Swiss Ramble Profile picture
Dec 14, 2021 13 tweets 11 min read Read on X
Premier League clubs have pushed back against the independent regulator proposed in the recent @tracey_crouch government-led review, raising concerns about the “unintended consequences” of the report’s recommendations. But what is the actual state of English football’s finances?
This analysis looks at how football clubs in the top two divisions have fared in the last 10 years up to 2019/20, the last season when all clubs have published accounts. It therefore excludes 2020/21 when COVID had a big adverse impact as matches were played behind closed doors.
Just looking at revenue, people might think that there are no problems, as the 44 clubs in the Premier League and Championship have generated an impressive £41 bln in the 10 years 2011-20. That said, there is a clear gap between the Big Six, led by #MUFC £4.7 bln, and the rest.
However, a large chunk of this money has simply gone on £28 bln of wages – before clubs pay any other operational expenses, buy players or invest in stadiums, training grounds, etc. Perhaps unsurprisingly, highest wages were paid by #MCFC £2.4 bln, #MUFC £2.3 bln & #CFC £2.2 bln.
This approach has resulted in many unsustainable wages to turnover ratios. Over the last 10 years, 32 of the 44 clubs in Premier League and Championship are above UEFA’s recommended 70% upper limit, including 22 higher than 80%. An incredible 12 clubs are above 100%.
As a result, in the last 10 years the top two English leagues have lost a massive £3.1 bln pre-tax with the largest losses at #AVFC £455m and #MCFC £446m. In this period only 11 out of 44 clubs managed to make money, led by #THFC £338m, #MUFC £191m, #AFC £112m and #NUFC £94m.
These losses would have been even higher without £5.1 bln profit from player sales, led by #CFC £602m, #LFC £359m, #AFC £356m and #THFC £336m. This is a legitimate business model, but these transactions are once-off, so cannot always be relied on to offset operating losses.
Operating losses in the Premier League and Championship in the last 10 years are a staggering £7 bln, with #CFC “leading the way” with £658m, followed by #AVFC £582m, #MCFC £580m & #EFC £408m. Only 3 clubs have produced operating profits: #MUFC £461m, #THFC £137m & Burnley £37m.
These losses have essentially been funded by football club owners putting their hands into their pockets with £6.3 bln financing in the last 10 years (loans £4.2 bln, share capital £2.1 bln). Most generous owners are #MCFC £837m, #CFC £559m, #AVFC £434m and #EFC £348m.
The good news is that relatively little bank debt has been taken out with “only” £693m external financing in the last 10 years. By far the highest is #THFC £746m (new stadium), followed by #LFC £153m (Anfield expansion). In contrast, repayments at #MUFC £249m and #AFC £76m.
However, much of the activity in the transfer market has been “funded” via payments on credit, as transfer debt has increased by £1.4 bln in the last 10 years. The largest increases have come at #AFC £136m, #MUFC £135m, #CFC £111m, #THFC £111m and #WWFC £100m.
These figures are based on the clubs that were competing in the Premier League and Championship in the 2019/20 season, so exclude some clubs relegated to League One, whose financial record is awful, e.g. #SAFC operating losses in last 10 years were over £200m.
In conclusion, there is absolutely nothing wrong with English football – apart from huge losses, unsustainable wages, player purchases on credit and a massive dependency on owner funding. Nothing to see here, please move on, definitely no need for an independent regulator.

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More from @SwissRamble

Mar 20
Review of Bayern Munich's financial results for the 2023/24 season, when for once they did not win the Bundesliga, but they did reach the Champions League semi-finals. Image
Bayern's finances remain solid, as they have now been profitable for a barely credible 32 years in a row, generating an amazing €429m pre-tax profit in the last decade alone, even including the COVID impacted seasons. Image
Bayern set a new revenue record for the second year in a row, which means this has grown by €105m (16%) since the pre-pandemic peak of €660m in 2018/19. Including income from player sales, the increase was even more impressive, rising €201m (27%) from €750m to €952m. Image
Read 5 tweets
Mar 17
Review of Wolverhampton Wanderers' financial results for the 2023/24 season, when they finished 14th in the Premier League and reached the quarter-finals of the FA Cup #WWFC Image
Wolves’ pre-tax loss significantly reduced from £67m to £14m, as profit from player sales increased from £44m to £65m, while revenue rose £9m (5%) from £169m to £178m and operating expenses were cut by £18m (7%) from £269m to £241m #WWFC Image
One big reason for Wolves’ need to focus on player trading is their inability to grow their revenue. Indeed, this has only increased £5m (3%) compared to their first season back in the Premier League in 2018/19 #WWFC Image
Read 5 tweets
Jan 24
The recent sale of Khvicha Kvaratskhelia to Paris Saint-Germain for a reported €70m once again highlighted Napoli’s ability to make big money from transfers #sscnapoli Image
In fact, Napoli have four of the top ten player sales profits ever in Italy, also including Higuain, Cavani and Jorginho. Furthermore, they have made the highest profit from player sales in Italy in the last five years with nearly €300m #sscnapoli Image
This has helped Napoli generate an incredible €209m of profits in the last two seasons, which is in stark contrast to the losses registered at most of their rivals. They have fully recovered from the COVID-impacted seasons #sscnapoli Image
Read 6 tweets
Dec 16, 2024
While Manchester City have hit some bad form on the pitch recently, their financial results for the 2023/24 season were pretty impressive, featuring a new Premier League revenue record of £715m and a substantial £74m profit #MCFC Image
City's revenue slightly increased to £715m, which means that this has risen by more than a third (£180m) in just five years from the 2019 pre-pandemic level of £535m. Growth has been led by commercial, which now accounts for 48% of total income #MCFC Image
Player trading has become increasingly important to City, having made £122m in 2022/23 and £139m in 2023/24. Up until 2019/20 the club had not generated more than £40m, so they have significantly improved this area of their operations #MCFC Image
Read 6 tweets
Nov 11, 2024
Review of Rangers' financial results for the 2023/24 season, when when they finished as runners-up in the SPFL Premiership for the third year in a row, were defeated in the Scottish Cup Final, but did win the League Cup. Also reached the Europa League last 16 #RangersFC Image
After two years of small losses, when they very nearly broke-even, Rangers lost £17m before tax, mainly because profit from player sales dropped from £24m to £6m #RangersFC Image
Image
Rangers' revenue rose £4.5m (5%) from £83.8m to a club record £88.3m, which means that this has grown by an impressive £35.1m (66%) in the last five years from £53.2m #RangersFC Image
Read 6 tweets
Sep 16, 2024
Review of Manchester United's financial results for the 2023/24 season. As always, #MUFC are the first Premier League club to publish their accounts.

The period included official confirmation of the deal whereby Sir Jim Ratcliffe acquired a 27.7% stake in United. Image
On the plus side, revenue rose £14m (2%) from £648m to a new club record of £662m, while profit from player sales increased from £20m to £37m, United's best result for 15 years #MUFC
Image
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However, the pre-tax loss quadrupled, widening by £98m from £33m to £131m, the second worst in United’s history. Club has posted a loss 5 years in a row, compared to healthy profits in five of the six years up to 2018/19 #MUFC Image
Read 6 tweets

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