’s Stadium in Southampton, southern England on April 14, 2018. / AFP PHOTO / Glyn KIRK / RESTRICTED TO EDITORIAL USE. No use with unauthorized audio, video, data, fixture lists, club/league logos or ‘live’ services. Online in-match use limited to 75 images, no video emulation. No use in betting, games or single club/league/player publications. / (Photo credit should read GLYN KIRK/AFP via Getty Images)

Dusan Tadic joined Ajax for around £10m in July of that year and would have reduced the given figure slightly.

In recent years, Saints have tried to step up their commercial power in other parts of the world other than England.

They were purchased by Gao Jisheng from China and have entered into a sponsorship deal with Chinese company LD Sports too whilst spending time in Asia during the last two pre-season campaigns.

Growing their brand will take time but has not produced the required funds so far.

There are a number of reasons for this, with the main one being more recent struggles down the bottom of the Premier League table.

A team that is performing well, producing positive results against the biggest clubs in the league and perhaps showcasing their talent in Europe too would be more attractive to new fans wanting to find a team to follow.

Building a team of world class talent is also vital when it comes to attracting new interest and Saints will be hoping to work their way back into a position where this is more realistic under Ralph Hasenhuttl in upcoming seasons.