After a vehicle accident, Millwall owner John Berylson died, overshadowing the season. Fans adored the American owner for his leadership, passion, and generosity.
Millwall’s finances were solid under him, as shown by the club’s most recent accounts from the 2022/23 season, when they finished 8th and missed the play-offs.
Revenue grew £0.8m (4%) from £18.6m to a club record £19.4m while player sales improved from a £0.1m loss to £2.5m profit, lowering Millwall’s pre-tax loss from £12.6m to £12.2m. Other operational revenue fell £1.1m from £1.3m to £0.2m, while operating expenses rose £1.7m (5%) from £31.6m to £33.3m.
The biggest income driver was broadcasting, which climbed £1.1m (12%) from £9.1m to £10.2m, while match day rose £0.4m (7%) from £5.8m to £6.2m. However, commercial declined £0.7m (19%) from £3.7m to £3.0m.
Millwall’s £12m loss was in the middle of the Championship, better than four clubs that lost more than twice as much: Burnley £36m, Sheffield United £31m, Norwich City £27m, and Birmingham City £25m.
Over 20 years ago, Millwall made £60k, its final profit. In the last 10 years they have lost £92m, including £50m in the last four years alone.
Only once in the last 10 years has Millwall made more than £1m from player sales, £5.4m in 2019 owing to George Saville’s departure to Boro. It was much the same this season, as it looks like the only sale for money was Tyler Burey to Odense for roughly £500k.
Millwall £19.4m revenue was solidly in the bottom half of the Championship, less than a third of the clubs recently relegated from the Premier League, who were in receipt of parachute payments, e.g. Norwich City £76m, Watford £66m and Burnley £65m.
Millwall’s £6.2m match day revenue has reached the top ten in the Championship, albeit a long way below Sunderland £10.7m, Norwich City £10.0m and Sheffield united £9.7m. Millwall’s average attendance jumped from 12,998 to 14,767 in 2022/23, which was the highest since moving to the new Den in the 1990s. However, the surge did not end there, as crowds have rocketed up to 16,540 this season, which is the biggest since the early 50s. Kavanagh credited this tremendous surge to improvements in the match day experience.
Falling commercial income
Millwall’s commercial income declined £0.7m (19%) from £3.7m to £3.0m, principally due to the choice to outsource retail operations (with an offsetting saving in the cost of sales). This was aggravated by Elite Sports, the club’s retail distributor, going into administration in November 2022. A new agreement with Fanatics should be more beneficial moving forward.
Following the reduction, Millwall’s £3.0m commercial revenue was the second lowest in the Championship, only above Blackpool. This was a long way short of the likes of Bristol City £21.1m, Norwich City £17.0m, Stoke City £16.9m and Sunderland £14.7m. Little wonder that the club claimed that “growth of all commercial revenues is of critical importance of the club’s overarching strategic direction.”
Millwall’s £22.6m wages are still very much on the low side in the Championship, plainly much less than clubs benefiting from parachute payments, e.g. Norwich City £56m, Burnley £54m and Watford £49m. For extra context, they were sandwiched between Wigan Athletic £23.2m and Cardiff City £22.3m. In fact, there were just six clubs with lower wages last season, so it is evident that Millwall have been punching way above their weight.
Millwall’s challenge is emphasised by the fact that their £9.7m squad cost is still very much in the lowest half of the Championship. There is a big disparity to clubs recently relegated from the Premier League, such as Burnley £134m, Watford £103m and Norwich City £90m, which makes it very tough to compete.
Millwall owners have supplied £82m of investment in last 10 years (£72m share capital and £10m loans). This was almost completely used to offset the club’s £73m operating losses, with very little spent on either (net) player purchases or infrastructure, roughly £6m apiece.
In fact, the £16.9m capital investment supplied by the Berylson family in 2022/23 was the greatest yearly funding in the prior decade. The owners have had to pour in £30m in the last two years alone, totally in the form of share capital, which was really more than the prior five years combined.
The auditors (and indeed the directors) identified a substantial doubt in the books, as the club’s capacity to continue as a going concern “is dependent on additional funding from the shareholder that is not guaranteed”. Such a comment is definitely not ideal, as it’s relatively rare for an auditor to sound such a note of warning. However, it’s worth remembering that seven other clubs in the Championship currently carry a similar “material uncertainty” line, so fans need not be excessively frightened.
The New Den
Millwall’s biggest option to create extra cash is by developing the land adjoining the stadium. They have a regeneration plan to create affordable homes, student accommodation, retail and office space, a hotel and conference centre plus a stadium extension. This would boost the capacity at The Den from about 20,000 to 34,000 by building an additional storey on each side of the existing ground.
The good news is that Lewisham council recently handed the club a new 999-year lease on The Den and its surrounding area, bringing an end to a protracted period of uncertainty.
Millwall have punched far above their weight in the Championship, given their comparatively modest revenue and wages, yet their economic strategy has forced the owner to fund the club’s losses each year, thus allowing them to remain competitive.
On the plus side, the new lease gives the club a chance to broaden its horizons, though the loss of Berylson, who has acted as Millwall’s benefactor for so long, allied with the recent departure of chief executive Steve Kavanagh after eight years at The Den, means the club is undergoing a lot of change.
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