The Political Economy of Football V2

The authoritative Swiss Ramble looks at the finances of the semi-finalists in the Champions League and Europa League. He notes, 'The Champions League has the “fairest” financial pairings, as it matches the clubs with the highest and 2nd highest revenues, then 3rd and 4th. However, the differences are still huge: Barcelona £612m is £150m more than Liverpool £455m; while Spurs £379m is nearly five times Ajax £81m.' 'It’s a similar story [in the] Champions League with wages. Barcelona’s £431m (excluding other sports such as basketball and handball) is again over £150m higher than Liverpool £264m, while Spurs £148m might be low for a leading Premier League club, but it is triple Ajax £47m.' Based just on the financials, the English teams should reach the Europa League final in Baku, as their revenue is around four times as much as their opponents: Chelsea £448m vs Eintracht Frankfurt £103m; Arsenal £389m vs Valencia £98m. The differences in wages for the Europa League ...

Hartlepool United have released their accounts for their first year outside the Football League. The club came very close to collapse and details of the deal that saved it have been revealed: Deal between John Blackledge and Raj Singh The club has used the exemption available to smaller companies so the accounts are not as full as for some larger clubs. The accounts may be views online at Companies House. During the period covered by the accounts Clarence 18 Limited, the company's immediate parent undertaking, provided loans and paid expenses of just under £850k on behalf of the company. The full amount remained outstanding at the period end. The former shareholders of the business, Sage Investments Ltd, consolidated the amounts to the company by placing £1.73m into a formal loan agreement The repayment of the loan in terms of timing and amount is dependent upon the success of the football team. The going concern basis of the company depends on continued support from Clare...

The authoritative Swiss Ramble has commented on the recently published 2017/18 accounts of Cardiff City. He notes, 'Carfiff paid the price of success, as the loss before tax almost doubled from £21m to £39m, mainly due to £23m of promotion bonuses and other contractual payments.' The loss after tax was £36m following a £3.3m tax credit. Most Championship clubs lose money, but Cardiff loss of £39m is one of the largest in 2017/18. However, it is worth noting that the three biggest losses came from clubs promoted to the Premier League. For Cardiff promotion was very timely, as 2017/18 was the last year of parachute payments, but the club can now expect around £120m in the Premier League in 2018/19. Adding in parachute payments, promotion was worth about £170m. Since Vincent Tan bought the Bluebirds in May 2010, the club has accumulated £133m of losses, averaging £17m a season. The only time they managed to make a profit was £4m in 2015, due to one off factors, while they ev...

Swansea City published their accounts for the year ended 31 July 2018. The club’s operating losses more than doubled to £933,000 a week despite being in Premier League as revenue was flat but costs increased. Turnover declined marginally at £126.8m. Matchday revenue was broadly static at just under £7.4m or six per cent of turnover. The lower league finish for the Swans caused broadcasting prize money to fall by £5 million, partly offset by new commercial deals. Broadcasting will fall by a further £60 million in 2018/19 and then £10m and £20m and £7m unless promoted back to the Premier League. Media accounts for 83 per cent of turnover, a high but not unusual figure for wha was then a Premier League club. Swansea interest cost up and now £36,000 a week although Kieran Maguire of the PriceofFootball says that 'over half of this is due to the dark arts of accounting rather than payments to banks.' Borrowings were up from £9m to £15m. Player trading in 2017/18 was made up ...

Plymouth chairman Simon Hallett has said investing in a £5m redevelopment of the grandstand at Home Park was the right choice for the club's long-term future. The US-based businessman and his wife Jane put up the cash to support the redevelopment and refurbishment at the stadium. He said, 'The substantial commitment that my wife Jane and I were prepared to make was only investment in assets that would support Argyle over many seasons, not just through the life of a few player contracts. He added, 'The Board has been very clear, for a number of years, that we want Argyle to be financially sustainable, in the absence of owners who are prepared to fund deficits year after year.' He made his comments in his Boardroom Blog, a good way of communicating with fans, particularly for a chairman who is across the pond: Chairman's chat Argyle are at risk of relegation from League One, depending on the outcome of their game against Scunthorpe at Home Park next Saturday. In...

The fixture between Bolton Wanderers and Brentford today has had to be called off after Bolton players, who have not been paid their wages for March, refused to play: Postponed The club will now face disciplinary action. The EFL have issued a statement saying that the club must complete their two remaining matches in the Championship. The EFL will do what it can to bring the ownership issue to a speedy conclusion: EFL statement The EFL has been widely criticised and needs to get a grip on the problem of rogue owners. However, often they are faced with a sole bidder for a club in financial trouble and turning that person down might see the club collapse.

Spurs think they got the better deal in the end when they were not named as preferred bidders for the London Stadium, but West Ham think they came out on top: Tottenham triumphed Spurs face a period of austerity, but clearly have an iconic stadium. The White Hart Lane architect says that Daniel Levy was the most demanding client he ever had, taking an interest in every detail: Most demanding client

An analysis from the US of the gap that has opened up between the top six and the rest of the Premier League: The parity problem Football analyst Chris Anderson suggests that it might increase the pressure for a Premier League 2, although in some ways the Championship already fulfills that function given the size of parachute payments.

GVC Holdings, the owner of Ladbroke Coral bookmakers, has called for a ban on football shirt sponsorship, as well as an end to all broadcast advertising for sports betting in the UK. The company said that its proposals would help curb problem gambling. Of course, it may be that such restrictions would be less harmful to well established brands than to newer or smaller companies seeking to raise their profile. The ever closer links between football and betting companies have given rise to concern. Britain's gambling companies provide more than £47m in shirt sponsorship deals for Premier League clubs. Nine clubs have betting companies as their main shirt sponsor. Watford and West Bromwich Albion in the Championship have gambling companies as shirt-sleeve sponsors. The most lucrative deal is that of West Ham United with Betway, worth £10m. Everton receive £9.6m from SportPesa. At the other end of the spectrum Burnley are paid £2.5m by Dafabet and Huddersfield Town £1.5m by Ope Spor...

Bury FC has been put up for sale by chairman Steve Dale just five months after he took over. The financial situation of the Shakers, who could be promoted to League One, is much worse than he realised with £1.6m of commitments to meet by the end of May and just £180,000 of anticipated income. A winding up order has been postponed: Bury crisis The club chairman has issued a long statement which has a rather exasperated tone to it: A message from the chairman The club has had a number of financial crises over the years. It is not easy to operate in the shadow of the two big Manchester clubs.

Just how much Mauricio Pochettino has enabled Tottenham Hotspur to punch above their weight is shown by the Premier League salary table for 2017/18. Five of the top six clubs had a wages bill between £223m and £296m, but that of Manchester United (£296m) was twice that of Spurs (£148m). Excluding the three promoted clubs, Burnley, Brighton and Huddersfield occupied the last three places, suggesting that money talks. Watford did better than their wage bill and Southampton less well.

The authoritative Swiss Ramble has attempted to estimate how much English clubs will make from the Champions League, although he emphasises that making such estimates is not straightforward. The total amount distributed to clubs in the 2018/19 Champions League has increased by 54% (€681m) from €1.269 bln to €1.950 bln. This is now split: participation €488m (25%), performance €585m (30%), TV pool €292m (15%) and coefficient rankings €585m (30%). In 2018/19 each of the 32 clubs that qualified for the Champions League group stage get €15.25m plus €2.7m for a win and €900k for a draw. Additional prize money for each further stage reached: last 16 €9.5m, quarter-final €10.5m, semi-final €12m, final €15m & winners €19m. The 2018/19 Champions League prize money has therefore significantly increased over 2017/18, especially in the early stages of the competition. The maximum amount that a club could earn (excluding TV pool & coefficient) is up €25.3m (44%) from €57.2m to €82.5m. T...

Premier League clubs’ combined revenues for 2017/18 rose to a record £4.8 billion, up 6% from 2016/17 (£4.6 billion) reports Deloitte Sports Business. Clubs’ combined wage expenditure increased by £0.4 billion to a record £2.9 billion in 2017/18, with Premier League average wage/revenue ratio rising from 55% to 59%. Wage growth impacted Premier League clubs’ operating profits, falling 16% to £0.9 billion (2016/17: £1 billion). Clubs generated pre-tax profits of £0.4 billion, falling from the record £0.5 billion set in 2016/17. The increase in revenue is in part attributable to the Premier League having a record five teams competing in the UEFA Champions League last year, all reaching the Round of 16 or beyond, resulting in a substantial increase of c.£71m in UEFA Champions League distributions to Premier League clubs. Alongside the increase in UEFA distributions, matchday and commercial revenue both grew by 8% and 12% respectively. Increases in player spending lower down the table e...

The extraordinary meeting to expel Coventry City from the English Football League has been postponed: EFL statement The club has begun talks with Wasps about staying at the Ricoh. A statement issued by the club also says that they have signed a Heads of Terms agreement over a ground share at an alternative venue. A statement from the Sky Blue Trust says: 'We are concerned to note that a ground-share out of the City has not yet been ruled-out. We hope that all concerned will try their utmost to avoid such a calamitous exile.' Leading football journalist writes about the whole sorry saga under Sisu here: Toxic tactics The Sky Blues have an outside chance of making the League One play offs and I hope that the stadium talks go well for their long suffering fans.

The authoritative Swiss Ramble takes his usual forensic look at the recently published accounts of Newcastle United. Promotion brought the club back to 'a healthy financial position', moving from £47m loss before tax to £23m profit, as revenue more than doubled from £86m to a record £178m and no repeat of prior year £32m exceptional costs: £10m promotion bonus and £22m onerous contracts. The club's £93m revenue growth very largely driven by broadcasting’s £79m increase to £126m, reflecting vastly higher TV money in the Premier League, while commercial also increased £13m (90%) to £28m, but match day flat at £24m. However, profit on player sales dropped £39m to £4m. This was one of the lowest gains in the Premier League, in stark contrast to clubs like Liverpool £124m, Arsenal £120m and Chelsea £113m. Over the years player sales have had a decent impact on profits, contributing £184m during the Ashley era. That said, only three years were above £20m. If such profits were...

An interesting analysis of the decline of Bradford City who have been relegated to League Two: With a whimper rather than a bang Financial losses topped £2m for the last financial year and the club’s decline on the pitch has been matched by steadily falling support, with season ticket sales having dropped by 4,000 and one home match, against Coventry City in October, attracting the club’s lowest league attendance in the last five years. It's another story of incoming owners who thought that football success could be easily achieved: 'The owners of the club attempted to make too many changes too quickly, in spite of their initial statement when taking control of the club three years ago, whilst the apparent motivation of the man placed in control of the day-to-day running of the club seemed directed more by ego than the best interests of the club.' 'Failures in recruitment at all levels have been a clear signal of the shortcomings of the ownership, but Stefan Rupp – ...

Kieran Maguire of the PriceofFootball takes an in depth look at the finances of Leeds United: Heartland He comments, 'Standing on the brink of promotion to the Premier League, playing exciting football and with a cult hero as a manager, Leeds United are cool to like again.' 'The club’s recently published accounts show that this success hasn’t come free but by the standards of the Championship Leeds have been a model of restraint compared to other owners who have gambled with the existence of their clubs. Elland Road regulars have plenty of experience of improper owners and at present they seem to be operating with a competitive budget without going overboard.' 'Promotion to the Premier League would see revenues rise by at least £100 million and the club is in a strong position given the size of the city and its history to sign some lucrative deals. Even if they fail to do so the club is in a strong position financially both in the short and medium term from the...

An interesting analysis of how Valencia lost their place as the third force in Spanish football: Importance of Champions League money The article argues, 'It would be fair to say that up to the collapse of 10 years ago, they had been run into the ground by successive owners. Unlike Real Madrid and Barcelona,both embarking on stadium rebuilds of their own, the club have been denied by Spanish law the right to constitute themselves as member-owned. It left the club, considered to have the third-largest supporter base in Spain, at the mercy of bad owners. 'Now under the stewardship of the Singapore billionaire Peter Lim, who has an interest in Salford City - currently competing for promotion to the Football League - they have some stability. Their year-to-year finance plan relies upon the fragile premise of Champions League qualification which the club has achieved five times since Emery arrived there in 2008, including last season.'

Kieran Maguire of the PriceofFootball takes an in depth look at the recently published accounts of Newcastle United: Apply some pressure He concludes, 'Newcastle did take a gamble in not investing in players in 2017/18 and the risk of relegation was significant until the last third of the season when results improved.' 'Mike Ashley’s financial strategy appears to have been one of careful cost control to impress potential buyers. This is borne out when plugging in Newcastle’s financial figures into the Markham Multivariate Model used to value Premier League clubs, which churned out an eyebrow raising figure of £442 million, mainly due to excellent wage control, significant prize money on the back of Benitez’s management and a sold-out St. James’ Park for every match. This feels too high a figure but does show the potential of the club to an owner willing to take more risks than the present one.'

Liverpool's players stand to gain £2m more in bonuses than their counterparts at Tottenham Hotspur if they win the Champions League. The total bonus available to Liverpool players for lifting the trophy is understood to be £7m. Tottenham Hotspur players stand to share bonuses of £5m if they win the competition for the first time. The squad have already guaranteed themselves a bonus of £3m for reaching the Champions League semi-finals for the first time. Both bonus pots pale in comparison with those available at other leading European clubs. Real Madrid players picked up £2m each for beating Liverpool in the final last year. Champions League success is far more lucrative for the clubs than the players initially, although it usually feeds through to player wages.

Newcastle United moved into profit in 2017/18 following promotion to the Premier League. An operating loss of £90.9m became a profit of £17.6m: Financial results Total revenues were up £92m to £179m. Broadcasting revenue went up by £79m to £126.4m. Commercial revenue more than doubled to £26.7m. Matchday income increased marginally at £23.9m. The wage bill was slashed to £93.6m, although the size of the playing squad, coaching and support staff did not change. The reduction was due to lower bonuses and offloading unwanetd players. This gave a wages to turnover ratio of 52 per cent, well below the Uefa recommended level of 70 per cent. There are, of course, two ways of looking at that: prudent financing or failing to spend enough on players. Kieran Maguire of the PriceofFootball has pointed out that Newcastle had the lowest (negative) percentage wage change of any Premier League club in 2017/18, despite being in the Championship the previous season. Profit on player sales of £...

Liverpool are in discussions over the possibility of hosting a pre-season friendly at Tottenham Hotspur's new ground. A date of July 28th has been proposed for a game against Napoli. Other venues are being considered including grounds in Scotland. Concerts by Take That, Bon Jovi and Pink are being held at Anfield in June, after which the ground will be relaid. As they seek to meet the cost of the new ground, Spurs have already announced that the stadium will host two NFL games in October.

The authoritative Swiss Ramble examines West Bromwich Albion's accounts for 2017/18. The club made a loss before tax of £7.4m, compared to a prior year profit of £39.8m, representing a 'significant' £47m deterioration, as revenue fell £13m (10%) to £125m and profit on player sales was down £8m to £6m. After tax, the club went from a £32.3m profit to a £5.8m loss. This was the first time that WBA have made a loss since way back in 2009, so they have been profitable eight times in the last decade. Between those two losses, the club accumulated £83m of profits, but around half of this came from 2016/17 £40m alone. However, larger profits have been due to either high player sales (2014 and 2017) or exceptionals (£8m debt waived 2011). In fact, total £64m profit in last 10 years includes £63m from player sales. 2018/19 will include £16m proceeds (Chadli, McClean and Foster). The £13m revenue fall was very largely driven by broadcasting’s £17m (14%) decrease from £119m to £10...

A deal has been agreed for the sale of Bolton Wanderers to Laurence Bassini, the former Watford owner. Bassini has to pass the EFL owners' test and provide proof of funding. His three year ban from football for three years from 2013 for breaking transfer rules will not affect the test's outcome. The club said that 'significant funds' would be made available to pay staff and player wages before the deal was ratified with all debts to HMRC to be settled once it was completed. One fan commented on Twitter, 'How can a bloke (former bankrupt) who still owes over £1 million to another football club pass the fit and proper person test?' Another commented, 'I find it somewhat amusing that, as a Chartered Accountant, I’m held to a higher standard to be a member of Pompey’s Heritage and Advisory Board than Bassini is to be an owner.' The principal mechanism to check on the suitability of a prospective owner is the owners’ and directors’ test, formerly known...

The authoritative Swiss Ramble reports that Napoli's 2017/18 accounts posted a €3m loss before tax, compared to €101m profit prior year, as profit on player sales dropped €74m to €30m and revenue fell €18m (9%) from €204m to €185m, mainly due to worse performance in Champions League. After tax, went from €67m profit to €6m loss. The club's €3m pre-tax loss was by no means the worst in Serie A, as seven others reported higher deficits, including the four largest clubs: Inter €10m, Juventus €10m, Roma €18m and Milan’s horrific €121m. Most profitable: Fiorentina €55m, Torino €54m, Atalanta €40m and Lazio €40m. Napoli's €185m revenue is the fifth highest in Italy, but still less than half of Juventus’ €411m. As Sarri said, 'Juve’s turnover is too high, they make another league.' Also more than €100m below Inter €290m and behind Roma €257m and Milan €220m, but well ahead of Lazio €129m. Napoli benefited from €30m profit on player sales, mainly Zapata to Sampdoria €20m...

The Swiss Ramble notes, 'After that stunning performance against Juventus, it’s maybe worth remembering how well Ajax have done, given their financial challenges: revenue €92m, wages €53m.' They do, of course, have a very young side with a 19-year old captain. Their 2017/18 accounts cover a season when they finished second in the Eredivisie (for the fourth year in a row), but failed to qualify for the Champions League or Europa League group stages (the first time since 1990/91). Profit before tax decreased from €67m to €2m (profit after tax down from €50m to €1m), largely due to profit on player sales halving from €79m to €39m and revenue dropping €26m (22%) from €118m to €92m following the lack of income from European competition. They are essentially a profitable club, reporting profits in seven of the last eight years (and the only loss in 2015/16 was less than €1m). Over that period, they have accumulated €159m profits, averaging €20m a season. All three Ajax revenue st...

Newport County income was up £900k to a turnover of £3.2m in 2017/18 due to FA Cup matches with Leeds and Spurs. The club reduced operating losses by £250k to £122k and player sales turned this into a profit. Newport County spent £30,000 on new players in 2017/18 and had sales of £216,000. The Exiles had borrowings of about £250k at 30 June 2018 but all from related parties and interest free. Following the cup run experienced again in this year's competition, the board anticipates that the club will make a profit again in the year to 2019.

Coventry City is to propose a ground share with Coventry Rugby Club next season to avoid expulsion from the Football League. The 4,000 capacity Butts Park Arena has emerged as an option along with Birmingham City's ground at St. Andrews. The Sky Blues are used to sharing with a rugby club at the Ricoh and that is where they would prefer to stay, but Wasps are not prepared to grant a new lease while the football club is engaged in legal action against Coventry City Council.

There are two 16-point gaps in the Premier League table - from second to third position and from sixth to seventh. There have never been two such large gaps in a table since the change to three points for a win in 1981-2. If Watford do not beat Arsenal tonight it will ensure that this will be the first top flight case of three seasons in a row with the same teams filling the top six places (in any order). Arsenal are sixth in the league, yet their projected points total would have been enough to finish first or second for much of the 1980s or 1990s. Of those players in the remaining 14 clubs who have previously been owned by another English league club, nearly 40 per cent were at a top six club. The Premier League is formally a corporation in which all 20 clubs are equal shareholders, but the realities of power were demonstrated last year when the top six strong armed the rest into altering one of the foundational principles of the league, namely the distribution of the money secu...

The authoritative Swiss Ramble takes an in depth look at the finances of Crystal Palace. The club posted a £35.5m loss before tax, compared to an £11.8m profit the prior year, mainly due to profit on player sales falling £32m to just £2m, though revenue grew £7.6m (5%) from £142.7m to a club record £150.3m. Loss after tax was £33.4m, thanks to a £2.1m tax credit. The £8m revenue growth was very largely driven by broadcasting’s £4m (4%) increase from £117m to £121m, mainly due to increased prize money for finishing 11th, while commercial also increased £3.1m (21%) from £15.2m to £18.3m and match day was up £0.3m (2%) to £10.9m. Revenue has grown £48m (48%) from £102m to £150m in the last two years. Most of this growth (£43m) was due to new Premier League TV deal in 2017, but commercial is also up £6m (54%), while gate receipts dropped £1m (9%). A chunky 81% of Crystal Palace revenue came from TV (£121m out of £150m), though in fairness it should be noted that no fewer than 12 of th...

Kieran Maguire of the PriceofFootball takes an in depth look at the finances of Derby County: Rams The accounts took some unscrambling because of the complicated structure. Maguire comments, 'Promotion this season will be great for fans, but the legacy of the stadium sale income should ensure that even if the club doesn’t go up then Frank Lampard still has some leeway in recruiting players this summer and there is no need for a fire sale. Incurring losses of this magnitude means that clubs are reliant on asset sales (usually players) and owner investment to cover the losses and Derby took an unusual approach here.'

The Premier League is looking into whether the Chinese state has gained a big stake in Southampton after its owner ceded control of a sports investment vehicle. Gao Jisheng, a real estate magnate and founder of Lander Sports, bought a 80 per cent stake in Southampton in 2017 in a transaction that valued the club at around £200m. Lander declared in a regulatory filing last month that it would sell a 29.9 per cent stake in itself to the state-owned Chengdu Assets Supervision and Administration Commission for $194m. The deal hands control of Lander to the asset manager with Mr Gao's family retaining a 23.95 per cent stake. Southampton said this week that it was owned by a UK company also called Lander Sports and funded by the Gao family but otherwise connected to the China-listed company. The club said this meant there had been no change in ownership or control. The Chinese Government sees football as an important instrument of state power.

Leading football analyst Chris Anderson comments, 'Nine years since I started looking at football data. seven years since we started work on The Numbers Game [well worth reading]. Six years since we published it. Lots has changed, but much less than I would have predicted, given the obvious opportunities to gain an edge. 'Plenty of exciting things happening in the space. Yet, football's resistance to change and its urge to solve problems with money rather than brains one of the untold stories of sports analytics. It's a story of power, fear, myopia, misaligned incentives, and male pathologies.' My take would be that football is a very conservative 'industry'. Flood it with lots of money and people tend to do more of the same, although one would have to acknowledge that big steps have been made in the standards of stadiums. However, more fundamental changes take time, as is evidenced by the case of women's football.

Cambridge United made a loss before player sales of £1.4m in 2017/18. Player sales reduced the loss by £570k to give an operating loss of £835k and owners invested £535k to help cover the losses. Turnover was down from £5.2m to £4.8m. In part this was because of a reduction in cup competition income compared with the previous year. Cambridge United total losses nearly £5 million over the years, emphasising the difficulty of as much as breaking even in the lower leagues. Cambridge United player trading: Purchases £15,000, Sales £625,000. Cambridge United owners bought shares in club during year, also discovered accounts in previous years were so shoddy that 2017 losses were understated by £190,000. Cambridge United borrowed over £1/2 million from other companies controlled by the owners. The club is paying rent of £100,000 a year for the Abbey stadium in agreement with landlord to redevelop or relocate.

The authoritative Swiss Ramble reviews the accounts of Leeds United. He comments, 'To date Radrizzani has been a good owner at Leeds, buying back the ground and investing significantly more in the squad. However, it remains to be seen whether he is in it for the long-term, if Leeds fail to win promotion, especially given the issues at his company Eleven Sports. Under previous owners Leeds have adopted a very conservative strategy that has made it difficult for the club to compete. They are now spending much more than before, which gives them a better chance, though they are (financially) still way behind clubs with parachute payments. If parachute payments were excluded, Leeds would have the highest revenue in the Championship.' The club posted a £4.3m loss, compared to a £1.0m profit the previous season, despite revenue growing £6.6m (19%) from £34.1m to £40.7m and profit on player sales doubling from £9m to £18m, due to 'investment in both player registrations and sal...

Macclesfield Town financial results show a loss of £250,000 in year to 30 June 2018 and total losses over the years increased to nearly £4.3 million. Macclesfield Town employee numbers fell by 10% in 2017/18 and the club spent next to nothing on new assets. Kieran Maguire of the PriceofFootball comments, 'Clear warning signs of cash flow problems.' It looks as if Macclesfield Town owner and shareholders wrote off £1.6 million of loans by converting into shares in 2017/18. The overdraft increase is concerning as is rise in ‘other creditors’ to over £600,000.

The authoritative Swiss Ramble takes a look at the finances of the remaining clubs in the Champions League and Europa League. Three clubs in the Champions League quarter-finals have over half a billion pounds revenue, led by Barcelona £612m, followed by the two Manchester clubs: United £590m and City £500m. Lowest revenue by far at Ajax £81m and Porto £94m. Barcelona £431m have by far the highest wage bill (even after excluding other sports), followed by Manchester United £296m. The English clubs have by far the highest revenue in the Europa League: Chelsea £448m and Arsenal £389m. Then a large gap of more than £200m to Napoli £162m, followed by Benfica £133m and Eintracht Frankfurt £103m. The two Spanish clubs, Valencia and Villarreal, are both below £100m. The Swiss Ramble concludes, 'Obviously, money isn’t everything, but success on the pitch usually correlates pretty well with revenue and wages. We shall soon see whether that is again reflected in this season’s Champions Lea...

The authoritative Swiss Ramble examines Tottenham Hotspur's accounts for 2017/18. Profit before tax improved by £87m from £52m to £139m, as revenue rose by £71m (23%) to £381m and profit on player sales was up £33m to £73m. There were new club records for both revenue and profit. Profit after tax increased by £77m from £36m to £113m. All three Spurs revenue streams increased: commercial rose £33m (43%) from £76m to £109m; match day was up £26m (57%) from £45m to £71m, due to the larger capacity at Wembley; while broadcasting was £13m (7%) higher at £201m, due to advancing further in the Champions League. Revenue has grown by 81% (£171m) in just two years from £210m to £381m, driven by success on the pitch (better PL positions and Champions League qualification). Most of the increase has come from broadcasting £90m, but also healthy growth in commercial £50m and match day £30m. In fact, the club's £170m (81%) revenue growth since 2016 is the highest of the 'Big Six',...

Kieran Maguire of the PriceofFootball takes an in depth look at the finances of Crystal Palace: Eagles He comments, '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.' He concludes, 'Sorting out the infrastructure cannot come fast enough if Steve Parish’s aim of establishing Palace as a top ten team in the Premier League as the relative lack of matchday revenue will hold the club back in what is becoming an increasingly important income source with broadcast deals unlikely to repeat their quantum leaps of the recent past.'

Tranmere Rovers lost £45,000 a week in the National League before being promoted via the playoffs last season. Income was down as parachute payments from EFL reduced. In the three year period the club was in the National League the total net loss of revenue from central funding was £2.45m. The strategic report notes, 'Promotion back to the EFL sees the restoration of central funding and it was anticipated that this, together with the continued development of off field businesses, would get the club into a break even position whilst maintaining a competitive playing budget in League 2.' The latter seems to have been achieved as the club is challenging for promotion. Turnover was down from £5.3m to £4.6m. Commercial income accounted for 62 per cent of the total. The club has been highly innovative ín the international market. The international desk has delivered six week camps in Inner Mongolia with 6,000 children being coached, along with coach education for 600 coaches. ...

Crystal Palace lost £750,000 a week from trading in 2017/18. Palace’s total losses since American investors bought into the club were £63 million at 30 June 2018. The main reason for the losses were that income increased to a record £150 million but player costs (wages and amortisation) were £163 million, meaning owners had to pay for all the overheads. Turnover grew from £142.7m to £150.3m. There was an operating profit of £7m before player trading. The strategic report notes, 'The loss after player trading is a consequence of significant and continued investment in player assets to reduce the risk of relegation'. Revenues from the Premier League accounted for 81 per cent of income. Commercial revenue was up 16 per cent year on year, helped by an improved shirt sponsorship deal. Revenue from ticket sales remained broadly flat as the club is operating at 98.5 per cent occupancy. There is a hint that ticket prices may be increased next year. Basic player wages rose slig...

The authoritative Swiss Ramble has analysed the latest financial results for Burnley. He comments, 'Profit before tax improved by £18m from £27m to £45m, as revenue rose £18m (15%) from £121m to £139m and profit on player sales was up £29m to £31m. After tax, profit increased from £22m to £37m. The club set new record highs for both revenue and profit. Only Spurs, Liverpool, Arsenal and Chelsea had bigger profits, all driven by player sales.' Burnley have made good profits each time they have been in the Premier League with last season’s £45m even better than £35m in 2014/15. They kept losses low in the Championship and even delivered a small profit in 2012. In the last four years, they have £102m cumulative profits. The £18m revenue growth was very largely driven by broadcasting’s £17m (16%) increase from £105m to £122m, largely due to increased prize money for finishing 7th, while commercial also increased £1.5m (15%). TV money from the Premier League increased £19m from ...

Leeds results show the club has by far the biggest income in the EFL Championship if parachute payments are excluded. The distorting impact of parachute payments highlighted by Leeds falling from first to fifth in the income table if Premier League handouts taken into consideration. Turnover was up from £34.1m to £40.7m. The main reason for Leeds high revenue is commercial income which is the highest in the Championship and also higher than half the clubs in the Premier League too. Catering revenues were relatively high at £5.2m, up from £3.9m. Gate receipts accounted for 28 per cent of revenue at £11.2m. Other commercial revenue accounted to £9.9m. Distributions from the Premier League and Football League brought in £6.8m. Leeds lost just under £20 million from operations in 2017/18 but profits on player sales substantially reduced this to £4.3m compared with a profit of just under £1m the previous year. Leeds spent £28 million on players in 2017/18 but also had substantial s...

Spurs accounts published at Companies House show world record operating profits of £157 million for 2017/18. Spurs spent £492 million in cash in 2017/18 on the new stadium and capital projects, £73 million on players and borrowed £281 million. Spurs income was up 23% in 2017/18 to £380 million closing gap on Arsenal (£403m) Chelsea (£443m) Liverpool (£455m) Manchester City (£500m) Manchester United (£590m). Premier League gate receipts were up from £19m to £42.6m. An average of almost 68,500 tickets were sold for every game played at Wembley Stadium. The club had over 156,000 paying members and over 120 official supporters clubs around the world. Television and media revenues decreased marginally from £149.8m to £147.6, reflecting a third rather than second place finish in the Premier League. Revenue from the domestic cup competitions earned £3.5m. This was dwarfed by Champions League and Europa League gate receipts and prize money, up from £44.6m to £62.2m. Sponsorship and c...

Kieran Maguire of the PriceofFootball takes an in depth look at Burnley's finances: I thought you were dead He concludes, 'Burnley achieved a miracle in 2017/18 that went relatively unheralded. Unloved by broadcasters, too workmanlike for the pundits to get excited about, they went about their business and the players were drilled repeatedly to get results. The Europa League at the start of 2018/19 was a step too far and it was a blessing in disguise they were eliminated so early as it allowed Sean Dyche to get back to what he does best, training players hard for five days for the next fixture.' 'Barring a miracle they will be in the Premier League in 2019/20 where once again they will fly under the radar, accumulating points but getting little credit for doing this without handouts from owners.'

West Brom went from a £26m operating profit in 2017 to a £13m operating loss in 2018. Turnover was down from £138m to £125m. The main reason for the reversal in profits was a £17m lower prize money from the Premier League and a £13m increase in wages. The merit award was reduced for finishing 20th compared to 10th in the previous year. The club spent more on its playing squad than in any previous season. Player trading in 2017/18 was made up of purchases of £46m and sales of £8m. At £102m broadcasting accounted for 82 per cent of income. Commercial income was up from £9.8m to £12.6m. Total wage costs accounted for 74 per cent of income, marginally above the recommended Uefa limit.

Bury FC have issued a brief statement saying that they are facing 'internal financial restrictions' due to 'unforeseen circumstances' following the recent takeover: Club statement Quite what these might be is unclear, but they led to players and staff not receiving their March salaries on time. Wages were due to go through on Friday but have still not been paid. Meanwhile, the club have been handed a winding-up petition by former head coach Chris Brass in a notice posted on the London Gazette on Tuesday. The club has faced a number of financial challenges over the years as it seeks to compete on the fringes of Greater Manchester.

The authoritative Swiss Ramble has taken an in depth look at the recently published accounts of the Fulham Football Club. Fulham paid the price for success in terms of promotion, as the loss more than doubled from £21.3m to £45.2m, mainly due to 'substantial' one-off promotion related payments. Revenue rose £3.4m (10%) from £34.9m to £38.3m, but this was offset by a £3.4m fall in profit on player sales to £14.0m. Almost all Championship clubs lose money, but Fulham's £45m is one of the largest in 2017/18. However, it is worth noting that the three biggest losses came from the clubs promoted to the Premier League, including Wolves £57m and Cardiff City £37m, impacted by hefty promotion bonuses. Losses are nothing new for the Cottagers, as the last time they made a profit was in 2011. In fact, they have only made money twice in the last 21 years. Losses have accelerated since Shahid Khan bought the club in July 2013, amounting to £139m in the last 5 years (averaging £28m a...

Brentford FC lost £350,000 a week from day to day trading in 2017/18 but player sale profits helped reduce losses from £18.5 million to £4.4 million. Total losses over the years are £55m. Turnover was marginally up at £12.7m. A decrease in matchday income (£3.5m to £3.1m) for the Bees was offset by increase in TV and commercial income. Total income of £12.7m was less than a third of parachute payments received by some other Championship clubs, showing once again how the Championship has the least level playing field of all the divisions. League and FA payments accounted for 53 per cent of income. Ticketing accounted for just under a quarter of income. Commercial was up from £850k to £1.2m. The club paid out £135 in wages for every £100 of income in 2017/18. This is well above the level recommended by Uefa, but is far from unusual in the Championship. Employee numbers down but wage cost was up 17%. The Chairman comments in his statement, 'Perhaps the most remarkable achievemen...

Salford City Football Club’s unaudited accounts suggest the club lost £32,000 a week in 2017/18 in being promoted from National League North, reveals Kieran Maguire of the PriceofFootball. The club is reliant on Class of 92 and other owners as club owes over £2.4 million to rest of the group. Salford City Football Club parent company Project 92 Ltd itself owes £2.4 million to directors/shareholders interest free.

The authoritative Swiss Ramble has analysed Huddersfield Town's accounts for 2017/18. Despite their relegation, their financial results are positive. The financial blow will be cushioned by £91m of parachute payments (year 1 – £42m, year 2 – £34m, year 3 – £15m). This means that promotion will have been worth around £290m in TV money in total. The Terriers swung from a £20m loss before tax in the Championship to a £30m profit in the Premier League, a £50m improvement, as revenue increased by £109m from £16m to a club record £125m and profit on player sales was up £5m to £6m. After tax, a £17m loss was turned into £26m profit. To illustrate the huge difference in the Premier League, not only is Huddersfield's 2017/18 £125m revenue a massive £109m more than the previous season’s £16m, but is also more than twice as much as the previous five seasons in the Championship combined (£60m). Nevertheless, the £125m revenue was still the lowest in the Premier League (pending results f...