PSG are football's greatest financial power

Even leaving aside the possible consequences of Manchester City's dispute with Uefa, PSG have overtaken Manchester City as the football's greatest financial power, according to a report by football business experts Soccerex, again highlighting the significance of the two clubs' Middle Eastern ownership: Soccerex report. You can download the whole report.

The findings are in line with an offthepitch.com analysis which last month showed PSG and Manchester City, both clubs owned by oil-rich states, were the biggest revenue growers among the top European clubs over the past decade. PSG increase their revenue by a whopping 671 per cent from 2010 to 2019, while Manchester City's Abu Dhabi owners oversaw a 328 per cent increase.

However, one should inject a note of caution. The oil price has probably reached its all time high in real terms as the switch to electric powered vehicles gains pace. The Gulf states don't produce anything else.

The Paris club surpassed City mainly due to an annual increase in the club's cash reserves - five times that of City's - while PSG managed to decrease their debt by €70 million. City increased their debt by more than €90 million, according to the report.

While Premier League clubs dominated the ranking's top ten, one club dropped considerably in the table. Manchester United, despite having one of the biggest revenues in world football (£627.1 million last season), fell eight places to 16th in the report, due to depreciation in squad value, tangible assets and cash levels. Despite decreasing from the year before, United's liabilities stood at £1.5 billion in the 2018/19 season.

Bayern Munich are third in the rankings, followed by Tottenham, Real Madrid, Arsenal, Chelsea, Liverpool, Juventus and Dortmund in tenth. Soccerex's report factors five financial variables – playing assets, tangible assets, cash in the bank, potential owner investment and net debt.

MLS claim that they are the best represented league in the top 100 after the Premier League. However, look at one of the comments: their standing reflects the fact that they have rich owners who can develop the land around stadiums: MLS claim

Soccerex note, 'European clubs account for 80% of the top 30, a reflection of the dominance of Europe’s elite clubs, but interestingly, the ownership of this group of clubs is a much more global affair with just under 50% owned by non-European entities, including individuals or organisations from the Middle East, South East Asia and North America.'

'There are 15 different leagues represented in the top 100. UK clubs make up the biggest portion with 23 - 18 Premier League Clubs and five EFL clubs. Major League Soccer is the next most represented league with 17 clubs – 15 from the United States and two from Canada – followed by LaLiga and Serie A who both have 11 clubs and then the Bundesliga which has 10. The J-League is represented for the first time as part of the report’s expanded scope, with two clubs – Nagoya Grampus and Vissel Kobe – featuring in the top 30 largely due to their corporate ownership by Toyota and Rakuten respectively.'

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....

The Political Economy of Football V2

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