Southampton’s finances in the Championship are complicated by their recent time in the Premier League, meaning they still have big costs and changes to make.
Having experienced the yo-yo of promotion and relegation, the Saints carry the weight of a previously Premier League-scale budget.
Despite a substantial spending outlay in their recent promotion-winning season, previous player sales have provided a crucial buffer, ensuring PSR compliance and a healthy cash flow.
However, external owner investment is unlikely, suggesting a summer focused on balancing the books through player trading to facilitate new signings and ensure financial sustainability in their bid for Premier League return.
As EFL Analysis’ finance expert, Adam Williams sheds light on their financial forecast, the significant wage and player amortisation costs still impacting their books come into sharp focus.
Photo by Matt Watson/Southampton FC via Getty Images
Photo by Matt Watson/Southampton FC via Getty Images
Southampton’s wage issue could cause issues going into the Championship
To understand the financial task Southampton face, EFL Analysis’ finance expert, Adam Williams, examines the lasting impact of their top-flight spending:
“For Southampton, they’ve got the legacy of being relegated with a Premier League budget, not cutting it drastically in the Championship, going up and then coming down again. That means that the wages are pretty baked in, as are the amortisation costs that they are running,” Williams explained.
“They spent about £100m in 2024-25. That’s going to increase their amortisation bill to about £60-70m depending on profit on player sales. That’s very high for a Championship side.
“They did, however, make massive player sales in 2023-24, which helps them out hugely both in terms of PSR and cash flow. They’ll still be receiving instalments for those players.
“They made a pre-tax profit of £17.3m that season. They are going to sell players again this summer. Tyler Dibling in particular is going to fetch a big fee – and that will be a ‘pure profit’ sale for PSR. There are one or two other saleable assets as well.
“For 2024-25, I’d suggest maybe a wage bill of £100m plus £60m in amortisation, offset by revenues of £140m or thereabouts. So I expect they will post a loss but not a very chunky one. PSR isn’t going to be a big problem for them in the Championship therefore, even though they have their losses capped at £61m.
“With parachute payments, pretty strong commercial and matchday income and probably equal transfer instalments coming in and out, I don’t expect access to cash to be a problem either.
“That said, I wouldn’t expect the owners to put any more money into the club. As with most clubs who have just been relegated, it will be a case of shuffling the pack, selling players to make room for new signings. I’d certainly expect them to have earned more money than they’ve spent by the end of the transfer window.”
Photo by Robin Jones/Getty Images
Photo by Robin Jones/Getty Images
Players Southampton could sell this summer
Southampton under Will Still face a necessary squad overhaul. Balancing the books requires a “shuffling of the pack,” with potential player departures crucial for financial stability and chasing promotion.
Mateus Fernandes
The Portuguese midfielder joined Southampton from Sporting Lisbon last summer, and despite a poor campaign overall, Fernandes managed to stand out as a top performer for Southampton. Now, according to a report from Alan Nixon on Patreon, Crystal Palace are lining up a move for Fernandes and have a £20m offer ready for the 20-year-old.
It is said Palace want to do a “quick deal” for him, as they look to capitalise on Southampton’s relegation, while also preparing for their European football next season. Losing Fernandes would be a blow for Saints fans, who were excited about the prospect of a Shea Charles-Mateus Fernandes pivot in the middle of the park next season.
Aaron Ramsdale
Ramsdale is more than likely to be sold by Southampton this summer with several clubs interested in the England international. Information from Alan Nixon on Patreon suggests Southampton are keeping tabs on Sunderland stopper Anthony Patterson, and with the Black Cats now promoted to the Premier League, a move could be more challenging but not impossible.
Nixon claimed Patterson would be keen to step up to the Premier League, and Sunderland’s promotion achieves this, potentially making them want to keep him as their established Championship-winning goalkeeper. However, after his mid-season slip in form, they might still consider other options. Southampton also have other options, with Angers keeper Yahia Fofana on their radar, with him likely costing around £10m.
Photo by Marc Atkins/Getty Images
Photo by Marc Atkins/Getty Images
Tyler Dibling
Dibling’s potential departure from Southampton this summer stems from a number of factors. Firstly, their relegation necessitates a likely reduction in their high wage bill, making the sale of a valuable asset like Dibling possible. Secondly, his talent has drawn significant interest from Premier League clubs.
Crucially, as an academy graduate, any transfer fee received for Dibling represents ‘pure profit’ under PSR regulations, offering Southampton a substantial financial boost, potentially around £55 million. While contracted until 2026, reports suggest Dibling hasn’t agreed to a new deal, hinting at his openness to a move. Although Saints initially held a firm stance, their openness to selling at the right price appears to be increasing as they prepare for the Championship.