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Showing posts with the label Real Madrid.Everton

The growth of debt in football, and the big debtors

After many years when Premier League debt levels were relatively flat, this has really taken off in the last few years, rising from £3.2 bln in 2017 to a high of £5.2 bln in 2020. This then dropped to “only” £4.0 bln in 2021/22, but the decrease was a bit misleading, as it was only due to Chelsea writing-off £1.5 bln of debt following Roman Abramovich’s forced sale of the club. Over half of the debt is at just three clubs, namely Everton £1.0 bln (new stadium and squad investment), Tottenham £851m (new stadium) and Manchester United £547m (the lingering effects of the Glazers’ leveraged buyout).   In addition, four other clubs owe more than £300m (Arsenal £342m, Liverpool £314m, Chelsea £303m and Brighton £300m). In the Premier League, 41% of the financial debt was from the club’s owners, while 59% was external debt.   However, as you work your way down the leagues, it is often the case that the majority of a club’s debt is provided by the owner, e.g. in the EFL Champion...