Brighton and Hove Albion Financial Results 2023/24

Season 2023/24, their seventh consecutive in the premier league, was a historic season for Brighton as they participated in European football for the first time.

After two consecutive top-10 finishes, Brighton's domestic season didn't quite reach those heights. They were in the top 10 for most of the campaign, but a poor run of form in the final months saw them finish in a respectable 11th place. Their participation in the Europa League, UEFA's second-tier competition, was a historic achievement and a testament to the club's remarkable growth. They finished top of their group in their debut season but were eliminated by Roma in the round of 16. In domestic cup competitions, they were knocked out in the fifth round of the FA Cup and the third round of the Carabao Cup.

The season also saw manager Roberto de Zerbi depart after two years, midway through his contract. The club stated that the departure was by mutual agreement, though it seems that de Zerbi may not have fully supported Brighton's strategic direction.

Financially Brighton is an interesting case. When Tony Bloom took over in 2009, the club was in League One, without a permanent home, and playing at the Withdean Athletics Stadium in front of just 6,000 fans. Over the past 15 years, Bloom has invested heavily in the club, transforming Brighton into a respected Premier League side, complete with a new stadium and regularly competing for European spots.

While Bloom's investment was the catalyst for their impressive growth, Brighton has still managed to achieve this without the excesses seen at some other clubs. Their smart player trading—finding great talent and making even better sales—has made them the most profitable club in the Premier League over the past two seasons. In fact, Bloom has been able to recoup part of his investment without it affecting the team’s performance on the pitch.

After topping the league with record profits of £133 million for season 2022/23, they are likely to do this again, with profits, at £75 million, just ahead of Manchester City. Whilst only eight clubs have released their accounts, it is unlikely any other club will post profits at this level.

Overview of Brighton's Financial Results 2023/24

With European participation for the first time, turnover reached a record £222 million, an £18 million increase from the previous year. As the club has matured, both staff costs and operating expenses have risen, but their continued success in player trading resulted in an impressive £75 million profit.

Financial Highlights Season 2023/24

• Record turnover of £222 million up £18 million from the previous year and the 10th highest in the league.

• European participation drove growth across all major revenue streams, although this was tempered by the lower premier league finish.

• Other income dropped by over £20 million, as 2022/23 accounts included compensation for Graham Potters move to Chelsea.

• Staff costs up 17% and operating expenses rose by 24% driven by European participation and hosting three additional matches.

• Profit on player sales at £110 million with sales of Caicedo, Mac Alister and Sanchez.

• Profit before tax, at £75 million, likely to top the league for the second consecutive year.

• A club records £122 million was invested in new players, with Pedro and Baleba major signings.

• Strong cash flows from player sales enabled the club to pay down a further £75 million of the debt owed to Tony Bloom.

• The 2023/24 accounts also included the sale of New Monks Farm, although this had little impact on the overall result.

Brighton’s outlook remains strong. Although they missed out on European qualification last season, they are once again challenging for a European spot, currently in 6th place, just 3 points behind the top 4. Their robust financial position has enabled them to make significant investments this season, with over £200 million spent on new players, one of the highest in the league. With profits secured, it’s clear they have no concerns about meeting the leagues profitability sustainability rules (PSR).

Turnover

With European football for the first time, it’s no surprise that the 2023/24 season saw record turnover. At £222 million, this was an increase of £18 million from the previous season and the 21st highest in Europe. A far cry from the £4 million turnover recorded when Tony Bloom acquired the club in 2009.

Like many clubs, Brighton generates the majority of its revenue from central distributions from the Premier League and (in Brighton's case) UEFA. In season 2023/24 this totaled £159 million, making up 72% of their overall revenue. Matchday revenue (12%) and commercial revenue (14%) making up the rest.

Overall, Brighton’s revenue ranks 10th highest in the league, and are now the leader among the smaller clubs.

As expected, all major revenue streams saw growth last season, with broadcast revenue increasing by 6.6%, matchday revenue rising by 13%, and commercial revenue up by 26%.

Matchday Revenue

Since 2011, Brighton's home ground has been the Amex Stadium, which has a capacity of 31,876. Like all Premier League clubs, all league home matches are sold out, with an average attendance of 31,531 last season, ranking 11th in the league. While there are plans for a small expansion of 800 seats, there are no major expansion plans currently in place.

European participation brought three additional sold-out home games, boosting matchday revenue to £28 million, up from £25 million the previous season. This makes Brighton's matchday revenue the 9th highest in the league.

Brighton earns around £37 per paying fan, the highest among the smaller clubs. This equates to about £1.1 million per home match. While there has been a small increase in ticket prices in recent seasons, a 7% increase is planned for the 2024/25 season.

The chart below shows that Brighton generates the highest revenue per fan among clubs with stadiums under 40,000 in capacity.

Broadcast Revenue

Broadcast revenue primarily comes from central distributions by the Premier League, UEFA (if the club participates in European competitions, as Brighton did for the first time), and revenue generated through the club's media platform.

67% of Premier League Broadcast Distribution for Season 2023/24 are shared equally among all clubs, with the remainder allocated based on league position (merit payments) and the number of televised live games (facility fees). Each league position adds an additional £2.8 million, and each live game generates around £900k.

As Brighton's league position dropped by five places, their merit payments decreased, and with one fewer live game, their facility fees also declined. Their total distribution was £136.8 million, down from £150 million the previous season.

UEFA distributions are based on several factors. While the majority goes to the Champions League, there are still substantial payments for participation in the Europa League. Although UEFA has not yet published exact distribution figures, we estimate Brighton will earn £16.1 million for reaching the Round of 16. This is all additional revenue for Brighton, given this is their first season in European competition.

The chart below shows expected UEFA distributions for clubs participating in one of the three tournaments.

Overall, Brighton's broadcast revenue for the season reached 164 million, making it the 9th highest in the league.

Commercial Revenue

Commercial revenue, which encompasses sponsorships, retail merchandising, tours, and other activities, reached £20.7 million, a 15% increase compared to the previous season. This growth is being driven by European involvement, new global partnership deals, and the club’s rising popularity. In addition, they earned approximately £10.3 million in other income, such as player loan fees, up from £6.7 million the previous season.

Brighton benefits from strong, long-term commercial partnerships with brands like American Express, Nike, and Snickers UK, while also expanding their global presence through international tours, including one to Japan. However, despite this growth, their commercial revenue still accounts for only about 10% of the top clubs.

Nonetheless, Brighton's total commercial revenue of £31 million ranks 11th in the league, ahead of clubs such as Crystal Palace, Brentford, and Fulham.

It’s important to note that Brighton’s published accounts include £38 million from the sale of New Monks Farm, but this figure has been excluded from the analysis of turnover.

Staff Costs

Achieving European qualification is a major achievement for any club outside the big 6. In Brighton's case this was even more significant as they achieved it on a relatively low salaries and wages base. In season 2022/23, when they qualified, their salaries and wages, at £128 million, was the 17th highest in the league. In addition, they had sold several key players, with only a few new additions to the squad.

Season 2023/24, unsurprisingly saw salaries and wages grow to £146 million with European bonus payments and several new player contracts. This is still only 12th highest in the league, and still lower than most of their peers. The chart below compares Brighton's cost to other non-big 6 clubs who have also qualified for Europe.

Brighton's player amortization and impairment cost (the write-down of player acquisition costs) again highlights their strong performance. At £42 million, this is expected to be lower than all clubs except Brentford, Luton and Sheffield United.

This demonstrates Brighton's ability to acquire high quality players at a good price. For example, compared to Manchester United (who you could argue have done the opposite), Brighton's amortization cost of £42 million are less than quarter of United's £190 million.

While only eight clubs have published full accounts, it is expected that Brighton total staff costs of £188 million to be 14th in the league, and equivalent to 85% of turnover.

Profit on Player Sales

Any discussion of Brighton's financial performance will quickly highlight their remarkable record of selling players for a profit. Over the past three seasons, the club has generated total profits of £294 million from player sales. This figure represents the sale value minus the current book value of the players and any associated costs.

Moisés Caicedo is the most obvious standout, but as the table below illustrates, many other players have also been sold for significant profits. Notably, these players are not typically sourced from high-profile clubs, showcasing the skill and sophistication of Brighton's recruitment strategy.

Profit from player sales in the 2023/24 season was £110 million, which is likely the third highest in the league, although slightly down from the previous season's £121 million.

Profit and Loss

Over the past three seasons, Brighton rightfully claims the title of the most profitable Premier League club, with combined profits of £232 million. Only Manchester City comes close, with £196 million. This achievement is particularly impressive in a league where very few clubs make a profit, and Brighton has done so without sacrificing success on the pitch.

Undoubtedly, their player recruitment and sales strategy plays a major role in this success, but the club has also managed to keep its operating costs under control. However, for the 2023/24 season, with the added costs of European participation, expenses did rise. Salaries and wages, along with general operating expenses, grew by 34% to £207 million. Their annual financial report states:

"The overall football cost base has increased, with consistent mid to high table finishes plus European football leading to an increased squad cost overall and increased ancillary costs in relation to further travel required for the Europa League games, improved first team catering facilities and general continued spend on improving facilities and processes to improve all levels of football at the Club. Administrative and operational costs have seen an increase due to the Europa League Cup run and the associated spend required together with costs associated to the production of the ‘Stand or Fall’ documentary."

This figure is still lower than turnover, meaning they posted a positive EBITDA (Earnings Before Interest, Depreciation, and Amortization).

For the 2023/24 season, profits stand at £75 million, a decrease from the record £133 million in the previous season, but still likely to be the highest in the Premier League. It’s important to note that the 2022/23 season included around £24 million in compensation for the departure of manager Graham Potter and his coaching staff to Chelsea.

Player Trading

Brighton has done an incredible job over the past three years, finishing 9th, 6th, and 11th, all while maintaining a player trading balance of -£71 million. They are one of only two clubs in the league with a negative trading balance over this period.

The high-value player sales have been a more recent development. The club has net spent of £121 million since they’ve earned their promotion to the Premier League - this is still very low by Premier League standards.

The 2023/24 season saw significant investment, with £122 million spent on strengthening the squad, including signings like Pedro, Baleba, and Verbruggen. This was slightly higher than the £113 million received, mainly from the sales of Caicedo and Sanchez.

Their strong financial position has enabled to invest at record levels in 2024/25. Over 200 million (large even by premier league standards) has been invested in a number of players including Rutter, Minteh, Weifler, Gruda, Kadioglu, O'Reily and more.

Football Debt

Brighton’s success has come of the back of over a decade of significant investment from owner Tony Bloom.

As shown below, the club's debt has been steadily accumulated since Bloom’s takeover, peaking at over £400 million, with an additional £95 million issued as equity. Initially, the funds were used to improve facilities, followed by investments in players. This strategic approach now seems to be paying off. In the 2023/24 season, Brighton used strong cash flows from player sales to reduce the loan by approximately £74 million, following a £25 million repayment the previous season.

Along with the loan repayment, £200 million of Bloom’s loan was converted into convertible loan notes. In Brighton's financial accounts, this effectively reduced the outstanding amount by another £154 million, leaving a remaining debt of £144 million to Bloom.

It’s important to note that in the chart below, we have classified the convertible notes as debt since conversion is at Bloom's discretion, meaning the total outstanding amount to Bloom is technically £300 million.

Cash Flow

A club's cash flow can vary each year due to factors such as payment terms for transfers, receipts from season tickets, and other fluctuations. The table below illustrates Brighton's consolidated cash flow over the past three years.

Cash flow from operations, which represents the cash generated by the club’s core activities before any investments or new funding, stands at a positive £61 million. This is typically positive when operating expenses are lower than turnover, though this is not always the case for clubs.

The club also received £220 million in cash from player sales and had £182 million in cash outflows for player acquisitions. These amounts can fluctuate based on the payment terms agreed with other clubs, as payments are often spread out over several years.

In addition, Brighton spent £25 million on fixed assets, resulting in a positive cash flow of £83 million. This surplus allowed the club to reduce its outstanding loan to Tony Bloom by a further £77 million.

Financial Outlook

There’s no doubt that Brighton is in one of the strongest financial positions of any club outside the Big 6. With two consecutive years of league-leading profits, reduced debt levels, and strong performances on the pitch, things are looking promising for the Seagulls.

However, they’ve made significant investments at the start of this season, which will increase costs, particularly in salaries and amortization. Additionally, player sales have understandably slowed, with Undav and Gilmour being their main departures. These sales are expected to generate around £28 million, a sharp decline compared to the last two seasons. Without European competition, their revenue is also set to drop, so it’s likely that Brighton will report a loss this season.

Brighton has stated that their strategic goal is to consistently perform in the top 10. Like all clubs outside the Big 6, the challenge is to maintain this level of performance while operating with revenues that are about a third of what the top clubs earn. The Premier League is financially risky, so striking a balance between investment and performance is a delicate task. That said, Brighton has shown that they are more than capable of meeting this challenge.

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