Cash flow analysis: Fulham owner once again fails to sustain desired business model

30 March 2020

Fulham
Photo: PA Images Fulham owner Shadid Khan had to inject another significant amount of cash into the club during the 2018/19 season

Not only did Fulham's one-season stay in the Premier League lead to a £20 million pre-tax loss, but the failed ambition of surviving their first season in the English top tier will have long-term consequences.

By delaying transfer fee payments with limited future receivables in return, Fulham now face the consequences of their failed attempt at survival.

Despite ambitions of creating a self-sustainable business model, Fulham's owner must now be patient and continue to fund the expensive promotion show.

What's more, the current coronavirus-related suspension of all football activities puts further pressure on Fulham's cash balance.

Mads Christian Fogt Jensen, analyst mj@offthepitch.com

Fulham's short-term visit to the Premier League turned out to be a rather costly affair, with the club reporting a £20 million pre-tax loss in 2018/19, adding to a running total loss of £160 million under Shahid Kahn's seven years of Fulham ownership.  

The Pakistani American billionaire, who has previously expressed a desire to build a self-sustainable business model independent of somebody's bank account, has yet to achieve his goal as he found himself compelled to inject another significant amount of cash into the club during the 2018/19 season. 

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