Barnsley 2017/18 financial results

[EastStandRed]

BarnsleyFC player amortisation, the annual charge to write-down transfer fees over the life of a player’s contract, doubled from £1.1m to £2.2m, following the relatively high player investment. Also wrote-off £69k of player values.

Despite this increase, BarnsleyFC player amortisation of £2.2m was still one of the lowest in the Championship, only around 10% of (relatively) big-spending clubs like Boro and AVFC, both £24m. However, it was about the same as recently promoted Sheffield United.

[EastStandRed]

BarnsleyFC spent £5.2m on player purchases in 2017/18, which was huge by the club’s standards, i.e. around the same as the previous 7 (seven) years combined. However, they were still massively outspent by the likes of Boro £66m, FFC £31m, LUFC £28m & #WWFC £25m.

[EastStandRed]

In the last 3 years, BarnsleyFC averaged £2.9m annual gross spend, much higher than £0.8m average of preceding 6 years. However, as sales rose from £1.3m to £6.0m over the same period, net sales actually increased from £0.5m to £3.2m.

The good news is that BarnsleyFC are now debt-free following the conversion of £6.3m of debt owed to Cryne into share capital. They do owe £1.3m in outstanding transfer fees, but are in turn owed £2.6m by other clubs, giving a net receivable of £1.3m.

Consequently BarnsleyFC had the lowest debt in the Championship, in stark contrast to Boro £101m and ITFC £95m. However, financial prudence does not always pay-off in football, as 3 of the 4 clubs with the smallest debt were relegated (the others being Burton and Sunderland).

Although debt is high in the Championship, most of it is provided by owners who charge little or no interest, so only 5 clubs paid more than £1m in 2017/18. BarnsleyFC interest payment was just £154.

[EastStandRed]

Furthermore, BarnsleyFC £5.6m cash balance was the 4th highest in the Championship in 2017/18, only below NCFC £16m, SAFC £11m and FFC £9m.

According to BarnsleyFC cash flow statement, they generated £5.3m from operations before spending £5.2m (net) on players and £0.2m infrastructure investment. The £6.3m share issue paid off outstanding loans.

However, the BarnsleyFC treatment of profit on player sales is unusual, as this is not deducted from the cash flows from operating activities, so the sale of players then looks understated. The net movement is fine, but the classification is a bit strange.

Either way, it is clear that BarnsleyFC have been quite reliant on funding from the former owner, Patrick Cryne, who put in around £11m over the last decade, mainly in the form of share capital.

[EastStandRed]

BarnsleyFC had no FFP issues in 2017/18, thanks to the £13m profit in 2016/17, even before excluding allowable deductions for academy, community and infrastructure.

Under coach Daniel Stendel BarnsleyFC were immediately promoted from League One in 18/19 with a focus on youth. Conway: “We have the youngest squad in the first three divisions in England. Our belief is that, as players continue to develop, the squad will continue to succeed.”

[Olias1]

Our belief is that, as players continue to develop, the squad will continue to succeed.”
That might well be your belief. In actuality we develop the players sell them for a small ( in real terms) profit then have to buy another young player to develop and so on. Meanwhile the team does not "continue to succeed ", it continues to bounce up and down between league one and the Championship. Boom and bust every few years.
Overall the club looks good financially, but hardly successful in my eyes.

[Barnsley Chop]

Thanks ESR for all the data you have compiled