The sale of Jonson Clarke-Harris lessened the financial damage of the COVID-19 pandemic to Bristol Rovers, with the club's operating loss down by almost £1million year on year.
Bristol Rovers 1883 Ltd's accounts for 2020/21 were released on Companies House on Tuesday, with the club posting an operating loss of £1,570,922 for the financial year, compared to £2.5m in 2019/20.
Before player sales, the club was set to lose more than £3million, but deals for star striker Clarke-Harris to go to Peterborough United and academy prospects Kyrie Pierre and Bradley Burrowes to join Aston Villa raised £1.75million.
The Gas spent £125,000 on signing players in the period, during which they finished bottom of League One and were relegated with the whole season played behind closed doors, significantly impacting ticketing income. However, supporter donations and strong iFollow streaming sales helped the club's cash flow.
Clarke-Harris fetched a fee of £1.25million, to be paid in two instalments, plus add-ons worth hundreds of thousands of pounds, many of which have been activated due to the forward's sublime first season at London Road which led to promotion and the League One golden boot. Pierre and Burrowes were both sold for six-figure sums, with the former a club record for a youth player.
The business' cumulative losses over the years are close to £27million, but the club's debt is £8.3m after owner Wael Al-Qadi waived interest and capitalised loans owed to parent Company Dwane Sports worth £18m into shares in the club. Al-Qadi vowed in a club statement published on Friday to use that instrument once again to convert £3.5milllion in debt into shares in the current financial year to reduce the burden on the club.
A strategic report signed by CEO Tom Gorringe reiterated the club's aims to reach the Championship and achieve its long-standing goal of building a new stadium. It read: "The 2020/21 season was arguably the most difficult in the club's history. Played against a backdrop of uncertainty caused by the pandemic, for the first time in the club's history we played a full season behind closed doors with no spectators allowed to attend games for the duration of the season.
"We have no doubt that the lack of supporters in the stadium played a part in below-par results on the pitch which sadly resulted in relegation to League Two. The performances on the pitch were not befitting of the level of investment that had gone into the team, the ambition of the board and owner or the passion of the fanbase.
"Going into last season the aim was to get into the play-off spots so the failure to compete at that end of the table needed to result in a number of changes to ensure that moving forward we would be more competitive to aid our move up the football pyramid.
"Going through tough times as we have all experienced over the past reminds us of what we have and as a board, we are incredibly grateful and thankful for the continued support of our fanbase. Furthermore, we wouldn't have been able to continue through the year without the unbelievable dedication and support or all of our staff who have continued to continue through the year without the unbelievable dedication and support of all of our staff who have continued to innovate and drive standards to help us work towards reaching our potential.
"Moving forward, our ambition remains to reach the Championship and that starts with getting out or League Two as early as possible and continuing to dedicate our efforts to unlock the stadium issue that has held the club back for decades. This season, we have focused on driving standards and making sure that every single person in the building is working to make the club as good as it possibly can be.
"As part of this, communication, leadership and a shared vision and direction are key to what we are trying to achieve. Investment has continued despite relegation in the first team and our resolve of the board and everyone working at the club is absolute to get the club up the pyramid and back where we want to be."
Rovers claimed £382,856 in furlough from the Government in 2020/2021 after receiving £579,539 the year previously. The club's highest-paid director earned £114,000 over the year, but the club's total wage bill has not been included in the accounts.
The Gas spent almost £1.5m on infrastructure projects, with the club putting the finishing touches on the first phase of its Quarters training ground development.
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