PSV’s equity has more than halved, says financial director Jaap van Baar in an explanation of the annual figures. On Monday morning, the club presented the financial figures for the 2020/21 financial year. Not only is there a net loss for the first time in ten years, amounting to 23.2 million euros. Shareholders’ equity has plummeted from 40 to 17 million euros, Van Baar tells via the official club channels. However, he does indicate that the liquidity of the club is in order.
According to Van Baar, the result is very clear. “We have suffered a significant loss. A net result of 23 million euros loss. Over the past nine years we have written black numbers and shareholders’ equity has more than halved. That was forty million euros and that has now fallen back to seventeen million euros, so the message in short is that it was a very tough year financially.” The financial director indicates that the corona pandemic has had a major impact on the annual figures. “Yes, of course that influence has been great. The message is strong, a loss of 23 million euros, but there is a story behind it.”
PSV narrowly beat PEC Zwolle | INTERVIEWS Gakpo and Boscagli
More videos
PSV presents red annual figures: 23.2 million euros loss
PSV presented the annual figures for 2020/21 on Monday morning.
“On the one hand, it is the corona pandemic, we played for a year without supporters in the stadium, our business relations were not welcome and all other related revenue streams that are realized during a match have actually completely disappeared,” explains the financial director. “Fortunately, we received support from these supporters and business associates and were ultimately able to receive the bulk of that revenue anyway. That has reduced the impact of the pandemic,” said Van Baar, who was appointed last month. “In addition, we as PSV have made use of the support measures from the Dutch government. I also think we are entitled to that, because we had a very high loss of turnover.”
“On the other hand, we have the transfer result, where we also see the impact of the corona pandemic,” explains the financial director. “Whereas as a training club we simply have to sell a number of players every year, we only achieved a medium-sized transfer last year in the form of Sam Lammers to Atalanta. The really big transfers that we had hoped for, they only took place later”, the financial director refers to the transfers of Denzel Dumfries (at least 12.5 million euros) and in particular Donyell Malen (at least 30 million euros), who only be carried over into the next financial year. “An annual report is a timing moment. We close the books on June 30, 2021. The five transfers we made last summer all fall in the new fiscal year. That is the other nuance of the result. It doesn’t make it better, but it’s the story of why the loss is so great.”
Van Baar then explains what this means for the PSV supporters. “Our fans certainly don’t have to worry, but we also have to be realistic. It did have an impact. The impact on a total level is twenty million euros, excluding transfers. However, liquidity is in order and we had a good transfer summer after the balance sheet date. We’ve been in the black for the past nine years, so we had equity that cushioned some of the blow. The reality is that we have to be very careful with our capital, but that does not mean that our sporting ambitions have changed.”