Season 2023/24 was Fulham's second consecutive season in the Premier League and their fourth in the top-flight in the last six seasons.
After finishing 10th in the previous season, Fulham struggled with consistency throughout 2023/24, spending most of the season in mid-table and ultimately finishing 13th place with 47 points. They would have finished one spot lower, had it not been for Everton’s points deduction. In cup competitions, Fulham had a good run in the Carabao Cup, reaching the semi-finals before being knocked out by Liverpool, while their FA Cup journey ended in the fourth round.
Fulham's recent financial news has been largely on the construction of the new Riverside Stand. Funded by owner Shahid Khan, the project has faced numerous delays, including the primary contractor going into administration. Additionally, there has been criticism that the stand prioritizes corporate hospitality and attracts "tourist" fans, leaving local supporters unhappy.
Since acquiring the club from Al Fayed in 2013, Khan has invested roughly £700 million in Fulham, with approximately £300 million of that allocated to developing the club's facilities.
Overview of Fulham's Financial Results
Throughout Shahid Khan's ownership, Fulham have been operating at a loss, and season 2023/24 was no exception.
Finishing 13th led to a decrease in central broadcasting payments from the Premier League. However, this was offset by higher matchday and commercial revenues, resulting in an overall turnover of £181 million, similar to the £182 million the previous year. Staff costs increased by 15% and remain greater than turnover. Although the club earned £33 million from player sales, they still recorded a significant loss of £32 million, higher than the £26 million loss posted in the previous season.
Financial Highlights for the 2023/24 Season:
Fulham’s turnover remained unchanged from the previous season at £181 million.
Broadcast revenue dropped £10 million, primarily due to a lower league finish.
The partial opening of the Riverside Stand contributed to an increase in matchday revenue (up £3 million). Commercial revenue increased £6 million.
Staff costs rose by 15%, now ranking as the 11th highest in the league, and amounted to 117% of turnover.
The sale of Mitrovic helped generate £33 million in profit from player sales.
The club reported a record pre-tax loss of £32 million, higher than the £26 million loss the previous season.
£88 million was invested in the squad, including the signings of Iwobi, Bassey, and Castagne.
Net player trading stood at £44 million, one of the lowest in the league.
An additional £75 million was invested in facilities, primarily for the Riverside Stand.
Owner Shahid Khan injected further funds of £123 million into the club.
While the stadium development has posed a significant challenge, Fulham must also manage their profitability in accordance with the Premier League's Profit and Sustainability Regulations (PSR). The Premier League has confirmed that no club breached PSR requirements for the 2023/24 season. However, Fulham has accumulated losses of £117 million over the past three seasons before PSR adjustments, so they must exercise caution.
As of this report, Fulham sits in 8th place, and if they can maintain their current form, they will earn higher broadcast income. Additionally, the expanded stadium capacity will increase matchday revenue. Should they qualify for Europe, it would also provide a significant financial boost for the 2025/26 season.
Turnover
Like many of the smaller clubs in the Premier League, Fulham' turnover is heavily reliant on their league position and the corresponding distributions from the Premier League. In the 2023/24 season £135 million came from this source, accounting for 74% of their total income. Their matchday revenue, at £18 million, ranks 12th in the league, while their commercial revenue of £29 million is roughly 10% of what the top clubs generate.
Overall, Fulham's total revenue of £182 million places them 13th in the league.
While broadcast revenue will fluctuate based on their league position, Fulham has successfully increased matchday and commercial revenue in recent seasons. The opening of the Riverside Stand is expected to further boost these revenue streams.
Matchday Revenue
Matchday revenue is influenced by factors such as the number of home games, average attendance, ticket prices, and the club's ability to generate income from hospitality events and corporate boxes. The only exception to this is domestic cup matches, where revenue is shared between the clubs and the FA.
Fulham’s progress in the Carabao Cup last season resulted in two extra cup games, with the club receiving 45% of the gate receipts. Average attendances increased slightly, from 23,746 to 24,301, with the lower tier of the Riverside Stand now open. Combined this boosted the total number of paying fans by 13%. Also, Fulham has faced some controversy due to significant price hikes, including steep increases in adult season ticket prices. Ticket prices for the new Riverside Stand are now among the highest in the Premier League.
Overall, including income from hospitality, Fulham generated approximately £33 per attending fan. This figure is on par with clubs like Brentford and West Ham but still falls behind Brighton and Newcastle.
Fulham's matchday revenue at £18 million was the 12th highest in the League.
This season, we expect this figure to grow further as the stadium's capacity has increased to 28,800, and additional corporate packages are now available.
Broadcast Revenue
Broadcast revenue primarily comes from central distributions from the Premier League, UEFA (if the club participates in European competitions), and revenue generated through the club's media platform. For Fulham, broadcast revenue is almost entirely derived from Premier League distributions.
The chart below illustrates the distribution by club for the 2023/24 season. A significant portion, 67%, is evenly distributed among all clubs, with the remainder based on league position and the number of televised live games. For more information on how the Premier League central payment distribution system works check out our blog Premier League Broadcast Distribution for Season 2023/24.
Fulham earned £95.1 million from the equal share, £22.5 million for finishing in 13th place, and £11 million from their 12 live televised games, one of the lowest in the league.
If Fulham can maintain their current form, they will increase their share this season, with each League position worth around £3.7 million.
Commercial Revenue
Commercial revenue, which includes sponsorships, retail merchandising, tours, and other activities, reached £28 million in the 2023/24 season, an increase of nearly 30%. Like many Premier League clubs, Fulham has partnered with the betting industry, securing a 'record' sponsorship deal for the 2023/24 season with global betting company SBOTOP. This deal, which covers the 'front-of-shirt' sponsorship, is valued at around £10 million per year.
However, this agreement can only last for two years, as Premier League clubs will be banned from displaying betting company logos and names on the front of shirts starting in the 2026/27 season.
As shown below, commercial revenue continues to be a key differentiator between the "Big 6" and the rest of the league. Despite having the lowest commercial revenue among the Big 6, Arsenal still generates 2.5 times more than the next highest, Newcastle. Fulham ranks 14th in the league, with its commercial revenue comparable to clubs such as Brentford, Wolves, and Brighton.
Staff Costs
In the 2023/24 season, staff costs saw an increase. Salaries rose by 11% to £155 million, while amortization (the write-down of player acquisition costs) grew by 26% to £57 million. This resulted in a total increase of £27 million, or 15%, compared to the previous year.
These increases are significant, especially given that turnover showed no growth. With total staff costs of £212 million (before player sales), Fulham’s costs are the 11th highest in the Premier League, surpassing comparable clubs like Bournemouth, Brentford, and Brighton. Considering the club finished 13th, and would have placed 14th without Everton's points deduction, it’s fair to say that their performance in the 2023/24 season fell below expectations. However, the current season looks promising, with Fulham sitting 8th at the time of this report, just four points away from a Champions League spot.
The challenge for Fulham is that their total staff costs of £212 million represent 117% of their revenue. This indicates significant losses unless the club sells players profitably, as they did last season.
Looking at other comparable clubs that have published accounts for the 2023/24 season, Fulham’s ratio is not the highest. Bournemouth’s stands at 123%, but Fulham’s is still ahead of West Ham, Brentford, and Brighton.
Profit on Player Sales
One way to reduce the staff cost ratio is by selling players at a profit. In the 2023/24 season, there was a notable increase in this strategy, with several clubs opting for last-minute deals and "player swaps" to lower their staff costs and stay compliant with Profit and Sustainability rules. Newcastle and Aston Villa were among the clubs that engaged in this practice. We estimate that profit from player sales grew by a remarkable 70% compared to the 2022/23 season.
With a high staff cost ratio and two consecutive seasons of losses, Fulham needed additional income from the sale of Mitrovic to Saudi Pro League club Al-Hilal. This generated over 30 million in profit. Out of the eleven clubs that have published their accounts, this figure ranks only the eighth highest.
Profit and Loss
With high staff costs relative to turnover, profitability remains a challenge for Fulham. The owners have been prepared to support losses, within the PSR limits, as the club has recorded eleven consecutive seasons of losses, totaling over £400 million.
It is clear that without Shahid Khan's financial backing, Fulham would struggle to maintain their Premier League status.
As previously noted, the 2023/24 season saw turnover of £181 million, unchanged from the previous year. Salaries and wages increased by 11%, likely reflecting the contract terms of new signings. General operating expenses (the day-to-day costs of running the club) also rose by 18%, resulting in an EBITDA (Earnings Before Tax, Depreciation, and Amortization) of negative £5 million, down from £12 million the previous season.
EBITDA is a key indicator of operating cash flows. Negative operating cash flows indicate that there is no cash available for further investment without additional funds, which is clearly Fulham’s situation.
With over £170 million invested in players over the past two seasons, amortization (the write-down of player acquisition costs) has risen significantly, increasing by 25% from the previous year. Profit from player sales of £33 million helped reduce the losses to £32 million, an increase from the £26 million loss reported the previous season.
So far, eleven clubs have released their financial results, and Fulham's loss is not the largest, with Liverpool, Bournemouth, and Manchester United all reporting bigger losses.
Profit and Sustainability Compliance.
As mentioned, the Premier League confirmed that there were no PSR breaches for the 2023/24 season, indicating that Fulham complied with the regulations.
Fulham’s total losses over the past three years amount to £115 million. Considering they were in the Championship during the 2021/22 season, their total PSR allowable losses for the three-year period are £83 million (£13 million for the Championship season and £35 million per season in the Premier League).
For PSR calculations, certain costs are added back, including investments in youth development, women’s football, infrastructure, and depreciation. Additionally, Fulham may have received some relief due to the impact of COVID-19 on their stadium expansion, likely giving them additional headroom last season.
This season, they will have more flexibility, as they will be able to take advantage of the full £105 million loss allowance over three years. Assuming Khan continues to support the club financially (which seems likely), they could again record a significant loss without breaching the rules.
Stadium Development
As mentioned, the development of the Riverside Stand has faced significant challenges. Initially, there was backlash from supporters, as the stand is primarily designed to cater to the corporate and tourist market, reflected in some of the highest season ticket prices in the league. Given the West London location, this isn’t entirely surprising, but the club must be careful not to alienate its loyal fanbase.
There have also been major delays. While COVID-19 created initial obstacles, issues arose with the construction itself which required remediation. The prime contractor, Buckingham Group then went into administration. Originally planned as an £80 million project to be completed in 2021, the cost has now exceeded £200 million, with completion expected later this year.
There are still unresolved questions about who will cover the costs of the required remediations. The club has stated that it expects to be a net recipient of any settlement, but both the club and the contractors have claims against each other. No future liability or asset has been recorded in the latest accounts.
Player Trading
Since rejoining the Premier League, Fulham has invested over £173 million in their squad, making them the 14th highest spending club during this period. However, they have also sold players for a total of £55 million, resulting in a net transfer spend of £120 million, which is expected to be the 12th highest in the league. This is well behind some current rivals, such as Nottingham Forest, Bournemouth, and Newcastle, but ahead of Brighton, who achieved exceptional player sales during this period.
This season, Fulham has invested an additional £95 million in their squad, with major signings including Smith Rowe, Anderson, and Berge.
Football Debt
To date, the funding provided by Khan has initially been in the form of a loan, which has later been converted into equity. In the 2023/24 season, Khan provided an additional £122 million, consisting of a £75 million unsecured loan with no interest and £47 million at market interest rates. After the close of the year, the £75 million loan was also converted into equity.
Like all clubs, Fulham has debts to other clubs for player acquisitions, but at £44 million, this amount is lower than most other Premier League clubs.
Cash Flow
Since Khan's acquisition of the club, an astonishing £700 million has been invested in Fulham. As shown below, this amount surpasses that of all their fellow "challenger" clubs. One key difference, however, is that part of these funds has been directed towards developing the club’s facilities, particularly the Riverside Stand, whereas other clubs have predominantly focused on player investments.
Brentford stands out as well, as they have not relied on large capital injections to secure promotion and establish themselves in the Premier League. This demonstrates that it is possible to build a sustainable club without the massive sums invested by others.
Looking at Fulham’s cash flow during the Khan era, we can see how that £700 million has been spent. £88 million of it has been used to cover operating cash flows, where revenue has not been sufficient to meet day-to-day costs. Just over £300 million has been invested in players (net of player sales), while around £280 million has been spent on facilities including the Riverside Stand.
Financial Outlook
Fulham's reliance on their owner Shahid Khan and continued financial support is evident. The club confirms, "As in previous years, the Group has depended on—and will continue to rely on—the ongoing support of its chairman and immediate parent company. The Chairman has provided written assurances that future funding will be made available in line with agreed financial projections."
That said, the outlook has some promise. The completion of the Riverside Stand will boost revenue by adding more seating capacity and enhanced corporate facilities. Additionally, if the club can maintain its current form, a higher league finish would result in increased broadcast income and possibly their first European appearance since the 2011/12 season.
While Fulham is not the only club depending on the generosity of a benefactor to secure their league status, I am sure the club would prefer to operate on a more sustainable financial footing in the future.
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