CHERRIES have announced a loss of £60.1million for the financial year ending June 2020, as the coronavirus pandemic hit clubs hard at England’s elite levels.

The Dorset outfit have announced the loss figure, which is £27.7m greater than the loss of £32.4m recorded for the previous year up to June 30, 2019.

Cherries saw turnover drop to £95.4m - from the previous year’s figure of £131.1m – a decrease of more than £35m.

The decrease in turnover is mainly due to the impact of the COVID-19 pandemic, which forced all English professional football to be halted from March 13, 2020, until its resumption on June 17.

Cherries still had seven Premier League fixtures to play following the end of the 2019-20 financial year – leading to the decrease in revenue.

The club also saw a further £7.2m reduction to revenue, through a share of the £234.1m Premier League rebate to broadcasters, due to all fixtures not being completed by a contractually agreed date.

Of that £7.2m, £5.9m contributed to the 2019-20 loss, with the remainder set to be factored in to the next financial year.

Despite the hefty loss, the club’s annual report states “directors consider the financial position of the company to be satisfactory at June 30, 2020”.

The Daily Echo understands Cherries owner Maxim Demin has invested more than £150m in the club.

The accounts detail a non-interest bearing loan of more than £125m to the Russian businessman but it is understood Demin is not seeking repayment of loans any time soon. 

Cherries are not the only club to have competed at England’s top level last year announcing big losses.

Leicester City earlier this month announced a loss of £67.3m for their financial year ending May 31, 2020.

In January, Brighton reported a loss of £67.2million for the 2019-20 season, Everton have announced record losses of almost £140m.

Since the end of Cherries’ financial year, the club has since been relegated to the Championship.

The sales of Nathan Ake (£41m), Aaron Ramsdale (£18.5m), Callum Wilson (£20m) for their reported fees have since come after June 30, 2020, so will be included in next year’s annual report and financial statements.

The Daily Echo understands after being relegated from the top flight, Cherries will receive three years of parachute payments from the Premier League, should the club remain outside of the top level. These payments decrease year on year.

Cherries chief executive Neill Blake said: “The financial statements cover a year in which the club competed in the Premier League for a fifth consecutive season, finishing in 18th place with 34 points. That unfortunately resulted in relegation from the Premier League into the EFL Championship.

“During the financial year, the club's focus was to consolidate its position in the Premier League through targeted expenditure on assets and expertise in the playing squad and supporting infrastructure. Contrary to the hopes and expectations of all the club, the goal of retaining Premier League status was not achieved.

“The directors continue to maintain close control over cash flow and continue to develop and maintain policies with the aim of ensuring the club is run in a sustainable and successful manner.

“These policies are seen as vital in order to keep control over all expenditure that the club commits to in order to go some way to mitigating the risks arising from the inherent uncertainty over league status in the following season.

“The club sees retention of staff as a key ingredient to success. During the year there were no changes to key personnel in first team management or senior executive positions. The directors consider the financial position of the company to be satisfactory.

“After the year end, the club sold three players for a profit of £50.8 million. Clearly, if these sales had been made before 30th June 2020, this would have removed a large portion of the loss for the year, and in an ordinary year such sales would have been possible prior to the year end.”