BLACKPOOL Football Club has revealed record turnover and profits following its Premier League season.
In 2010/11 Blackpool’s turnover increased by a staggering 450 per cent from £9.4m to £51.7m.
Manager Ian Holloway spent £3.5m on new signings, while the club’s wage budget reached £12.1m.
Many clubs suffer from over-extending themselves in a bid to stay in the top division and find themselves struggling with an inflated wage bill.
Then, if they are not successful, they drop back down into the less affluent Championship.
But the Seasiders today revealed how its latest figures soared to £51.7m after posting a more mediocre turnover of £9.4m for the year 2009/2010.
That led to the club posting a pre-tax profit of £20.9m, after a loss of £6.7m the previous year.
Steve Pye of the Federation of Small Businesses, today told The Gazette: “This is fantastic news. It just goes to show that if you run a tight ship, results can be this good.
“How many football clubs are posting profits like this?
“It’s the way all football clubs should be run and other businesses should be looking at this model.
“It’s outrageous what some clubs pay – how many players are worth £100,000 a week in a recession?
“Let’s hope some of these funds end up back in the local community and with our businesses.”
Thanks to central distribution payments made by the Premier League, and an increase in stadium capacity and facilities – with the opening of the South Stand and enhancement of the East Stand – turnover at the club increased five fold.
During the same period the cost of wages increased to £12.1m and transfer fees totalled £3.5m, with overall costs rising to £30.7m.
It is thought the £6.7m loss the previous year relates to bonus payments made to players and staff for reaching the Premier League – so would not have been paid out had an estimated £90m Premier League windfall not been guaranteed.
The figures are understood not to include the sale of star midfielder Charlie Adam to Liverpool and other departures.
A Seasiders spokesman said: “Investment in the club remains an on-going progress. New ticketing and turnstile systems, pitch irrigation systems, shop refurbishment, till systems for the kiosks and bar and new floodlights have all been implemented within the past 12 months.
“The stadium development continues with the South-East corner under construction, while the refurbishment of the old stands, the build of the supporters’ bar and the on-going fit of a brand new South Stand top floor will ensure better facilities for fans than ever before.
“Relegation is not considered a risk and the guarantee of parachute payments for the next four years totalling £48m, leaves Blackpool FC on an excellent financial footing for the foreseeable future.”
Big-spending Manchester City made the Premier League’s biggest ever loss of £197m last year while Manchester Utd are £439m in debt.
But Arsenal today announced a £46.1m profit from the summer’s controversial transfer dealings when former captain Cesc Fábregas left for Barcelona and Samir Nasri and Gaël Clichy departed for City.
Pool’s Lancashire rivals Burnley reported a £4m loss in a year when they dropped down a league from the top division. Revenues fell 40 per cent from £45.4m to £27.4m.
And Championship side Portsmouth crashed into administration last week with liabilities of £122.8m, Pool legend Jimmy Armfield said: “Getting into the Premier League was massive.
“So many clubs these days are struggling – it’s nice to know we’re not one of them, especially When you think of struggling big clubs like Glasgow Rangers and Portsmouth. What this money has done for us is secure the future of the club.”
And Glenn Bowley, chairman of the Blackpool FC Supporters Association, added: “The figures certainly make for good reading, especially during these tough economic times and hopefully the financial success we have had by reaching the Premier League can see us continue to kick on and move forward with developments such as the training ground and the completion of Bloomfield Road. These are imperative for long term gain.
“There must also be continuous measured investment into the playing side, as after all, football is the primary function of the business.
“These are certainly good times to be a Blackpool fan, and when you consider the sorry financial state of clubs such as our rivals Preston North End or Portsmouth then not only are we in a position to grow as a football club, but have the chance to be even more successful.”