Season review
Bradford City were not happy to be back in the EFL League Two for the first time since the 2012/13. The club were in the mix for the final two play-off places. However, the early curtailment of the season meant the club were awarded 9th place and condemned to a second season in the EFL League Two.
Off the pitch the club is still owned by Stefan Rupp despite takeover rumours and some fan discontent. This was however tempered by a new CEO and short-term improvements off the pitch.
From a financial perspective, a cash windfall from a sell-on clause of McBurnie saw the club record a £1.1m profit in the year, a feat not achieved throughout its stay in League One.
This article analyses the 2020 finances of Bradford City. The club produces abbreviated accounts limiting financial data but it did release an informative press release detailed below.
Revenue
Bradford City reported a revenue decline from £6.0m to £4.8m in 2020 (25%) following relegation. This was combined by the early curtailment of the season seeing the Bantams miss out on five home games.
The club also received £0.4m of other income relating to government support.
Looking ahead, Bradford City is likely to see revenue fall below £4m due to a full season without fans in attendance.
Operating costs
Total operating costs in 2020 were £6.7m as the club stated it was recovering from overspending on wages in 2018 that led to relegation.
The introduction of new salary cap regulations and cost cutting measures saw player wages fall from £3.6m to £2.9m (19%). This led to a flat wages to revenue ratio of 60%, due to lower revenue.
Total wages in 2020 were £4.0m.
Other operating costs totalled £2.7m in 2020.
Bradford City appear to have woken up following reported overspending and looking to enter a new era prioritising financial stability. This should be welcomed by Bradford City fans however the club will need to remain competitive to avoid fan unrest.
Transfers
Bradford City had no outgoings or incoming signings that reported a transfer fee. However, the timely sale of Oli McBurnie to Sheffield United saw the Bantams net a reported £2.5m sell-on fee.
This helped Bradford City report transfer income of £2.6m compared to £0.6m in 2019.
This is likely a one-off which will leave a financial hole unlikely to be plugged in the coming seasons.
Profitability
The McBurnie funds helped Bradford City record a £1.1m profit after cumulative losses of £4.1m over the previous five seasons.
Before player trading the club were facing a £1.5m loss and can expect that losses will likely be around that level if not greater due to the impact of COVID-19 and lack of player sales in 2021.
Assets / Liabilities
There is limited balance sheet information for Bradford City available but what we do know is cash levels stayed relatively flat at £0.1m and the club achieved a net asset position which the board were pleased with due to the McBurnie windfall.
Final Remarks
A new CEO has renewed optimism off the pitch which now needs to be met by performances on the pitch to avoid a fourth successive season in League Two.
While a focus on financial stability is sensible, results will still be expected on the pitch which as ever, is a tough balancing act.
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