Premier League Club Accounts

[SteveAWOL]

Re: Premier League Club Accounts 2011/12

According to http://swissramble.blogspot.co.uk/2012/10/arsenal-song-remains-same.html ARSEnal received £28.2million in prize money + TV revenue (compared to our £3m for the Europa League) last season. They also make £3.3million per matchday compared to our £1.6m.

...Chelsea earned more than twice as much last season as Arsenal with €60 million after their triumph in Munich. Interestingly, Manchester United (€35 million) also earned more than Arsenal, despite being eliminated at the group stage, as their share of the market pool was higher after winning the previous season’s Premier League, while Arsenal finished fourth. Potentially, Arsenal could increase their revenue by €30 million if they managed to emulate Chelsea’s success, but, by the same token, they could lose €30 million if they missed out on qualification to Europe’s flagship tournament.

However large the differences are between the English clubs that qualify for the Champions League, it is still much better than the Europa League, where the highest amount earned by an English representative was the €3.5 million that went to Stoke City. Financially, the Champions league is the only game in town, especially now that the prize money for the 2012 to 2015 three-year cycle has increased by 22%.

Hopefully our new stadium proves to be big enough for the foreseeable future...

Match day income of £95 million is the fourth highest in Europe, only behind Real Madrid, Manchester United and Barcelona, but that makes the club very reliant on the revenue generated in the stadium – “more so than any other club”, as Gazidis stated. Wenger confirmed its importance, “We are very lucky because we have good support and the income of our gates is very high.” Indeed, the £3.3 million that Arsenal generate per match is more than twice the amounts earned by Tottenham and Liverpool.

However, this revenue stream seems to have reached saturation point, as Arsenal continue to register capacity crowds of 60,000 and their ticket prices are among the highest in the world.

 

[Jordinho]

Re: Premier League Club Accounts 2011/12

Premier League champions Emirates Marketing Project have announced annual losses of £97.9 million.

Although the sum is still enormous, it is less than half the £197.5m announced 12 months ago.

And with City reporting turnover in the 2011-12 season of £231.1m, the highest in the club's history, it underlines the rapid progress being made by the Premier League champions in establishing themselves as one of Europe's elite clubs.

Although failure to progress from the Champions League group stage has had an obvious impact on turnover, this year and last, the club are still delighted with the performance.

And they are confident even the huge losses confirmed today will not have an impact on their ability to meet Uefa's strict Financial Fair Play guidelines as £15m comes from infrastructure and youth development costs.

More importantly, approximately £80m comes from contracts that pre-date 2010, from which City expect to get some kind of relief.

City's annual statement for the year ending May 31 2012 also confirms the "capital base of the club has also been strengthened through the issuing of £169m in new equity during the year, avoiding debt-based funding and continuing to ensure that the club is virtually debt free".

Clearly, the largesse of owner Sheikh Mansour is still required to make the club viable in the short-term.

However, with plans for the state-of-the-art academy and training facility across the road from the Etihad Stadium now well advanced, club officials believe within the medium term that the club, who ended a 35-year wait for a trophy when they won the FA Cup in 2011, will be self-sustaining.

Chief executive Ferran Soriano said: "What I have found is a club on the verge of a historic transformation, reinforced by a genuine commitment to doing things well.

"It is a club with a rich history and the potential for an even brighter future."

While the results show marginal increases in gate receipts and TV revenue, it is in the commercial sector where City are making huge gains.

Revenue went up from £64.7m to £121.1m, underlining City's increased growing global exposure, which is being shown in all areas, from merchandise to club tours.

City's overall wage bill rose from £151.6m to £178.1m.

Chairman Khaldoon al-Mubarak declared himself delighted with the progress that has been made since Sheikh Mansour's takeover in September 2008.

But he insisted there is plenty of work still ahead.

"The hard work of everyone involved at Emirates Marketing Project over the last four years has begun to create an obvious momentum," he said.

"However, 2011-12 will always be remembered as a particularly significant year in the history of the Club, a season when Emirates Marketing Project demonstrated an ability to win in even the most challenging of circumstances.

"It is important to recognise the personal and ongoing influence of Sheikh Mansour bin Zayed on the rapid transformation that is taking place."

While the enormous 10-year contract with Etihad, who now have naming rights to both the stadium and the entire Campus, on which work began in the autumn, other contracts, such as a new kit manufacturing contract with Nike, point to increased commercial revenue in the years ahead.

However, it is the City Football Academy (CFA) project on which the club expect to build a financially sustainable business.

"The CFA will strengthen the club's youth development and training capabilities, enable more players to move through the Academy and Elite Development Squads into the first team in the future, while bringing all of the club's operations together on a single site within the Etihad Campus," said Khaldoon.

And, even though last weekend's defeat at Manchester United left them six points adrift of their rivals in the Premier League, and the Champions League brought humiliation with the worst performance by an English club in the competition's history, it is clear City will remain a contender for all the major prizes as long as Sheikh Mansour remains in charge.

"In the last two seasons we have tasted victory in the FA Cup, experienced the Uefa Champions League, won the Premier League and with two goals in added time, redefined what is typical of City for a generation of supporters," said Khaldoon.

"The responsibility lies with all of us to continue the hard work that will ensure that this is only the beginning of a long and successful era for Emirates Marketing Project."

www.telegraph.co.uk/sport/football/...on-in-annual-report-for-2011-2012-season.html

 

[P.D.]

Re: Premier League Club Accounts 2011/12

So they lose £100m and claim that as its less than £200m they are on the right track to breaking even ha ha

I think they are going to find it harder to grow income in future years, their match day income only had a small increase and they have their fake 10 yr shirt sponsorship deal which obviously won't increase. CL will obviously help but that's probably an extra 20-25m only and I assume their wages/bonuses would go up in proportion with it.

 

[Jurgen the German]

Re: Premier League Club Accounts 2011/12

Emirates Marketing Project and Chelsea will eventually break even. We've seen that Emirates Marketing Project already have some tricks up their sleeve with Etihad airways giving them £400m for a stadium that they rent from Emirates Marketing Project council, they don't even own the stadium.

 

[Jordinho]

Re: Premier League Club Accounts 2011/12

Chelsea have been overtaken by Emirates Marketing Project as the biggest payers in the Premier League, the Stamford Bridge club's accounts have confirmed.

The overall wages paid out by Chelsea in the year ending June 2012 actually fell by £18million to £171million - compared to Emirates Marketing Project who saw their wages break through the £200million barrier.

Chelsea announced last year they had made a profit of £1.4million - the first time they had finished in the black in the Roman Abramovich era.

The full accounts lodged with Companies House on Wednesday reveal that was aided by a one-off £18.4million boost from the cancellation of shares owned by BSkyB.

The accounts also reveal that, aided by some one-off items, Chelsea also achieved a wage bill reduction for the first time since Abramovich took over in July 2003.

It reflects a big effort by the club to trim costs in their bid to comply with UEFA's financial fair play rules.

The numbers of playing and coaching staff dropped by 89 in 2011 to 69 in 2012, the accounts reveal.

Chelsea's wage bill is still ahead of Manchester United's £160million total by £11million, and removing all the exceptional items the overall trend is still slightly up - but only slightly.

The exceptional items in 2011 included a one-off £6.4million payment to the taxman as part of a deal on image rights, and money paid to former manager Carlo Ancelotti and his coaching team.

Those payments stopped after Ancelotti was hired by Paris St Germain and led to a credit of £4.7million into Chelsea's accounts from money they had set aside to cover those costs.

Alan Shaw, Chelsea's club secretary said in a statement published in the accounts: "The introduction of the UEFA financial fair play regulations from the 2012/13 season provides a significant challenge.

"The football club needs to balance success on the field together with financial imperatives of this new regime.

"The results recorded in this financial year put us in a good position to meet the assessment criteria for the initial periods."

www.teamtalk.com/news/2483/8387930/Chelsea-wage-bill-below-City-s

 

[JPG_357]

Re: Premier League Club Accounts 2011/12

Once again the power of the billionaire backed clubs is shown. Though, heart-warmingly Swansea are leeading Chelsea tonight.

I'l be delighted if we finish above City or Chelsea this season, but I still strongly doubt it will happen.

 

[P.D.]

Re: Premier League Club Accounts 2011/12

What about the money they paid to get AVB and then the money paid to sack him? Wasn't that around 20m or something?

 

[Jordinho]

Re: Premier League Club Accounts 2011/12

Liverpool have reported a £21.8m increase in their debt - now £87.2m overall - and a loss of £40.5m in their annual accounts. A restructuring of their accounting period to align it with the football season means that the figures apply to the 10 months between 1 August 2011 to 31 May 2012.

They show that although commercial revenue increased, so did the club's overall liabilities. However, the club's managing director Ian Ayre played down the significance of a rise in debt levels.

"It's definitely not something I believe anyone should be worried or concerned about. It is seasonal - our debt goes up and down," he told the Liverpool Echo. "We have money to pay out and money coming in, just like any business.

The difference in football is some of the swings are significant, so if you look at player trading, we may need to make investments as we do in the summer before our key revenues come in: big sponsorships cheques, big ticket revenues, all the media revenues etcetera."

"You come to Christmas when you maybe have less revenue coming in but you have got money that needs to go out, both on playing deals that you are doing at the time but also on historic player deals. Debt has increased but I think it's a factor of doing business in the time and place we are. We need to continue to improve our squad and what a lot of people won't relate to perhaps is that when you are improving your squad and making that investment, you have knock-on costs that will create debt in the short term. But hopefully in the long term we'll improve our position and we are very aware of that. We will continue to invest in the squad - I think that is what our fans would expect. But the most important thing is that we do it prudently and in a sustainable way that is affordable."


Other contributing factors to the increase in debt were player installment payments plus exceptional payments of just over £9.5m - relating to matters such as the stadium project, general restructuring and pay-offs to senior employees who left the club.

"We see a big charge within the accounts for amortisation of players that have been disposed of within the period that perhaps came in on a higher cost," added Ayre. "We've made losses as a result of selling them but at the same time we've improved our longer-term position in terms of our wage bill by reducing the wages for those particular contracts. We've in the same period refinanced our lending facilities, which gives us ability for working capital to operate as a business."

Since the end of the accounts reporting period, owners Fenway Sports Group have injected £46.8m into the club via a non interest-bearing inter-company loan while credit facilities were also refinanced with three major banks, providing £120m of facilities for three years.

http://www.guardian.co.uk/football/2013/mar/04/liverpool-accounts-debt-ian-ayre

 

[Jordinho]

Re: Premier League Club Accounts 2011/12

Sunderland appear to be as far away from qualifying for Europe off the pitch as they are on it after announcing net operating losses of £26.9 million for the year ending on July 31, 2012.

The losses have been covered by the club’s American owner and benefactor Ellis Short, but mean Sunderland would almost certainly not comply with the Uefa Financial Fairplay rules when they are enforced next year.

Alarmingly, although the operating losses from a turnover of £78.0m have been reduced by £4.3m from the previous financial year, they do not take into account Martin O’Neill’s two marque summer signings or the two players [Danny Graham £5) Alfred N’Diaye [£4.5m] he signed in January.

Sunderland spent £10m back in August to sign Adam Johnson from Emirates Marketing Project and £12m to land striker Steven Fletcher from Wolverhampton Wanderers.

O’Neill has already suggested he wants to make considerable changes to his first team squad in the summer as long as Sunderland manage to avoid relegation to the Championship.

Although the likes of Stephane Sessegnon could be sold to raise funds, Short will be asked to invest his own money again as the Northern Irishman strives to turn Sunderland into a top eight club.

“Our results reflect a period where we embarked on a programme of continued investment in the playing squad, choosing to retain the services of those players that the manager identified as key to the team,” said Sunderland chief executive Margaret Byrne.

"We also invested significantly in our Academy in order to secure EPPP Category One status and give us the best possible chance to develop young players for the future.

“Our net operating loss has reduced slightly and we are continuing to implement a structured financial plan to ensure sustainability for the future.”

www.telegraph.co.uk/sport/football/...d-announce-net-operating-losses-of-26.9m.html

 

[jts1882]

Re: Premier League Club Accounts 2011/12

It's tricky for the Sunderland owner. They have a good manager, but one who is likely to throw his toys about and walk out if he doesn't get what he wants. So if they are responsible, they might find themselves looking for a new manager and that usually costs money (compensation, promises of transfer budget).

 

[jimmyb]

Re: Premier League Club Accounts 2011/12

It's tricky for the Sunderland owner. They have a good manager, but one who is likely to throw his toys about and walk out if he doesn't get what he wants. So if they are responsible, they might find themselves looking for a new manager and that usually costs money (compensation, promises of transfer budget).

I beg to differ.

O'Neill did a great job at Wycombe and Leicester. And he was perfect for one of the top two in the SPL.

But he is the reason why Villa are now in the crap. And he's the reason why Sunderland are little better.

He signs for the same kind of inadequate, overpriced British players again and again - leaving his clubs in debt and with diminishing assets. His tactics are woefully limited and outdated. His teams are largely unwatchable.

They'll be well shot of him.

Only problem is who they will be able to attract who is any better.

 

[Jordinho]

Aston Villa make £52m loss in 2012-13 financial year

• This is £17m more than they lost 2011-12
• Club is bankrolled by credit card scion Randy Lerner

Aston Villa have announced that the club made a loss of £52m in the 2012-13 financial year, £17m more than the £34m lost the previous year. In a statement on their website giving limited details from their 2012-13 accounts, which have not yet been filed for public view at Companies House, Villa said the club's owner, Randy Lerner, had converted £90m of loans to the club into equity.

Lerner, who inherited the MBNA credit card company and then sold it to Bank of America, bought Villa in 2006 from the former owners and chairman Doug Ellis and has since bankrolled years of losses. The reduction of the loss in 2011-12 was mostly due to selling Ashley Young to Manchester United for £17m and Stewart Downing for £20m to Liverpool, and Lerner is intent on reducing the financial burden on himself.

Lerner has invested in Villa in equity, through subscribing for shares, and with more than £100m of loans, on which he waives the payment of interest. Villa's statement said the club "continues to benefit from this largesse to the tune of £6.1m annually". The club's operating loss, the statement said, was £43m in 2012-13, a reduction by £10m from 2011-12. Robin Russell, Villa's chief financial officer, is quoted in the statement saying that despite the heavy operating loss and total post-tax loss of £52m, the club is in the current year moving towards breaking even."The 2012-13 accounts effectively close a chapter on a period of heavy losses," Russell's statement said. "As we near the end of the 2013-14 season, the club is financially sufficient, compliant with both Uefa's and the Premier League's financial fair play requirements, and we look forward to a period of continued growth and progress on and off the pitch."

http://www.theguardian.com/football/2014/mar/03/aston-villa-football-finances

 

[Jordinho]

Liverpool have reported a nine per cent increase in revenue to £206.1m for the year ending May 31, 2013.

The club, currently just four points off top spot in the Barclays Premier League, also revealed external debt decreased by 29 per cent to £45.1m.

The increase in revenue continues a steady upward trend since Fenway Sports Group took over the club in October 2010 while, during the same period, external debt has fallen by almost £200m.

In a statement on the club's official website, managing director Ian Ayre said: "These results demonstrate the financial health of the club continues to make good progress as we continue our journey to transform the club on and off the pitch.

"Over the past four or five years, revenue has been consistently increasing from around £170million in 2009 to over £200m today, and external debt has decreased significantly to less than £50m.

"With a hugely supportive ownership group, we have taken a measured approach to bring back financial stability to this great club by ensuring it is properly structured on and off the pitch.


"During the period, we signed six new players including Daniel Sturridge, Philippe Coutinho and Joe Allen, and we extended seven players' contracts which included Daniel Agger, Martin Skrtel, Martin Kelly, Lucas Leiva and Raheem Sterling.

"We have added depth and strength to the squad while continuing to develop young talent. In addition, nine players were transferred out and eight players were loaned out.

"These financial results are now up to 18 months old and we have continued to make further progress since this reporting period.

"Our strong links remain with our existing partners, signing new deals with Standard Chartered, Garuda and Carlsberg, and we have recently announced five new partnerships which endorses the global appeal of the LFC brand.

"We continue to invest in our digital and TV platforms and recently announced nine new television partnerships, allowing millions of fans across the world to watch Liverpool games and receive exclusive content.

"We have also seen good progress being made regarding a proposed stadium expansion at Anfield. Any final decision continues to be based on certainty; however, since the partnership was established between Liverpool City Council, Your Housing Group and LFC only 16 months ago, we regard the progress as extremely positive.

"Given where Liverpool Football Club was only a few years ago, the progress that has been made since FSG acquired the club has brought back much-needed stability with an ambitious vision which everyone is focused on.

"I'd like to thank everyone involved in running the club - our owners, fans, partners, players and staff - for all the hard work and dedication."

www.teamtalk.com/news/2483/9195553/...n-revenue-to-206m-in-latest-financial-results

 

[jaysea67]

The Tematalk report above puts a positive spin on Liverpool's financial results. Here is an alternative angle from The Telegraph:

Liverpool announce loss of nearly £50 million in latest annual club accounts
Loss places Liverpool's ability to conform with Uefa's Financial Fair Play rules in doubt despite revenue growth and success on the pitch this season

Liverpool have announced an annual loss of £49.8 million before tax in their latest set of accounts.

The figures to the end of May 2013, Brendan Rodgers' first season at Anfield, will place in doubt the club's ability to conform with Uefa's Financial Fair Play rules, which allow a loss of €45m (£38m) over three seasons. The club made a loss of £40.5m for the period of August 2011 to May 2012, and a £49.3 for the 12 months prior to that.

Liverpool dropped three places to 12th in Deloitte's Football Money League last season but total revenue broke through the £200m mark for the first time, to £206m.

They are the highest-ranked club in the Money League that is not in the Champions League. However, this season Liverpool have been successful on the pitch and are on course for a place in Europe's premier competition, which would increase revenue significantly.

Despite the headline loss, the club's managing director, Ian Ayre, was keen to highlight the progress the club has made both in increasing commercial revenue (up from £64m to £98m) and in reducing net bank debt (down from £65m to £45m).

...

http://www.telegraph.co.uk/sport/football/teams/liverpool/10674861/Liverpool-announce-loss-of-nearly-50-million-in-latest-annual-club-accounts.html

 

[Neymar]

Liverpool announce loss of nearly £50 million in latest annual club accounts
Loss places Liverpool's ability to conform with Uefa's Financial Fair Play rules in doubt despite revenue growth and success on the pitch this season

This is why FFP is rubbish. Liverpool are already spending way less than the likes of Utd, City, Chelsea. They have continually reduced expenditure. They have managed to secure their best player (suarez) on a 200k p/w salary, whilst manutd have put rooney on 300k p/w. And yet they could still fall foul of FFP. How is anyone supposed to be able to break the top 4 monopoly, let alone win the league if FPP is enforced?

 

[spurs' magna carter]

This is why FFP is rubbish. Liverpool are already spending way less than the likes of Utd, City, Chelsea. They have continually reduced expenditure. They have managed to secure their best player (suarez) on a 200k p/w salary, whilst manutd have put rooney on 300k p/w. And yet they could still fall foul of FFP. How is anyone supposed to be able to break the top 4 monopoly, let alone win the league if FPP is enforced?

I agree with the last point but Man Utd far greater revenues with the largest fan base in the World and a 76,000 seat stadium which is sold out week in, week out. Where Liverpool, for time being at least, have a 45,000 seat stadium and a fan base smaller than Utd, although it is still arguably in the top 10 of the World. That's before you even get to the CL revenues.

We should be very wary of these results, whilst they have made a loss of £50m, £206m in revenues in roughly 25% more bigger than ours. They're capacity is about 25% larger than WHL but our prices are considerably higher than theirs whilst holding many more exec. boxes so the gap in matchday revenues isn't much. Does show that if Liverpool get CL and we don't then they could potentially leave us behind, regardless as to whether they keep Suarez or not.

 

[Raziel]

Wages are the interesting part

- Pools wages are extremely high considering they really only have one top tier player
- Cheat$ki's wages compared to City
- 5 teams with a minimum of 30M+ more in wages than us, really shows the challenge we face and why top 4 is so hard.

 

[THFC6061]

Wages are the interesting part

- Pools wages are extremely high considering they really only have one top tier player
- Cheat$ki's wages compared to City
- 5 teams with a minimum of 30M+ more in wages than us, really shows the challenge we face and why top 4 is so hard.

We really do punch way above our weight.

It's just a shame that Daniel Levy doesn't get the credit he deserves.

 

[Neymar]

We really do punch way above our weight.

It's just a shame that Daniel Levy doesn't get the credit he deserves.

100% spot on. It's basically all down to him that we're even in contention for top4. in the past couple of years, our top 4 rivals have been lpool, arsenal, chelsea. all of whom are "traditionally" bigger clubs with more resources.

 

[Jordinho]

QPR made losses of £65.4m last season as they failed to avoid relegation from the Premier League

Harry Redknapp side's massive losses mean that, under Football League Financial Fair Play rules, they face record fine of up to £47m if they did return to top flight this summer

No win situation: QPR will be punished with a transfer embargo if they stay in Championship but stung with a £42m fine if they get promoted following FFP rule

The true cost of Queens Park Rangers’ desperate attempt to avoid relegation from the Premier League has been laid bare after they confirmed losses of £65.4 million last season.

The club’s 2012-13 accounts, filed with Companies House this week, expose the extent of their financial plight, which ironically could get much worse if they secure an immediate return to the top flight.

Rangers’s £41.1m spending spree last season backfired spectacularly as they finished rock bottom of the Premier League.

As well as losses almost trebling, their net debt virtually doubled from £91.4m to £177.1m, while turnover dropped from £64m to £60.6m and ticketing revenue was down from £8.4m to £8.3m.

Wages and social security costs soared from £58.5m to £78m as staff numbers increased from 130 to 164, with players, coaches and support staff numbers up from 84 to 107.

The club’s signings in 2012-13 included Andrew Johnson, Julio Cesar, Samba Diakite, Robert Green, Stephane Mbia, Park Ji-Sung, Estaban Granero, Junior Hoilett, Jose Bosingwa, Ryan Nelsen, Christopher Samba, Loic Remy, Yun Suk-Young, Jermaine Jenas and Tal Ben Haim, while Fabio da Silva and Andros Townsend also joined on loan.

If QPR repeat their massive losses this season and fail to secure promotion, they will be hit by a lengthy transfer embargo under Football League Financial Fair Play rules that kicked in last summer.

Perversely, those same rules could see them hit with a record fine in excess of £50m in January 2015 were they to return to the Premier League in May.

However, they are among 11 Football League clubs that have threatened legal action over the governing body’s draconian FFP punishments.

In comments written in the financial statements of QPR Holdings Limited last November, chairman Tony Fernandes said: “Clearly in 2012-13 the club did not meet its performance targets and was relegated from the Premier League.

“A critical driver of any club’s value is its presence in the Premier League, and the club is focused on regaining its Premier League status as quickly as possible.

“The financial results reflect the club’s focus on trying to achieve on-pitch success.”

He added: “When, alongside my business partners, I purchased a majority shareholding in the club in August 2011, my goal was to turn QPR into an established Premier League club.

“Being relegated was obviously not part of our plans, but our focus and determination to achieve our long-term goals has not diminished.

“During the summer 2013 transfer window we have worked to put together a squad of players we believe will give us a good chance of achieving promotion back to the Premier League.

“At the time of writing, we have made a good start to the 2013-14 season and we remain confident that under the guidance of our manager, Harry Redknapp, we have a squad capable of challenging for promotion.

“We are confident that the 2013-14 season will also see the club continue to make progress towards achieving its short, medium and long-term off-pitch targets.”

“The group’s key short-term objective is to regain its Premier League status. The board believes that some restructuring of the playing squad is required in order to achieve this. However, they are conscious of the need for expenditure to be closely monitored and controlled.”

Fernandes played down fears QPR might struggle to cope with their mammoth losses, saying: “The directors, based on cash flow projections prepared by management and through confirmation of continuing support from the groups’ main shareholders and creditors, have a reasonable expectation that the company and the group have adequate resources to continue in existence for the foreseeable future.”

http://www.telegraph.co.uk/sport/football/teams/queens-park-rangers/10680315/QPR-made-losses-of-65.4m-last-season-as-they-failed-to-avoid-relegation-from-the-Premier-League.html