Soaring turnover at Middlesbrough FC has enabled the club to slash pre-tax losses, according to its annual results.
The club’s sharp improvement in performances on the pitch over the last two seasons has boosted the Riverside Stadium coffers, with losses dropping from £20.4m in 2014 to £9m at the end of June 2015.
It’s down to turnover jumping sharply by 60% from £12.8m to £20.5m thanks to doubled gate receipts and improved commercial performances.
Directors called it a “significant improvement” as chairman Steve Gibson has given manager Aitor Karanka more money to spend on wages, in a bid to return to the Premier League for the first time in seven years.
Boro enjoyed a rollercoaster season in 2014/15 during which they knocked Manchester City out of the FA Cup, were beaten in one of the longest penalty shoot-outs of all time by Liverpool in the Capital One Cup and lost the Championship play-off final to Norwich after finishing fourth in the league.
For the year to 30 June 2015, turnover at Middlesbrough Football & Athletic Company (1986) Ltd, which trades as Middlesbrough FC, was up to £20.5m from £12.8m the previous 12 months.
Gate receipts more than doubled from £3.8m to £8.03m, while Boro’s money from cup competitions was up from £65,000 to £1.8m.
Sponsorship and commercial income was up from £3.41m to £4.09m and merchandising money increased to £2.21m from £1.25m.
Broadcasting revenue remained static at £4.35m compared to £4.29m last year.
As a result of a number of permanent and loan signings made in what was manager Aitor Karanka’s first full season in charge, Middlesbrough’s wage bill was up from £14.4m to £18.1m.
In a strategic report accompanying the results, the club’s directors said the season’s performance “greatly increases the prospect of achieving our stated objective of promotion to the Premier League”.
Since the financial year ended, Boro have invested heavily in the squad with the likes of Stewart Downing, Christian Stuani and David Nugent.
Further acquisitions were made in 2016’s January transfer window with Jordan Rhodes and Gaston Ramirez.
This season, the club are again enjoying a successful Championship campaign and currently sit second in the league with seven games to play.
Boro have four home games remaining this season – find more details about corporate hospitality at the Riverside by clicking here.