Skip to main content

No Premier League owners have taken out more money than the Glazers

The authoritative Swiss Ramble review the latest quarterly accounts of Manchester United: https://swissramble.substack.com/p/manchester-united-finances-q1-202223?utm_source=substack&publication_id=1203438&post_id=89847265&utm_medium=email&utm_content=share&triggerShare=true&isFreemail=true

This is the third year in a row that Manchester United have reported a pre-tax loss in Q1. It is worth noting that last season’s £20m loss in Q1 ultimately became a £150m loss for the full year.

The difference in United’s earnings in seasons where they qualify for the Champions League is stark. As an example, they earned £68m in 2021/22 for reaching the last 16 in Europe’s premier tournament, but only £26m in 2019/20 even though they got to the Europa League semi-final.

There was clearly scope for a reduction in wages, as United’s £384m in 2021/22 was comfortably the highest in the top flight.  In fact, this was the highest ever wage bill in the Premier League, despite United only finishing 6th and missing out on the Champions League.

in the 16 years since the Glazers’ arrival in 2005 up to 2021, Manchester United’s £725m interest payment was nearly three times as much as the next highest club, namely Arsenal with £251m.  Looked at another way, it was very nearly as much as the rest of the Premier League combined, which added up to £749m.

No owners in the Premier League have taken out more money than the Glazers. As an example, in the 10 years up to 2021 United paid £154m to their owners (mainly the Glazers), while others have put significant funds into their clubs, e.g. Manchester City £684m, Chelsea £516m and Aston Villa £506m.

The club continues to spend big in the transfer market, but much of this has been funded by increases in debt in the shape of higher drawdowns from the bank and record transfer debt. Potential investors into United would do well to take a close look at their finances, including their exposure to currency movements and higher interest rates.


Labels:

Comments

Post a Comment

Popular posts from this blog

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...
1 comment
Read more

Fulham requires big funding from owner

After lengthy delays, Fulham’s shiny, new Riverside Stand has finally opened, creating “a unique Thameside destination with first class facilities for supporters and partners on match days, as well as for the wider community year-round”. This ambitious project has increased Craven Cottage’s capacity by around 4,000 to 29,600, while it has also taken advantage of the club’s fantastic location and wealthy catchment area by including two Michelin star restaurants, a rooftop swimming pool, corporate hospitality and event space, all benefiting from views of the Thames. Chief executive Alistair Mackintosh observed, “Fulham is the sort of club that can have a business class or first class and have fans that turn left on a plane.” Indeed, there is also an exclusive members club – with a football season ticket as an optional extra. It’s fair to say that “the times they are a-changing”, as this is a long way from the traditional pie and a pint. However, in a world where clubs face the tw...
Post a Comment
Read more

A poor financial record, but new hope at Everton

I recently saw an amusing video online in which a group of Everton fans were rebuked in jest for being hopeful.  Football fans in general tend to swing between excessive optimism and excessive pessimism, but for many it seems that moaning is in their bloodstream (Spurs fans probably take the trophy).  However, Everton fans have had plenty to moan about on and off the pitch.   Let’s hope that a new era is about to begin for this grand old club. Everton’s 2023/24 financial results covered a fairly momentous season, when they ended up 15th in the Premier League, though they would finished three places higher if they had not received an 8-point deduction for breaching the Premier League’s Profitability and Sustainability Regulations (PSR). It was a worrying time for Everton fans, as the club faced a “perfect storm” of issues, including large financial losses, an ever increasing debt burden, a challenging stadium build and the tortuous sale of the club. There were eve...
Post a Comment
Read more