Premier League clubs lose £876,000 a day

Vysyble has released the 2nd edition of its football finance report entitled ‘We’re So Rich It’s Unbelievable! – The Illusion of Wealth Within Football.’ The report covers the economic performance of the participant clubs in the English Premier League from 2008-9 to 2015-16 (the latest accounting period) ie 34 clubs. Over 260 individual club balance sheets were analysed as part of the research process.

Messi is first £1m a week player

Barcelona are to pay Lionel Messi a basic wage worth more than £1m a week.   Messi’s gross salary under a four year contract has been set at an annual €60m (£54.8m).   If the contract runs for its full term Barca are committed to paying him £220m before performance bonuses.

Barcelona had total revenues of €620.2m (£548.6m at current exchange rates) in 2016, the second highest figure in football after Manchester United.  Last season the club budgeted for €695m of income and, according to its own analysis, Messi contributed 20 per cent of that figure.  

Spurs deny takeover talk

Tottenham Hotspur have denied speculation about a takeover of the club.  In a statement on its website the club said, ‘ The Club engaged Rothschild  to secure the funding for the new stadium. As expected many proposals came forward including bank debt and equity investment. The Club announced on 31 May 2017 the completion of the bank debt financing for the new stadium with a consortium of banks involving Bank of America Merrill Lynch International Limited, Goldman Sachs Bank USA and HSBC Bank plc.

The preferred mobile operator for footballers

Reports of the High Court hearing involving Newcastle United owner Mike Ashley have largely focused on the drinking sessions associated with business meetings.   However, one piece of information that slipped out was about a confidential mobile phone company used by footballers and club owners like Mike Ashley.

Shropshire-based Sports Mobile offer bespoke VIP service.   Players want the new iPhone as soon as it comes out and they make sure that players get it before everyone else.

Big boost in Championship television coverage

There will be a big increase in the number of Championship matches shown live on television according to a tender document issued by the English Football League.  

The EFL would allow the number of league games broadcast live to almost treble from 112 to 324 matches a season in 2019-20. Up to 228 of the 552 Championship matches would be live, compared with 92 at present.

The quiet transfer deadline

The frantic transfer deadline with all its hype and television coverage is at the end of August.  First, however, there is a ‘quiet’ transfer deadline when managers look at the squads that have reassembled for training at the beginning of July and assess the gaps.

Of course, some clubs like Chelsea and Manchester United like to do their business early.   United are hopeful that they will get most of their targets soon, but Chelsea are only now nearing a breakthrough or two.

Financial pressures on Championship clubs

The financial pressures on Championship clubs as they seek promotion to the Premier League are emphasised by the fact that they made an average loss of just under £10m in the 2015-16 season.  Only Wolverhampton Wanderers made a profit and that was because of a player sale.

Middlesbrough made the biggest loss at £32m, followed by Brighton and Hove Albion at £25.9m.  QPR had the biggest wage bill at £40.8m, almost equivalent to their turnover.