MONEY MONEY MONEY! IN A RICH MAN´S WORLD!

By dixon9
March 14 2007

MONEY, MONEY, MONEY! “……Must be funny! In the rich mans world!” Or is it so funny? There’s certainly a lot of money pouring into football on our fair isle – more than in any other league in the world – and it’s going to continue to snowball.

We’re talking very serious big bucks in the future, but in the meantime, I’m sure most saw the reports on Deloitte´s table based on last year’s 2005/2006 season revenue table.  8 English clubs feature – including Spurs, West Ham (yes!  West Ham!) and Manchester City.  It just goes to show how much money is sloshing around in our league compared to others.

 

It’s important to note however, that revenue means income based on ticket sales, merchandising, catering and of course, the all important TV contracts.  Deloitte also add that the table does not reflect transfers nor, obviously, profitability.

 

The “top 20”, pop-pickers, is as follows:

     1 (1) Real Madrid           292.2m              

2 (6) Barcelona              259.1m                          

3 (4) Juventus                251.2m                          

4 (2) Man United           242.6m                          

5 (3) Milan                    238.7m                          

6 (5) Chelsea                221.0m                          

7 (9) Inter                      206.6m                          

8 (7) Bayern M             204.7m                          

9 (10) Arsenal               192.4m                          

10 (8) Liverpool             176.0m                          

11 (15) Lyon                 127.7m                          

12 (11) Roma                127.0m                          

13 (12) Newcastle         124.3m                          

14 (14) Schalke 04        122.9m                          

15 (13) Tottenham         107.2m                          

16 (n/a) Hamburg          101.8m                          

17 (17) Man City             89.4m

18 (n/a) Rangers             88.5m                         

19 (n/a) West Ham         60.1m

20 (n/a) Benfica              58.8m

 

Previous years position in parentheses

Figures in EUROS.

Source Deloitte Football Money League

 

Manchester United has been top of this list for many years even though the northerners have posted a shrinking income over the last 2.  Real Madrid and Barcelona have taken up the first 2 positions due to a huge TV contract signed by these clubs – essentially widening the traditional gap between them and the other Spanish clubs even more.  Juventus have also overtaken United – I think they also had signed a lucrative TV contract.  It should be noted however, that the English clubs were only part way through a new TV deal which explains why we’ve been overtaken, and indeed, with the latest TV deal on the table for 2007/8 worth 50M to the champions (Chelsea received 30.4M last time), all the PL clubs will benefit enormously.

 

2 English clubs in the top 10 saw a decrease in revenues; Manchester United and Liverpool.  Chelsea and Arsenal increased their turnover.

 

Manchester United´s decrease in income, according to Alan Switzer of Deloitte, was largely due to them getting knocked out of the Champions League at the group stage although he added that with the new AIG deal being approx 50% bigger than their previous Vodaphone sponsorship, their position should change in the future.  Manchester United were also the highest profit making club in the world with something like 47M (pounds) being posted for the period in question, having said that, thanks to Glazier they have accrued 62M (pounds) in debt interest.

 

Chelsea also have the new Adidas deal to kick-in (the Samsung deal is now in effect), and along with Kenyon’s activities in the States and Asia, our merchandising revenue stream (I’m really picking up the lingo now – although I refuse to call us a “brand”!) will increase substantially.  Kenyon is 3 years into the 10 year plan so far, and it will be interesting to see how much reduction in debt is posted, and, just as importantly, how many youngsters (at Chelsea or under contract playing for other clubs throughout the world) begin to come through and how they hold up.

 

The biggest spender in Europe in recent years is of course Arsenal, who borrowed something like 500m for a new stadium and has already re-mortgaged once to restructure their debt.   Arsenal lie a very respectable 9^th in the table, and with the increased revenues from the Emirates stadium, they will obviously increase their turnover through additional attendance and catering.  I have no idea what debt interest they have had to pay or whether it’s anything like the Glazier figure.  I understand that within the next few years the old Highbury site will be developed on and the revenues from this will be substantial – how much of this revenue is for the club and how much is for individuals, I have no idea.

 

Liverpool has of course just been taken over by Gillette and Hicks and I await with interest how that pans out.  How much debt?  How much will they spend on players?  Who will have to pay for the stadium? Etc etc etc…

 

Liverpool fans have made a cringe worthy u-turn on club ownership now that they feel they could end up with some big transfers coming their way (so much for the “Liverpool way” – whatever that was!).  Of course, their concern is key to the future on the point of players and transfers.  There is no doubt, that without success and Champions league participation, the risk of “doing a Leeds” seems worryingly possible.  New stadiums with the extra revenue generated are seen as a safety valve – but if these stadiums remain full without CL participation, players leaving for higher paying clubs, or mid-table mediocrity situations are realised, remains to be seen. 

 

With all the extra TV money out there and Platini´s proposals to reduce English CL participation to 3 places (of course, G14 will stiffly oppose Platini´s idea - now its clear why Dein, the new G14 chairman has suddenly changed his posture with regard to Chelsea entering the self-chosen elite group!)it will really be “dog eat dog” out there – if it already isn’t.  In a rich mans world, it’s not so funny after all is it?