Premier League club income and debt
The millionaire’s playground of the Premier League. But these millionaires are not all stupid or loose with their cash. Roman Abramovich has financed Chelsea with an interest free loan which their 2008 accounts show they have 18 months to pay him back if he leaves. Currently Chelsea owe Abramovich £578 million.
The Glazers have a different model at Manchester United by setting up a holding company Red Football Joint Venture Ltd where they have loaded the money they borrowed to buy the club, totalling £699.2 million in 2007/08.
In fact, in order to maintain their Champions League domination the big 4 of Manchester United, Liverpool, Chelsea and Arsenal are in debt to a total of around £2 billion.
Table of Premier League Club income and debt 2010/11:
(based on recent publicised accounts)
|Club||Owner||Income||Wage bill||Transfer money||Debt|
|Arsenal||Arsenal Holdings plc||£255.7m||£124.4m||– £1.5m||£97.8m|
|Aston Villa||Randy Lerner||£92m||£83.4m||-£18.3m||£113.7m|
|Birmingham||Carson Yeung||no accounts|
|Blackpool||Karl Oyston, Valeri Belokon||£51.7m||£13.6m||-£3.5m||£7.9m|
|Everton||B Kenwright (37.2 per cent), R Earl (34.6)||£82m||£58m||-£6.6m||£44.9m|
|Manchester City||Sheikh Mansour Bin Zayed al Nahyan||£153.2m||£174m||-£143.7m||£42.9m|
|Manchester United||Glazer family||£331.4m||£152.9m||-£11.4m||£308.3m|
|Newcastle United||Mike Ashley||£88.5m||£53.6m||+£5.4m||£130.5m|
|Stoke City||Peter Coates||£66.8m||£47.1m||-£14.2m||£0.3m|
|West Brom||Jeremy Peace||£59.4m||£37.4m||-£0.4m||£1.9m|
|West Ham||David Gold, David Sullivan||£80.9m||£55.7m||-£12.4m||£10.1m|
A number of the richest millionaires buying into football clubs are not actually in the Premier League as this football owners rich list proves.
|1||Sheikh Mansour bin Zayed Al Nahyan||Man City||£15billion|
|2||Lakshmi Mittal and family||QPR||£12.5bn|
|5||Bernie and Slavica Ecclestone||QPR||£2.4bn|
|8||Lord Grantchester & the Moores Family||Everton||£1.2bn|
|10||Malcolm Glazer and family||Man Utd||£1.1bn|
|15||Randy Lerner||Aston Villa||£750m|
|17||The Walker Family||Blackburn||£660m|
|18||Mohammed Al Fayed||Fulham||£650m|
|19||Sir David Murray||Rangers||£600m|
Income from TV
The Premier League’s TV broadcasting deals brings in £2.7 billion over three years. Of this, £22.8 million is paid to every Premier League club as part of an equal share of revenue. On top of this, clubs are paid prize-money relative to their final position in the league (Manchester United got £14.4 million, Derby got £720,000) and then earnings from the live matches in which they are featured (Manchester United, with 25 matches, made £12.1 million, while Derby got the guaranteed minimum payment for clubs no-one watches of £5.6m).
Television revenue for 2007-08 season:
|West Ham United||£36.8m|
The transfer fee system
The transfer system for elite Premier League players is a little illusionary. Whilst massive fees are agreed often little money is paid up front and the fee itself can be spread over many years.
For example when Man City bought Benjani from Portsmouth for £9 million, Man City paid only £4 million up front with the rest spread over the term of the contract.
Portsmouth have recently being trying to reduce their debt by asking for quicker payments at a reduced transfer fee.