ECHO Comment: "Fears of Witch-hunt Against Liverpool FC" part 3

[gwladysnight]

Every club in the PL is reliant on TV money however only a handful of clubs have owners who put alot of money in out of their own pocket - Man City, Chelsea, Everton and to a lesser extent Wolves all spring to mind.

Clubs like Arsenal, Utd and Liverpool have Yank owners who run clubs like a business - I would rather be secure in the knowledge of having multi billionaire benefactors in a recession than Yanks chasing the penny.

Remember Liverpool are the ones who have postponed their stadium development whereas Everton are pushing ahead with the new stadium - that alone is VERY telling about the financial power of each clubs respective owners.

Also that £100 odd loss is due us spending big money - it doesnt indicate anything about the clubs finances other than we are spending top 4 money without the top 4 revenues - City and Chelsea also posted record losses before they achieved success and attracted the increased revenue that comes with it.

Once Everton get the USM naming rights deal / new shirt sponsorship deal which I imagine will be a tidy deal from one of Usmanovs companies our losses over the years will reduce regardless of what we spend.

It isn't that simple. Transfer fees are amortized over the length of players contracts. So we are going to have to continue to service those amortization payments for the next few years at the very least. That will be with reduced income.

As for owners putting money in. They are only allowed to put in certain amounts without breaching FFP.

We have got away with it so far. However, there are a few problems on the horizon. Firstly City are producing a dossier outlining how other Clubs have breached the rules surrounding owners putting in money. The other is that it is going to look bang on if everyone else sees their commercial revenue decline whilst our goes up.

 

[catcherintherye]

We are far more reliant on TV money than them. Sky wanting money back will affect us far more than them.

What you seem to be willingly ignoring is that we made a £112m loss before corona they made a massive profit. We also have a Stadium to finance they don't.

We are yes. However (if the season finishes) the loss of revenue from Sky will be far smaller than that of sponsors and gate receipts.

I am not ignoring it at all. Everton also have difficult problems, but I don't think that is any surprise. This has been written about extensively. The fact that Liverpool will be in a similarly tough spot is a big change. The losses we made last year, they will have made from not playing the last 3 months alone.

 

[catcherintherye]

It isn't that simple. Transfer fees are amortized over the length of players contracts. So we are going to have to continue to service those amortization payments for the next few years at the very least. That will be with reduced income.

As for owners putting money in. They are only allowed to put in certain amounts without breaching FFP.

We have got away with it so far. However, there are a few problems on the horizon. Firstly City are producing a dossier outlining how other Clubs have breached the rules surrounding owners putting in money. The other is that it is going to look bang on if everyone else sees their commercial revenue decline whilst our goes up.

Their transfer debt is about 60m last season, maybe more next season.

 

[catcherintherye]

I'll take your word on £90m so presumably it's a similar situation for the other clubs in Europe?

I'd argue in that situation the whole economic future of football changes.

If Madrid want to sign Mbappe they can't suddenly spend pre Covid money.

There's just less money floating about for everyone.

Don't get me wrong, short term I think every club will be wary, and slowly things will resemble normal but that won't be £80m centre backs and Sancho going for £100m + but I think everyone will be the same. Any sort of sponsorship bonus applicable to the RS will be the same for anyone. Granted on different a different scale

Don't take my word onit mate, David Maddocks is predicting £3m+ per game.

I agree with the rest, prices are going to fall massively. They will not be in a position to take advantage of it though.

 

[Toast]

We are far more reliant on TV money than them. Sky wanting money back will affect us far more than them.

What you seem to be willingly ignoring is that we made a £112m loss before corona they made a massive profit. We also have a Stadium to finance they don't.

We're also crap and they are current European champions and have absolutely goosed the league.

 

[gwladysnight]

Their transfer debt is about 60m last season, maybe more next season.

What do you mean by transfer debt ?

Are you talking about transfer profit and loss or future amortization payments.

 

[GP_Monty]

Some financial reaching in here that Stevo would be proud of.

 

[catcherintherye]

What do you mean by transfer debt ?

Are you talking about transfer profit and loss or future amortization payments.

There transfer incoming v outgoing in 2019 showed a £60m deficit.

 

[MikeH72]

We are far more reliant on TV money than them. Sky wanting money back will affect us far more than them.

What you seem to be willingly ignoring is that we made a £112m loss before corona they made a massive profit. We also have a Stadium to finance they don't.

Big Red have 32 games out of 38 shown live on TV every season, imagine thinking they don’t get a massively bigger chunk of TV money than everyone else.

 

[MikeH72]

Just reviewed @gwladysnight posting history and it turns out he’s a very interesting individual indeed. I suspect his days on this forum are numbered. Signed up on 8th May 2019, the day after Big Red beat Barcelona in the CL, and this was his first post, the day after they beat Spurs.

https://www.grandoldteam.com/forum/threads/the-champions-league-final-spurs-v-the-other-lot.107178/page-123#post-7053403

 

[Minimeister]

Just reviewed @gwladysnight posting history and it turns out he’s a very interesting individual indeed. I suspect his days on this forum are numbered. Signed up on 8th May 2019, the day after Big Red beat Barcelona in the CL, and this was his first post, the day after they beat Spurs.

https://www.grandoldteam.com/forum/threads/the-champions-league-final-spurs-v-the-other-lot.107178/page-123#post-7053403

VERY interested in club's finances I see.

 

[Toast]

Just reviewed @gwladysnight posting history and it turns out he’s a very interesting individual indeed. I suspect his days on this forum are numbered. Signed up on 8th May 2019, the day after Big Red beat Barcelona in the CL, and this was his first post, the day after they beat Spurs.

https://www.grandoldteam.com/forum/threads/the-champions-league-final-spurs-v-the-other-lot.107178/page-123#post-7053403

What about The Pips ?

 

[Ollie d]

What about The Pips ?

Here's hoping he takes a midnight train to Georgia...

 

[ForeverBlue92]

It isn't that simple. Transfer fees are amortized over the length of players contracts. So we are going to have to continue to service those amortization payments for the next few years at the very least. That will be with reduced income.

As for owners putting money in. They are only allowed to put in certain amounts without breaching FFP.

We have got away with it so far. However, there are a few problems on the horizon. Firstly City are producing a dossier outlining how other Clubs have breached the rules surrounding owners putting in money. The other is that it is going to look bang on if everyone else sees their commercial revenue decline whilst our goes up.

Last season we actually made a profit FFP wise of around £10 million or so (which will be shown when accounts for this year are released in 2021) however the main thing that gives us some room to manoeuvre is Usmanovs £30 million naming rights option and the increase of Finch Farms naming rights deal from £6 to £12 million - essentially £36 million extra revenue for nothing.

Its important we get the summer business right however - even if UEFA lighten FFP this summer (which I expect they will in order for the rich clubs to throw dosh around which inevitably seeps down the food chain to those clubs worse hit by all this covid carry on).

It'll be interesting when the club announces 1. Who its new shirt sponser is and 2. How much the naming rights option will be on the new ground - I also imagine those initial deals will be constantly 'renewed' by USM should the club qualify for Europe etc.

The club havent attracted Ancelotti to give him pennies to spend imo.

 

[malfosse]

Some financial reaching in here that Stevo would be proud of.

How do you know a poster who was banned before you joined?