PETERBOROUGH UNITED, the English Championship football club owned by Dublin-born businessman Darragh MacAnthony, has reported a £2.78 million (€3.38 million) loss for the 12 months to the end of May 2011.
The 10-fold increase in losses was due to the club’s relegation from the Championship, English football’s second flight, to League One in May 2010, according to the directors’ report accompanying the club’s accounts.
The directors opted to maintain the quality of the playing squad to ensure swift promotion, despite the reduction in payments from the Football League that came with relegation.
Peterborough won promotion to the Championship after victory in a play-off last year. The club is controlled by a Luxembourg-based entity, DMA Holdings SA, owned by Mr MacAnthony.
Mr McAnthony, born in Dublin in 1976, moved to Spain with his family in 1991. He subsequently amassed a significant amount of wealth through MacAnthony Realty International, which was formed in Marbella in 2000 and specialised in selling holiday homes to mostly Irish and British customers.
At the time of his takeover of Peterborough in 2007 for a nominal sum, Swiss-domiciled Mr MacAnthony had an estimated wealth of €225 million.
Peterborough United Football Club Limited had retained losses of just over £13 million at May 31st last. DMA Holdings is owed £6.63 million, while Mr MacAnthony is owed £650,000 in a personal capacity. The accounts note a “commercial rate of interest” is charged on the loans.
The Cambridgeshire club was granted planning permission last September for a £5.5 million redevelopment of one of its stands which will include the provision of education facilities.
The club’s directors expect it to break even this season.
