Football club finances / FFP

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Sep 7, 2008
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The Swiss Ramble blog which looks at Football finance, has new analysis about the accounts of Chelsea, Manchester United, Manchester City and West Ham, among others, and with more on other clubs due over the next few weeks. Plenty of stuff from FFP to wage bills, debt and revenues and where its all coming from.

http://swissramble.blogspot.com.au/
Would be interested in seeing ours when it comes out. interesting read.
 

ADL9798

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Aug 18, 2009
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Great find that. Shocked that City's wage bill exceeds Real Madrids (although there is uncertainty over the exchange rate).

Great to see our wage bill trending downwards for the last bit of the period. Hopefully continues to do so.

Though we're unlikely to see anything approaching the 850% growth in commercial income Man City have achieved over the last 5 years, Liverpool have done great work in developing that revenue stream under FSG as well. Currently 3rd highest in the Premier League and 7th in Europe thanks to our continued standing as one of those most widely supported clubs on the planet.

PSG £218m o_O
Bayern £203m
Real Madrid £181m
Barcelona £152m
United £152m
City £143m
Liverpool £98m

Dortmund £93m
Chelsea £84m
Arsenal £62m


Where we fall down is in our ability to generate matchday revenue. The demand for corporate hospitality (the most significant source of income on matchdays) is obviously far higher in London that it is in Liverpool, so the prices and hence income earnt per spectator is far higher at Stamford Bridge and at the Emirates than it is at Anfield. Man United are as you can see below, in a league of their own in this regard relative to the other English clubs.

United £109m
Real Madrid £102m
Barcelona £101m
Arsenal £93m
Bayern Munich £75m
Chelsea £71m
Dortmund £51m
PSG £46m
Liverpool £45m
Tottenham £40m
City £40m


With the Anfield redevelopment well underway we'll bridge this gap to some extent in the next few years, but commercial and television (particularly in the CL if we can qualify again) revenue will remain the area where we will see the most significant improvements in Liverpool's income streams heading into the future. Naming rights for the new stand the big one on the horizon at the moment.
 

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ADL9798

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This chart was very interesting, it makes it clear how much of an impact the new TV deal has had on club finances. If you look down the bottom you can see Chelsea's revenue from the TV Rights deal from 2005-2013. The equal share payment nearly doubled (from £13.8m to £25.9m) overnight once the new deal kicked in, in addition we've seen a near 50-75% increase in the merit payments paid to the top clubs. That's been a game changer for the Premier League over the last 12 months, and we've seen an immediate impact with the fees English clubs have been willing to pay for players jumping dramatically in the summer.

Chelsea%2BTV%2B2014.jpg
 

knife

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Aug 19, 2009
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Arsenal at 62m seems a bit low.

I think the £62m figure is from the 2012/13 accounts. Some of the clubs release their accounts at different times and some with different ends to the financial year, so some comparisons may be out of date.

He did an analysis on Arsenal back in September for the 2013/14 accounts which I think had ~£77m from commercial revenue. A lot of the new sponsorship deals, like Arsenal with Puma, will show up in the next accounts for 2014/15.

That said we're still a long way behind. All the other top clubs are growing their deals as well. United have that massive Adidas deal starting from next season which is worth £75m a year, an increase I believe from £43m a year and Chelsea are reported to be negotiating with Turkish Airlines.
 
Swiss Ramble is great. A few problems in comparing figures though.

Some clubs put corporate tickets in commercial income, some in matchday. Some clubs pay staff out off the books through parent companies or contracting out. IIRC image rights is a regular one there that doesnt go through club accounts. At several clubs.

Speaking of image rights, some clubs hold 100% of players image rights, others pay 0%.

So club A pays £100k a week but gets commercial revenue from the use of his image. Others pay £80k but get none.

None of that is Swiss Rambles fault of course.
 

ADL9798

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http://www.dailymail.co.uk/sport/fo...revenue-surge-25m-year-Anfield-expansion.html

Liverpool have revealed they expect their income to surge by £25m a year when their expanded main stand opens next year. Around £20m of that cash will come from 8,500 extra seats, including 4,500 corporate seats.

The club also hope to make £5m a year from getting a naming rights sponsor for the stand - while keeping the name Anfield for the ground as a whole. Extra income could also follow because the new Anfield will be eligible and fit to stage major European club finals.
  • Expansion of main Anfield stand is set to be completed in time for 2016-17
  • Capacity will be increased from just shy of 45,500 to 54,000
  • Liverpool expect to earn an extra £25m-per-year from the expansion
  • £20m will come from extra seats, with a further £5m from sponsorship

A 'NEW' ANFIELD BY NUMBERS

45,000 - Anfield's current capacity
58,800 - Anfield's potential new capacity
8,500 - Phase one to extend the Main Stand
4,500 - Phase two to extend Anfield Road end
£75m - cost of extension by 2016/17 season
£260m - cost of overall regeneration in Anfield
 

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ADL9798

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I'd imagine theres going to be an increase in boxes if those figures are accurate.

I'd doubt 8.5k seats aren't going to generate £20m income even if most of them are corporate.

If you read the interview with Ian Ayre it sounds like that's the gist of it. There's going to be a significant increase in the number of corporate seats/boxes (I read somewhere that they were talking about approx 40 new boxes), the quality of corporate hospitality on offer, and with it probably an increase in the price of those packages too. The final figure may also be based on the completed expansion and not just the main stand, in which case you're looking at 13,000 new seats and not just 8,500.

Probably not the news many of the thousands of supporters on that 10+ year long waiting list for an Anfield season ticket were hoping for, but essential in giving the club a competitive edge in a competition where success is becoming more and more closely tied to revenue.
 
do you think there would be any major problems if United do not qualify for CL next season?

Nope.

Firstly if I read it right the lower sponsorship is if we don't make it two seasons in a row starting from next season, secondly and makes the first point moot anyway is with the lower income from that it's still in front of every other side.

Imagine if we put OT naming rights up for sponsoring. Would be another 30 odd million a year.
 
Sep 5, 2014
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Nope.

Firstly if I read it right the lower sponsorship is if we don't make it two seasons in a row starting from next season, secondly and makes the first point moot anyway is with the lower income from that it's still in front of every other side.

Imagine if we put OT naming rights up for sponsoring. Would be another 30 odd million a year.
Spot on. Would only start to hurt us if we had a prolonged absence from the UCL and when renegotiating our next sponsorship deals. I think 30m is unders on OT naming rights. If everything when to s**t we'd still be top 4 in England in terms of sponsorship.
 
Spot on. Would only start to hurt us if we had a prolonged absence from the UCL and when renegotiating our next sponsorship deals. I think 30m is unders on OT naming rights. If everything when to s**t we'd still be top 4 in England in terms of sponsorship.

With FFP I'd happily have OT renamed with a sponsor.
 
Dec 22, 2009
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Nope.

Firstly if I read it right the lower sponsorship is if we don't make it two seasons in a row starting from next season, secondly and makes the first point moot anyway is with the lower income from that it's still in front of every other side.

Imagine if we put OT naming rights up for sponsoring. Would be another 30 odd million a year.

Like us, I doubt you will ever put OT naming rights up for sponsorship. The closet we are doing to that is selling naming rights for our new grandstand. But not the whole of Anfield.

You must be concerned with the wage bill going up to 214 million though.
 
Like us, I doubt you will ever put OT naming rights up for sponsorship. The closet we are doing to that is selling naming rights for our new grandstand. But not the whole of Anfield.

You must be concerned with the wage bill going up to 214 million though.

I think the Glazers will do whatever brings massive money into the club. That is one thing that will.

Not fussed about the wages at all.
 
I honestly don't believe we'll see Liverpol and/or United ever sell stadium naming rights, despite it being a good idea to do. Perhaps the Glazers will sell off naming rights to individual stands like FSG are planning with Anfield.

Maybe. Either way it's an option if we ever get in FFP issues.
 
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