Various numbers have been put forward for the price of buying Chelsea football club, which was put up for sale by Roman Abramovich for £3bn prior to the UK government freezing his assets. Lots of bidders came forwards before the deadline of 19th March 2022, and some were close, but did not match, the quoted asking price. Analysts use a variety of methods to value businesses, so here is an attempt to work out how some of the numbers mentioned in the media would have been calculated. Does that mean that these figures should be relied upon…valuation is part art, part science, and a lot of salesmanship, so always treat…

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…

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…

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…

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…