Premier League: How in Debt Are Clubs?

Author: David Conn @ The Guardian

The Premier League’s 20 clubs collectively made a loss of £361m last year – sort the saints from sinners here

The Premier League trophy

Photograph: John Peters/Man Utd via Getty Images
Manchester United won the Premier League in 2010-11, and also finished top of the money-making table with a turnover of £331m, more than £100m more than any other English club. The Premier League’s 20 clubs made a record income of £2.3bn in 2010-11, yet still made a collective loss of £361m. David Conn explains the maths here. Eight of the 20 clubs made a profit while Manchester City, whose lavish funding by Sheikh Mansour bin Zayed al-Nahyan has just won them the league title, reported the greatest financial loss in the history of football: £197m.
Football turnover
Football turnover Photograph: Graphic
Manchester City were also the only Premier League club whose wage bill (£174m) exceeded their turnover (£153m).
The smallest wage bill in the 2010-11 season was perhaps unsurprisingly to be found at Blackpool (£25m), but West Bromwich managed to avoid relegation with the second smallest spend on wages, of £37m.
Turnover (£m)
Gate and Match- day in- come (£m)
TV and Broad-casting (£m)
Com- mercial (£m)
Wages as a per- centage of turn- over (%)
Wage bill (£m)
Net debt (£m)
Inte- rest pay- able (£m)
Arsenal 256 93 85 33 48 124 98 15
Aston Villa 92 21 54 17 90 83 114 6
Birmingham City 56 7 42 7 68 38 16 1
Blackburn Rovers 58 6 42 9 86 50 26 0.7
Blackpool 52 48 25 4.3 0.08
Bolton Wanderers 68 9 45 82 56 110 5
Chelsea 222 86 190 92 0.8
Everton 82 17 53 12 71 58 45 4
Fulham 77 12 51 10 75 58 190 0.6
Liverpool 184 41 65 77 73 135 65 3
Manchester City 153 20 69 65 114 174 43 5
Manchester United 331 109 119 103 46 153 308 50
Newcastle United 89 24 48 16 60 54 130 0.2
Stoke City 67 70 47 Nil Nil
Sunderland 79 12 48 10 77 61 77 2
Tottenham Hotspur 163 20 54 19 56 91 57 6
West Bromwich Albion 59 8 43 7 63 37 2 Nil
West Ham United 81 19 46 12 69 56 45 3
Wigan Athletic 51 78 40 21 1
Wolverhampton Wanderers 64 10 44 5 59 38 Nil 0
To see how the TV/broadcast revenue money was divided, click here.

20-Year Premier League Table

Author: SkySports

The Premier League has now celebrated its 20th year – but how successful has your team been during that period?

Sky Sports News HD has taken a look at the overall table from all 20 seasons to find out.

Manchester United are unsurprisingly top of the pile ahead of Arsenal and Chelsea, but would you have predicted Aston Villa to rank above Tottenham? Did you expect to see the likes of Coventry, Sheffield Wednesday and Wimbledon inside the top 20?

Other interesting highlights from the table include:

Most Wins: Man Utd (500) Fewest Wins: Swindon (5)

Most Draws: Aston Villa (240) Fewest Draws: Barnsley (5)

Most Defeats: Everton (282) Fewest Defeats: Swansea (15)

Most Goals Scored: Man Utd (1541) Fewest Goals Scored: Barnsley (37)

Most Goals Conceded: Tottenham (1020) Fewest Goals Conceded: Swansea (51)

20 Year Premier League table:

1. Man Utd 772 500 163 109 1541 660 881 1663
2. Arsenal 772 415 204 153 1345 717 628 1449
3. Chelsea 772 401 199 172 1282 741 541 1402
4. Liverpool 772 380 194 198 1236 753 483 1334
5. Aston Villa 772 283 240 249 973 923 50 1089
6. Tottenham 772 294 204 274 1072 1020 52 1086
7. Everton 772 272 218 282 974 979 -5 1034
8. Newcastle 692 277 186 229 996 885 111 1017
9. Blackburn 696 262 184 250 927 907 20 970
10. Man City 582 211 151 220 771 736 35 784
11. West Ham 616 202 158 256 723 880 -157 764
12. Leeds 468 189 125 154 641 573 68 692
13. Middlesbrough 536 160 156 220 621 741 -120 633
14. Southampton 506 150 137 219 598 738 -140 587
15. Bolton 494 149 128 217 575 745 -170 575
16. Fulham 418 130 121 167 480 552 -72 511
17. Sunderland 418 112 104 202 422 606 -184 440
18. Coventry 354 99 112 143 387 490 -103 409
19. Sheff Wed 316 101 89 126 409 453 -44 392
20. Wimbledon 316 99 94 123 384 472 -88 391
21. Charlton 304 93 82 129 342 442 -100 361
22. Leicester 308 84 90 134 354 456 -102 342
23. Birmingham 266 73 82 111 273 360 -87 301
24. Wigan 266 76 67 123 269 409 -140 295
25. Portsmouth 266 79 65 122 292 380 -88 293
26. Derby 266 68 70 128 271 420 -149 274
27. QPR 202 69 46 87 267 298 -31 253
28. Norwich 202 62 62 78 257 323 -66 248
29. N Forest 198 60 59 79 229 287 -58 239
30. Ipswich 202 57 53 92 219 312 -93 224
31. West Brom 228 52 60 116 233 374 -141 216
32. Stoke 152 47 42 63 154 204 -50 183
33. Crystal Palace 160 37 49 74 160 243 -83 160
34. Wolves 152 32 40 80 156 281 -125 136
35. Sheff Utd 122 32 36 54 128 168 -40 132
36. Reading 76 26 13 37 93 113 -20 91
37. Oldham 84 22 23 39 105 142 -37 89
38. Hull 76 14 23 39 73 139 -66 65
39. Bradford 76 14 20 42 68 138 -70 62
40. Watford 76 11 19 46 64 136 -72 52
41. Swansea 38 12 11 15 44 51 -7 47
42. Blackpool 38 10 9 19 55 78 -23 39
43. Barnsley 38 10 5 23 37 82 -45 35
44. Burnley 38 8 6 24 42 82 -40 30
45. Swindon 42 5 15 22 47 100 -53 30

Where the Money Went…Premier League Prize and TV payments 2011/2012

Author: Nick Harris – SJA Internet Sports Writer of the Year

Manchester City sealed the 2011-12 Premier League title in the most dramatic fashion on Sunday, and now know the precise financial reward for the season from Premier League central funds: £60,602,289.

The massive sums on offer for simply being a member of the Premier League are highlighted again below with the release of official figures detailing League TV and merit earnings for each club for the 2011-12 season.

Clubs have three main revenue streams: match day income (from tickets, corporate dining etcetera), media income (of which the payments listed are the largest but not the only part) and commercial income (from kit deals, sponsorship, merchandise, tours and so on).

The lowest-earning team in 2011-12 from central funds, Wolves, picked up £39,084,461 while City’s cross-town rivals, United, were the second best-paid team with £60,325,337. This is the second year the £60m barrier has been broken for the top-earning teams, after last year.

Every club got £13,788,093 as an equal share of domestic TV income, plus £18,764,644m as an equal share of foreign TV income. The Premier League’s income from overseas TV rights alone 2010-13 inclusive was £1.437bn (£439m a year). Rights are now up for auction for 2013-16.

In the central payments for 2011-12, facility fees – £485,000 per live TV match in the UK plus bits and pieces for net, phone and delayed rights – varied depending how many times each club featured in live matches, between a minimum of 10 times and a maximum of 26.

Each place in the table was worth £755,062 in prize money, with that amount going to the bottom club (Wolves) and 20 times that amount (£15,101,240) going to City.

The biggest winners and losers, year on year in terms of improved and decreased payments were Newcastle and Aston Villa respectively. Newcastle’s total money went up £7m from £47.2m to £54.2m, while Villa’s went down £7m from £49m to £42m. See table below for full details, and compare with previous seasons: Payments for 2010-11 / Payments for 2009-10

‘Parachute’ payments were made to seven former League clubs, with Birmingham, Blackpool and West Ham each getting £15,475,005 to assist their landings in the Championship. This money helped all three to make the play-offs, with Blackpool facing West Ham on Saturday for the right to return to the PL (Promised Land).

The ratio in central earnings between City at the top and Wolves at the bottom is 1.55 to 1.
DISTRIBUTION of Premier League central funds 2011-12 (All amounts £ sterling)

Place = finishing position in the table. Live = live games on Sky/ESPN combined.

BBC = games on Match of the Day. N.Live = games shown ‘near live’.

Note: Facility fees increase with more live TV games; merit payments grow in increments of £755,062 per place from 20th to 1st.

If you would like to compare these totals to the 2010/2011 figures, please click here.

To see how the clubs accounts were completed and how much money they made/lost, please click here.

How Social are the Most Valuable Brands?

Author: Socialgility

Where the money went… Premier League Prize and TV payments 2010/2011

Author: Nick Harris – SJA Internet Sports Writer of the Year

The massive financial rewards simply for being a member of the Premier League are highlighted again today with the release of official figures detailing PL earnings by club for the 2010-11 season.

The lowest-earning team, Blackpool, picked up £39,080,036 from the League in TV cash and prize money while the best-paid team, Manchester United, earned £60,429,052. This is the first time the £60m barrier has been broken for the top-earning team.

What isn’t in doubt are the huge sums on offer for being part of the world’s most popular football league.

The figures for all clubs are carried in the table below. Every club got £13.82m as an equal share of domestic TV income, plus £17.93m as an equal share of foreign TV income.

Facility fees (£485,000 per live TV match in the UK plus bits and pieces for net, phone and delayed rights) varied depending how many times each club featured in live matches, between a minimum of 10 times and a maximum of 26. Each place in the table was worth £756,756 in prize money, with that amount going to the bottom club (West Ham) and 20 times that amount (£15,135,120) going to Manchester United.

From this season, the increased income streams from the improved 2010-13 overseas TV deals kick in. As we reported in March last year, the overseas rights alone will earn the League £1.437bn for 2010-13 inclusive.

The ratio in earnings from central funds between United at the top and Blackpool at the bottom is 1.55 to 1.

The Premier League’s chief executive, Richard Scudamore, says: ‘We believe that our income distribution mechanism, the most equitable of Europe’s major football leagues, rewards sporting success while also guaranteeing a significant amount of broadcast revenue to each club in order that they plan from one season to the next.

‘Many have commented on the competitive nature of this season’s Barclays Premier League. The clubs deserve huge credit for putting on a fantastic competition. We believe the way we distribute broadcast income plays a part in allowing each club to compete at the highest level.’

Elsewhere (on Sporting Intelligence), a feature highlighting the flip side to this story: Mind the gap! Leaving the Premier League can seriously damage your wealth.

If you would like to compare these totals to the 2011/2012 figures, please click here.

View From the Spire: Blatter the devil you know

Sepp Blatter’s abstinence, and the involvement of other Fifa bureaucrats, today has caused conflict, disrespected the World Cup competition and has brought about embarrassment to what is normally a brilliant game.

The culprit: a high profile strike by England’s Frank Lampard that to everyone but the referee, clearly bounced two feet on the net side of the goal line before bouncing back into the field of play.

Interestingly, in December, Blatter and his committee of cronies advised: “Referees shall remain human, and we will not have monitors to stop the game to see if we are right or wrong. There will be no more discussion [between fans] and then no more hope and then no more life.”

In this simple statement, and with the turn of events this fine afternoon, Blatter has vowed not to step far from tradition and singlehandedly altered the beautiful game and the competition that he is enormously overpaid to run.

However, this is merely the tip of the iceberg. Should the finger of blame lie directly pointed at the Football Association and the Premier League? Two organisations who have played a part in the current situation (and honest truth) that the England National team are not as good as they, their governing organisations and the British media believe them to be. The Football Association who employ foreign team coaches who do not appear to speak the language, actually manage any of the team or are too stuborn to see the sizeable error of their ways – or the Premier League, owners of the greatest league in the world, that in some cases is bringing the beautiful game in England to its knees by the significant involvement of foreign talent to the detriment of home grown players who have to look overseas or lower down the pecking order to secure a career and a chance of some exposure?

Whatever the reasoning, and with the furore surrounding the media hype in the England National squad, the English will no doubt dispute the possible outcome of the game due to lack of goalline technology until the end of time.

The fact still remains though, despite an unfortunate disallowed goal, and barring an eight minute period before half time, England and the overpaid players were played off the pitch, brushed aside and firmly delt with yesterday by a German side who are still gathering pace in what will now (without England) finally be an interesting and unbiased World Cup.

View From the Spire: Everyone’s at it again…(Part II)

Following last weeks’ post about tightly clad spandex fiend David Lee Roth now offering business consulting (finding the brown M&M in your business bag….click here for the sweet nectar of chocolate covered business advice for peanuts!) and having received information from several industry colleagues in the last week, I’m thinking “whatever (or specifically whoever!) next”….

Let’s have a look at a few pieces of recent ongoing evidence:

World’s worst banker – Fred Goodwin (you will note I have deliberately removed the honorific title as this should be reserved for those of significant rank or status) recently assumed a consulting role at Scottish architects firm RMJM (standing for Rich Morrison Junior Morrison?).

This appointment was met with surprise by all as despite advising on “international” strategy, he will likely not add any value to existing or potential projects the architects explore. Infact rumour has it his appointment has already brought a significant negative effect, as my sources confirm that Glasgow City Council, who with RMJM have a significant part to play on the development of the Commonwealth Games in 2014 have demanded Goodwin be removed from taking any part in these projects. Goodwin then surely removes himself to the Middle and Far East to focus on anything that’s not a political hot potato – good luck!

Let’s celebrate this ineptitude, by watching an amusing version of our national anthem with an RBS tinged Fred the Shred undertone here – it’s an oldie but a goodie…

  • Then there is all six foot 14 stone of Dumfries boy Duncan Hodge; capped 26 times for Scotland’s rugby team who still earns part of his living via the Scottish Rugby Union coaching (I am lead to believe) but also moonlights as Business Development consultant for a number of firms in Scotland. Now while I am sure there is pull when a Mr Hodge invites you out for a luncheon at Bar Roma, I am unsure whether there really exists a deep rooted financial services experience to be able to offer the best or most suitable advice or demonstrate an ability to negotiate let alone close a deal. Is this celebrity outsourcing of key services why the UK finds ourselves in this position in the first place? That said, when Duncan does call, I’m having the calzone and a glass of the Tempranillo…

    Not consulting, but proving there’s no experience like…er, no experience (and this may be going back a bit now) but why oh why oh why oh why did the Scottish Football Association take on a former football player as CEO (“And Smith Did Score….!”) when the previous intelligent, smart, articulate incumbent in David Taylor was clearly a smarter person who still achieved a fraction of what he could have due to the impatience of the supporters. I understand that Gordon Smith is partially qualified IFA – perhaps he should apply for Duncan Hodges job – but if supporters are the ones to build you up, only to knock you down when things do not go your way, what chance does Smith really have running a sizeable commercial SME?

    That aside, if you fancy a wee trip down memory lane to remind yourself of Gordon’s real skills – watch the extra time highlights of the 1983 Cup Final between Manchester United against Brighton when 6 minutes in, our “friend” Smithy – who played for Brighton and “… must score….” sadly didn’t…

    Returning to rugby football, there are a number of key players who have made very clever, relevant moves down the consulting or self employed route. Firstly, Scotland, British Lions and lest we forget Scottish Claymore’s favourite, Andrew Gavin Hastings – Big Gav – who created Hastings International, working in rugby and sport but using this cleverly as a vehicle to develop his, and brother Scott’s, after career income by partnering the likes of MasterCard and HSBC as an attractive addition to any corporate schmoozing.

    Fundamentally, it’s in keeping with their skills, experience and interests but more over uses their personas and likeable nature to work for them rather than just choosing any old industry to cut your teeth in. Gavin and Scott merged/sold to Platinum One to work on wider event and sponsorship management opportunities in wider sport. Gavin is now a founder of Positive Leadership which advises and consults on senior managers being equipped with the skills and the confidence to consistently win business – Gavin’s sporting role as Captain appears perfect for and relevant for that.

    Rowan Shepherd, another Scots rugby International, set up Red Sky Management – playing to his strengths, and working little black book, as an official RFU player agent but also working with colleagues to deliver relevant business solutions to achieve results. Rowan looks after Jason White, Chris Cusiter, Ben Kilner, Euan Burton amongst many others. Box ticked!

    I equally know many actors who after short spells with highlights including bit parts in Casualty, Eastenders, on the stage (everywhere but London) and even some interesting panto roles in the Highlands have been brave enough to stick to what they know through setting up children’s theatres, promotional companies or through modelling companies. In this sense it all appears to be a. relevant and most importantly b. working.

    Having worked in sport, and in particular many years in the business of football, I have heard countless stories of Footballers who as the final whistle blows, tend to veer towards bar and nightclub ownership, who loose sizeable chunks of the financial payoff from a testimonial match in a fluid, well practiced movement of a pen on a dead cert legally binding investment and a few free pints of beer. Giving these athletes some credit – they generally tended to trust the ROI to others to deliver: managing their business interests honestly and appropriately and equally to ensure that the revenue is brought in. However, taking that credit away again, when did over pampered football players ever understand what it takes to recruit someone, undertake due diligence, manage employees and ultimately where did they gain experience to understand a balance sheet and identify any tiny cracks as and when their investment slides into trading freefall?

    Is there a lesson to be learned amongst all of this? And what do you do when time is called on your day job? The answer seems to be to set up a consultancy of course!

    As can be seen above, and is well known in certain circles that we are all the same. From senior business managers clinging to their polly pocket protected Prince 2 certificates, to well known entrepreneurs maintaining business bounce-back-ability despite the walls of their empires crumbling around them while incredulous staff run for the hills. Or sportsmen and women who just believe in earning a living once the lights fade on their sporting careers. It appears that whatever our background, capability or experience, business consulting is far from dead…but actually thriving in these challenging times – especially if it’s not really your bag.

    Far from preaching an inability, David Jenkins, Director of Fettes Management, comes from 15+ years extensive experience of Senior Managerial roles in sport, leisure, technology, ecommerce and charity. For further information please see David’s CV here.