In advance of football clubs starting to publish their accounts for the 2021/22 season, I thought it might be helpful to share some 2-page financial overviews for each of the Premier League clubs for 2020/21, including a comparison against prior year and a 5-year graphical trend.
These overviews also include Premier League rankings for each of the main financial categories, e.g. which club had the highest profit, loss, revenue, wages, debt, transfer spend, etc in 2020/21.
One caveat with these figures is that revenue was significantly impacted by COVID in 2020/21 with match day reduced to almost zero, as games were played behind closed doors, while some broadcasting income was deferred from 2019/20 for matches played after the accounting close.
Arsenal 2-page financial overview for 2020/21 #AFC
Aston Villa 2-page financial overview for 2020/21 #AVFC
Brighton & Hove Albion 2-page financial overview for 2020/21 #BHAFC
Burnley 2-page financial overview for 2020/21 #BurnleyFC
Chelsea 2-page financial overview for 2020/21 #CFC
Crystal Palace 2-page financial overview for 2020/21 #CPFC
Everton 2-page financial overview for 2020/21 #EFC
As we near the end of the transfer window, some fans ask why their club has not splashed more cash on bringing in new players, despite generating significant revenue. This thread will look at where the money goes by analysing the last 5 years for the Big Six Premier League clubs.
This analysis will look at the source and use of funds for the 5 years up to 2021 (most recently published accounts). We will remove pure accounting entries, such as player amortisation and profit on player sales, but incorporate all cash movements to give a “real world” view.
The Big Six Premier League clubs had £17.6 bln available funds, ranging from £3.2 bln for #MCFC & #MUFC to £2.5 bln for #AFC. Main driver is obviously £13.6 bln revenue with 57% (£7.8bln) going on wages. Net transfer spend is £2.3 bln: purchases £4.3 bln less £2.0 bln sales.
Following Bayern Munich’s imperious start to the season, on the back of 10 Bundesliga titles in a row, I thought it might be interesting to look at their finances, even though it’s been a while since they published their 2020/21 accounts #FCBayern
Despite the significant impact of COVID, #FCBayern “achieved sound financial results”, once again posting a pre-tax profit, though down from €17m to €5m (€2m after tax). Revenue (club definition) fell €54m (8%) from €698m to €644m, largely offset by €42m cut in expenses.
#FCBayern revenue hit by COVID driven reductions in match day, down €59m (83%) to €12m, and commercial, down €15m (4%) to €345m, while transfer income dropped €31m to €33m. Broadcasting rose €51m (25%) to €255m, mainly due to money deferred from extended 2019/20 season.
Following last night’s match between Manchester United and Liverpool, I thought it might be interesting to see how the finances of these clubs compare, particularly the direction of travel over the last 10 years (up to most recent accounts for the 2020/21 season) #MUFC#LFC
10 years ago #MUFC £320m revenue was nearly twice as much as #LFC £169m with the difference rising to a peak of £217m in 2017, but since then the gap has almost completely closed to only £7m with United’s £494m just ahead of #LFC £487m.
#LFC have earned more broadcasting income than #MUFC in each of the last four years, due to more success on the pitch, especially in Europe, where Liverpool’s exploits in the Champion League have generated much more TV money.
Arsenal fans will be delighted with the team’s good start to the season, so are probably unconcerned about the financial implications of their player recruitment, but it is maybe worth looking at whether there will be any issues with Financial Fair Play (FFP) regulations #AFC
As it stands, #AFC have spent a hefty £270m gross on transfers in the last 2 seasons, only surpassed by #CFC £288m, but ahead of #MUFC £255m, #MCFC £231m, #THFC £194m and #LFC £156m (though both #CFC and #MUFC will probably spend more on new players before the window closes).
Even more incredibly, #AFC net transfer spend of £218m is the highest of the Big Six in the last 2 seasons, just ahead of #CFC £217m. That is a fairly remarkable statistic for a club that has not competed in the lucrative Champions League since 2017.
After Manchester United’s awful start to the season, the focus has once again turned to the Glazers. This thread will look at some of the reasons why the club’s fans might be unhappy with their owners – from a financial perspective #MUFC
#MUFC are the only Premier League club to pay dividends to their shareholders, mainly the Glazers. Since 2016 they have paid a hefty £166m, averaging £22m a year. Note: the high £33m payment in 2021/22 included including £11m delayed from 2020/21.
Although it has fallen from its (sizeable) peak, #MUFC £21m interest payment in 2020/21 was still the highest in the Premier League. United have now paid a staggering three-quarters of a billion pounds (£743m) in interest since the Glazers’ leveraged buy-out in 2005.
Chelsea have been spending big in this summer’s transfer window with their outlay likely to be well over £200m by deadline day. This thread will look at the financial implications and explain how #CFC can still be in line with Financial Fair Play (FFP) regulations.
#CFC new owner Todd Boehly is well aware of the challenge: “FFP is starting to get some teeth and that will limit the ability to acquire players at any price. That could mean financial penalties and disqualification from sporting competitions.”
#CFC spending ability is limited by the Premier League Profitability and Sustainability (P&S) rules. These allow a £5m loss a year, which can be boosted by £30m equity injection, giving allowable losses of £35m a year. This works out to £105m over the 3-year monitoring period.