Matchday Finance’s Post

The fabric of Football is rapidly changing as a wave of foreign and institutional capital floods the sport. While club revenues have grown handsomely over the last three decades, the amount of money spent on player transfers and wages has ballooned significantly, and the latter has comfortably outpaced revenue growth over the last decade. Leagues and Associations are now having to clamp down on unfettered spending by club owners beyond their means and we´re suddenly witnessing instances of fines, docking of points and restrictions on clubs as a result. Fans are disillusioned by all of this happening as their clubs are punished not for the performance on the pitch but troubles off it. Regulations can help but they do not solve all of the problems. As the profile of club owners, ownership models and investor playbooks continue to evolve, football clubs need a better operating model to thrive in the modern day. All of that and more in my latest on The Atomic Investor ⚽ ⚽ (Link in the comments) #businessoffootball #theatomicinvestor

⚽ Behind the Finances of Football Clubs ⚽ Manchester United’s financial performance isn’t matching their brand power. I’ve analyzed their finances and uncovered where top clubs like Manchester United really spend their money and where they make the most. From player wages to broadcasting deals, this report breaks it all down. If you’re curious about how football clubs manage their finances, this is for you. (All figures in US$) #SportsBusiness #FootballFinance #ManchesterUnited

Did you know that star footballers like Messi and Ronaldo can be found on a club's balance sheet? It's true! Under International Accounting Standard 38 (IAS 38), player contracts and transfer fees are considered intangible assets. Here's how it works: Acquisition: When a club signs a player, the cost of the transfer fee (and related expenses) is capitalized as an intangible asset. Amortization: The asset's value is spread over the length of the player's contract. This reflects their gradual contribution to the club's economic benefits. Impairment: If a player's market value drops significantly, their carrying amount on the balance sheet must be adjusted downwards. Why does this matter? Transparency: This treatment provides a more accurate picture of a club's true financial position. Decision-making: IAS 38 helps clubs assess player valuations and inform transfer strategies. Investor insights: This information is key for investors and analysts wanting to gauge club performance. #accounting #footballfinance #sportsbusiness #intangibleassets #IAS38

⚽ 𝗛𝗼𝘄 𝘁𝗼 𝗮𝘀𝘀𝗲𝘀𝘀 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗵𝗲𝗮𝗹𝘁𝗵 𝗼𝗳 𝗳𝗼𝗼𝘁𝗯𝗮𝗹𝗹 𝗰𝗹𝘂𝗯𝘀? 💰 To evaluate the financial performance and stability of a football club, consider these criteria: 1️⃣ 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗦𝗼𝘂𝗿𝗰𝗲𝘀 💰 A diversified list of revenue streams indicates financial resilience and reduces dependency on any single revenue stream. 2️⃣ 𝗬𝗲𝗮𝗿-𝗼𝗻-𝗬𝗲𝗮𝗿 𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗚𝗿𝗼𝘄𝘁𝗵 📈 A constant growth rate of around 8-12% suggests financial stability and effective revenue generation strategies. 3️⃣ 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗥𝗲𝘀𝘂𝗹𝘁 📊 Following UEFA Financial Sustainability Regulations clubs' expenses should not exceed the revenue it is capable of generating. Clubs may exceed this limit up to a maximum of €60M during 3 years if the excess deficit is entirely covered by contributions in the reporting period, or equity at the end of the reporting period. 4️⃣ 𝗪𝗮𝗴𝗲-𝘁𝗼-𝗥𝗲𝘃𝗲𝗻𝘂𝗲 𝗥𝗮𝘁𝗶𝗼 💶 Ideally, wages should not exceed 65-70% of total revenue to ensure financial sustainability. 5️⃣ 𝗗𝗲𝗯𝘁-𝘁𝗼-𝗘𝗾𝘂𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼 💳 Monitor the club's level of financial leverage to mitigate risks and ensure long-term financial health. 6️⃣ 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲 𝗥𝗮𝘁𝗶𝗼 📉 Assess the club's ability to pay the interest due on outstanding debt (EBIT/Interest Expense). #Football #FinancialAnalysis #Revenue #Expenses #OperatingResult #Wages #Debt #Equity #Interest #FinancialRatios

€1.2 billion in talent loaned: Navigating the new FFP era in football transfers The recent winter transfer window has revealed a significant shift in the football transfer strategy of the Big 5 leagues. With a staggering €1.2 billion worth of talent loaned out and the Premier League contributing almost €600 million, clubs are adapting to Financial Fair Play (FFP) rules by leveraging loan deals. Let's dive into the strategic nuances behind these moves. 1: What impact have FFP regulations had on transfer strategies? Financial Fair Play rules are reshaping how clubs approach player acquisitions, prompting a move towards more economical loan transactions as interim solutions to avoid hefty spending and potential sanctions. 2: Why are loan deals becoming more prevalent in the Big 5 leagues? With clubs under tighter financial scrutiny, loaning players allows teams to strengthen their squads without committing to permanent signings, thereby managing budgets more effectively and complying with FFP guidelines. 3: Who are some of the most notable players moved on loan this window? High-profile players like Jadon Sancho, Kalvin Phillips, and Timo Werner have been loaned out, reflecting a trend where clubs and players alike seek opportunities for revival and development in new environments. 4: How are clubs using loan deals for emerging talents? The strategy of acquiring young talents and loaning them back for further development is growing. This approach allows top clubs to secure promising players early while they continue to mature in familiar settings, as seen with Gabriel Moscardo's move to Paris Saint-Germain. 💡 Learn more: The strategic depth of loan deals While the spotlight often shines on permanent transfers, this winter window underscores the strategic depth of loan deals in the football world. Clubs are not just seeking temporary fixes but are also laying the groundwork for the future, whether by giving players a stage to reclaim their form or by investing in the next generation of talent. As the landscape of football finance continues to evolve, so too does the creativity of clubs in navigating these challenges. #SportsBusiness #Football #SportsBiz #Finance #Data #Transfers #Intelligence #Investment

The premier league summer transfer window is in full swing, and the signs suggest that this summer will witness a significant drop in trading compared to the previous two seasons. Let’s break down the numbers so far and see what they reveal: The total expenditure on player acquisitions stands at £913 million, whilst clubs have earned £715 million from selling players. The result is a net spend of £198 million. Note that agent fees, which can add around 10% to the total amount spent, are not included in this calculation. In the previous summer clubs collectively spent a whopping £2.4 billion on player acquisitions and Income from player sales amounted to £1.3 billion giving a net spend of £1.1 billion. Summer 22 was even higher with a net spend of £1.2 billion. Interestingly the mix of clubs involved in spending has changed. Traditional big spenders like Chelsea, Arsenal, and Manchester City have been relatively quiet this time and eight clubs are currently net sellers. Whereas Ipswich and Southampton, both promoted sides, have made strong investments contributing a net spend of nearly £100 million between them. Brighton, previously a net seller has also significantly increased its investment and leads the pack with a net spend of £77 million. In summary, while there’s still time left in the transfer window, the data suggests a shift in spending dynamics, with profitability and sustainability breaks being applied by some. Football fans will be closely watching how these numbers evolve as the window progresses! We will keep you updated⚽ www.matchdayfinance.com Making football financial data accessible to all. #MatchdayFinance #PremierLeagueFinance #FootballAnalysis #Football #Soccer #DataAnalytics

🚨 𝗡𝗘𝗪 𝗢𝗡 𝗚𝗔𝗠𝗘 𝗦𝗧𝗔𝗧𝗘 🚨 Manchester United were the first English football club to announce 2023/24 financial results, recorded a whopping £131 million pre-tax loss last season. That is the second-highest loss in the club's history, and the fifth consecutive year United have recorded a deficit. Quite the turnaround for a once profitable club, and a damning indictment of the Glazer family's reign as owners. 2024 was a seismic year for United, as Trawlers Limited, an investment vehicle wholly-owned by Sir Jim Ratcliffe, acquired 27.7% of the club. The deal totalled around $1.65 billion, including a $200 million (£159 million) equity injection from Ratcliffe that represented United's first instance of funding from an owner since the club floated on the NYSE in 2012. A further $100 million (£75 million at today's rate) will be raised in shares on or before 31 December 2024. #MUFC remain a cash-generating machine but, just as profits have dwindled, so too is United's cash advantage slowing relative to their peers. Given the club has paid out over £400 million in dividends and interest on loans in the last decade, it will need to find new funding sources - or cut costs - if it is to remain competitive at the top end of English, and European, football. That will be made all the more difficult if United continue to miss out on the UEFA Champions League - this season is the fifth time in 11 years that United won't compete in Europe's premier club competition. There's all this and an awful lot more - including a detailed analysis of the club's compliance with both domestic and European financial regulations - in Game State's comprehensive look at Manchester United's latest accounts and financial position. You can read the piece for 🆓 here: https://lnkd.in/eiiN3_TJ And you can subscribe to Game State and receive 🆓 access to a 'Paid' subscription for the next six months here: https://lnkd.in/eTX69sDX If you like our work, please share and RT with your networks 👊

With the 24/25 season about to kick off, here are some tips to keep in mind to stay on top of club cash flow throughout the whole season. By following these tips, clubs can stay on top of their finances and ensure a successful season both on and off the pitch! #Youthsoccer #CashFlow #ClubCapital

Chelsea FC Financial Overview ⚽️ This report marks the beginning of a monthly review of clubs currently in the spotlight for potential issues regarding financial losses. With Chelsea facing an uphill climb this season, it felt right to dedicate my first monthly review to my childhood club. ⚽️ Chelsea FC has been at the forefront of criticism over the last two seasons due to the unprecedented investment in the men’s squad. This has led to many questioning whether the club will be able to comply with financial regulations. However, Todd Boehly and Clearlake Capital have consistently projected an air of confidence regarding the club’s financial health, seemingly unconcerned by the headlines and speculation. ⚽️ Given management’s confidence despite recent headlines, I decided to dive into the club’s financials to see if there is cause for concern. ⚽️ This report will cover a range of topics, including the club’s performance on-the-pitch over the years, the recent change in ownership, squad financials, and a forecast of the club’s financials. ⚽️ I must acknowledge that forward-looking estimates in this report may vary in accuracy and completeness. While every effort has been made to ensure the data’s reliability, readers should interpret the findings with a degree of caution. #ChelseaFC #FinancialAnalysis #PremierLeague #FootballFinance #PSR

Following a record-breaking financial performance in 2022/23, Manchester City Football Club is projected to face financial challenges in the 2023/24 season. Rising expenses, driven by increased wages and new player acquisitions, are expected to reduce profits by two-thirds. Despite projecting over €800 million in revenue, ongoing legal issues and higher costs may impact the club's ability to replicate last season's financial success. Read the forecast 👇 https://lnkd.in/dkibDGPD #FootballFinance #SportsBusiness #Football #Finance #SportsBiz #Intelligence #Data