Swansea City Unveils Record Profits Of More Than $24M, Will Pay Dividend
Premier League side Swansea City has "announced a record profit" of £15.9M ($24.3M) for the six months up to the end of November, according to the BBC. The sale of players Joe Allen to Liverpool and Scott Sinclair to Man City "contributed to an increased profit of almost" £10M on the same period in '11. Turnover, with the exclusion of player sales, has also risen to £28.5M, a growth of 11.5% from the £25.5M for the previous six months. The club has "submitted plans to increase the capacity of the council-owned Liberty Stadium home from 20,500 to 32,000, and work is underway for a new training facility on land acquired on lease from Swansea University." A new shirt sponsorship deal "will be announced shortly," after coming to an agreement to end its contract with current sponsors, online casino company 32Red, a year early (BBC, 4/8).
REWARD SYSTEM: In London, David Conn reported Swansea City's profit will afford "a dividend for the club's shareholders" -- £1M ($1.5M) for this and last season in the EPL. Club Chair Huw Jenkins said that the £2M ($3M) dividend "justly rewards the owners, mostly directors too, who have worked unpaid to steer a remarkable rebuilding, but it risks taking a little shine off Swansea's halo." In a game acclimatizing to a new culture, in which club owners are no longer "custodians" but are motivated by making money for themselves, Swansea has "stood out as an exception, until now." Jenkins argued that "the dividend is correct, as it reflects the club's aim to make a profit, not huge losses like so many others." Dividends, he said, are a more "tax-efficient" way of remunerating directors because national insurance is not paid on them (GUARDIAN, 4/8).