Swiss Ramble Profile picture
Aug 3, 2018 28 tweets 32 min read Twitter logo Read on Twitter
Although the 2016/17 financial results for the Premier League are now a season out-of-date, they are still the most recent published by the clubs, so I thought some comparisons might be interesting as we head into the 2017/18 season. Thread follows.
Thanks to a combination of the PL TV deal and FFP wage controls, almost all clubs are now profitable with only #SAFC reporting a loss. #LCFC led the way with £92m profit before tax, the highest ever made in the Premier League, followed by #THFC £58m, #MUFC £57m and #AFC £45m.
Profit on player sales is an increasingly important element in driving the improved profitability of some Premier League clubs. In 2016/17 highest profits were made by Chelsea £69m (Oscar to Shanghai SIPG), Everton £52m (Stones to #MCFC) and Southampton £42m (Mané to #LFC).
Player trading is a key part of strategy at #CFC and #THFC, who have made £239m and £219m respectively from this activity in the last 5 years. Other members of the Big Six made much less: #LFC £123m, #AFC £92m, #MCFC £74m & #MUFC £41m. Worth noting #SaintsFC £148m and #EFC £107m.
That said, all clubs reported positive EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), which can be considered a proxy for cash operating profit, as it strips out player sales and once-off items. #MUFC are way ahead here with an astonishing £200m.
Despite the relative equality of Premier League TV money distribution, there is still a big gap in revenue terms between the Big Six (£2.5 bln) and other 14 clubs (£2.1 bln). Highest revenue: #MUFC £581m, #MCFC £473m, #AFC £423m, #LFC £364m, #CFC £361m and #THFC £306m.
There are no fewer than 14 Premier League clubs in the Deloitte Money League Top 30 with #MUFC £581m being the highest revenue in world football, just ahead of Real Madrid £580m, Barcelona £557m and Bayern £505m. Note that #MCFC estimated as £453m, as accounts covered 13 months.
Significant revenue growth for Big Six in last 5 years with highest at #MUFC, who increased revenue by £261m from £320m to £581m. Highest % growth at #THFC, who more than doubled revenue from £144m to £306m. Lowest growth at #CFC £104m, partly due to not qualifying for Europe.
Compared to the previous season 2015/16, all Premier League clubs managed to increase their revenue. The highest growth came from #LCFC £104m and #THFC £97m, influenced by their Champions League qualification.
Main driver of year-on-year revenue growth in 2016/17 was the benefit accruing from the first year of the new Premier League TV deal, though European TV money (helped by strengthening Euro) also played a part. Excluding these factors, most clubs had small or no revenue growth.
#MCFC had the highest broadcasting income of £203m, boosted by £43m from the Champions League. European TV money can have a major impact here, as seen with #LCFC, who were 4th highest with £191m that included £70m from reaching CL quarter-finals.
#CFC received most from Premier League TV deal with £151m, while last placed #SAFC still got £93m. Despite finishing 2nd in the league, #THFC only had 4th highest TV money, due to only being broadcast live 25 times (compared to 3rd place #MCFC 28 and 4th place #LFC 29).
#LCFC received £70m for reaching Champions League quarter-finals, only below Juventus’ £95m, but more than winners Real Madrid, thanks to the high English TV pool. Other English clubs in CL: #AFC £55m, #MCFC £43m, & #THFC £37m. #MUFC got a healthy £38m for winning Europa League.
No fewer than 13 of the 20 Premier League clubs generate more than 75% of their revenue from TV with #AFCB “leading the way” with an amazing 91%.
There is a vast difference between commercial income in the top flight: #MUFC earn an incredible £276m, while 13 clubs only earn between £6m and £27m, i.e. less than 10% of United. Next highest is #MCFC £218m, followed by #LFC £136m, #CFC £133m, #AFC £117m and #THFC £73m.
Similarly, there is a large disparity in match day income with #MUFC (£112m) and #AFC both earning more than £100m, while 8 clubs generate less than £10m with #AFCB having to get by on just £5m.
#MUFC enjoyed the highest average attendance of around 75,000, followed by #AFC 60,000, #WHUFC 57,000 (after move to the Olympic Stadium), #MCFC 54,000 and #LFC 53,000 (after main stand expansion).
#MUFC and #MCFC wage bills rose to £264m in 2016/17 (though City’s figures cover 13 months, due to a change in their accounting close), creating a sizeable gap to #CFC £220m, #LFC £208m & #AFC £199m, then another large drop to #THFC £127m. #LCFC 7th with £113m, due to CL bonuses.
Five years ago #MUFC only had 3rd highest wage bill, behind #MCFC and #CFC, but are now highest following £102m (63%) growth. Worth noting that #MCFC wages impacted by transfer of some staff to other group companies (so cost reflected in higher external charges).
Even if we pro-rate #MCFC wage bill from £264m (13 months) to £244m (12 months), this still represented the largest year-on-year growth over 2015/16 of £46m, followed by #LCFC £32m, #MUFC £31m and #CPFC £31m. Both #CFC and #LFC actually slightly reduced wages.
Most clubs managed to lower their wages to turnover ratio in 2016/17, leaving 13 clubs in the 51% to 62% range. The highest (worst) ratio was 78% at #CPFC, followed by #Swans 77% (probably influenced by payouts to two sacked managers) and #SAFC 67%.
The highest paid director was #THFC Daniel Levy, whose pay surged from £2.8m to £6.0m, far more than Ivan Gazidis (#AFC) & Ed Woodward (#MUFC), both £2.6m, though apparently this includes backdated pay rise & bonuses. Next highest was #CPFC, presumably Steve Parish, with £2.150m.
The highest player amortisation, which is the annual charge to write-down transfer fees over the length of players’ contracts, was at #MUFC £124m & #MCFC £122m, reflecting their big spending in the transfer market. The next highest, #CFC £88m & #AFC £77m, were a fair way back.
The highest player purchases were at #MUFC £205m and #MCFC £204m, almost twice as much as #AFC £114m and #CFC £106m. #CPFC were maybe surprisingly 5th highest with £104m. #AFCB £9m is misleading, as change in accounting date excluded July, i.e. £40m spent after accounts closed.
Net transfer spend highlights 3 groups in Premier League: (1) above £100m – #MCFC, #MUFC & #AFC; (2) 13 clubs in a range of £20-40m; (3) break-even or smallish net sales – #SAFC, #HCAFC, #SaintsFC & #THFC.
Despite all the financial restructurings, #MUFC still have by far the highest debt of £503m after Glazers leveraged buy-out, followed by #AFC £227m (Emirates stadium loan), #THFC £185m (mainly drawn against £400m facility for new stadium), #LFC £182m (mainly stadium expansion).
The highest interest paid was £20m by #MUFC, then £12m by #AFC. #EFC £12m is a little misleading, as it included £7m for early settlement of old loans. As #THFC stadium debt increases, the interest payments will also rise significantly.
#MUFC also had an impressive £290m cash balance, followed by #THFC £200m, though this is partly due to loan advances for the new stadium development, and #AFC £180m.

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More from @SwissRamble

Oct 4, 2018
#RealMadrid 2017/18 accounts cover a season when they finished third in La Liga, but won the Champions League for a third consecutive year, the fourth time in 5 years, plus the Club World Cup and European and Spanish Super Cups. Some thoughts in the following thread.
#RealMadrid profit before tax increased by €17m from €26m to €43m (profit after tax up €10m from €21m to €31m). Revenue (Madrid’s definition) rose 11% (€76m), their largest rise since 2000, to a record high of €751m, while profit on player sales was 4% (€2m) up at €54m.
All #RealMadrid revenue streams increased with the largest growth in marketing €41m (16%) to €295m, followed by international & friendly matches €13m (17%) to €100m, broadcasting €13m (8%) to €178m and membership fees & stadium revenue €8m (5%) to €174m.
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Sep 25, 2018
Manchester United are the second Premier League club after #MCFC to publish 2017/18 financial results, covering a season when they were runners-up in the league and FA Cup, but were eliminated by Sevilla in the Champions League last 16. Some thoughts in the following thread #MUFC
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Sep 17, 2018
Ten years after Sheikh Mansour acquired the club, Manchester City’s 2017/18 financial results covered a season when they won the Premier League in some style, won the League Cup and reached the Champions League quarter-finals. Some thoughts in the following thread #MCFC
#MCFC profit before tax up from £0.1m (£1.1m after tax) to £10.4m, as previous season was adversely impacted by change in year-end resulting in an extra month’s costs with minimal revenue uplift. Revenue rose £27m (6%) to £500.5m, only second English club above £0.5 bln.
All #MCFC revenue streams up: commercial income rose £14m (7%) to £232m; broadcasting increased £8m (4%) to £212m; and match day was £5m (9%) higher at £57m. Profit on player sales was up £4m to £39m.
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Sep 10, 2018
Prize money for UEFA club competitions significantly increases in 2018/19, including a new coefficient ranking payment that better rewards historically successful clubs rather than those with larger national TV rights deals. Some thoughts follow on Champions League distribution.
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In 2018/19 each of the 32 clubs qualifying for Champions League group stage gets €15.25m plus €2.7m for a win and €900k for a draw. Additional prize money for each further stage reached: last 16 €9.5m, quarter-final €10.5m, semi-final €12m, final €15m and winners €19m.
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Sep 4, 2018
Atletico Madrid’s 2016/17 accounts cover a season when they finished third in La Liga and reached the semi-finals of the Champions League under coach Diego Simeone. Some thoughts on their finances in the following thread #Atleti #AúpaAtleti #AtleticoMadrid
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The main driver of the #Atleti revenue increase was the La Liga TV deal, up €31m to €99m, though Champions League TV money was €9m lower at €61m. Commercial rose €22m (41%) to €76m, while match day was €4m (11%) higher at €45m.
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Aug 27, 2018
A long-suffering Newcastle United fan asked how their financial performance compared with Tottenham Hotspur since Mike Ashley bought the club in July 2007, so here’s a few thoughts in the following thread #NUFC #THFC
Both #NUFC and #THFC have focused on profit. #NUFC have essentially broken even during Ashley’s tenure with £4m aggregate profit, while #THFC have reported an impressive £215m. Worth noting that £188m of that came in last 4 seasons, when #NUFC had a £47m loss in Championship.
#NUFC revenue has fallen by £1m since Ashley’s arrival from £87m to £86m, deflated by the lower money in the Championship. In the same period, #THFC revenue has tripled, rising £203m from £103m to £306m. In fairness, #NUFC 2018 revenue will be much higher (£175-180m estimate).
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