Cardiff City: Championship club report losses of £29m

Cardiff City were relegated from the Premier League at the end of the 2018-19 season.

Cardiff City made an operating loss of £29m over the 2021-22 season.

The loss, detailed in the club's accounts for the year up to 31 May 2022, is an increase of £17m from the previous 12 months.

Total revenue dropped by £35.2m to £19.9m, with the end of parachute payments from the Bluebirds' Premier League stint cited as a key factor.

The accounts show owner Vincent Tan has provided further loans to the Championship club.

They note Cardiff remain "heavily reliant" on the Malaysian businessman's financial support.

In his statement accompanying the results, non-executive chairman Mehmet Dalman said: "As a board and a club we are extremely grateful for the continued support of our owner and without this the future of the club would look much more precarious."

During the period, Tan loaned £19.8m to the club, with £1.1m of the debt to him and his family repaid and £6.6m converted into equity.

At the time of the accounts, Tan and his family's loans to the club stood at £73m - up from £60m.

However, the accounts state that, following the end of the financial year covered, Tan has since converted a further £19m of that debt into shares.

Loans from other directors and connected parties to the club increased £5m to £25.8m. A further £24.4m was borrowed from an unnamed source after the accounting period.

The club did see turnover from the return of crowds increase following the previous pandemic-affected season, with gate receipts totalling £4.7m compared to £1.1m in 2021.

The wage bill was also lowered from £25.9m to £22.2m.

The accounts also revealed discussions have begun over a new first team training base that the club hope to be ready in two years. Work has already begun on a new training complex for the club's academy.

As in previous recent accounts, there has again been a contingency provision made for the cost of the Emiliano Sala transfer.

Notes in the accounts say the club are waiting on a ruling from the Swiss Federal Court as they appeal against the decision made by the Court of Arbitration for Sport that required Cardiff to pay Nantes the first instalment of the transfer, believed to be worth around £7m.

"The outcome of this ruling will determine the next steps we as a board will take over the matter of the remaining transfer fee and action(s) against Nantes and their agents and our insurers at that time.

"As a board we are determined to do what is in the best and long-term interest of the club to protect our position, especially in a situation where we as a club were the innocent party in the handling of the actual flight arrangements involving Emiliano."