Now that all the clubs in the Scottish Premiership have finally published their accounts for the 2019/20 season, here is an overview of their financials, which were adversely impacted by the season’s early closure due to the COVID-19 pandemic #spfl
Most Scottish Premiership clubs aim for break-even with 5 making small profits, led by Hearts £0.5m and Motherwell £0.3m. #RangersFC £17.5m post-tax loss is the big outlier, especially compared to #CelticFC £0.4m deficit, largely due to their recent investment in the squad.
However, it is worth noting that #CelticFC were boosted by £24m profit from player sales, largely due to Kieran Tierney’s move to Arsenal, which was significantly higher than other Scottish clubs. The next highest were Kilmarnock £1.2m, Motherwell £1.0m and #RangersFC £0.7m.
The Old Firm had by far the largest operating losses (i.e. excluding player sales and interest) with #CelticFC being highest at £24.5m then #RangersFC £15.9m. Next highest was Hibernian with just £1.4m. Hearts was the only club with an operating profit, thanks to £3.7m donations.
#CelticFC had the highest revenue with £70m, though the gap to #RangersFC £59m has narrowed. Both Glasgow clubs earn at least four times as much as other Scottish clubs with closest challengers being Aberdeen £14m, Hearts £12m, Hibernian £9m and Kilmarnock £5m.
Revenue for most Scottish clubs fell in 2019/20, partly due to the impact of COVID-19, but #RangersFC increased by £6m (11%), due to reaching Europa League last 16. In contrast, #CelticFC revenue dropped £13m (16%) with match day and commercial heavily affected by the pandemic.
#CelticFC £35.8m match day revenue was just ahead of #RangersFC £35.7m, then a big drop to Hearts £5.1m, Aberdeen £3.7m and Motherwell £1.5m. All clubs adversely impacted by season’s early closure, though Rangers boosted by Europa League run and 5% ticket price increase.
Similarly, #CelticFC £13.7m broadcasting income was just above #RangersFC £13.5m, with both of them a long way ahead of the other Scottish clubs: Aberdeen £3.0m, Motherwell £2.3m and Hearts £2.0m.
The Scottish Premiership TV deal is very low, so #CelticFC only received £3.4m for winning the title in 2020. To put this into perspective, Premier League winners got £152m, while last place was worth £97m. Even a Championship club (no parachute payments) got twice as much £7m.
There is a new 5-year Scottish TV deal with Sky Sports worth £30m (€34m) a year from 2020/21 (up from £25m), but this is not going to move the needle by much. It’s still much lower than Poland Ekstraklasa €58m and Belgium Jupiler League €83m, let alone Premier League €3.6 bln
The Glasgow clubs’ broadcasting revenue was boosted by the Europa League: #CelticFC £9.9m earned more than #RangersFC £9.2m, despite only reaching last 32 compared to last 16, due to higher UEFA coefficient (based on last 10 year’s results) and better results in the group.
Reaching the Champions League group stage can make a big difference to Scottish clubs, e.g. the last time #CelticFC managed this in 2018 they received £30m TV money. On top of that, a club would have higher gate receipts and an uplift from performance bonuses in commercial deals.
#CelticFC £20.8m commercial income (sponsorship £8.1m, retail and e-commerce £11.2m and other income £1.4m) was more than double #RangersFC £9.8m (sponsorship & advertising £3.1m, commercial £3.9m and other income £2.8m), followed by Aberdeen £7.7m and Hearts £5.1m.
#CelticFC had the highest wage bill with £54m, ahead of #RangersFC £43m, though the gap has narrowed to £11m from £35m in 2018. There remains an abyss between the Old Firm and the other Scottish clubs, i.e. the next highest are Aberdeen £10m, Hearts £9m and Hibernian £7m.
Most Scottish clubs have reasonable wages to turnover ratios, just above UEFA’s recommended upper limit of 70%, but that’s not too bad in a COVID-impacted season. The highest (worst) was Ross County 103%, followed by Motherwell 85%, #CelticFC 77%, Hibernian 74% & #RangersFC 73%.
#CelticFC £12.2m player amortisation, the annual charge to write-off transfer fees over a player’s contract, was the highest in Scotland, well ahead of #RangersFC £7.6m. Both clubs are a lot higher than the rest: Hibernian £0.5m, Aberdeen £0.4m and Hearts £0.4m.
Scottish clubs do not often pay big money to sign players. In fact, #CelticFC gross transfer spend of £20.7m in 2019/20 was easily more than the rest of the Scottish Premiership combined with the next highest being #RangersFC £11.0m, followed by Aberdeen £1.3m and Hearts £0.4m.
#RangersFC £19.3m gross debt is more than all the other Scottish Premiership clubs combined (£15.7m) with the next highest being Hearts £5.7m, Celtic £5.4m and Aberdeen £1.3m. These numbers are significantly lower than most English clubs.
#CelticFC cash balance dropped from £34.1m to £22.4m in 2020, though this was still by far the highest in Scotland, more than double #RangersFC £11.1m, followed by Hibernian £5.4m, St. Johnstone £2.8m, Aberdeen £2.5m and Hearts £2.4m.
Obviously these figures for the 2019/20 season are a year behind, as we will have to wait a few months before clubs start publishing accounts for 2020/21, which will reflect a full season of COVID.
I’ve just realized that there was a formula error for Aberdeen’s profit figures in my database. Updated graphs attached. My apologies.
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As Sunderland prepare for the new season, I took a look at the club's focus on sustainability. How close are they to achieving this and what are the implications for the performance on the pitch? #SAFC
The last available accounts from the 2022/23 season are now a full year out of date, but they still offer some indications of how well the strategy is working #SAFC
The bad news is that Sunderland have reported losses 17 years in a row, adding up to a hefty £272m. However, more positively, the club has drastically reduced the size of its losses, averaging less than £7m in the last four years, compared to £20m in the preceding decade #SAFC
A review of Ipswich Town's finances, as they return to the Premier League after 22 long years away. Focus is on the latest available accounts from 2022/23, but also has comparisons with Championship clubs and some estimates for the top flight #ITFC
Losses have been growing under the new owners, as they invested in the squad and infrastructure in an attempt to return Ipswich to former glories - which has clearly worked #ITFC
Even though they were in League One, 2022/23 was the first time that the club broke through the £20m revenue barrier since the last time that they were in the Premier League back in 2001/02 #ITFC
An explanation of how the new format for UEFA competitions will work from next season, including an explanation of the revenue distribution.
The number of clubs in the Champions League will increase from 32 to 36 with the group stage of 8 groups of 4 teams being replaced by a single league of 36 teams, then a new knockout round, before reverting to the traditional last 16.
Total revenue distribution will increase by 21% from €2.7 bln to €3.5 bln. Lion's share will go to the Champions League €2.5 bln, followed by Europa League €565m and Europa Conference €285m.
Quick review of the money earned by England's Champions League representatives to date after this week's matches.
#MCFC lead the way with £93m, followed by the other quarter-finalists #AFC £80m. The two clubs eliminated in the group stage earned less: #MUFC £51m and #NUFC £29m.
Champions League TV money is split into 4 elements:
- Participation Fee
- Prize Money
- UEFA coefficient
- TV pool
Each club that reaches the group stage receives a €15.6m participation fee.
So Everton have been deducted 10 points by the Premier League for a breach of the Profitability & Sustainability Rules #EFC
I have frequently looked at their case, the last time during an overall review of FFP. The article can be found on my blog here swissramble.substack.com/p/financial-fa…
However, given the importance of this decision, I've attached a series of screen shots from that article that help explain the background #EFC
First, Everton's initial FFP situation over the monitoring period up to 2021/22, where they are a fair way over the maximum allowed loss #EFC
Analysis of Rangers' 2022/23 financial results, when pre-tax loss slightly increased to £3m, as revenue fell 4% to £84m and operating expenses rose £11m, partly offset by profit on player sales more than doubling to club record £24m #RangersFC
In terms of profitability, #RangersFC and #CelticFC were at the opposite end of the spectrum with Rangers posting a small £3m pre-tax loss, while Celtic generated a record £41m profit.
Given that both clubs qualified for the Champions League, the size of the gap might come as a surprise. Cost bases are very similar, but #CelticFC revenue is substantially higher plus once-off other income, partly offset by #RangersFC better player sales.