Millwall suffer covid hit, but remain realistic

MILLWALL continued to be unprofitable in 2020-21, recording their biggest ever loss as the affects of the pandemic came to the fore. The Lions lost £ 13.8 million before tax, an increase on 2019-20’s £ 10.9 million deficit. However, because Millwall are generally a well-run club, the losses could have been worse in the circumstances.

Over the past decade, Millwall have accumulated pre-tax losses of £ 78 million, but the past two seasons have accounted for almost £ 25 million, largely due to covid-19. The club continues to make little from transfers and in 2020-21 the profit on player sales was just £ 0.7 million, arguably the lowest in the Championship. In the period between 2011-12 and 2020-21, Millwall spent £ 7.8 million and received £ 9.9 million, according to Transfermarkt. 

The club has tried to bring through young players into the first team, current first team players Danny McNamara and Billy Mitchell have come through the ranks at Millwall. They operate with a relatively small squad compared to most of their rivals and the overall market value of their players is estimated at £ 31.6 million. The squad has cost, in actual terms, less than £ 4 million.

While the club’s income went down by 24.4% to £ 12.5 million – the lowest since they returned to the Championship – the wage bill rose by just under £ 2 million to £ 20.8 million, a jump of 10%. This suggests Millwall’s wage bill is still too high for the amount of income they can generate. Thankfully, the club’s shortfall is covered by American owner John Berylson. Even though the loss for 2020-21 was bad by Millwall’s standards, Berylson commented that a number of clubs are likely to lose £ 20-30 million during the pandemic.

Even allowing for the difficulties of the past two seasons, Millwall’s wage-to-income ratio over the decade has been 110%, but in 2020-21, because of the near total absence of matchday revenues, the ratio soared to 167%. Income over 10 years has increased by 9% compared to a doubling of wages. Millwall were assisted by the league’s support loan, borrowing £ 8.3 million over a three-year period. These loans are in the name of the EFL, but secured against future solidarity payments from the Premier League.  

It’s easy to see where Millwall were hit hardest, their matchday income was just £ 1.4 million versus the £ 4.4 generated in 2019-20. Broadcasting monies were also down by £ 1 million to £ 8.4 million, while commercial revenues totalled £ 2.7 million, on par with the previous year, which was no mean feat in a challenging environment. Fortunately, the club is currently enjoying its best-ever sponsorship deal with Swedish company Huski Chocolate.

Millwall remain one of the most passionate clubs in English football and in normal times, they can call on close to 14,000 people at their home games. At present, retaining their Championship status has to be the priority and their performance this season suggests they should be secure for the 2022-23 season. But in the current climate, Millwall will need to maintain their realistic approach to financial management in order to get through the immediate challenges created by the pandemic.