This article analyses AFC Wimbledon finances in respect of the 2020/21 season.
Season review
AFC Wimbledon participated in its 5th consecutive season in League One in 2020/21. It was another season of struggling as the club finished 19th and secured its League One status. AFC Wimbledon has finished between 18thand 20th in each of its last four seasons, consistently staving off the threat of relegation.
There was little in the way of joy in the two main domestic cups, with AFC Wimbledon out of both by the second round.
AFC Wimbledon finances were back in the red (£1.5m loss) after two years of profits as the club lost matchday revenue and operating costs for its new stadium ramped up.
AFC Wimbledon Finances – Revenue
Revenue rose from £4.7m to £5.0m (6%). Lost matchday revenue was offset by a rise in broadcast revenue from the EFL’s streaming platform, iFollow. AFC Wimbledon 2020 finances included income from the sale of Plough Lane (£13m). This is included in other income of £13.3m, with other income falling to £0.2m in 2021 (all related to government support in respect of COVID-19). This meant total income fell from £18.1m to £5.2m (71%).
Matchday & Broadcast
AFC Wimbledon records its matchday and broadcast revenue as one, and therefore we are unable to split. Matchday & broadcast revenue rose from £2.7m to £3.3m (20%). As mentioned, this was driven by a rise in iFollow income. The platform was a blessing for the majority of EFL clubs in League 1 and League 2 as they counted the cost of games behind closed doors.
The return of fans to its new stadium should boost revenue, although iFollow income may fall.
Commercial
Commercial revenue fell from £2.0m to £1.8m (12%) as the club had fewer commercial opportunities without fans at matchdays. The club has retained the same sponsors however the return of fans should boost commercial revenue.
The club has also agreed a new stadium rights deal for its new stadium with Cherry Red Records. This continues one of the longest standing partnerships in UK football.
AFC Wimbledon Finances – Revenue summary
AFC Wimbledon managed to maintain and even increase revenue slightly. The EFL’s iFollow platform was a financial boost to all clubs while games were played behind closed doors, especially those with such strong fan support as AFC Wimbledon. The return of fans should boost matchday revenue significantly, so it will be interesting to see what happens to iFollow income.
AFC Wimbledon Finances – Operating costs
Operating costs rose from £5.7m to £6.3m (9%). This was driven by costs associated with the new stadium.
Wages
The wage bill of AFC Wimbledon fell slightly from £3.6m to £3.5m (5%). With revenue down, it was paramount the club managed its costs. The wages to revenue ratio improved from 77% to 69%. This is within the range recommended by UEFA’s of 70%.
The return of matchday revenue should improve this ratio further.
Other costs
Other operating costs rose from £2.0m to £2.7m due to costs associated with the stadium. The club stated this was mainly due to staffing costs associated with operating the stadium.
AFC Wimbledon Finances – Operating costs summary
Operating costs grew as a result of the new stadium and are likely to grow further as fans return. It will hence be paramount to control wages to avoid losses mounting.
AFC Wimbledon Finances – Transfers
AFC Wimbledon typically relies on free transfers and loans in the transfer market. 2021 was no different as no outgoing or incomings for a transfer were recorded by Transfermrket.com.
Amortisation
Player amortisation charges remained stable at £0.1m. This is likely to fall to nil in 2022 due to lack of purchases.
Profit on player sales
Profit on player sales fell from £0.4m to £0.02m (95%) due to no player sales for transfer fees in 2020/21. 2021/22 has been no different, and therefore any profit on player sales will be limited in the absence of the triggering of a significant sell-on clause.
AFC Wimbledon Finances – Transfers summary
AFC Wimbledon take great pride in its academy which often bears fruit in first team players and occasionally transfer fees which assist the club tremendously in reaching its goals. No transfer fees have been recorded in 2020/21 or 2021/22, however the club will be optimistic of future fees to assist its finances.
AFC Wimbledon Finances – Profitability
AFC Wimbledon recorded a loss after two straight profits as it returned to what is a more typical financial year, without income from stadium related items.
Operating profit / loss before player trading
Before player trading, AFC Wimbledon recorded an operating loss of £1.0m. This compares to a £12.4m profit in 2020 as a result of the sale of Plough Lane. The return of fans should boost revenue and hopefully result in reduced losses in 2022.
Operating profit / loss after player trading
After player trading, AFC Wimbledon recorded an operating loss of £1.1m. This compares to a £12.7m profit in 2020. There was limited transfer activity so it is unlikely player trading will have a material impact on AFC Wimbledon finances.
Profit / loss before tax
AFC Wimbledon had finance costs of £0.4m (2020: £0.1m), resulting in a loss before tax of £1.5m. This compares to a £12.6m profit in 2020. The increased debt due to financing the stadium will likely impact finances materially, something which had not been the case in previous year.
AFC Wimbledon Finances – Profitability summary
AFC Wimbledon would have been loss-making in 2020 without its stadium sale, albeit only £m. This season was further impacted by the loss of matchday revenue, with the club hopeful of improved financial performance in 2022.
AFC Wimbledon Finances – Assets / Liabilities
The new stadium required additional funding as AFC Wimbledon increased debt levels and funded its losses.
Cash flow
AFC Wimbledon’s cash reserves fell considerably from £9.9m to £2.0m. This was driven by capital expenditure of £11.7m. This was partly offset by £4.0m of financing to fund these costs and outflows from operations (£0.2m) and player transfers (£0.1m).
Debt
AFC Wimbledon required additional funding of £4m to finish constructing its stadium. Costs to construct have totalled £32m.
The new £4m loan was a bridging loan provided by MSP Capital. This loan is a short-term loan and must be refinanced during this season. This may result in increased finance costs which may impact profitability.
Net debt
Net debt hence stood at £7.9m. This compares to net cash of £3.9m.
AFC Wimbledon Finances – Final Remarks
It has been a challenging period for AFC Wimbledon. Not only did the club have to contend with the pandemic, but it also had a stadium to build. This marks the start of an exciting era for the fan-owned club who will be hoping to kick-o from here. However, with great stadiums, comes great financial responsibility, and AFC Wimbledon will have to keep a close eye on its finances to ensure it does not rack up losses. There is no sign of the Don Trust failing to do so and it should be a great period for the club.
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