Football League Clubs

The improved financial performance is attributed to the changing club mix, accounting for a £89m decrease in operating loss.

Clubs that participated in the Championship in both 2020/21 and 2021/22 reported an increase of 17% in operating losses (£322m), led by Cardiff City and AFC Bournemouth who reported an increase of £28m and £25m respectively, primarily due to the reduction in parachute payments received by both clubs.

The pre-tax loss reported by Championship clubs in 2021/22 was £283m, a decrease of £9m on 2020/21. However, this loss would have been significantly higher without Stoke City and Coventry City, who recognised profit from loan write-offs of £120m and £29m respectively. Writing-off loans from owners highlights a degree of financial commitment from the club owners, however, the reliance on such loans implies an inability to cover the expenses through club generated revenue.

Excluding these two clubs, the pre-tax loss that competed in the Championship in each year increased 66% to £406m (2020/21: £245m).

As Championship clubs emerge from the pandemic, and a number of club owners continue to invest significantly to subsidise club operations, a continuous spotlight on the financial sustainability of clubs remains a necessity to ensure their long-term future. In recognition of this, the EFL has in place a full-time team responsible for reviewing the position of its clubs in a continuous manner.