Football finance expert Kieran Maguire has suggested that Southampton could be forced to potentially sell off some of their key assets in the transfer market, or that Gao Jisheng could be forced to sell the club amid their latest financial report.
The Saints released their financial report for the period of 2019 through to March 2020, which revealed that Southampton have made a loss of around £76m and taken out a loan of £78m which includes an interest rating of 9.14%. That means there will be an annual interest charge on the loan of about £7.2m per year until it is paid back in 2025.
One of the main reasons for the major dip in the club’s financial situation has been the absence of fans, barring a brief period where 2,000 were permitted at St Mary’s. That loss of revenue is being felt by clubs up and down the country and Ralph Hasenhuttl has revealed that Southampton cannot afford to sign ready-made players as a result.
Speaking to Football Insider, Maguire has suggested that the financial situation at the club could force them into selling some of their crucial first team players. He also suggested that the owners could well decide to sell the club as a result of the difficulties, saying:
It’s going to be a tough year for Southampton. They could be sold if the owners decide they don’t want to fund the losses. They clearly do have assets which are very valuable in the form of players.
Southampton’s academy has been fantastic. I was a bit surprised about the comments from Alan Pace, the new Burnley owner, about Southampton’s academy. In my view, it’s still generating talent.
I don’t think there will have to be a fire sale, but if the owners don’t want to fund those losses it will have to come through player sales, from the first team and the academy.
Read Southampton verdict
Like most clubs up and down the country, Southampton are going to have a very challenging period financially over the next year or so. The Saints are already being hampered in the transfer market and, whilst they might not have been planning to be busy in the January window, recent injuries have seen the squad depleted and a few additions could be needed to boost numbers.
However, these comments suggest that, rather than adding to the squad, the Saints might actually be forced into selling a couple of their most influential performers. That is a major concern given the progress they have made this season and Hasenhuttl might be tempted to move to another club if he sees players been sold off.
The Saints will not want all of the progress they have made to be undermined by their financial difficulties but they have a strong academy and they should have plenty of ways to raise funds without potentially selling off their most important players.
