Olympics and Euros prompt BBC to forecast deficit of £492m
The BBC has projected its total deficit to rise to £492m for the financial year 2024/25, as it ramps up investment into its commercial unit and faces financial strain from one-off content spending for major sporting events such as the summer Olympics and men’s Euros.
The broadcaster recorded an operating deficit of £220m in 2022/23, according to the National Audit Office.
“We are forecasting a deficit in 24/25, funded by cash reserves established in previous years in anticipation of exceptional increased spend,” the BBC said in its annual plan released on Thursday.
“The Commercial Group will continue to utilise borrowing facilities to drive commercial investment growth.
The BBC is chasing commercial revenue as it faces a possible end to the licence fee model, which is currently its single largest source of income.
BBC Director-General Tim Davie said on Tuesday that the corporation must find an additional £200m in savings, on top of the already announced annual savings of £500m.
“Following the transformational budget in 24/25, our financial plan is projected to return to an income and expenditure surplus from 25/26,” as it pins hopes on new savings programmes and commercial revenue growth.
But the BBC has sparked anger over its ambitions to create local news brands.
News Media Association chief executive Owen Meredith said Davie’s vision for the BBC “overreaches its remit” and risked breaching Royal Charter rules on damaging competition.
“The public should be in no doubt that this appears to be an aggressive strategy, designed to strengthen the BBC’s hand at the expense of others,” he said.