Financial Results
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Derby County 2017/18: Say You’ll Be There
Making sense of Derby County’s 2018 accounts is a challenging task as the club’s structure has been changed nearly as often as the line-up of the Sugababes. Enigmatic is the politest word that could be used to describe way that a myriad of different companies that are now running different elements of Derby which was further complicated by a new holding company Gelaw NewCo 203, taking over on 28 June 2018. Legally such a structure is perfectly valid and is common in other industries, whereas previously all of the club’s activities went through Derby County Football Club Limited the new set up arose after Mel Morris CBE took control of…
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Crystal Palace 2017/18: I Just Can’t Be Happy Today
Surviving in the Premier League is even tougher than getting there and an eleventh place position is testament to Roy Hodgson in guiding the club to another season at the top table. Usually Palace start the season poorly and improve in the second half of the season and 2017/18 was no exception after the De Boer experiment was quickly jettisoned. Sustainability from a financial perspective wasn’t achieved however as the club, despite record revenues, lost £750,000 a week from day to day operations and was reliant upon the club owners to finance the gap. An increased capacity Selhurst Park is part of the club’s strategy to improve the finances in…
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Burnley 2017/18: I Thought You Were Dead
Seventh position in the Premier League and qualifying for the Europa League was an achievement for Burnley in 2017/18 and the club’s financial results were almost as impressive. Earnings, wages and player trading profits all hit record levels yet some fans seem bored by life in the Premier League. Income All clubs split income into three categories to comply with EPL recommendations, matchday, broadcasting and commercial. Nowadays most ‘Other 14’ clubs earn a small fraction of their total income from matchday sales and Burnley is no exception as frozen ticket prices and slightly less domestic cup progress meant that this fell by £200k compared to the previous year. Due to…
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Bournemouth 2017/18: Boom Boom Ba-Ba Boom
Introduction: Establishing yourself as a Premier League club, especially with only an 11,000 capacity stadium, is as much as a challenge as promotion from the Championship in the first place. Down at the Vitality stadium Bournemouth can look forward to their fifth consecutive season in the top flight in 2019/20 although financial results are not as impressive as those on the pitch. Detailed accounts have just been published which show that the price of recruiting the likes of Ake, Begovic and Defoe came at a significant price and the club made a loss in 2017/18. Investing in the squad wasn’t enough to prevent the Cherries falling from 9th to 12th…
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Aston Villa 2017/18 Finances and FFP: Devil in the Detail
Introduction Down at Villa Park fans are hopeful that the recent return to the first team of Jack Grealish can cement the club’s playoff position as they have the benefits of the final year of parachute payments. Over the other side of the city rivals Birmingham City have just been docked 9 points as a punishment for a breach of the EFL’s Profitability and Sustainability rules. Championship football is challenging as the clash between those with parachute payments, stalwarts of the division and recently promoted League One teams means that there is a lack of a level playing field between the 24 competing clubs. The reign of Doctor Tony Xia,…
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Sheffield United 2017/18: Geisha Boys & Temple Girls
Introduction Championship finances are the most mind numbing in any division in the professional game and Sheffield United have just produced their accounts for 2017/18. Having to compete against clubs with the benefit of parachute payments as well as some with rich benefactors means that wages are high, and losses are common. Relative to other clubs in the division was always a tough task but a seaason of consolidation in 2017/18 has been the platform for potential promotion in the current season. I must confess to always liking Sheffield United as when I was a kid their Admiral kit was the one in the catalogue that looked cooler than a…
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Liverpool 2017/18: Toxteth O’Grady
Liverpool 2018: The Killing Moon Introduction: Jurgen Klopp has many reasons to smile at present with his team competing for the Premier League title and in the knock out stage of the Champions League. Under Klopp’s management, combined with what seems to be astute operational management by the club’s commercial and marketing department, the club has also announced a world record pre-tax profit of £125 million for 2017/18. Reds’ fans won’t give a hoot about the profits as they look forwards with anticipation and trepidation to the remainder of the season, but there is a link between good financial and footballing management depending upon the business model employed by different…
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Swansea City: Soul Train
Introduction Huw Jenkins, Swansea’s chairman, who made millions when the club was acquired by American investors in 2016, has resigned. Reading between the lines it appears that there are conflicts in terms of day to day running of the club. The club’s finances are clearly an issue, as is the strategy of the majority shareholders Jason Levien and Steve Kaplan in terms of how the club is going to deal with the aftermath of relegation. Swansea haven’t yet published their accounts for 2017/18, but were there warning signs in the previous year? Key Financial Highlights for year ended 31 July 2017 Turnover £128 million (up 31%) Wages £99 million (up…
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Arsenal 2017/18: My Friend Stan
Introduction Stan Kroenke, Arsenal’s invisible owner, saw goodbye to three big players in the club during 2018 as the club went trophy less but perhaps more importantly for the moneymen failed to qualify for the Champions League for the second season in a row. The power struggle with Ukrainian Alisher Usmanov ended with Stan as the final man standing as he bought out his rival, allowing the American to also take Arsenal from the AIM Stock Exchange to the less scrutinized private company. Arsene Wenger’s dignified reign as manager came to an end with perhaps sighs of relief from both the Frenchman and his many vocal and at times very…
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Chelsea 2017/18: The Lion Sleeps Tonight
Introduction Chelsea had an up and down season in 2017/18, winning the FA Cup but not qualifying for the Champions League. The club’s financial structure is complicated, Chelsea Football Club Limited is owned by Chelsea FC plc, which is owned by Fordstam Limited, which is funded by Lindeza Worldwide Limited (based in the British Virgin Islands) and Camberley Investments Limited (based in Middlesex), which are owned by Roman Abramovich. This analysis looks at Chelsea FC plc, mainly because Fordstam Limited tends to publish its accounts a few months later. Key Figures Turnover £443 million (up 23%) Wages £244 million (up 11%) Pre player sale losses £41 million (down 23%) Player…