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Norwich City announce £38m losses but expect swift recovery

"Following promotion to the Premier League the club anticipates a substantial operating profit in the financial year to June 2020"

By Jonathan Nagioff

Tuesday 5 November 2019 14:13, UK

Daniel Farke
Image: Daniel Farke's side are without a win in seven in the Premier League

Norwich executives insist there is no need to panic despite announcing losses of £38m for the financial year ending June 2019.

The Canaries revealed the figures in their annual accounts, which comprised of £32.8m spent in "operating activities," while the purchases of Emiliano Buendia, Moritz Leitner and Philip Heise have contributed to the debt.

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However, the board remain confident the current financial situation is only temporary and believe it has been heightened through not receiving parachute payments from the Premier League for the first campaign in eight years.

Norwich's chief operating officer Ben Kensell said: "These figures demonstrate the club's financial resilience with our first year without parachute payments whilst achieving promotion to the Premier League as champions."

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The Canaries did raise funds through the sales of Josh Murphy, Alex Pritchard and Leicester playmaker James Maddison, amounting to £20.6m.

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A statement on the club's website read: "Following promotion to the Premier League the club anticipates a substantial operating profit in the financial year to June 2020."

Norwich increased funds through the sale of James Maddison to Leicester City in June 2018
Image: Norwich increased funds through the sale of James Maddison to Leicester City in June 2018

Norwich are enduring a difficult return to the Premier League sitting 19th in the table. They are without a win since a dramatic 3-2 victory over reigning champions Manchester City on September 14.

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Cash outflow listed in full for the period was -£34.2m

Cash utilised in operating activities was at -£32.8m.

Player purchase costs amounted to -£10.4m, which included instalment payments on previous transfers, plus the acquisitions of new players such as Emiliano Buendia, Moritz Leitner and Philip Heise.

A figure of +£20.6m was raised through player sale transactions, with the majority in the form of instalments from the sale of players from previous reporting periods such as Josh Murphy, Alex Pritchard and James Maddison.

Fixed asset spend was at -£7.2m, which includes -£6m in fixed asset additions relating to the academy building state of the art gymnasium at the Lotus Training Centre.

The club also repaid the Canary Bond with -£3.8m banked by investors with the promotional interest of 25% paid in September 2019 (after the financial year end) used to build the academy and gym buildings and pitches at the club’s Lotus Training Centre.

Other cash flow movements were at -£0.6m, relating to interest and taxation paid.

Daniel Farke's side host bottom club Watford in a crucial clash live on Sky Sports Premier League on Friday.

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