Soccer: Charlton in the red
Charlton Athletic are paying the price of playing in the Premiership, and plc chairman Richard Murray has called for a more equal distribution of wealth in order to make the league more competitive.
Last season’s First Division champions have announced a net loss of £1.6m for the six months to December 31, 2000.
That was despite turnover doubling to £11.9m and Murray said: ‘‘This has been a period of impressive performance both on and off the pitch.
‘‘However, despite enhanced television revenues and improved commercial performance, the increased costs associated with operating in the FA Premier League have resulted in a net loss of £1.6million.
‘‘The three-year television deal with BSkyB starting next season will release unprecedented levels of revenue to Premiership clubs. We must work with other football clubs to promote a more equal distribution of these revenues that currently exists in order to enhance the competitiveness of the league.’’
Charlton have secured their Premiership place for next season, but Murray warned the club can not allow wages to spiral out of control.
‘‘We must ensure that the new income is not all dissipated in increased player wages, as it is by no means certain that the new television revenues can be sustained in the longer term,’’ he said.
Charlton made a net profit of £m in the corresponding period in 1999, while the operating loss fell from £1.8m to £14,000.
Net assets rose to £22.3m, up £4.9m from June 30, 2000, while the insurance value of the first team squad exceeded £38m.
