Finances of the Top 6 clubs

[Prestwich_Blue]

After writing about this in KOTK a couple of months ago, I've posted a big thread on Twitter looking at the finances of the top 6 over the last six published accounting years (2015 - 2020).



There's lots of takeaways from this but the key one is that we reinvest virtually all the cash we generate. We have of course had external financing over the period, from China & Silverlake, but in terms of transfers we've spent 97% of the cash we generated. Others are that it's Chelsea, not us, who are still heavily reliant on owner finance and Spurs have absolutely cheated their fans, despite paying for their new stadium. Their true net spend over those 6 years is just over £1m. For comparison, even Arsenal have spent nearly £450m net in the same period. Even Liverpool, the next lowest net spenders, have spent over £330m.

 

[KS55]

After writing about this in KOTK a couple of months ago, I've posted a big thread on Twitter looking at the finances of the top 6 over the last six published accounting years (2015 - 2020).



There's lots of takeaways from this but the key one is that we reinvest virtually all the cash we generate. We have of course had external financing over the period, from China & Silverlake, but in terms of transfers we've spent 97% of the cash we generated. Others are that it's Chelsea, not us, who are still heavily reliant on owner finance and Spurs have absolutely cheated their fans, despite paying for their new stadium. Their true net spend over those 6 years is just over £1m. For comparison, even Arsenal have spent nearly £450m net in the same period. Even Liverpool, the next lowest net spenders, have spent over £330m.

Great thread, PB. One question: you say we have had external funding from China and Silverlake, but surely that all went to CFG or ADUG. We, that is MCFC, have not benefitted except indirectly, have we?
PS Tottingham, lol. Presumably the owners snaffled the excess.
PPS Much hard work by you appreciated.

 

[andyhinch]

After writing about this in KOTK a couple of months ago, I've posted a big thread on Twitter looking at the finances of the top 6 over the last six published accounting years (2015 - 2020).



There's lots of takeaways from this but the key one is that we reinvest virtually all the cash we generate. We have of course had external financing over the period, from China & Silverlake, but in terms of transfers we've spent 97% of the cash we generated. Others are that it's Chelsea, not us, who are still heavily reliant on owner finance and Spurs have absolutely cheated their fans, despite paying for their new stadium. Their true net spend over those 6 years is just over £1m. For comparison, even Arsenal have spent nearly £450m net in the same period. Even Liverpool, the next lowest net spenders, have spent over £330m.

Cheers for that, Spurs fans might feel cheated but at least they kept hold of Harry Hotspur :-)

 

[Prestwich_Blue]

Great thread, PB. One question: you say we have had external funding from China and Silverlake, but surely that all went to CFG or ADUG. We, that is MCFC, have not benefitted except indirectly, have we?
PS Tottingham, lol. Presumably the owners snaffled the excess.
PPS Much hard work by you appreciated.

Yes, that all went to CFG. We don't know what happened to the cash then but it's quite clear we were able to pay for our transfers solely out of money we generated from football operations.

 

[Blue Llama]

Chelsea report a loss of £146M

Chelsea announce annual losses after tax of £145.6m despite turnover rising to £416.8m

Chelsea announce losses after tax of £145.6m for the year to 30 June 2021, despite their turnover increasing to £416.8m.

www.bbc.co.uk

 

[Prestwich_Blue]

Cheers for that, Spurs fans might feel cheated but at least they kept hold of Harry Hotspur :-)

It does make me wonder whether Levy was so keen to keep him because he knew the incoming cash wouldn't be reinvested. So it works for him two ways; he's a hero to the fans but he saves himself from the realisation that he's short-changing them.

It's a bit like the situation with SWP, when we sold him to Chelsea for £21m and bought Samaras for £5m. It then started to dawn on us that we were skint and the management had no intention of investing to make us competitive.

 

[Blue Llama]

Chelsea report a loss of £146M

Chelsea announce annual losses after tax of £145.6m despite turnover rising to £416.8m

Chelsea announce losses after tax of £145.6m for the year to 30 June 2021, despite their turnover increasing to £416.8m.

www.bbc.co.uk

I find it impossible to see the difference between Fordstam supporting Chelsea and an individual owner wanting to support City, other than one provides funds as a debt and the other provided funds as Equity!!

 

[LongsightM13]

After writing about this in KOTK a couple of months ago, I've posted a big thread on Twitter looking at the finances of the top 6 over the last six published accounting years (2015 - 2020).



There's lots of takeaways from this but the key one is that we reinvest virtually all the cash we generate. We have of course had external financing over the period, from China & Silverlake, but in terms of transfers we've spent 97% of the cash we generated. Others are that it's Chelsea, not us, who are still heavily reliant on owner finance and Spurs have absolutely cheated their fans, despite paying for their new stadium. Their true net spend over those 6 years is just over £1m. For comparison, even Arsenal have spent nearly £450m net in the same period. Even Liverpool, the next lowest net spenders, have spent over £330m.

Brilliant thread PB
But the truth will always be the first casualty of war

 

[KS55]

It does make me wonder whether Levy was so keen to keep him because he knew the incoming cash wouldn't be reinvested. So it works for him two ways; he's a hero to the fans but he saves himself from the realisation that he's short-changing them.

It's a bit like the situation with SWP, when we sold him to Chelsea for £21m and bought Samaras for £5m. It then started to dawn on us that we were skint and the management had no intention of investing to make us competitive.

Levy, it is said, promised Harry Hotspur that Spurs would be competitive which was the basis of their gentleman's agreement. Had he read @Prestwich_Blue 's financial analysis first, he would never have signed that contract. Classic deception.

 

[DrBlueBob]

Excellent work. Makes it understandable for the layman. Thanks.