• Other Financial Issues

    Celtic and Rangers 2019/20: The Watchman

    Introduction No one expects football clubs to have had a good 2019/20 financially due to the impact of Covid-19, but now that the two large Glasgow clubs have published their results, just how badly were they affected by the ravages of the pandemic? Every business has been impacted by COVID-19, but can Scottish football survive until hopefully successful vaccinations allow a return to ‘normal’ life? Financial Summary Celtic Rangers £’m £’m Revenue 70.2 59.0 Wages 54.3 43.3 Player amortisation 12.2 7.6 Day to day profit (22.6) (16.3) Profit before tax 0.1 (17.8) Wages/Revenue % 77% 73% Player signings 23.5 11.0 Player sales 19.6 1.1 Net debt/(cash) (12.8) 7.1 Revenue In…

  • Other Financial Issues

    Project Big Picture: My Coup-a-Choo

    In October 2020 Sam Wallace of The Telegraph revealed ‘Project Big Picture’ (PBP). An attempt by the American owners of Manchester United and Liverpool to radically change the layout and governance of the English game. The project was hailed by some as addressing wealth distribution issues and financial losses made by clubs, especially those in the lower leagues. In truth it was a power grab by people who see football as a business. They see fans as mugs to be patronised, monetized and provide a backdrop that looks good on television when selling broadcasting rights. Under present arrangements there is an approximate three times multiplier in terms of revenue earned…

  • Other Financial Issues

    Manchester United 2019/20: Spoilt Victorian Child

    Key Financial Figures 2019 £’m 2020 £’m Change % Total Revenue 627 509 (18.8%) Matchday Revenue 111 90 (19.0%) Broadcast Revenue 241 140 (41.9%) Commercial Revenue 275 279 1.4% Wages 332 284 (14.5%) Operating profits 44 (13) (130.1%) Player purchases 103 162 56.7% Net debt 198 474 139.3% Losses are to be expected in a Covid-19 world, so it was no surprise to see Manchester United’s financial results take a dip in the year to 30 June 2020. Under New York Stock Exchange rules (where Manchester United’s shares are traded) companies must publish accounts relatively quickly after the year end as it also has to sent out quarterly figures. Keeping…

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    EFL Finances: The Same Deep Waters As You

    The clock is ticking for clubs in the EFL in terms of their ability to financially survive with the effects of Covid-19, money is needed, and quickly too, but who should be putting their hands in pockets…if anyone? How should an industry which has learned nothing from the ITV Digital crash in 2002 and the economic slump created by bankers, accountants and debt rating agencies in 2007 be viewed in terms of its governance and regulation? EFL clubs between them had a total net loss (total revenues less total costs) of £286 million in 2018/19. Calculating profits is tricky though as they often contain one off profits such as stadium…

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    Premier League Club Values 2020

    University of Liverpool Premier League Club Valuations 2020 University of Liverpool Centre for Sports Business Group Executive summary The value of Premier League clubs based on their 2018/19 accounts increased by 1.5% overall to £14.7 billion, with the ‘Big Six’ (Manchester United and City, Liverpool, Arsenal, Chelsea and Spurs) making up £11 billion (75%) of this total (2018: £10.6 billion 73%). Spurs overtook both Manchester clubs at the top of the table on the back of reaching the Champions League final, a fourth-place finish in the Premier League and a wage bill barely half that of Manchester United. Wolves, acquired for £45 million by owners Fosun in 2016/17 is now…

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    Premier League Ownership Investment: Love, profit, vanity or insanity?

    Premier League Funding Football clubs can broadly arrange their finances in one of three ways, bank lending, owner loans or shares. In terms of the Premier League all three methods have been used. The following analysis is from the most recent documents filed by clubs at Companies House. Liverpool League leaders Liverpool are owned by the American Fenway Sports Group (FSG), who also own baseball team Boston Red Sox. FSG acquired Liverpool in October 2010 for an estimated £300 million. The club paid off existing loans due to the previous owners of £105 million. Since then FSG have lent the club almost £100 million as well as borrowing £56 million…

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    Podcast 27 January

    Kevin and Kieran take a look at where a bundle of cash from Qatar Sports Investments would put Leeds United in terms of the Premiership hierarchy. Plus, just how much have the owners of Salford City injected into the club, and did third[-party ownership scupper Manchester United’s efforts to sign Erling Haaland? https://play.acast.com/s/priceoffootball/ef67925a-2b54-48ed-b6d3-d737b88c41ac

  • Other Financial Issues

    Podcast 23 January

    Kieran talks Kevin through his number crunch of the average weekly wages at each Premier League club since 1993. They also examine the difference between the prize money in the Women’s FA Cup compared to the men’s version, the size of the new kit deal between Nike and Liverpool, the significance of the Sunderland owner putting the club up for sale, and why some Championship clubs are charging more than those in the Premier League for away tickets. https://play.acast.com/s/priceoffootball/6d457b09-cb48-4da7-a09f-7c74396f45fb

  • Other Financial Issues

    Football Transfers and Creative Accounting: Protect me from what I want

    When Derby County published their response to the EFL charges for financial misconduct on Friday 17th January 2020, it included reference to ‘the newly notified charge of intangible fixed asset amortisation’. The nonsense below is all about the said subject, but extended to how clubs can increase or decrease costs in the accounts in relation to how they account for players. The Basics When a club signs a player, they will often pay compensation to the previous club for his registration certificate lodged at the football authorities, this is what is commonly called a transfer fee and is either negotiated between the two clubs or embedded in the player’s contract.…