Football's Magic Money Tree

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 4:24 pm

@KieranMaguirre looks at Sunderland's 2017/18 finances - just why did Ellis Short want to get rid when they were losing £390k p/w while on £45m of parachute payments during a championship season that saw them relegated (apparently they are up for sale again with a couple of interested parties

https://twitter.com/KieranMaguire/statu ... 9298161664" onclick="window.open(this.href);return false;

full accounts
https://s3.eu-west-2.amazonaws.com/docu ... fa2d4d6eb9" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 8:42 pm

Liverpool flutter their eyelashes at China

https://offthepitch.com/a/liverpool-ceo ... e-co-owner" onclick="window.open(this.href);return false;

seems to fit the general strategic approach for the Chinese
- the city loves it's football
- has large docks that face the East Coast of America
- is a key infrastructure hub for the northern powerhouse (if it ever happens)
- has a large waterfront that is ripe for redevelopment
- it even has a large historic Chinese population

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 8:54 pm

The overview financial analysis of the PL in 2017/18 continues - this time looking at upward trend in transfer spend

https://offthepitch.com/a/premier-leagu ... ng-50-cent" onclick="window.open(this.href);return false;

Hipper · Post by **Hipper** » Mon Apr 29, 2019 9:02 pm

That New York Times article is pretty depressing reading but not surprising.

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 9:10 pm

Spurs reveal why they have had no incoming transfers this season - there was no one homegrown who was better than they had that was available

https://offthepitch.com/a/tottenham-has ... plains-why" onclick="window.open(this.href);return false;

- Key standout component being homegrown for me

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 9:11 pm

Hipper wrote:That New York Times article is pretty depressing reading but not surprising.

nothing new in there, especially if you are a regular reader of this thread, but when it is consolidated in such a way it is depressing

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 9:24 pm

@KieranMaguire has added a 2nd thread to his analysis of Sunderland's financial results - doesn't't make things look any better for them

https://twitter.com/KieranMaguire/statu ... 3709972481" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon Apr 29, 2019 9:36 pm

For those on here that think crazy financials only occur in the 92 of the FL and EFL - take a look at Hartlepool - relegated to the National League in 2017, almost liquidated at the end of last season (before a new owner stepped in - why do they do this?) after losing £28k a week - @KeiranMaguire has a quick look at their accounts for 2017/18

https://twitter.com/KieranMaguire/statu ... 2410003457" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Tue Apr 30, 2019 9:52 am

@SwissRamble looks at the financial match-ups of the semi-finalists in the Champions and Europa Leagues - Ajax wage bill would be just above mid table in the Championship

https://twitter.com/SwissRamble/status/ ... 2134687745" onclick="window.open(this.href);return false;

GodIsADeeJay81 · Post by **GodIsADeeJay81** » Tue Apr 30, 2019 11:47 am

Chester Perry wrote:@SwissRamble looks at the financial match-ups of the semi-finalists in the Champions and Europa Leagues - Ajax wage bill would be just above mid table in the Championship

https://twitter.com/SwissRamble/status/ ... 2134687745" onclick="window.open(this.href);return false;

Wasn't it Qpr a few seasons ago who had a wage bill bigger than a club like Atletico Madrid?

LeadBelly · Post by **LeadBelly** » Tue Apr 30, 2019 12:19 pm

Yes it was QPR in 2012/13; £78 million which was 128% of turnover.
Athletico's was £54 million & they progressed very well in The Champions League (finalists?) on that.

Chester Perry · Post by **Chester Perry** » Tue Apr 30, 2019 1:42 pm

Having rescued Villa within hours of Liquidation last year and then chucked a pile of money at share capital to avoid FFP, Villa's owners have stumped up another £22m in a Share Issue to the club, presumably to avoid FFP - they must be relieved with the charge up the table and form going into the play-offs

https://twitter.com/KieranMaguire/statu ... 0700073984" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Tue Apr 30, 2019 2:27 pm

Oh the life of a footballer - who would choose it? - if you make it you have to put up with crap like this (from your team mates no less - forget the outside world)

https://www.thelondoneconomic.com/sport ... ess/24/04/" onclick="window.open(this.href);return false;

and even when you are on the path (PL Academy) don't expect many to get a life out of it

https://www.thelondoneconomic.com/sport ... ars/26/04/" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Wed May 01, 2019 12:42 am

Another episode of Sky Italia's Football Benchmark - this time looking at the financial evolution of the PL in the last decade and comparing it with Serie A - don't forget that subtitles can be foun on the bottom right of the video 5th icon in

https://www.youtube.com/watch?v=hsE-geUVX08" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Wed May 01, 2019 10:28 am

As the big boys have pursued their endless quest for more and more money, the rise of commercial teams has become increasingly important. So much so that for many it has become their single greatest source of income. Here is a Leaders in Sport podcast with the head of Real Madrid's Commercial division (I have previously posted one with Richard Scudamore see post #838)

at the bottom of the linked page - intro from about 7:45 in - it is just over 30mins long

https://leadersinsport.com/sport-busine ... hopkinson/" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Wed May 01, 2019 12:29 pm

I have posted this on the Bolton thread but it warrants it's place here too

@AndyhHolt was given a link to https://www.theguardian.com/football/bl ... ier-league" onclick="window.open(this.href);return false;, this morning - it is from 4 years ago and contains rhetoric I wouldn't necessarily agree with but was quite prophetic as to what was coming

Chester Perry · Post by **Chester Perry** » Wed May 01, 2019 12:31 pm

You lose 7 games in the last 9, are being ridiculed from all sides for your antiquated sporting structure and attempts to modernise it by putting in place people who have no experience or training in the job, yet your commercial worth to partners is supposedly increasing

the crazy economics of Manchester United's Magic Money Tree writ large

https://twitter.com/Lu_Class_/status/11 ... 4624154624" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Wed May 01, 2019 1:11 pm

Ah real life sets in - The glory of Spurs new Stadium with it's 50%@ additional capacity, restaurants and bars, promise of more big European nights, plus concerts, NFL - goes awry when you realise there isn't the infrastructure to support such an edifice

https://twitter.com/barneyronay/status/ ... 8862307329" onclick="window.open(this.href);return false;

And they want to host a Champions League final soon too!

AndyClaret · Post by **AndyClaret** » Wed May 01, 2019 2:34 pm

Chester Perry wrote:Ah real life sets in - The glory of Spurs new Stadium with it's 50%@ additional capacity, restaurants and bars, promise of more big European nights, plus concerts, NFL - goes awry when you realise there isn't the infrastructure to support such an edifice

https://twitter.com/barneyronay/status/ ... 8862307329" onclick="window.open(this.href);return false;

And they want to host a Champions League final soon too!

Not according to the replies.

Goody1975 · Post by **Goody1975** » Wed May 01, 2019 5:46 pm

AndyClaret wrote:Not according to the replies.

Exactly, he is being made to look a massive twonk there.

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 10:50 am

@SwissRamble does his thing on the Swansea Accounts

https://twitter.com/SwissRamble/status/ ... 6953121793" onclick="window.open(this.href);return false;

where it seems all those players signed to keep them up last season may not have had relegation clauses in their contracts

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 10:54 am

Now Reading fail to pay all their players on time - they claim it was a transfer error from the owners account and will be rectified today - but having to do that for a month when season ticket renewals tend to be on sale should be a warning

https://www.getreading.co.uk/sport/foot ... s-16211082" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 11:10 am

Chester Perry wrote:Now Reading fail to pay all their players on time - they claim it was a transfer error from the owners account and will be rectified today - but having to do that for a month when season ticket renewals tend to be on sale should be a warning

https://www.getreading.co.uk/sport/foot ... s-16211082" onclick="window.open(this.href);return false;

the club have now confirmed that all players have been paid

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 11:26 am

Managing the cost of trying to compete enough to survive while retaining sustainable model for your club is a familiar struggle in the Premier League. Some do it for short periods others for longer (often at the largesse of seemingly generous owners). It seems that within the 14, as the big six reinforce their financial might, more are finding it a struggle to maintain the recommended balance.

https://offthepitch.com/a/eight-premier ... ting-wages" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 2:26 pm

Sheff Wed fail to post accounts on time, even after requesting a 2 month extension - dose this mean they could be in trouble and not from the Football authorities?

https://twitter.com/KieranMaguire/statu ... 1625722881" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 5:09 pm

The list of clubs failing to pay wages on time continues to grow

Southend, who could be relegated to league 2 this weekend, failed to pay some players the day their accounts were released. The club has £13m of debt even after the owners effectively wrote off £7m last season

https://twitter.com/Iandennisbbc/status ... 6779910144" onclick="window.open(this.href);return false;
the financial results for last season
https://twitter.com/KieranMaguire/statu ... 0952690696" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Thu May 02, 2019 5:17 pm

First posted the speculation of the EFL running different transfer windows for it's leagues in post #667 - they have now confirmed it

https://www.efl.com/news/2019/may/efl-c ... fer-window" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Fri May 03, 2019 10:53 am

There has been plenty of discussion on here recently about club valuation and more consistently the value of our club (priceless I know) Liverpool University (@kieranMaguirre has a day job too) have done a valuation for Every Premier League club and some of the results are surprising - being without debt and making regular profit certainly helps us

https://news.liverpool.ac.uk/2019/05/03 ... able-club/" onclick="window.open(this.href);return false;

I have to say that I think the approach is too simplistic and probably should include an average of the method over 3 seasons as well as looking at other factors such as opportunity for growth and issues such as infrastructure age (requirements for renewal etc). Add to that - these valuations are already out of date and we are likely to see a significant dip this time next season because of drop in prize money and lack of player sales

Of course we looked at this methodology a couple of weeks ago - Aggi's post #919 made some very good observations

Chester Perry · Post by **Chester Perry** » Fri May 03, 2019 2:02 pm

Ah the perils of having your club owned by some distant benefactor seems the stories of the Qatari owners of PSG looking at English clubs may have more substance (see post #826). Though whether they are looking to ditch PSG altogether - as is widely reported in Europe - would mean a probable huge financial loss on investment.

It does appear to support the sports washing theories of reflected glory though

http://www.insideworldfootball.com/2019 ... -cold-psg/" onclick="window.open(this.href);return false;

Simon Chadwick not necessarily convinced yet

https://twitter.com/Prof_Chadwick/statu ... 9561456640" onclick="window.open(this.href);return false;

Not sure if an English clubs are the best solution if you want a club that wins all, given the competitive nature of our league and the relative financial might of competitors

They do have that long running relationship with Barcelona, but it is impossible for them to own that club given it's structure

Erasmus · Post by **Erasmus** » Fri May 03, 2019 2:09 pm

One can only hope that Qatar does ditch PSG as the French League at present is just a non-event. It is just a ridiculous competition and will remain as such until Qatar gets bored and looks for something else to play with.

GodIsADeeJay81 · Post by **GodIsADeeJay81** » Fri May 03, 2019 2:23 pm

I think they're getting pissy because they can't win/progress in the CL.
Neither can City though, so I don't see what the panic is.

Chester Perry · Post by **Chester Perry** » Fri May 03, 2019 2:38 pm

Football in the community is something all clubs and football fans are proud about with good work being done all across the country. It is probably fair to say that a lot of this work engenders good will (and potential future support) from those impacted for the club associated with the effort. All such initiatives are supported by grants from the Premier League, but as ever, the distribution on those grants is far from equitable, meaning that many clubs through no fault of their own are disadvantaged.

@AndyhHolt has created a bit of s**tstorm with his post on the subject this morning - I have to say I have some sympathy especially as some clubs are using it as an outreach model for their academies and future fanbase and masking the approach by claiming it is charitable work

https://twitter.com/AndyhHolt/status/11 ... 4763159552" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 3:02 pm

Things have been very quite on the PL replacing Richard Scudamore for a while now. This very long and informative article may explain why, arguing that there is likely very little opportunity for significant growth, either overseas or with the tech giants after amazon where given a package effectively at cost. - Warning it can get quite heavy going

https://www.offthefieldbusiness.de/sing ... eagues-CEO" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 3:12 pm

Another article on how to replace Richard Scudamore - not as crazy as it sounds given the desire to keep growing the revenue by all involved - doesn't necessarily rhyme with the previous post, but then I think it is health to have a forum for diverging views

https://www.bloomberg.com/opinion/artic ... r-new-head" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 4:10 pm

Another long and detailed article on footy media rights - this time looking at how legislation impacts European Media markets positively - think no single rights holder for the big 5 leagues and whether or not the rights for 2nd tier competitions should not be allowed to be carried by the principal rights holder of the 1st tier competitions.

https://www.offthefieldbusiness.de/sing ... n-Football" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 6:23 pm

Brentford are regarded by many as a model club, buy players develop them using very specialised metrics and coaching methods then sell them on for a significant profit all the while maintaining a top 10 status in the Championship, they shut their academy and will be moving to a new ground after next season. So are they all they seem.

@SwissRamble looks at their financial results for 2017/18

https://twitter.com/SwissRamble/status/ ... 8658683904" onclick="window.open(this.href);return false;

GodIsADeeJay81 · Post by **GodIsADeeJay81** » Mon May 06, 2019 8:20 pm

Is that £70 million of debt?????

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 10:25 pm

GodIsADeeJay81 wrote:Is that £70 million of debt?????

Yes, was waiting for someone to notice - but likely to get a chunk back as the move goes through - also in line to make a big profit this season through last summers player sales

GodIsADeeJay81 · Post by **GodIsADeeJay81** » Mon May 06, 2019 10:28 pm

It's usually the first thing I look at when checking Swiss ramble.

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 10:51 pm

GodIsADeeJay81 wrote:It's usually the first thing I look at when checking Swiss ramble.

me too - owner has pumped over a £100m - best part of £70m to cover losses - he has a plan and so far it is working but that is one heck of a bet

Chester Perry · Post by **Chester Perry** » Mon May 06, 2019 11:09 pm

We at Burnley are familiar with relegation clauses in players contracts, but this is the first time I have heard of Champions League clauses - it transpires that members of Man Utd's squad (that survive into next season) will see 25% pay cuts as a result of their failure to finish in the top 4.

https://www.football365.com/news/man-ut ... cl-failure" onclick="window.open(this.href);return false;

tiger76 · Post by **tiger76** » Mon May 06, 2019 11:13 pm

Chester Perry wrote:We at Burnley are familiar with relegation clauses in players contracts, but this is the first time I have heard of Champions League clauses - it transpires that members of Man Utd's squad (that survive into next season) will see 25% pay cuts as a result of their failure to finish in the top 4.

https://www.football365.com/news/man-ut ... cl-failure" onclick="window.open(this.href);return false;

Good! at last some sense in the mad football world,didn't seem to motivate them much in the last few weeks,mind you when you're on silly money anyway,a 25% dip won't make a huge dent.

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 12:17 am

The Barca President effectively comes out in support of Andrea Agnelli's proposals for European Club competition

https://www.theguardian.com/football/20 ... ter-united" onclick="window.open(this.href);return false;

They stopped being "more than a club" some time ago - Biggest Revenues, Biggest Wage bill and the way they have exploited and bullied away fans in the Champions League is nothing short of a disgrace

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 1:54 am

First saw mention of DAZN (pronounced da zone - yeah I know) in posts #983 and #985, this is a player in the sports rights marketplace that is effectively seeking to be the Netflix of sport. so who are they and who runs them

https://www.forbes.com/sites/kurtbadenh ... 48c59c1427" onclick="window.open(this.href);return false;

could this model work for domestic PL tv rights in the future, my guess is, without the strong figurehead of a Scudamore type, it would precipitate the breaking of the collective bargaining as they would want to sell season tickets by club with additional matches on PPV.

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 10:31 am

@kieranMaguirre reminds us that Championship clubs have lost a combined £1.865bn over the last 5 years - With Sheff Wed and Bolton to report a third of that total came in last season for which we have accounts

https://twitter.com/KieranMaguire/statu ... 6823172098" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 10:42 am

After a few days off @AndyhHolt has returned with another of his monologues, today (as often) about the pyramid, the vast amounts of money in the game, the vast amount of clubs financially broken, the ineffective liassez-faire of the FA EFL and PL, and most depressing of all how he believes all this will kill clubs like ours and his going forwards. it pairs very well with the previous post from @KieranMaguirre

https://twitter.com/AndyhHolt/status/11 ... 9359470592" onclick="window.open(this.href);return false;

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 10:55 am

meanwhile in a galaxy not very far way at all - the ECA and PL big six must be salivating at the though of taking advantage of this

https://www.bbc.co.uk/news/business-48103067" onclick="window.open(this.href);return false;

fortunately they are on a little 2 day get together in Madrid together with the European Leagues ostensibly trying to agree a way forward for European competition (even though the clubs have already decided what they want),

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 11:36 am

A new podcast on the sports business, starts with a look at the rise of the premier league - on multiple platforms

https://soundcloud.com/sportinc/sport-i ... e-jan-2019" onclick="window.open(this.href);return false;
https://podcasts.apple.com/gb/podcast/s ... 0428384317" onclick="window.open(this.href);return false;

Edit this is actually very informative about both what has happened and what could happen, including a good section on Man City and how they are pushing boundaries - I caution it is form a single perspective but well worth a listen

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 11:59 am

A report looking at Governance and Finances across the Big European Leagues

https://www.cies.ch/fileadmin/documents ... Final_.pdf" onclick="window.open(this.href);return false;

A quick takeaway - PSG and Juve earn more in tv rights from UEFA competition than their domestic leagues - makes Andrea Agnelli's push understandable from his perspective

Chester Perry · Post by **Chester Perry** » Tue May 07, 2019 12:19 pm

I have been referencing Simon Chadwick for a while now - here he joins the Sports Inc podcast to talk about the eastern influence on sport that I have posted before - multiple platforms as before

https://soundcloud.com/sportinc/sport-i ... t-feb-2019" onclick="window.open(this.href);return false;
https://podcasts.apple.com/gb/podcast/s ... 0430063092" onclick="window.open(this.href);return false;