Growing financial power of the big six

 

The authoritative Swiss Ramble looks at the gap between the ‘Big Six’ and other top flight clubs.

They invariably have the financial muscle to ensure that results such as Unitrd and Spurs last season are the exception, rather than the rule, while other less fortunate clubs cannot afford a bad season or two, as shown by Leicester City’s decline since surprisingly winning the league.

If we define success as qualifying for Europe, an achievement that has the added benefit of enhancing revenue streams, there is no debate around the success of the Big Six.

In the last 15 years, there have been only two occasions when less than five members of the Big Six failed to qualify for European competitions. Indeed, in more than half of those seasons, all six clubs successfully negotiated this hurdle.

Moreover, they almost always qualified for the lucrative Champions League. Out of the 63 slots available since 2010/11, all but four of them have gone to the Big Six, the only exceptions being Leicester City (2015/16), Newcastle United (2022/23 & 2024/25) and Aston Villa (2023/24).

In the last ten years the average growth in revenue of the Big Six and the other 14 clubs is almost identical in percentage terms, as both groups have almost doubled (91% vs. 88%). However, the absolute growth is a whole different ball game, as the Big Six has increased by €286m from €314m to £600m, while the other 14 clubs have only averaged £92m growth from £104m to £196m.

The most important driver of the gap between the two groups is commercial income, where the Big Six generate a staggering 8.2x as much as the other 14 clubs, as well as match day revenue, where the multiple is a hefty 5.3x.

The underlying losses at the Big Six have been higher than the other 14 clubs in each of the last four years, which represents a major turnaround from the situation pre-pandemic.

Owners at the Big Six rarely put in their own hard-earned cash, though there have been a couple of hefty exceptions in the last decade: Abramovich’s debt write-off after the forced sale of Chelsea in 2021/22; and large capital injections at Chelsea and Manchester United in 2023/24.  Owner funding is more regularly required at the other 14 clubs.

Even though it is possible for a member of the Big Six to perform badly on the pitch, as seen by the poor displays by Manchester United and Tottenham last season, the chances are that when this happens, it will only be a temporary setback, as their financial power means that they can quickly bounce back.

Despite some good growth at the aspirational clubs, the harsh reality is that the revenue gap to the Big Six has never been higher, further boosted by differences in player trading and even asset sales (where necessary).

This has allowed them to invest even more money in talent to help fight off any challengers, so the gaps in wages, player amortisation and squad cost are also at an all-time high.

However, the Big Six also lose more money on average than the other 14 clubs, which means that they have taken on more debt, most strikingly in order to fund transfers.

Nevertheless, the smart money continues to be on the Big Six taking the qualification slots for European competition, especially in the highly lucrative Champions League, which further reinforces their dominance.

There have been questions regarding some apparent chinks in the armour of the Big Six, but reports of this group’s demise would seem to be a little premature, due to their ever-growing financial power.