Financial details have emerged for Charlton Athletic over the previous season.
The Addicks have had a number of issues behind the scenes in recent years, with the current owner Thomas Sandgaard having even negotiated a possible sale earlier this year.
Financial expert Kieran Maguire has broken down the details of the League One club’s accounts for the 2021/22 campaign.
Have Charlton Athletic turned a profit?
Dean Holden has led the side to 10th in the table since taking charge of the first team squad at the end of last year.
While the play-offs are out of reach, recent form has shown some positive signs going into next season, with the team looking to consolidate their top half position in their last five games.
But off the pitch, issues still remain at the Valley.
Charlton lost over £10 million from operations in 2021/22, which was reduced by £3.3 million following player sales.
This means that the club has now earned total losses worth over £48 million over the last few years.
More positively, income rose in the last financial year, with ticket sales being a large driver of this.
This financial period covers the end of lockdown from Covid-19, so the return of fans saw a rise in revenue compared to the previous year.
However, the club earned less from commercial and broadcast partners compared to the previous year which has had an impact on the rise of income.
Over £500,000 was also paid in severance during this period.
Can Charlton compete for League One promotion?
A £3.5 million loan was taken out by the club during this period, which brings the club’s total loan value to 30 June 2022 up to £20 million.
A further £6 million was also borrowed from Sandgaard.
Wages are also above revenue, meaning the London side spends £108 on wages for every £100 earned.
It was also discovered that the club could potentially owe money to former owner Roland DuCatlitter if Premier League promotion is earned by 2030.
Player transfers saw the club earn a profit, having spent £1.7 million on incomings compared to sales worth up to £3.7 million.
Are Charlton in a healthy position financially?
The biggest warning sign for Charlton is that wages are greater than revenue, which is a position any club will want to avoid.
This is an unsustainable model and will require the team to reduce that figure, likely through player sales, to have a better outlook in the long-term.
Sandgaard is putting money into the club which is helping it to stay afloat, but it is easy to see why he is open to a sale.
It could be a difficult summer of limited spending for Charlton as it is unlikely the current financial period has eased these concerns that much, if at all.