Feyenoord reports loss after unprecedented year
Feyenoord Rotterdam NV’s latest annual report shows that the club made a 17-million-euro loss in the 2020-2021 financial year. As well as an operating loss of 4 million euros, the club also posted a 13-million-euro deficit in its transfer market dealings. As a result, Feyenoord Rotterdam NV’s equity decreased to approximately 1.5 million euros.
Transfers
As with previous years, a transfer deficit had a big impact on Feyenoord’s figures. The club is fully aware that improvements are needed in this domain in the coming years.
After a disappointing season on the pitch, in the summer the club invested heavily in the future by extending the contracts of young players, many of them products of the club’s own youth academy. The club’s strategy is to improve these players under the supervision of a new coaching staff and, after they have played for a few years in the Feyenoord first team, sell them to foreign clubs for a good price.
Investments were also made in the scouting setup and improvements to the organisation of and partnership between Feyenoord Academy and 1908. These investments in time, money and people are expected to pay dividends on the transfer market in due course.
It is important to note that Steven Berghuis, Wouter Burger and Ridgeciano Haps were sold after the balance sheet date, which means these transactions are not included in the figures for the 2020-2021 financial year.
Consequences of the pandemic
The coronavirus pandemic also made a significant contribution (2 million euros) to Feyenoord Rotterdam NV’s first operating loss in many years. The support of the national government, cost cutting measures (including a temporary pay cut agreed with all staff) and the waving by fans and business customers of their right to a refund largely offset the unprecedented 26-million-euro loss due to the pandemic. These three items yielded approximately 8 million euros each, which ensured the pandemic-related loss was limited to 2 million euros.
The remaining operating loss is due to the lower European media revenue and the aforementioned additional investments in developing and adapting the organisation of the football side of the business in particular.
Word of thanks
‘These are not figures you want to present, but they are the unavoidable consequence of a tough year in unprecedented circumstances,’ says financial director Pieter Smorenburg. ‘We want once again like to thank everyone for the support that we have benefited from at Feyenoord in the course of what was in many respects a challenging season.’