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Financial Results

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Big losses at Boro

Middlesbrough's push for promotion to the Premier League led to big losses in the year to 30 June 2016. The club lost £31.9m compared with £9m in the previous year.  Wages went up from £18.1m to £28.6m, well above 100 per cent of income when the recommended level is 50 per cent.

Big loss at Liverpool

Liverpool recorded a loss of £19.8m in the year to May 2016.  Investment in players was the main reason for the loss, along with the cost of compensating Brendan Rodgers and his staff.   Costs for the Main Stand extension also contributed to the loss.

The club's revenue increased by £3.9m to a record £301.8m.   Match day revenue was up £3.4m to £62m. Commercial revenue was down £700,000 to £115.7m.   This was partly because of a lack of non-matchday access to the Main Stand.

£44m of debt at Coventry City

Coventry City made a profit of £700,000 in the year to May 2016, but there was an operational loss of £1.75m before player trading was taken into account.   Turnover was up from £4.76m to £5.44m.

The club has debts of £44m, almost of which is owed to owners Sisu or companies controlled by them. The club is only a going concern if that debt is not called in, but the owners have no plans to do so.

Profits up at Arsenal

Despite a record £110.5m spend on players, Arsenal reported profits of £12.6m in the six months to 30 November 2016 compared with a £6.2m loss in the corresponding period last year.  Once again Arsene Wenger shows that he is following a successful commercial formula.

Turnover was up substantially from £158m to £191.1m year on year.  45 per cent of revenue came from broadcasting, boosted by a bigger share of the Uefa pool.   This was even more valuable given the fall of the pound as it is paid in euros.

'A merchandising company that happens to play football'

As Manchester United report a good set of quarterly results, it is worth recalling the description of them in the Lex column of the Financial Times last month: 'a merchandising company that happens to play football.'

Promotion crucial for Seagulls

Securing promotion is particularly important for Brighton and Hove Albion this season otherwise they may fall foul of financial fair play rules.   Championship clubs are allowed to lose £39m over three seasons, but the Seagulls made a £25.9m loss in 2015-16.    The allowance is much more generous for Premier League Clubs or even for yo-yo clubs, plus revenues in the top flight are so much higher.

United see rise in debt

Manchester United's debt has risen by 18 per cent to £338m, in part because of the Brexit vote and the consequent worsening of the dollar-pound exchange rate.

Results for the three months to 30 September saw revenue drop by 2.8 per cent while operating profits were down by 35 per cent to £6.2m.   This was largely because of the club's absence from the Champions League.

Canaries in the black

Norwich City's year in the Premier League saw them move from the red into the black with a loss of £5.3m turned into a profit after tax of £9.4m.   Income in 2015-16 jumped to just over £100m from £53.6m the previous years.

City control wage bill

Manchester City have dropped far behind Manchester United in terms of overall wage bill, the club's annual report shows.  City, who once had the largest Premier League salary costs. had a wage bill of £196m, putting them on a par with Arsenal and below United's figure of £232m for 2015/16 and Chelsea's £215m for the previous season.

Wages amounted to 50 per cent of turnover, the figure recommended by accountants Deloitte.  Three years ago City were penalised by Uefa for breaching financial fair play rules.

Juventus need to globalise

Juventus made an operating profit of €4.1m on revenues of €397.9m in the financial year.   This is a respectable outcome, and a small improvement on the preceding year, but concerns remain.

The club remains highly reliant on television money.  Its commercial revenue amounted to €73.5m in a year compared with €278.1m at Bayern Munich.