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Swiss Ramble

Sep 21 • 9 tweets • 8 min read

The Premier League has published details of the TV payments to clubs for the 2021/22 season. These amounted to £2.5 bln, ranging from £153m for champions #MCFC to £101m for 20th placed #NCFC (the first time the bottom club got more than £100m).

The largest increases compared to the previous season came at #BHAFC, up £16m, and #AFC, up £11m. In contrast, three clubs received over £10m less than 2020/21: #LUFC £17m, #EFC £13m and #LCFC £11m.

Each of the 20 Premier League clubs received £87.5m as an equal share, coming from domestic rights £31.8m, overseas rights £48.9m and commercial revenue £6.8m.

Merit payment depends on finishing place in the league, ranging from £41.1m for champions #MCFC to £2.1m for 20th placed #NCFC. There has always been a merit payment for domestic rights, but latest deal also introduced a merit element for overseas rights. Each place worth £2.1m.

Facility fees are paid based on the number of games broadcast live. In 2021/22 the minimum payment was £11.0m for 12 live games, while the maximum was £25.3m for 29 games (for both #AFC and #LFC). Each live game is worth an additional £0.8m.

A club that is frequently broadcast live can actually earn more than a club finishing above it in the league, e.g. in 20221/22 #AFC finished 5th in the league, but received more money than 3rd placed #CFC, as they were shown live 5 more times (29 games vs 24).

The split of TV payments in the Premier League highlights the importance of the equal share, especially for clubs finishing lower, e.g. #NCFC £101m total TV money was very largely driven by the £88m equal share, while this contributed to only 57% of #MCFC £153m.

In total the Premier League £2.5 bln TV money was split as follows: equal share £1.75 bln (69%), merit payments £432m (17%) and facility fees £355m (14%).

The TV money distribution method in the Premier League remains the most equitable of Europe’s major football leagues with the ratio from top to bottom earning club being only 1.5. This is much better than other leagues: Serie A 2.7, Bundesliga 3.1, Ligue 1 3.1 and La Liga 3.5.

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Swiss Ramble

@SwissRamble

Sep 12

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.

Read 24 tweets

Swiss Ramble

@SwissRamble

Aug 31

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.

Read 34 tweets

Swiss Ramble

@SwissRamble

Aug 29

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.

Read 42 tweets

Swiss Ramble

@SwissRamble

Aug 23

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.

Read 19 tweets

Swiss Ramble

@SwissRamble

Aug 22

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.

Read 52 tweets

Swiss Ramble

@SwissRamble

Aug 16

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.

Read 27 tweets

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