Other club's finances

[The Esk]

Thought it might be useful to have a thread dedicated to the finances of other clubs.

I can tell already this will be very popular!

Start with Manchester United's results announced today for 2014-15.

Article from the Guardian

Will have a proper look at their accounts over the weekend - main point of interest is that the club has announced they will be paying quarterly dividends - allowing the Glazers to receive £15m a year in dividends.

Other figure of note - this year's turnover expected to be £500 million with profits of £165 million - totally a different league.

 

[Lids1978]

Read this earlier about the dividend payments to the six Glazer children. 2.5m each. Their commercial revenue just keeps growing and growing though so there doesn't seem to be the same opposition amongst their fans' as there was initially. That and they've banned a number of long-term fans' who had anti glazer banners,etc. in a fairly forceful manner.

 

[Toffeemeister]

Thought it might be useful to have a thread dedicated to the finances of other clubs.

I can tell already this will be very popular!

Start with Manchester United's results announced today for 2014-15.

Article from the Guardian

Will have a proper look at their accounts over the weekend - main point of interest is that the club has announced they will be paying quarterly dividends - allowing the Glazers to receive £15m a year in dividends.

Other figure of note - this year's turnover expected to be £500 million with profits of £165 million - totally a different league.

£500 million ! Man that is depressing for any Evertonian to read !!!

That profit is way more than our turnover !

How is there revenue growing when they are struggling on the pitch ?!

 

[Lids1978]

£500 million man that is depressing for any Evertonian to read.

That profit is way more than our turn over. How is there revenue growing when they are struggling on the pitch ?!

Massive ten year deal with Adidas, the amount of jerseys they sell all over the world,the constant increases in the prices they charge, etc.

 

[Toffeemeister]

Massive ten year deal with Adidas, the amount of jerseys they sell all over the world,the constant increases in the prices they charge, etc.

Yeah I know. It's just depressing watching us fall further behind the competition.

 

[riddick]

You know, if England loses that 4th CL spot, it could cause the end of this rather rapidly. I think all these deals are predicated on being in the CL, so if Arsenal/City/Chelsea/United are now fighting for only THREE spots, someone's going to pull out sooner rather than later. Could start a domino effect..

 

[tim gabbott]

May be its time to lock the how stupid are Man U thread

 

[The Esk]

Just some highlights from United's latest annual report 2014/5:

Turnover: £398 million down by £38.3 million due to failure to qualify for CL.

Forecast turnover for 2015/6: £503 million

Sponsorship revenue 2014/5: £156 million

Matchday revenues £91 million down £17.55 millions

Gross Debt: £414 million up from £349.7 million
Net Debt: £256.7 million down from £276 million
Interest payments: £35.5 million up from £27.6 million

So as forecast, the failure to qualify for the CL hit Manchester United's revenues by around 9%. What's interesting here is that the CL whilst important in attracting long term sponsorship deals initially, is actually less important on a year by year basis. Sure, consistent failure to qualify would effect future sponsorship deals and may trigger break clauses in existing deals, but a one off blip really does not change much - it certainly does not put the club under any immediate financial pressure.

The big news relates to the owners, the Glazers, and two items in particular. Firstly their decision to award A and B class shareholders (of which the Glazers represent 80%) quarterly dividends initially amounting to £15 million a year. What I find surprising (or perhaps not surprising) is that there has not been a peep out of the Premier League as to the decision to pay dividends from what is, whilst perfectly solvent, a heavily indebted club.

Secondly, the Glazers are planning to sell off another £275 million of shares (at current prices) to new or existing owners. The beneficiaries of the sale will not be the club but the Glazers themselves. Post this sale the Glazers will have received in excess of £609 million in return for selling part of their equity stake.

No wonder their boardroom serves the best wines in the Premiership!

 

[peteblue]

Just some highlights from United's latest annual report 2014/5:

Turnover: £398 million down by £38.3 million due to failure to qualify for CL.

Forecast turnover for 2015/6: £503 million

Sponsorship revenue 2014/5: £156 million

Matchday revenues £91 million down £17.55 millions

Gross Debt: £414 million up from £349.7 million
Net Debt: £256.7 million down from £276 million
Interest payments: £35.5 million up from £27.6 million

So as forecast, the failure to qualify for the CL hit Manchester United's revenues by around 9%. What's interesting here is that the CL whilst important in attracting long term sponsorship deals initially, is actually less important on a year by year basis. Sure, consistent failure to qualify would effect future sponsorship deals and may trigger break clauses in existing deals, but a one off blip really does not change much - it certainly does not put the club under any immediate financial pressure.

The big news relates to the owners, the Glazers, and two items in particular. Firstly their decision to award A and B class shareholders (of which the Glazers represent 80%) quarterly dividends initially amounting to £15 million a year. What I find surprising (or perhaps not surprising) is that there has not been a peep out of the Premier League as to the decision to pay dividends from what is, whilst perfectly solvent, a heavily indebted club.

Secondly, the Glazers are planning to sell off another £275 million of shares (at current prices) to new or existing owners. The beneficiaries of the sale will not be the club but the Glazers themselves. Post this sale the Glazers will have received in excess of £609 million in return for selling part of their equity stake.

No wonder their boardroom serves the best wines in the Premiership!

Always buy the best you can afford. They bought the best club, it basically cost them nothing and they are milking it for every penny. They can keep this going for years and then if they wish cash in with a multi billion sale. Michael Knighton must still be kicking himself........

 

[hibbos left peg]

The personal wealth of every clubs owner was published the other week, might have been a thread, and it was surprising to see the Tottenham owner was worth as much as abramovich. It was concerning to see the villa owner being worth 20x more than bumbling bill.

you wonder how we actually compete, because footballs all about money isn't it?

 

[Eggs]

Just some highlights from United's latest annual report 2014/5:

Turnover: £398 million down by £38.3 million due to failure to qualify for CL.

Forecast turnover for 2015/6: £503 million

Sponsorship revenue 2014/5: £156 million

Matchday revenues £91 million down £17.55 millions

Gross Debt: £414 million up from £349.7 million
Net Debt: £256.7 million down from £276 million
Interest payments: £35.5 million up from £27.6 million

So as forecast, the failure to qualify for the CL hit Manchester United's revenues by around 9%. What's interesting here is that the CL whilst important in attracting long term sponsorship deals initially, is actually less important on a year by year basis. Sure, consistent failure to qualify would effect future sponsorship deals and may trigger break clauses in existing deals, but a one off blip really does not change much - it certainly does not put the club under any immediate financial pressure.

The big news relates to the owners, the Glazers, and two items in particular. Firstly their decision to award A and B class shareholders (of which the Glazers represent 80%) quarterly dividends initially amounting to £15 million a year. What I find surprising (or perhaps not surprising) is that there has not been a peep out of the Premier League as to the decision to pay dividends from what is, whilst perfectly solvent, a heavily indebted club.

Secondly, the Glazers are planning to sell off another £275 million of shares (at current prices) to new or existing owners. The beneficiaries of the sale will not be the club but the Glazers themselves. Post this sale the Glazers will have received in excess of £609 million in return for selling part of their equity stake.

No wonder their boardroom serves the best wines in the Premiership!

....interested to know if a season or two in Europa means Champions League regulars take less of a hit than not being in Europe at all. I suspect the answer is no and the short-term losses would be about the same.

Similarly, for a club like ours would continuous Europa League football result in significantly improved finances (clearly not at the same level as Champions League).

 

[toffeejack]

i still can't believe glazer was 85 when he died, looked phenomenal for his age!

 

[The Esk]

http://www.theguardian.com/football/2015/nov/09/bournemouth-us-investor-25-per-cent-stake-peak6

Peak6 Investments, a Chicago based PE firm have bought a 25% stake in AFC Bournemouth.

 

[Ashtonian]

credit where credit is due here Uniteds board really knew what they were doing back when the sky era began. no other club actually kicked on like they did, closest being Newcastle who lost ground, Leeds who lived on borrowed time and Blackburn who had a massive injection and no forward planning.
arsenal are only where they are because of wenger and obviously the rest had take overs.

business wise United are light years ahead of anyone and will be for a long time. city have the right idea now and if the money remains then they will be as big as anyone in the world withing the next 15 years but it's ifs and buts right now.

 

[hibbo'sclass]

The big news relates to the owners, the Glazers, and two items in particular. Firstly their decision to award A and B class shareholders (of which the Glazers represent 80%) quarterly dividends initially amounting to £15 million a year. What I find surprising (or perhaps not surprising) is that there has not been a peep out of the Premier League as to the decision to pay dividends from what is, whilst perfectly solvent, a heavily indebted club.

Secondly, the Glazers are planning to sell off another £275 million of shares (at current prices) to new or existing owners. The beneficiaries of the sale will not be the club but the Glazers themselves. Post this sale the Glazers will have received in excess of £609 million in return for selling part of their equity stake.

No wonder their boardroom serves the best wines in the Premiership!

Bit surprised by the above to be honest.
Para 1. If the company is solvent and has reserves to do so, the debt position is not a major consideration when paying a dividend unless paying it diminishes cashflow to the extent that the company cannot meet it's obligations to creditors as they arise.
Also it's a Cayman company listed in NY so which court would have jurisdiction if the Premier League tried to do anything. Possibly the UK, so would it not follow that the same rules would apply as if and it were a UK company, i.e. as long as it were acting within the provisions of the Companies Acts, don't think the Premier League could do a great deal about it.
Para 2. If they're selling their own shares and diluting their holding, they are perfectly entitled to the sales proceeds. It's like our board selling and us being shocked when they receive the money.
Para 3. Never been in their boardroom, don't drink anyway so not really bothered.