Portsmouth set for revenue jump despite recent losses in accounts – Expert
Portsmouth will eventually reap the financial rewards of promotion despite operating at a loss in 2023-24, according to Dan Plumley.
The finance expert claims despite the recent accounts showing the club running at a loss of £5.6million, a sustained stay in the Championship would iron out that figure and ensure the balance sheet tilts into the green on certain expenses versus funding.
The Blues have lost out on millions in the short term due to increased wages, bonuses and matchday funding for the step-up following promotion, but the rewards should soon outweigh that drawback.
Speaking exclusively to Pompey News, Plumley said: “It shows how crazy the EFL is in terms of finances because we’re looking at a normal, acceptable loss just to get out of League One – you have to caveat that with being okay to run that risk and stabilise it going forward.
“Sometimes you have to be okay to run at a loss and put more money into wages. But there’s no significant long-term debt that you can pinpoint in the accounts.
“We’d expect a revenue jump based on the Championship season too, from £13.6million more towards £20million when we see the accounts for the Championship season. Staying up, of course, would be huge because it brings with it that revenue.”
Portsmouth to earn more the longer they stay in the Championship
Pompey will not only struggle on the pitch with the ownership’s long-term strategy if they drop back into League One at the end of the season but also financially following their increased demand for spending.
The TV revenue associated with the Championship is hugely favoured towards the second tier ahead of the EFL’s other divisions, and matchday revenue could decrease.
The Eisners invested heavily into ensuring top-level infrastructure around the club, though some of this could appear wasted if the Blues regress in their league status.
In other Portsmouth news, the club have agreed a fee to bring a new striker to Fratton Park.
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