Premier League Club Finances

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
Blackburn Venky’s Trust £57.6m £49.9m -£10.2m £26.3m
Blackpool Karl Oyston, Valeri Belokon £51.7m £13.6m -£3.5m £7.9m
Bolton Eddie Davies £67.7m £56.1m -£12.5m £110.6m
Chelsea Roman Abramovich £222.30m £189.5m -£60.6m £72m
Everton B Kenwright (37.2 per cent), R Earl (34.6) £82m £58m -£6.6m £44.9m
Fulham Mohamed al-Fayed £77.1m £57.7m -£4.3m £192.9m
Liverpool John Henry £183.7m £134.8m -£40.4m £65.4m
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
Sunderland Ellis Short £79.4m £60.9m -£13.6m £76.8m
Tottenham Joe Lewis £163.5m £91.1m -£26.3 £56.8m
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
Wigan Dave Whelan £50.5m £39.9m -£7.1m £20.5m
Wolves Steve Morgan £64.5m £37.9m -£14.9m £25.5m

Millionaire owners

A number of the richest millionaires buying into football clubs are not actually in the Premier League as this football owners rich list proves.

Ranking Owner Club Wealth
1 Sheikh Mansour bin Zayed Al Nahyan Man City £15billion
2 Lakshmi Mittal and family QPR £12.5bn
3 Roman Abramovich Chelsea £7bn
4 Joe Lewis Tottenham £2.5bn
5 Bernie and Slavica Ecclestone QPR £2.4bn
6 Stanley Kroenke Arsenal £2.245bn
7 Alisher Usmanov Arsenal £1.5bn
8 Lord Grantchester & the Moores Family Everton £1.2bn
=8 Dermot Desmond Celtic £1.2bn
10 Lord Ashcroft Watford £1.1bn
10 Malcolm Glazer and family Man Utd £1.1bn
12 Simon Keswick Cheltenham £966m
13 Trevor Hemmings Preston £900m
14 Mike Ashley Newcastle £800m
15 Randy Lerner Aston Villa £750m
16 Tom Hicks Liverpool £700m
17 The Walker Family Blackburn £660m
18 Mohammed Al Fayed Fulham £650m
19 Sir David Murray Rangers £600m
20 Steve Morgan Wolves £400m

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:

Club TV Revenue
Manchester United £49.3m
Chelsea £45.6m
Arsenal £47m
Liverpool £45.4m
Everton £42.1m
Aston Villa £42.3m
Blackburn Rovers £40.2m
Portsmouth £40.4m
Manchester City £39.7m
West Ham United £36.8m
Tottenham Hotspur £36m
Newcastle United £39.2m
Middlesbrough £34.2m
Wigan Athletic £33.4m
Sunderland £33.6m
Bolton Wanderers £32m
Fulham £31.3m
Reading £30.6m
Birmingham City £29.8m
Derby County £29.1m

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.