The Political Economy of Football V2

Sir Jim Ratcliffe and Ineos may have moved ahead in the battle to buy Manchester United after valuing the club higher than their main Qatari rivals. Although Ratcliffe is seeking to buy only the 69 per cent stake that belongs to the Glazers — and in one proposal is open to Joel and Avram Glazer retaining a stake if he still has full control of the club — it is understood that the offer he submitted before Friday’s 10pm deadline for the third and final bids equates to more than that tabled by the group led by Sheikh Jassim bin Hamad al-Thani, and that Ineos is the only bidder to have valued the club higher than £5 billion. On Friday evening, sources close to the Qataris said that Sheikh Jassim’s offer was marginally in excess of £5 billion, with a pledge to provide additional investment in the club’s infrastructure as well as playing staff. However, insiders with knowledge of the process have queried that value and suggested that the Qataris have not submitted an offer of additional

Newcastle United have agreed a new shirt sponsorship deal worth an estimated £25 million a year.  The Times understands that the new deal is with a company from another Middle Eastern country rather than Saudi Arabia. Officials at St James’ Park plan to unveil the new commercial partner, who will replace Fun88, a betting company whose agreement with Newcastle predated the £305 million takeover in October 2021 and was worth less than £8 million a year, next month. Newcastle struck an agreement with Fun88 last year to end their front-of-shirt sponsorship two years early. Newcastle sources insist that the new agreement with a company from the Middle East will fall inside the Premier League’s “fair market value”, a regulation that was introduced in December 2021 to counter any potential commercial dealings the club undertook after Saudi Arabia’s public investment fund (PIF) took an 80 per cent holding in the club in October of that year. PIF is a sovereign wealth fund with an estimated

Sunderland lost almost £6m in 21/22 as income more than doubled following end of lockdown and club promoted from League One. Owner put £10.4m into SAFC in 21/22. Wages were up 27% partly due to promotion bonuses plus more matchday staff. Sunderland signed players for over £5m in 21/22. Sunderland due a rates rebate of almost £1.1m.

The Qatari group hoping to become the new owners of Manchester United have made an improved bid that if accepted would break the £5 billion barrier for a sports franchise. Sir Jim Ratcliffe also submitted his latest bid before the deadline. Third and final bids for the Premier League club had to be submitted by 10pm on Friday and the offer tabled by Sheikh Jassim bin Hamad al-Thani was a small increase on their previous bid. As part of their submission, they pledged to remove all of the club’s debt and invest heavily in the club’s infrastructure and transfer budget. Insiders insisted it took the price a fraction over £5 billion. The Glazer family value the club at nearer to £6 billion. But the increase reflects not only Sheikh Jassim’s desire to win the battle for ownership but is also a response to the news, reported in The Times this week, that the main rivals to the Qataris are proposing a deal that would enable Avram and Joel Glazer to retain a stake. Sources close to the Q

Marc Spiegel's takeover of Charlton will not happen today, report s Richard Cawley of the South London Press.  Intention had been for that to be the case. Described to Cawley  as "a roadblock" - which was not originally anticipated. Both sides are aiming to still reach a resolution in coming days. Spiegel's group are now out of exclusivity and that means that Thomas Sandgaard is free to talk to other interested parties. Thomas Sandgaard responded to an email Cawley sent him yesterday evening saying that today was not a deadline he had set for Spiegel's takeover to happen. He said that people were "working hard" to complete the deal. Fanzine website editor Rick Everitt commented: ‘Second hit to Spiegel’s credibility this week. Crazy prospectus and now failing to deliver on his own briefing promise. Not a good look.’

Following Bayern Munich’s shock defeat to Mainz last weekend, they have been overtaken by Borussia Dortmund, who now lead the Bundesliga. Although second place would be regarded as a fine achievement by most clubs, this is certainly not the case for Bayern, who are seemingly in crisis mode. For some context, Bayern have won the Bundesliga for the last 10 years in a row, so anything other than victory would be regarded as a failure.    Part of the reason for Bayern’s imperious record over the last decade is their financial power. In 2021/22 Bayern reported a €17m pre-tax profit in contrast to Dortmund’s €33m loss, mainly because their revenue is significantly higher than their rivals, partially offset by Dortmund’s better profit from player sales. Bayern’s cost base is also much higher. In fact, Bayern have now been profitable for an amazing 30 years in a row, including €361m in the last decade alone. Profits have been lower in the last three seasons, due to COVID restrictions, bu

Coventry City have finally agreed a fresh deal with Mike Ashley's Frasers Group to continue playing at the CBS Arena (formerly the Ricoh) beyond this season. The two parties have been in cordial but protracted talks for several months - the sticking point understood to have been over the annual rent - but have now reached an agreement which will see the  Sky Blues  continue to play at the stadium built for the football club for the next five years. Club owner Doug King had hoped to secure a longer term deal but the Stratford-based businessman insists he will "continue to positively engage" with the relatively new landlords of the Arena in order to secure a longer term deal and the stability that goes with that. The stadium would be an excellent setting for Premier League football.

A trio of US-based investors are set to invest in Welsh football club Swansea City, according to people familiar with the situation, reports Bloomberg. Nigel Morris, co-founder and managing partner of QED Investors, alongside Andy Coleman, an investor in the US soccer team DC United, and Brett Cravatt, co-founder of Centerfield, a digital customer acquisition company, will invest an initial £10 million ($12.5 million) in the club, the people said, who asked not to be named discussing ongoing discussions.  The trio will join a group of majority owners including Steve Kaplan, co-founder of Oaktree Capital Management, who currently own 80 per cent   of the club.

The five groups bidding to buy Manchester United have been asked to clarify exactly who is the source of their funding when they submit offers for the club by Friday’s 10pm deadline. Two of those groups — the one headed by the Manchester-born billionaire Sir Jim Ratcliffe and a Qatari group fronted by Sheikh Jassim bin Hamad al-Thani — are bidding for a controlling stake in United from the Glazer family. The offers are expected to value United at more than £5 billion. Ratcliffe’s offer, which could lead to two members of the Glazer family — Joel and Avram — retaining a 20 per cent share, would be funded by his Ineos petrochemicals company. However, it is less clear where the backing is coming from for the sheikh, a 41-year-old Sandhurst-educated United fan who was not a prominent public figure in Qatar until the bid for the club became known. His father, Sheikh Hamad bin Jassim bin Jaber al-Thani, has a far higher public profile, though, as he was the Qatari prime minister from 2

The Championship has become the division of financial strain and distress. The majority of its 24 clubs are now conditioned to accept loss-making. Money spent on wages consistently — and comfortably — exceeds the collective revenue each year. Fourteen Championship clubs have already shown they committed more to wages than they earned in total revenue for 2021-22, painting the latest dysfunctional picture of life in the Championship. Kieran Maguire, finance academic and host of the Price of Football podcast, has calculated the operational losses for last season to average out at a remarkable £476,000 ($594,000) a week for every Championship club. Fulham, Bournemouth and Nottingham Forest, the three clubs eventually promoted last season, collectively lost £158million on their roads to the Premier League. The EFL accepts life cannot go on like this in its marquee division. It continues to push for a revised distribution model in its arrangements with the Premier League; one that wou

Sir Jim Ratcliffe is proposing a deal for Manchester United that would enable Avram and Joel Glazer to remain stakeholders at Old Trafford. While the offer may alarm a large section of United’s supporters, it could prove a highly significant move in the battle to buy the Premier League club. The deadline for the third and final bids is 10pm on Friday. The bids will range from an offer of a 100 per cent takeover, from Qatar’s Sheikh Jassim bin Hamad al-Thani, to bids from American investment firms for minority stakes. The Times understands that the Ratcliffe proposal involves buying a controlling stake of just over 50 per cent for his petrochemicals firm Ineos, with about 20 per cent remaining in the possession of Avram and Joel, two of the six Glazer siblings. The other 30 per cent will stay with various investment groups. Ineos only wants to invest in United if it takes a controlling stake.  It will offer the Glazers the chance to sell entirely or keep the 20 per cent stake.  

The Nigerian businessman trying to buy Sheffield United is ready to abort the takeover despite spending more than £8 million to support the Sky Bet Championship club through their current financial crisis. On a day when local reports in Yorkshire said senior figures at Bramall Lane were now looking elsewhere for investment, sources close to Dozy Mmobuosi said there had been a major breakdown in his relationship with the current Saudi owner, Prince Abdullah. In fact, the situation could now end in a bitter legal dispute given the money Mmobuosi has already paid to show his commitment to the deal and help resolve the financial issues that resulted in a transfer embargo being imposed by the English Football League (EFL). Mmobuosi and Prince Abdullah shook hands on a £115 million deal at the Dorchester Hotel in London on November 22, 2022, with Mmobuosi underlining his commitment by making a £1 million payment to the Saudi businessman. Sources close to Mmobuosi claim he then paid a

The example of Braintree Town shows just how much it costs to keep a non-league club going these days.  Braintree Town lost £123,000 in 2021/22 taking total losses to £900,000, reports Kieran Maguire. Braintree, like many clubs, is dependent upon owners and directors to be sustainable. Loans of almost £1 million keep the club going.    Almost every club is a benefactor club.

Richard Cawley of the South London Press reports that a spokesperson for Marc Spiegel says that they look like they may close their deal for Charlton this week. Exclusivity period has expired with Thomas Sandgaard but they also added that negotiations and talks have continued since then. Cawley warns, ‘Not only does any party buying Charlton need to pay the sum agreed with Thomas Sandgaard, they also have to show EFL how they will fund/run the club for the next couple of years. That process has become more stringent.’ According to Bloomberg, Spiegel is seeking financial backers for his takeover. His bidding company — Football Strategies Group — has been in discussions with Charlton since early February, according to an investor document. Charlton is owned by Thomas Sandgaard, a Danish entrepreneur. Football Strategies Group signed a potential £11.6 million ($14.4 million) deal for Charlton. It is also looking to inject £20 million into the London club, according to the document.

Watford’s pre-tax loss slightly reduced from £19m to £16m in 2021/22. Revenue shot up £71m from £57m to £128m following promotion to the Premier League, but profit on player sales fell £41m from £56m to £15m, operating expenses rose £23m (18%) and net interest payable increased £2m (34%) to £7m. Watford have now posted losses in four out of the last five seasons, even though they spent all but one of them in the Premier League. Their total loss over this period amounted to £92m, but there is a crumb of comfort in the fact that losses have now reduced two years in a row. The main driver of Watford’s £71m revenue growth was broadcasting, up £35m (71%) from £50m to £85m, due to the more lucrative Premier League deal, though commercial also grew an incredible £32m from £4m to a club record £36m.   \yhere is some doubt over whether this also includes an element from the Premier League TV deal. Although losing money is rarely good news, Watford’s £16m loss was actually one of the bette

AS Roma’s pre-tax loss increased by €35m from €184m to €219m in 2021/22, the highest in the club’s history. Revenue was basically flat at €196m, while operating expenses rose €37m (10%) to €391m, though net interest payable fell by a third (€12m) from €36m to €24m. Roma’s massive €219m net loss was not the worst in Italy in 2021/22, as it was surpassed by Juventus’ €237m (restated after their accounting shenanigans). Inter also posted a large loss of €137m, while the losses at Napoli €66m and Milan €60m almost looked respectable in comparison. It is worth noting that Roma are now responsible for three of the eight worst losses in Serie A history. Their €219m loss in 2021/22 was actually the third highest ever in Italy. Roma are no strangers to losing money, as they have suffered losses 13 years in a row, adding up to a horrific €893m. The last time that they posted a pre-tax profit was back in 2009 – and that was only €3m. Profit from player sales has dried up in the last three y

Relegation threatened Crawley Town supporters have demanded changes at the top at their club:  https://www.ctfcsa.co.uk/2023/statement-17-april-2023/ In one of the stranger episodes of recent times Crawley Town were purchased by crypto sports company WAGMI United who talked about Premier League football and how Web3 would innovate in football. Or something.

The two finalists were the only clubs in the Europa Conference to earn more than €10m. The winners Roma led the way with €19.2m, followed by the runners-up Feyenoord with €14.3m. Then came three clubs with €9.5m: Tottenham, Bodo/Glimt and PAOK. England ultimately had two representatives in 2021/22, Tottenham Hotspur and Leicester City. Tottenham received all €3.2m of England’s first half of the TV pool, as Leicester originally played in the Europa League. However, Leicester earned most of the second half of the TV pool (€2.6m), as they reached the semi-final, while Spurs did not get out of the group. Thanks to England’s sizeable TV deal, Tottenham actually had the highest TV pool in the Europa Conference with €3.9m. There were only two other clubs earning more than €3m, namely Union Berlin €3.3m and Roma €3.2m. They were unfortunate that UEFA awarded Rennes a 3-0 victory after forfeiting their home fixture due to COVID, which led to their early exit from the tournament.

Europa League winners, Eintracht Frankfurt, earned the most with €38m, while another German club, Bayer Leverkusen, secured third place with €22m. The two English clubs also did well with semi-finalists West Ham in second place with €32m, while Leicester City were sixth highest with €18m. Interestingly, losing finalists Rangers only earned the fourth highest revenue of €21m, even though they received the second highest prize money. This was because their TV pool was very low. The TV pool is a major differentiator in earnings in the Europa League, while the UEFA coefficient plays a much smaller part, especially compared to the Champions League. West Ham earned an impressive €32.1m for reaching the Europa League semi-finals, including the highest TV pool payment in the competition of €17.4m plus €1.1m for winning their group. Leicester City only received €17.8m after finishing third in their group, but this was boosted by another €6.5m after dropping down to the Europa Conference

Between 2013-14 and 2016-17, Southampton not only finished eighth, seventh, sixth and eighth in the Premier League but also demonstrated a remarkable knack for developing or recruiting players to sell on to bigger clubs at substantial profits. A certain mystique was credited to Southampton’s “black box”, a huge scouting database and video suite based in a windowless room at the club’s Staplewood training ground. They even launched their new kit in 2017 with a video that cast their players as superheroes trying to stop a group of villains — and one of them looked and sounded an awful lot like Ronald Koeman, who had just left them to take over at Everton — stealing a device that “holds the secrets behind Southampton’s famous academy, tactics, transfers, all their future plans”. But that approach — though usually described as self-sustaining — is unlikely to work indefinitely. You can’t outsmart the market indefinitely. Southampton soon found other clubs, with bigger budgets, lookin

UEFA has published the revenue distribution details for its club competitions for the 2021/22 season. Unsurprisingly, the two Champions League finalists earned the most with winners Real Madrid and runners-up Liverpool receiving €134m and €120m respectively. Two other clubs earned more than €100m, namely Bayern Munich €110m and Manchester City €109m, followed by PSG and Chelsea (both €92m). England’s four representatives are all in the top eight earners, which is an additional source of Premier League strength on top of the domestic TV deal. Two English clubs earned more than €100m: Liverpool €120m after going all the way to the final and Manchester City €109m for reaching the semi-final. Good money was also earned by Chelsea €92m (quarter-final) and Manchester United €78m (last 16).   Chelsea’s earnings were boosted by their high UEFA coefficient, but depressed by a low TV pool after finishing fourth in the previous season’s Premier League Real Madrid earned the most prize money

Nottingham Forest’s pre-tax loss tripled from £15.5m to £46.2m, despite revenue rising £11.3m (61%) from £18.4m to a club record £29.7m, as operating expenses increased by £25m (46%) from £54m to £79m.  In addition, profit from player sales fell £10.2m from £14.3m to just £4.1m.  Forest’s £46.2m pre-tax loss was one of the largest reported in Championship, only surpassed by the other promoted clubs Fulham £57.0m and Bournemouth £55.5m. Forest are no strangers to losses, as they have only reported a profit once since 2005 – and that was entirely due to a £40m loan write-off in 2017. Otherwise, the club has consistently lost money, amounting to £141m in the last 10 seasons, including £108m in the five years since Marinakis arrived. Forest’s staff costs increased with the wage bill up £21.4m (57%) from £37.2m to £58.6m. This was very largely the price of success, as it included £20.9m bonus payments for promotion. Since the arrival of Marinakis, Forest’s revenue has grown by £8.9m (

Leeds United’s pre-tax loss widened from £12m to £37m, despite revenue rising £18m (11%) from £171m to a club record £189m, as total expenses increased by £44m (24%) from £183m to £227m. In addition, they only booked £1m profit from player sales. Although Leeds’ £37m loss is obviously not great, it is actually not too bad in the Premier League, as some clubs reported much higher losses last season, including Manchester United £150m, Chelsea £121m, Leicester City £92m, Newcastle United £73m and Tottenham £61m. Many clubs had lower profits from player trading, due to the pandemic deflating the transfer market, but Leeds’ result was more because of a deliberate decision to retain players to cement their status in the top flight. Leeds have only been profitable once in the last decade – and that was just £1m in 2017. Since then, losses steadily increased in the Championship, following the arrival of owner Andrea Radrizzani, as Leeds invested big sums to help secure promotion, leading

Liverpool face a fight to secure any sort of European football in 2023-24 and for that, there will be a price to pay. For the first time since 2016-17, there will be no Champions League money coming to Anfield next season and Liverpool’s turnover cannot escape the hit that is coming. It’s no surprise that Champions League qualification is a big funding boost, but the sums involved are hughe when you consider that football clubs are medium-sized firms by the standards of the economy as a whole.   Since 2017, Liverpool have made roughly half a billion pounds through Champions League distribution money alone. UEFA’s annual financial reports are published every March and the last five seasons on record detail that Liverpool have earned £422million from their exploits in the Champions League. Last season’s adventure to the final brought in €119,957,000 (£106m; $131m). Although this campaign’s figure will have dropped after Liverpool were eliminated in the last 16 by Real Madrid, the l

2021/22 accounts for Crystal Palace show revenue up 21% to £160m.  Wages down 5% to £124m.  Losses down 60% to £20m. Player purchases £89m. Player sales £0m. Since 30 June Palace have bought players for £38m, taken out a £12m loan and issued £30m of fresh shares. Palace's squad cost now at a record £233m.   Palace bought players for £89m in 21/22, second highest investment in club history. Wages down mainly due to 20/21 accounts covered 13 months so a bit distorted. Wages little change over last five years but fallen significantly as a % of revenue. Commercial income at record level due to new sponsor deals.    Broadcast income up as Palace finish 12th in the table but from a bigger overall TV pie/ Palace have total borrowings of £82m.  

Port Vale lost £1.1 million in 21/22 taking total losses to almost £4 million.  Whilst Port Vale are technically insolvent, (like many clubs) support from the owners via loans of over £5.5m allow the club to trade. Port Vale spent £100k on players and almost £1.5m on infrastructure assets in 21/22.

Chelsea’s pre-tax loss reduced from £156m to £122m, as revenue increased by £46m (11%) from £436m to a club record £481m. The loss would have been even higher without the benefit of £123m profit from player sales, up £95m from the previous season’s £28m. Chelsea’s £121m pre-tax loss is the second highest in the Premier League, only surpassed by Manchester United’s £150m, though plenty of big losses were reported elsewhere, e.g. Leicester City £92m, Newcastle United £73m and Tottenham £61m. Chelsea’s business model is far more reliant on player sales than any other major English club. In the last five years, Chelsea made nearly half a billion pounds from this activity, including good money from Academy graduates, who represent pure profit in the books. This included three years when they generated more than £100m, so 2021/22 was no fluke.   Chelsea’s £467m profit from player sales is over £200m more than the next highest clubs in the Premier League, namely Liverpool £263m and Manche

The rival groups bidding to buy Manchester United have been invited to table a third offer by the end of this month. Three weeks ago as many as seven groups submitted bids after being invited to Manchester to inspect the club’s Old Trafford stadium and nearby training ground, in addition to meetings with key personnel and access to accounts. Qatari banker Sheikh Jassim bin Hamad al-Thani and Ineos, led by British billionaire Sir Jim Ratcliffe, remain favourites after submitting their bids for control, with the Qatari group making an offer in the region of £5 billion for 100 per cent ownership of the club. US investment firm Elliott submitted a bid for a minority stake that might yet prove preferable to the Glazer family. The firm previously had a successful spell as the owners of AC Milan. The Raine Group, the New York merchant bank overseeing the sale, is clearly seeking to push up the price further still for the Glazers, who value the club nearer to £6 billion. The bidding

Charlton lost over £10m in 21/22 from operations, player sales reduced this by £3.3m.  Charlton bought players for £1.7m in 21/22. Sales were £3.7m. Charlton had loans of £20m at 30 June 2022and have since borrowed a further £6m from the owner. Charlton borrowed £3.5m in the year. I nterest costs £12,000 a week in 21/22.   Wages £108 for every £100 of income. Income up as tickets sold via end of lockdown. This offset lower commercial and broadcast income. Over £500k in severance pay costs arose in year. Charlton total losses over the years now exceed £48m. Fan website editor Rick Everitt comments: ''The £10.1m operating loss announced by Charlton for 2021/22 is virtually identical to the previous season if you take into account an adjustment made as part of the takeover in 20/21.  Generally comparisons with 20/21 are complicated because of lockdowns. An operating loss of £10m is actually better than the club managed in L1 in the prior spell at that level under [Belgian

How do the English quarter finalists in the Champions League match up financially with their opponents? Real Madrid have 20-30% more revenue and wages than Chelsea, but it’s a different story for squad cost. Madrid’s £605m is over £100m higher than Chelsea’s £481m. It’s closer on wages, but the difference is still £64m. However, Chelsea’s squad cost £918m, compared to Madrid’s £726m. Manchester City versus Bayern Munich is the closest tie in financial terms. City’s £619m revenue is £65m higher than Bayern’s £554m, and the gap is similar for wages with City’s £354m being £59m more than Bayern’s £295m. The only significant difference can be seen in squad cost, where City’s £1.1 bln is more than three times as much as Bayern’s £334m.

City Football Group Ltd (CFG), which owns Manchester City (MCFC) and many other football clubs, publishes 21/22 accounts. CFG revenue £705m up 13% partly due to end of lockdown. 86% of revenue from MCFC. Operating losses pre player sales £182m, of which £22m from MCFC. CFG total losses since it was formed in 2013 £1.33 billion, group has substantial cash reserves, partly due to taking out a $650m loan in the year, perhaps to fund more Club acquisitions or infrastructure projects. Commercial and matchday rise in income more than offset broadcasting money fall. Wages up £31m to £488m, of which 73% borne by MCFC. Senior management pay more than doubled to £11.8m. Player purchases for CFG £191m, of which £149m were by MCFC. Player sales £95m (£86m by MCFC).

Newcastle’s pre-tax loss widened from £14m to a club record £73m, despite revenue increasing by £40m (28%) from £140m to £180m and profit on player sales rising £4m to £6m. This was because operating expenses shot up by nearly two-thirds (£102m) from £156m to £258m.  The club said this was “driven mostly by investment in the playing squad, in alignment with a long-term strategic objective to improve the competitive position of the team.” All three revenue streams improved, led by match day, where the return of fans to the stadium led to a steep increase from only £176k to £27.5m. Commercial also rose £8m (37%) to £28m, while broadcasting was up £5m (4%) to £124m. Unsurprisingly, Newcastle’s £73m pre-tax loss is one of the highest in the Premier League, only surpassed in 2021/22 by Manchester United £150m, Chelsea £121m and Leicester City £92m. Newcastle regularly posted profits under Ashley until the pandemic struck in 2020, the only exceptions being 2010 and 2017, when they were

Burnley's promotion to the Premier League has been achieved against a difficult financial background.  Relegation forced owners ALK Capital to repay a significant portion of a £65m loan taking out when buying the club in December 2020, effectively wiping out a £42m parachute payment.   About £70m was raised from player sales, of which about £30m was reinvested in 16 players.  Lingering doubts among supporters about ALK's leveraged buyout in 2020 resurfaced when Burnley were placed under a transfer embargo for failing to submit their accounts on time, but the club blamed it on a change of auditors.  Given performances on the pitch, most supporters are prepared to give the US owners the benefit of the doubt.

Leeds 21/22 accounts published.  Record income of £189m. Operating loss £34m (not bad compared with some other Premier League clubs). Jean-Kevin Augustin settlement £15.5m.  Bielsa payoff  was £3.5m. Total losses over the years £151m (£1 billion for Chelsea). Leeds spent £86m buying players in 21/22.   Sales were £1m. Funding quite busy £6m of fresh shares issued, £7m net of external loans.   £8.4m net of owner loans. Matchday income was up from £2m to £24m due to lockdown ending. Total broadcasting money down from £132m to £115m due to lower Premier League   finish. Merchandise income up £5m.   Other commercial up £8m. Leeds say that the proposed independent regulator could hit their finances:  https://www.bbc.co.uk/sport/football/65224822

Blackburn Rovers lost almost £400k a week in 21/22 but player sales almost halved the losses.  Player purchases just over £1m.  Player sales £10.5m.    Since end of 21/22 Rovers have had a net transfer spend of £4.4m. Blackburn total losses now total over £300 million, underwritten by shares and loans from the Venkys. Revenue was up due to matchday income returning following end of lockdown.   Media revenue down as less iFollow sales. Amortisation (transfer fees spread over contract life) similar to 20/21. Wages £146 for every £100 of income (not so unusual in the Championship). Wages average £11,300 a week. Blackburn are owed over £5m from other clubs for player sale instalments and owe £2.7m themselves. Small compared to the £144m the club owes to owners and £18m to EFL and bank

Chelsea became first club to accumulate losses exceeding £1 billion, reports Kieran Maguire. The club had Premier League record operating loss of £235m in 21/22. Player sales reduced this by £121m. Revenue up £46m following end of lockdown.   Costs include almost £77m of player transfer write downs following some dud signings (Maguire suggests Chelsea fans can work out who they were) and £18m legal dispute. Total wages up £15m compared to 20/21.   Chelsea bought players for £118m Sales were £142 as club continues to be most successful in Premier League.   In terms of income from departures overall squad cost at end of season was £918m. Chelsea spent £368m in the summer transfer window. January purchases excluded.

Football finance guru Kieran Maguire reports: ‘The audit report for both West Brom and the parent company makes for depressing reading in terms of uncertainty about the club’s ability to trade as a going concern unless player sales generate enough to cover the losses.’ West Brom Group £20m loan from MSD Holdings interest rate is SONIA plus 9.75%, so works out as 13.93%…or £7,600 a day. West Brom parent company has taken out a £2m loan from Warmfront Holdings, owned by the club owner, on which interest is being charged at 5% per MONTH, which works out at 79.6% per annum.  Maguire asks: ' What did West Brom Holdings do with the £2m from WarmFront? It lent the same amount to another company related to the owner at a lower rate of interest and some other companies…which have never been repaid and impaired to zero in the accounts.'

Ipswich’s new owners are certainly backing the club as revealed the 2021/22 accounts analysed by Kieran Maguire. Income £14.4m up 79%.     Wages £16.4m up 23%.   Day to day losses £12.8m up 9%. Player signings £3.4m. Player sales £2.6m.   Debt to owners £10m. Underlying losses (before player sales and one off items) were highest for a decade. Total losses over the period were £89 million.   Losses can be reduced by either player sales or owner contributions. Player sales generated a profit of just over £2m but are unpredictable and volatile. Player purchases of £3.4m high by League One standards, as are sales of £2.6m. Squad cost at 30 June 2022 highest for a decade. Since 30 June 22 Ipswich have bought players for a further £6m Matchday income was highest since 2016, despite being in League One as fans return to Portman Road.   Broadcast income down as fans switch from iFollow during lockdown to attending matches in person.   Commercial income (including merchandise sales) hig

Under Mike Ashley, the release of Newcastle United’s accounts was an opportunity for supporters to decry the lack of ambition and the pathetic stagnation on the commercial front.  Now, it is all about financial fair play (FFP) and how much Newcastle can spend going forward. The accounts for 2021/22 show a £70.7million loss, turnover of £180m and a wages-to-turnover ratio of 94.6 per cent. Revenue is continuing to grow from a low base, relative to the self-proclaimed ‘Big Six’ sides — Tottenham Hotspur, for example, had a turnover of £444million in 2021-22, which is more than double Newcastle’s — and it will take time to rapidly expand those levels. Commercial income is the area Newcastle recognise they can rapidly increase.   Fresh sponsorship deals should be announced soon.   The first year of the Castore kit deal did help commercial income rise more than 50 per cent (from £17.6m to £26.5m), but in 2019-20, Newcastle’s commercial revenue was only the 11th-highest in the Premier

The accounts for Ryan Reynolds and Rob McElhenney’s first full season at the helm at Wrexham reveal how turnover soared by 404 per cent to almost £6million, another record for non-League football. These soaring income levels, however, couldn’t prevent Wrexham from posting a loss of £2.9million, much of which was down to a hike in player wages and football costs as the club chased promotion. The figures also reveal how the joint owners, via The R.R. McReynolds Company LLC, had loaned the club £3.67million, primarily to fund the purchase of the freehold to the Racecourse Ground. Another £1.2million was invested in the form of shares. Matchday income accounted for £2.65m in 2021-22 and retail income £1.3m. Sponsorship and advertising also brought in £1.05m. Football costs were also up significantly to £3.94million, a rise of 294 per cent. This figure includes all football expenses, ranging from player and staff wages through to travel costs for away matches.   The wage bill is tho

Everton’s pre-tax loss decreased by £76m (63%) from £121m to £45m, mainly due to profit from player sales rising £55m from £13m to £68m.  Although Everton’s £45m loss is obviously not great, this is by no means the worst financial result in the Premier League in 2021/22 with some clubs reporting much higher losses, including Manchester United £150m, Leicester City £92m, Newcastle United £73m and Tottenham £61m. After many years following a frugal approach, Everton have really pushed the boat out under Moshiri, losing a colossal £417m over the last four years. The club has not posted a profit since 2017/18. The only crumb of comfort is that the loss has now reduced two years in a row. In this period, Everton have reported three of the 10 highest losses ever in England.   In fact, no Premier League club has lost more than Everton in the last four years. Everton’s £181m revenue has fallen to 10th highest in the Premier League, having been overtaken by West Ham £253m, Leicester City £2

Kieran Maguire reports on Fulham's 2021/22 accounts. Income was down 39% to £71m.   Wages   down 21% to £90m. Championship record average weekly wage £42k. Losses pre player sales £69m. Total losses over years £563m. Player purchases £24m. Player sales £24m. Borrowings from owner in year £116m. Total owner investment £677m. Revenue down following relegation. Losses down from £93m made in Premier League* previous season to £69m Player sale profits reduced losses by £12m. Owner Shahid Khan lent £116.5m in year which was converted to shares. Broadcasting money more than halved from £105m to £51m. Ticket sales up  following end of lockdown.   Fulham spent £24m on players and over £30m on the stadium redevelopment in 21/22.   Fulham have bought players for £78.8m since promotion and had sale profits of £7.4m. Wages down following relegation but still a record for Championship.    Higher than a couple of Premier League clubs.

Manchester United’s pre-tax loss for the first half increased from £22m to £25m, so there was little overall movement.  Although Manchester United’s revenue was basically flat, this disguised two large offsetting movements. Commercial shot up £37m (29%) from £129m to £166m, but broadcasting dropped £36m (28%) from £130m to £94m. The impact of interest payable on Manchester United’s accounts continues to be evident, rising from £17m to £19m. This is the highest amount charged in the first half in the last five years.   The significant swings arise largely because the majority of the club’s debt is denominated in USD and unhedged, so the significant weakening in the Pound against the Dollar has led to higher interest charges in the club’s accounts,. The increasing financial challenges faced by United are clearly illustrated by the deterioration in profitability in the last two seasons. They posted healthy profits in the previous eight years, but the club now seems to be loss-making.