QuoteBirmingham today announced club record pre-tax profits despite their summer spending spree.
They recorded a £5.6m (€8m) surplus for the year ending August 31 2004, representing a 61% climb after posting £3.5m (€5m) profit for the previous 12 months.
Blues have achieved the profit while bringing in a host of big-name players such as Emile Heskey – for a club record £6.25m (€8.9m) – Jesper Gronkjaer, Mario Melchiot and Muzzy Izzet.
Blues achieved a 24% rise in turnover from £36.5m (€52m) to £45.3m (€64.5m), with match receipts up nearly £5m (€7.1m) to £21.5m (€30.6m) and media income rising by £3.5m (€5m) to £16.7m (€23.8m).
That was partially offset by net operating expenses rising from £32.9m (€46.8m) to £39.5m (€56.2m), largely as a result of increases in players’ wages.
The players earnings increased from nearly £20m (€28.5m) for the previous 12 months to £23.159m (€33m).
City spent a total of £12m (€17m) on players, with Maik Taylor, Martin Taylor, Julian Gray and Dwight Yorke also purchased by manager Steve Bruce.
Birmingham plc chairman David Sullivan said: “We continue to put all our energy into establishing ourselves as a Premier League club – both on and off the pitch.
“Whilst the business environment within football remains difficult, particularly in controlling wages, I am confident that we have the strategy and personnel to continue to take the club forward.”
Blues chief executive Karren Brady said: “In the 12 months to August 31, Birmingham City performed excellently both on and off the pitch.
“To finish 10th in the Premiership was a remarkable achievement bearing in mind it was only our second season in the best league in the world.
“All sales areas within the business have recorded increases and commercial revenues have risen by 11% during the year.
“But expanding the executive facilities at St Andrews is extremely important for us if we are to increase year in and year out in this area.”
Brady confirmed last month’s reports that Blues are in discussions with Birmingham City Council about a possible new 50,000 all seater stadium being built by Las Vegas Sands INC, with the club sitting tenants.
She said: “This project is driven by the desire for the city of Birmingham to have a multi-purpose stadium within the city.
“The project is subject to Birmingham being granted one of the eight regional casino licences.”[/color][/font]
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