The club's financial outlook (2026/27 season and beyond)

[CSA96]

More quotes from Solak today speaking to Alfie House in the Echo re: the club's financial situation and why he's feeling positive about the outlook

Summarising the figures he disclosed in the interview below, as I know they pop up in discussions from time to time and it might be handy to reference them

--

2025/26 season, just gone: £45m repaid in bank loans, £57m paid in transfer fee instalments

Current status going into next season...

BANK LOANS (Covid loan taken under Gao)
June 2025 - balance: £90m owed in bank loans
June 2026 - balance: £45m owed in bank loans

TRANSFERS
June 2025 - balance: £99m owed in transfer fee instalments
June 2026 - balance: £42m owed in transfer fee instalments

--

He also called out that the club hasn't been budgeting operational costs with the parachute payment money, so the final payment of £40m for the 2026/27 season will be directed to the Covid loan

The impact of that would bring the bank loan balance to £5m which he anticipates clearing in a year's time, making the club debt-free at that point

Other talking points from the latest quotes:

- Solak is not concerned on transfer payments, as instalments are commonplace and our receivables outweigh our payables
- He called out that the wage bill is still far beyond a normal Championship wage bill, this is a legacy situation where our former PL players received a % pay cut upon relegation, but that pay cut is never going to reduce them all the way to 'normal' Championship salaries, otherwise why would a player sign the agreement
- If the club is in the Championship still for 27/28 then Solak will still expect a top four finish and the budget given to the sporting director and manager will match that and still be better the vast majority of the league (minus the parachute clubs)
- He has never seen a penny of the parachute payment funds as they've always gone to servicing the debt directly
- Said that the Covid loan (interest rate approx 9.2% which was £7.2m per year against the value in year 1) and the almost £250m outlay on players in the two seasons where we got relegated have been the biggest obstacles since he took control of the club at the start of 2022
- 'We have some business developments that will come in next year, and we want to further develop the whole commercial side of the business'
- Said he has personally been leading those bigger projects since he took the chairmanship a year ago

Edited 4 hours ago by CSA96

[Barton Saint]

Encouraging 

[spyinthesky]

Useful info.
I wonder how much benefit Dragan is expecting longer term from possible development of the Itchen quayside opposite the stadium.
The club is in regular dialogue with Southampton City Council, ABP and presumably the leaseholders and land owners of the Aggregate Wharves to relocate them to a more suitable location and allow gentrification of this side of the River Itchen.

[SuperSAINT]

55 minutes ago, spyinthesky said:

Useful info.
I wonder how much benefit Dragan is expecting longer term from possible development of the Itchen quayside opposite the stadium.
The club is in regular dialogue with Southampton City Council, ABP and presumably the leaseholders and land owners of the Aggregate Wharves to relocate them to a more suitable location and allow gentrification of this side of the River Itchen.

He mentioned with Alfie last year about his own personal project (which I assumed to be all this).

[Football Special]

3 hours ago, CSA96 said:

More quotes from Solak today speaking to Alfie House in the Echo re: the club's financial situation and why he's feeling positive about the outlook

Summarising the figures he disclosed in the interview below, as I know they pop up in discussions from time to time and it might be handy to reference them

--

2025/26 season, just gone: £45m repaid in bank loans, £57m paid in transfer fee instalments

Current status going into next season...

BANK LOANS (Covid loan taken under Gao)
June 2025 - balance: £90m owed in bank loans
June 2026 - balance: £45m owed in bank loans

TRANSFERS
June 2025 - balance: £99m owed in transfer fee instalments
June 2026 - balance: £42m owed in transfer fee instalments

--

He also called out that the club hasn't been budgeting operational costs with the parachute payment money, so the final payment of £40m for the 2026/27 season will be directed to the Covid loan

The impact of that would bring the bank loan balance to £5m which he anticipates clearing in a year's time, making the club debt-free at that point

Other talking points from the latest quotes:

- Solak is not concerned on transfer payments, as instalments are commonplace and our receivables outweigh our payables
- He called out that the wage bill is still far beyond a normal Championship wage bill, this is a legacy situation where our former PL players received a % pay cut upon relegation, but that pay cut is never going to reduce them all the way to 'normal' Championship salaries, otherwise why would a player sign the agreement
- If the club is in the Championship still for 27/28 then Solak will still expect a top four finish and the budget given to the sporting director and manager will match that and still be better the vast majority of the league (minus the parachute clubs)
- He has never seen a penny of the parachute payment funds as they've always gone to servicing the debt directly
- Said that the Covid loan (interest rate approx 9.2% which was £7.2m per year against the value in year 1) and the almost £250m outlay on players in the two seasons where we got relegated have been the biggest obstacles since he took control of the club at the start of 2022
- 'We have some business developments that will come in next year, and we want to further develop the whole commercial side of the business'
- Said he has personally been leading those bigger projects since he took the chairmanship a year ago

I always wondered why we needed such a large covid loan (if at all). TV money was still paid wasn't it in the end, was just the match tickets that we missed out on (and pie sales) 

[Turkish]

Any news on when were buying all the land off the council to turn Southampton into the English Monaco? That's the only reason why people buy SFC isnt it?

Edited 39 minutes ago by Turkish

[spyinthesky]

6 minutes ago, Turkish said:

Any news on when were buying all the land off the council to turn Southampton into the English Monaco? That's the only reason why people buy SFC isnt it?

It wont happen overnight.
As far as I understand the current Aggregate Companies and others holding the Freehold or Leasehold Properties along the waterfront will need to be 'persuaded' to relocate.
This could either mean that their Leases are bought out or the Council are able and prepared to Compulsory Purchase the land.
Presuming the Aggregate Companies want to remain in the Southampton area ie relatively close to their Agreements with the Crown Estate to dredge for material in the English Channel, there would need to be a suitable option to store the material. This is why ABP are involved in discussions.
I guess there could also be opportunities for the club within the adjacent Central Trading Estate with the land likely to be owned by the Council.
It will be interesting to see what the future holds for the empty site which burned down prior to the Preston game a couple of years ago.
 

[bpsaint]

Intrigued and excited by his apparent plans for the waterfront and gasworks site. Wonder if his pet project extends to a capacity increase.