AFC Bournemouth Financial Analysis 2023/24: £169M Revenue & Premier League Return

For a club that's come so far so fast - from League Two to Premier League mainstays - the financial foundations are just as important as the football. Let's dive deep into AFC Bournemouth's financial results for the 2023-24 season and see what they reveal about the Cherries' approach under the Black Knight Football Club ownership. With a record Premier League points tally and league position achieved, have the club's finances been equally fruitful, or are there thorns among the cherries?

Quick Financial Summary: Bournemouth's 2023/24 Season

On-Field Performance

The Cherries enjoyed their most successful Premier League campaign to date under Andoni Iraola, finishing 12th with a club-record 48 points. This represents a significant improvement from the previous season's 15th place finish under Gary O'Neil. Key performers included Antoine Semenyo, who flourished after joining from Bristol City, and Dominic Solanke, whose 19 Premier League goals attracted interest from Tottenham post-season.

Financial Overview

Revenue Breakdown

Total Revenue: £169.05 million (up 18.2% from £143.00 million in 2022-23)

• Premier League/Broadcast Income: £135.63 million (up 10.3%, 80% of total revenue)
• Commercial & Sponsorship: £26.89 million (up 84.1%, 16%)
• Matchday: £6.53 million (up 20.6%, 4%)
• Other: £0.57 million

Bournemouth's revenue structure highlights both opportunities and vulnerabilities. The heavy reliance on broadcast income (80%) is concerning as it ties the club's financial health directly to league performance and TV deals. Meanwhile, the relatively small contribution from matchday income reflects the limitations of having the Premier League's smallest stadium. The substantial commercial growth from the previous year (+84.1%) is encouraging but remains an area with significant headroom for expansion.

Key Expenses

• Staff Costs: £136.17 million (up 36.0% from 2022/23)
• Player Amortisation: £61.62 million (up 49.5%)
• Other Operating Expenses: £26.03 million (up 21.2%)

The dramatic rise in staff costs represents the club's ambition but also poses risks to long-term sustainability. With player wages forming the bulk of this expense, the 36.0% year-on-year increase reflects both new signings and improved terms for existing squad members. The arrival of players like Tyler Adams, Alex Scott and Justin Kluivert contributed to this wage inflation, while the 49.5% jump in amortisation costs is directly tied to spreading these substantial transfer fees across player contracts.

Financial Performance

• Operating Loss: £55.84 million (compared to £52.07 million profit in 2022/23)
• Loss Before Tax: £66.15 million (compared to £44.50 million profit)
• Wages to Revenue Ratio: 81% (compared to 70% in 2022/23)

The swing from profit to significant loss requires context. Last year's profit was largely attributable to a one-off £71.44 million gain from writing off old shareholder loans following the Black Knight Football Club acquisition. When adjusted for this exceptional item, the underlying financial trajectory shows consistent operating losses, but at an increasing scale. The wages-to-revenue ratio of 81% is particularly concerning, as financial analysts typically consider 70% to be the upper threshold for sustainable operations in football.

The Yo-Yo Club Challenge

Bournemouth's recent history exemplifies the yo-yo club phenomenon:

• 2015-2020: Five consecutive Premier League seasons under Eddie Howe
• 2020: Relegated to Championship after 5-year run
• 2021-22: Immediate promotion as Championship runners-up
• 2022-24: Two Premier League seasons (15th, then 12th)

Each relegation-promotion cycle costs millions in squad restructuring, contract negotiations, and strategic pivots. The parachute payment system (£44M in year one, £35M in year two, £15M in year three) provides financial cushion but creates Championship competitive imbalance.

Bournemouth's challenge now is establishing Premier League permanence. Two consecutive seasons suggests progress, but financial sustainability requires reducing wage ratios and increasing non-broadcast revenue.

Major Player Investments

The 2023-24 accounts reflect significant transfer activity, with player registration cost additions totalling £141.0 million for the year. This substantial investment in the squad contributed significantly to the increased amortisation costs and wage bill.

Key signings included midfielder Tyler Adams from Leeds United, Alex Scott from Bristol City, and left-back Milos Kerkez from AZ Alkmaar. Each of these players represented significant investments designed to elevate the quality and depth of the squad. The club also secured Luis Sinisterra on loan from Leeds United, a deal that would later be made permanent.

Premier League Context

When comparing to Premier League averages:

• Wages to Revenue Ratio: Bournemouth's 81% is significantly higher than the Premier League average of approximately 60-65%
• Broadcast Dependence: The club's 80% revenue from broadcasting exceeds the league average of around 65%
• Matchday Income: At just 4% of total revenue, this is among the lowest in the Premier League, where the average is closer to 15%

This reflects the challenges of operating as one of the smallest clubs in the league by attendance and commercial reach.

Stadium Realities

Vitality Stadium's 11,364 capacity severely limits matchday income compared to Premier League rivals. With the lowest capacity in the division, Bournemouth generated just £6.53 million from matchday revenue.

This explains why the club has been exploring stadium expansion or relocation options, with tentative plans for capacity increases previously discussed.

Post-Season Developments

The financial impact of major transfers after the June 2024 reporting period will appear in next year's accounts. The club's accounts indicate:

• 4 players acquired for a total cost of £54.9 million
• 2 players sold for total initial consideration of £56.6 million, resulting in an accounting profit of £35.1 million

While not explicitly named in the accounts, we know the most significant post-season departure was Dominic Solanke to Tottenham Hotspur. This sale represents excellent business for a player who arrived from Liverpool several years earlier and had developed significantly during his time at the club.

Additionally, the club received £19.2 million in relation to forward funding of certain future transfer receivables, demonstrating financial innovation to smooth cash flows.

Strategic Approach

Bournemouth's model currently appears to be based on:

1. Heavy Initial Investment: Significant spending on playing talent to establish Premier League status
2. Infrastructure Development: The £27.9m investment in the Canford Magna training facility demonstrates long-term planning
3. Owner Support: Substantial backing from the ownership group, with £98.8 million in additional shareholder loans during the year and £124.3 million converted to equity

What This Means For Fans

The Positives

• Improved Performance: The investment has delivered Bournemouth's best Premier League season
• Academy Development: Upgrade from category 3 to category 2 academy status promises future talent pipeline
• Infrastructure Growth: The new training facility will benefit the club long-term

The Challenges

• Financial Sustainability: The 81% wages-to-revenue ratio exceeds the 70% Premier League recommendation
• Profitability & Sustainability Rules: Continued losses could pose PSR compliance challenges
• Stadium Limitations: Without expanded facilities, matchday revenue will remain constrained

Looking Forward

For supporters, these accounts reflect both the ambition of the Foley era and the realities of competing as a smaller club in the Premier League's financial landscape. While the losses are substantial, the on-field improvement and infrastructure investment demonstrate a long-term vision that extends beyond immediate results.

The post-year player trading activity, particularly managing to sell high while reinvesting strategically, suggests a more balanced approach may be emerging as the club seeks to establish a sustainable Premier League business model. Players like Dango Ouattara, Illia Zabarnyi and Milos Kerkez represent younger talents with potential resale value, potentially indicating a shift in recruitment strategy.

This analysis is based on published financial information from AFC Bournemouth's annual report for the year ending 30 June 2024, along with publicly available club information. The blog aims to present complex financial data in an accessible format for fans, while acknowledging that financial reports provide a snapshot at a specific moment in time.