Financial gap is closing! + More Transfer Fees?

[TheDevils2001]

Premier League chiefs say financial gap is closing May 13 2008


by Ian Doyle, Liverpool Daily Post

PREMIER League chiefs insist the financial gap between the top clubs and those at the bottom is closing despite Manchester United’s record income from the season.​

Sir Alex Ferguson’s side earned £78million in television cash and prize money over the season, £50m more than bottom side Derby County.​

The equivalent figure last season, under the previous broadcast deals, was £40m – and it was just £30m in the 2005-06 season when earnings from the Champions League were not so high.​

Using the criteria set down in the Press Association’s annual money league table, which does not include merchandise income and gate receipts, Liverpool raked in £63.4m – up on last year’s figure of £54.7m.​

Everton’s increase was even more marked, rising from £25.7m to £42.1m.​

However, the figures suggest their lengthy UEFA Cup run was worth only £500,000, while the club, when taking everything into account, have calculated the amount to be at least £3m.

In percentage terms the smaller clubs have done better than the bigger ones.​

United’s income rose 25% compared to last season, while Derby earned £28.2m, a 56.5% increase on the £18m earned by Watford a year ago.​

Premier League communications director Dan Johnson said: “The new broadcasting deals are closing the gap, because the biggest increases have been in the overseas contracts which are divided equally between the 20 clubs.​

Furthermore, the increase in money means a lot more to the smaller clubs because it is a much bigger percentage of their turnover.”​

Johnson also pointed out that all clubs are now guaranteed a minimum of 10 payments for being featured in live games, whether or not they actually appear in 10 live matches.​

That means all 20 clubs are guaranteed £4.6m in ‘facility fees’ plus a further £460,000 for each extra live game they are featured in.​

For example, Newcastle were screened in 20 live league matches, meaning they earned £9.2m from facility fees – double the amount of the likes of Middlesbrough, Bolton and Wigan who all featured in fewer than 10.​

The Champions League continues to be the big divide with a huge gap between the four clubs in the elite European competition and the rest.​

United earned at least £28.1m from Europe – and will top the £30m mark if they win the final – while Liverpool took in £18m.​

Looks like we have almost £17M increase of income this year with UEFA money to top it up, an extra £1~1.5M from Man Utd and wasn't there suppose to be a loan taken out by one of the board member which was suppose to be used to sign Fernandes last summer but was only used in Yakubu and Dan Gosling.

Not to mention there is money from selling some of our player last summer and January:-

Players Name -------------- To ----------------------Transfer Fee ---------Date
Anderson de Silva --------- Barnsley -------------Undisclosed ---------31/01/2008
James McFadden ----------Birmingham City -----£5m rising to £6m ---18/01/2008
James Beattie --------------Sheffield United ------£4m rising to £4.5m -04/08/2007
Gary Naysmith -------------Sheffield United ------£1m -----------------05/07/2007

I imagine Anderson should get us around £1m, so we should got around £12.5~13m transfer fees from selling these player.


I think with this increase of income, may be just may be we could spend close to £40M this summer.

Wish we could have reach the UEFA final there would be £2~3M extra income as well.

What do you guys think? With this income and possible expenditure what do you guys think we could spend this summer on transfer fees?

Anyone has a better idea in our expenditure this season?

 

[Blue Lou]

Anderson was sold to Barnsley for up to 700k based on appearances apparently.

We signed him for 500k so it was good business imo if it's true.

 

[uknightbreed]

well we need the figures for the following...

transfers out
5th place finish fee
uefa run fee
sponsership fee
tv money fee
rooney knock on fees

i really havent a clue , but i think we spent around 25 million (including pienaar) in the past 12 months.

we had a good season so i think its fair to say we should have 25 million + again.

we lose wessels , gravesen , gardner and maybe fernandes so we do potentially need atleast 4 new faces. so every penny matters.

i think the wage structure may have to be looked at too. over the past few seasons i could imagine it has rocketed up.

so would you buy 4 x 6.5 million potentially good players all on 40 k wages ?
or would you buy 2x 13 million proven world class players , both on 80 k , then make 2 loan signings to make it to 4 new players?

 

[TX Bill]

I'd rather we spend 25M max and then anything left over, pay down debt and reduce our interest expense.

 

[TheDevils2001]

I'd rather we spend 25M max and then anything left over, pay down debt and reduce our interest expense.

Is a good idea in some way but I feel it would all depend on who would come to us and if the right players come up we might spend more than last summer it all depend on that.

We needed more player and some world class player if they would come, we have not been spending alot in the past couple of summer so we should be capable of spending much more in this summer

let's see who Moyes has in mind and would they come.

 

[Bruce Wayne]

Worth remembering that we probably bought many of our players in installments. How much do we have to pay this season for the likes of Lescott, Yakubu and Jags?

 

[TheDevils2001]

Worth remembering that we probably bought many of our players in installments. How much do we have to pay this season for the likes of Lescott, Yakubu and Jags?

Na, is nothing much left Lescott and Jags probably is paid off already, only Yakubu is going to be the problem.

And with the income we are getting this season we should have no problem any way.

 

[Blue Wiz]

so would you buy 4 x 6.5 million potentially good players all on 40 k wages ?
or would you buy 2x 13 million proven world class players , both on 80 k , then make 2 loan signings to make it to 4 new players?

Depend on the player we'd get. I have no trouble with Moyes getting loan signings like he did when he got Pienaar, Yobo and so forth. It will give him a year to evaluate on how the player settles into the team and the style of play before splashing out money to sign him permanently. Have a trouble seing Moyes give two new players £80k/week in addition to the wages for the loan signings, unless those players really were great ones.

 

[Neiler]

I find Moyes's reaction this summer, strange from most other summers, hes never banhed on about the need to invest money in the team like he has this year, even last year when the club really blew us out of the water on what they spent close to 25mill.

So if Moyes is saying he needs decent investment to break into the top four does that mean over the figures we paid out last year, its a suspicious one, but time will tell.

 

[TX Bill]

Depend on the player we'd get. I have no trouble with Moyes getting loan signings like he did when he got Pienaar, Yobo and so forth. It will give him a year to evaluate on how the player settles into the team and the style of play before splashing out money to sign him permanently. Have a trouble seing Moyes give two new players £80k/week in addition to the wages for the loan signings, unless those players really were great ones.

Good point and you gotta admit that for the most part, Moyes has done a decent job in finding players on loan.

 

[Bruce Wayne]

Daft thing is that the fans the clamour for big spending in the summer will be the first to carp when the annual report comes out at how much debt we've taken on. Go to the money tree Mr Moyes, go to the money tree.

No wonder so many have messed up personal finances in Britain.

 

[Nebbiolo]

Daft thing is that the fans the clamour for big spending in the summer will be the first to carp when the annual report comes out at how much debt we've taken on. Go to the money tree Mr Moyes, go to the money tree.

No wonder so many have messed up personal finances in Britain.

I agree wholeheartedly, Bruce. We're hardly drowning in excess finance. Every penny spent above any net gain represents, at best, creative accounting or, worse, risk taking. We must live within our budget and not get into this state of mind that thinks Bill is somehow able to conjure up untold millions without putting the club at risk.

 

[McBain]

Daft thing is that the fans the clamour for big spending in the summer will be the first to carp when the annual report comes out at how much debt we've taken on. Go to the money tree Mr Moyes, go to the money tree.

No wonder so many have messed up personal finances in Britain.

I didnt see anything other than new cars when I was there.

 

[TX Bill]

Daft thing is that the fans the clamour for big spending in the summer will be the first to carp when the annual report comes out at how much debt we've taken on. Go to the money tree Mr Moyes, go to the money tree.

No wonder so many have messed up personal finances in Britain.

That's why I'd like to see us pay off some of our debt, even if it's a small amount.