Swiss Ramble Profile picture
Jul 27 15 tweets 11 min read
As a follow-up to yesterday’s thread on how the “Big Six” in the Premier League fared during the COVID era, here is an alternative view for each club. I’ve also added a few other clubs which needed more financial support over the two years of the pandemic (2019/20 and 2020/21).
#AFC posted a huge £181m pre-tax loss, though this was inflated by interest payable including a once-off £32m refinancing fee, as around £200m external bonds were redeemed and replaced by a loan from Stan Kroenke. Net cash outflow of £148m was funded by reduction in cash balance.
#CFC enormous £294m operating loss was partially offset by £171m profit from player sales, but they still made £120m pre-tax loss. However, net cash outflow was restricted to £20m, mainly due to relatively low net player purchases plus £50m share capital from Roman Abramovich.
#LFC £114m operating loss was largely offset by £66m profit from player sales, so their pre-tax loss was “only” £51m. After spending £145m on net player purchases and £41m on infrastructure (training ground), the cash loss was mainly funded by £77m external loans.
#MCFC significant £218m operating loss was partially offset by £108m profit from player sales, but they still made £120m pre-tax loss. Even after £23m capital injection from the owners, the net cash outflow was still £85m. Funded by reduction in cash balance from £130m to £45m.
#MUFC £45m pre-tax loss was smallest of Big Six, mainly due to low operating loss of just £57m. Highest cash loss of £203m, mainly due to £285m net player purchases, but still paid £34m dividends and £21m share buyback. Funded by big fall in cash balance plus £56m external loans.
#THFC £148m pre-tax loss included £80m interest payable on loans for building their new stadium. This project also led to £110m capital expenditure (albeit much lower than the £474m outlay in preceding 2 years). Funded by £191m external loans, taking gross debt to £854m.
Although the Big Six appear to have coped relatively comfortably with the effects of the pandemic, other clubs have been less fortunate and have required significant additional financing, though some of this is linked to the usual ambitions (and not just driven by COVID).
To illustrate the differing requirements, I have looked at a few other clubs in the Premier League. This is not an exhaustive list by any means, but should be sufficient to make the point (plus I don’t have unlimited time 🙂).
#EFC £261m pre-tax loss in the past 2 years was the highest in the top flight, as their £347m wages accounted for 92% of revenue. In cash terms their loss was £200m, which they funded with £150m from owners (£100m share capital and £50m loans) plus £93m bank loans.
#LCFC £188m operating loss was partially offset by £107m profit from player sales (mainly Harry Maguire to #MUFC). Their £134m cash loss was largely down to £110m capital expenditure (new training ground), which was funded by £162m loans from the owners, King Power.
#WHUFC £121m operating loss was partially offset by £43m profit from player sales, but £14m interest payable meant a £92m pre-tax loss. The £53m cash loss was covered by £30m share capital from a rights issue (mainly Sullivan and Gold) plus £31m external loans.
#AVFC £137m pre-tax loss was almost identical to the operating loss, as they only made £1m from player trading (though next accounts will include Grealish sale to #MCFC). Very high £194m net player purchases funded by £191m share capital from owners Nassef Sawiris and Wes Edens.
Although elite clubs have not required much additional financing in the last 2 years, other smaller clubs have not been so fortunate, having to rely on the generosity of their owners or the banks – even though their COVID losses were smaller (due to lower pre-pandemic revenue).
That said, it does look like much of the money provided has simply been used for “normal” activities, i.e. to finance expenditure on players, either in the form of transfers or wages. In other words, business as usual for most clubs.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Swiss Ramble

Swiss Ramble Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @SwissRamble

Jul 29
In football money often talks, i.e. success on the pitch is almost invariably reserved for clubs that have spent the most on wages and transfer fees. However, it might be interesting to see which clubs have performed the best (and indeed worst) relative to their budget.
This thread will therefore look at how teams in the Premier League in 2021/22 performed relative to their wages, combined wages/player amortisation and squad cost. This is not an exact science, but just a bit of fun, as there are a few caveats to an analysis of this type.
First, I have used financial figures from the most recent published accounts, i.e. from 2020/21, so these are a year out of date compared to 2021/22 league position. Moreover, the last figures available for the 3 promoted clubs are from the Championship, so are under-stated.
Read 27 tweets
Jul 26
While it is obvious that football clubs have suffered over the last two years due to the impact of COVID, I thought it might be interesting to look at how their finances have been impacted, both in terms of the profit and loss account, but also the important cash flow statement.
For the purpose of illustrating the effect of the pandemic, I have looked at the Big Six Premier League clubs, comparing the numbers for the last two sets of published accounts (2019/20 and 2020/21) with those reported for the preceding two seasons (2017/18 and 2018/19).
Most fans will understandably focus on a club’s profit and loss account, particularly revenue and wages, but the cash flow statement will also incorporate the money spent on players and infrastructure, thus providing a more complete picture.
Read 51 tweets
Jul 18
#FCBarcelona have announced the signing of Rapinha from #LUFC for €58m, while a deal to acquire Robert Lewandowski from Bayern Munich for €50m is agreed in principle. The question is how can they possibly afford these players, given their well-documented financial problems?
Only last month president Joan Laporta compared #FCBarcelona to a patient who “was practically dead in financial terms”, while the vice-president for finance Eduard Romeu said that €500m was needed “to save the club”.
This was not surprising, given the magnitude of #FCBarcelona’s financial issues. Although things have moved on since the most recent accounts for the 2020/21 season, it’s worth reviewing these to explain why so many fans are scratching their head at this summer’s spending.
Read 47 tweets
Jul 11
West Bromwich Albion’s 2020/21 accounts covered a season when they finished 19th in the Premier League, leading to relegation to the Championship. Coach Slaven Bilic replaced by Sam Allardyce in December 2020, subsequently succeeded by Valerien Ismael, then Steve Bruce #WBA
#WBA swung from £23m pre-tax loss to a small £0.1m profit, as revenue almost doubled from £54m to £107m following promotion to the Premier League, though profit on player sales fell £25m to £4m and operating expenses rose £4m (4%) in the top flight.
Main driver of #WBA £53m revenue increase was broadcasting, up £56m from £41m to £97m, due to the more lucrative Premier League TV deal, though commercial also grew £2m (21%) to £10m. This offset the COVID driven reduction in gate receipts, down £4.8m (98%) to just £74k.
Read 45 tweets
Jul 4
In advance of the Women’s Euro 2022, I thought it might be interesting to review the finances of the FA Women’s Super League (WSL) for the 2020/21 season, albeit severely impacted by the COVID-19 pandemic with almost all games played behind closed doors.
Reviewing WSL financials is made more difficult by the fact that not all clubs publish detailed accounts, so some lack information on revenue, expenses, wages and headcount. Nevertheless, there is enough data available to identify some common themes.
Overall the WSL reported a record pre-tax loss of £9.7m for 2020/21, which was £2.5m more than the previous season’s £7.2m  and slightly higher than the £8.9m deficit in 2018/19. Note: the WSL increased the number of clubs from 11 in 2019 to 12 in 2020.
Read 43 tweets
Jul 1
Huddersfield Town’s 2020/21 accounts cover a season when they finished 20th in the Championship, thus narrowly avoiding relegation. However, matters on the pitch were much better last season, when Carlos Corberan’s team reached the play-off final. Some thoughts follow #HTAFC
Since these accounts, it has been reported that former owner Dean Hoyle has almost completed a takeover of #HTAFC by acquiring the 75% controlling stake he sold to Phil Hodgkinson in 2019. As Hoyle had kept 25%, he would have full ownership if the deal is finalised.
Hodgkinson’s main company had been placed into administration in November 2021, so there was concern that this would cause problems for #HTAFC, though the club was not directly affected. So, there has been much change, but the 2020/21 accounts are still of interest.
Read 42 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!