EPL finances

[Adlab]

Do United’s recently published results reflect the state of Premier League clubs finances?
No business can really operate at that level or do we think things will recover this season?

No FFP it seems or any other brakes or limitations. Are we heading for meltdown or is this a blip?

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[steveosnakeeye]

Coulda posted some figures 🤣

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[Adlab]

£93M Loss £415m debt.
https://ir.manutd.com/financial-information/quarterly-reports/2021.aspx

Worth looking at.

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[Editor]

Great to see the debt going down. Broadcast revenues going strong again. As everyone else, our match day revenue took a massive hit but they will bounce back. Ronaldo will be a huge pull on the commercial side too. Thanks for sharing Adlab. Never understand why Utd’s financial results cause so much interest though.

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[Adlab]

Ed
They are of interest because they are proper published accounts and give a good guide. To an extent the accounts are reflective of what is happening to the finances of EPL teams.

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[Pagan]

Well on a slightly different note, Derby County go into administration, not a great surprise round here.

Can’t see how you can sell a club who are spending £1.33 for every £1 they turn over, their owner paid £80m for a stadium only worth £41m to cook the books, so can’t see him taking a £40m hit on that.

Forest are also in a bit of a mess, but with Derby in line for at least a 12 point deduction it may lift them of the bottom of the table

………..Pagan

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[Adlab]

Pagan.
Just the point I am making. More and more will get into financial difficulties spending money they don’t have racking up debt,
The EPL teams are not immune whoever they are.

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[Pagan]

It will be interesting to see what RatyRatae’s take on Derby’s situation is………..Pagan

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[Blaze]

They said the proposed ESL was something bad but this deduction of points for financial woes is way over the top, by implementing this draconian law you can force a club to cease its existence.Theres many other ways to tackle these issues. Poor old Derby fans and players and all their connections are the ones that suffer the most.

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[Pagan]

Blaze, do you think the ESL, where the top 6 clubs in England tried to take the majority of the money was better than punishing clubs who try to break the financial rules?

In short Derby didn’t cut their cloth to suit and have to now face the consequences……..Pagan

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[Brian blue]

Pagan..that is it…almost a vanity situation. These owners must have done due diligence before they bought in but my guess they had more motives than a football club. It will happen to more clubs, running at losses is no longer sustainable in our”new” world. Somebody will pick up the pieces for a song eventually and will not be football related

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[Rover]

How does deducting points help a club that’s in administration, I’m only my asking cause I have no idea how it benefits anyone.

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[Pagan]

Rover, it shouldn’t and doesn’t, it’s a punishment for breaking the rules………Pagan

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[Anonymous]

It’s a means of preventing clubs from taking risks. Just telling them that if they decide to roll the dice, they are putting all their chips into the pot.

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[Pagan]

I was really hoping RatyRatae was going to comment on this. His beloved Leicester went into administration in the early 2000s owing £40ish million, which was roughly what they’d spent on their new stadium. The debt was written off causing hardship to those they owed, but it made the club an attractive investment, when Mr Duty Free eventually bought them, the rest as they say is history.

Obviously Leicester had a ground they owned, which Derby don’t, which means they actually had an asset other than just players.

Going into administration may in the long term help the club as it’s debts can get written off and they can reset, it can also end with the winding up of the club, and although you get “it’s the fans that suffer” you still have consider the people that the club owe money to, and I believe in Leicester’s case the contractor that built the stadium lost out on approximately £5m.

In Derby’s case, not only will the creditors lose, but you have to consider Wycombe, who finished 1 point and 1 place below Derby and were relegated……….Pagan

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