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Football Finance

If I had to do valuations my top 5 are
  1. Madrid
  2. Bayern
  3. Liverpool
  4. Man United
  5. Barca
Liverpool 3rd purely because it has less debts than Man U and Barca
 
The valuations are what is called "enterprise value", which is the value of the business if you ignore any debt it owes, so many of those clubs will be worth less than what's shown.
I took a look at the figures Forbes had put forward and they are, in essence, a load of bollocks.

Now that's a technical term I remember well from accounting class when I qualified as a company secretary. ;)
 
Hey @Beamrider . All this money Chelsea are spending. What's the business model there, is it something along the same lines as FSG do you think?
 
Hey @Beamrider . All this money Chelsea are spending. What's the business model there, is it something along the same lines as FSG do you think?
I think it's a dick-measuring contest. There's no discernible strategy in their buying, they're like kids in a sweet shop with £20 in their pockets.
Just a case of new owners trying to make waves.
Obviously they have issues defensively with the players they've lost so that needed sorting, but I suspect that over the last few months it's been full-on chaos at Chelsea. Managing from day to day and no sense of a longer-term plan. If there was any long-term thinking it was probably Buck and Granovskaia who held that plan and they've both been kicked out.
To be fair, FSG inherited something similar when they took us over and had to clear out all the shite Hodgson had brought in. I think they've fallen into that new owner trap, but I also don't think they could do nothing in this window because there were glaring holes in the squad.
As far as the finances go, Chelsea have high wages to deal with and I doubt all this spending is helping with that, but historically they've managed to make enough money selling off fringe players to get by within FFP (also possibly they have had high levels of expense related to stadium expansion and youth academy that they could add back). In their position, I'd probably be less interested in the current FFP rules (I'd try to argue that a combination of covid and Ukraine were circumstances beyond their control and bank on a light punishment if they fail) and I'd focus more on the new wages to turnover measures.
As I've said before, American owners tend to think they can do commercial better, so they'll be assuming they can increase their commercial turnover to meet the future requirements (because it doesn't look like they're trying to rein in wages), but I think they need to calm down right now and think longer term.
 
Newcastle was said to be able to spend close to £200m without infringing FFP. With Chelsea having higher earnings, I would expect the figures to be higher for them. "Infrastructure, academy and community schemes, all of which are exempt from FFP" too.


[article]In summary, clubs can make a cumulative £35m loss per season over a three year rolling accounting period i.e. a total loss of £105m with certain conditions attached. If a club’s losses exceed £15m for the three year period, owners would have to provide evidence of ‘secure funding’ i.e. guaranteeing the remaining £90m so if the owners do not want to invest further monies, the remaining £90m can be used to cover the overspending.[/article]

Regarding the bold part, it shouldn't be a problem since they already "set aside" the money as part of the takeover.

https://www.goal.com/en-sg/news/boe...erred-chelsea-bidder-but-/blt30c8d1ac1dfd9786
[article]Any prospective bidder has been asked to guarantee a minimum of £1 billion further investment over 10 years which would go towards the stadium, women's and academy teams.

Along with the costs of buying the club, it would raise the overall financial commitment of the project to between £3.5 billion and £4 billion.

Like the other potential options, the new Blues owners have promised investment into all areas of the club and to work on the stadium.

Architects Jane Marie Smith and David Hickey, the latter who is the former project director for Abramovich’s now-cancelled 60,000-seat redevelopment, are being consulted about reviving plans for Stamford Bridge. [/article]
 
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[article]LOSC Lille have made huge margins on player sales in recent years, and much of it has been powered by Premier League clubs – Amadou Onana to Everton is the latest. English clubs make up seven of LOSC's top ten sales.[/article]

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The icing on cake is he scored the winner in the 11th minute of stoppage time for Atletico Madrid against Porto yesterday.
 
https://www.bbc.com/sport/football/62833665

[article]Football agents earned $494.4m (£430.8m) in the latest transfer window, says governing body Fifa.

They released a snapshot report detailing analysis of international transfer activity over the summer.

It reveals that football agents collectively banked almost 10% of the $5bn (£4.36bn) total value of male player transfers.

This year also saw record-high numbers of male and female player transfers across the globe.

The report showed that the ratio of agent service fees to transfer fees during the mid-year registration window has grown from 6.1% to 9.9% in the last 10 years.

This year's total male transfer window value of $5bn (£4.36bn) surpasses the previous year's, increasing by 29.7%.

Most of the transfer business from the summer was conducted in English football, with the Premier League spending a record £1.9bn.

Further records were broken, with Manchester United's £81.3m signing of Antony becoming the Premier League's most expensive final day transfer ever.

Whilst English football's deadline-day was the first of September, the transfer window for several European countries such as Turkey ends today.

Women's football recorded 684 international transfers - an increase on last year's figure of 14.4%. Meanwhile, the men's game saw an increase of 16.2% with 9717 registered transfers.[/article]
 
https://www.dailymail.co.uk/sport/f...ncial-year-despite-lasting-effects-Covid.html
[article]Real Madrid have announced they made an £11million (€13m) profit in the previous financial year despite the ongoing financial effects of Covid in LaLiga.

The news comes after club president Florentino Perez held a meeting with club shareholders to update them on the financial picture at the Santiago Bernabeu.

A statement released on the Spanish champions' website said the club's net worth stood at a staggering £473m (€546m) in June - an increase for the third straight season and up from last year's £463m (€534m).

The club also announced £368m (€425m) is available for the club to spend as they choose.


The statement adds Madrid's operating income in 2021-22 increased by 10 per cent in comparison to the previous financial year, rising from £566m (€653m) to £626m (€722m).

That yield comes despite the fact the 14-time European champions losing approximately £347m (€400m) due to the pandemic.

Madrid also recouped £8m (€10m) more in player sales than they spent on new additions in the summer transfer market.

That result is largely down to the £70m sale of Brazil midfielder Casemiro to Manchester United, the third highest transfer fee they have ever collected behind Angel Di Maria and Cristiano Ronaldo.

Perez therefore stated the club are in strong financial shape, which appears rosy compared to the issues with rivals Barcelona.

The Catalan giants' ability to bring in a host of big name signings this summer was brokered by a huge hike in their wages allowance from LaLiga.

Following the January transfer window, Barca were the only team in the Spanish top-flight to have a negative salary cap at minus £125m (€144m) - essentially urging them to slash their wage bill.

But the Catalan giants were given leeway this season to spend an incredible £569m (€656m) - a hike of £694m.

Madrid meanwhile had a figure of £592m (€683m) - £46m down on last season's figure.

The Champions League holders had a modest summer by their standards, with their only major signings coming in Aurelien Tchouameni from Monaco for £72m and the free transfer of Antonio Rudiger, who left Chelsea at the end of last season.

LaLiga first brought in a salary cap in 2013, with the belief that the league needed to protect the long-term financial health of its clubs.

It was believed that too many clubs - examples that have been cited by the league bosses include Deportivo La Coruna and Racing Santander - between the first and second divisions were putting themselves at risk with limited protections across their finances.

The salary cap works on the understanding that each club is given a different cap depending on the revenue and spending that occurred during the previous season.

Major clubs such as Real Madrid and Barcelona have typically been able to spend significantly more than smaller clubs because they generate more money.
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The Premier League does nothing for a reason, to them City spending £100m on wank players like Grealish every summer is a feature of the system not a flaw. The only way the EPL will do anything about this is when viewing figures crater if City start winning 6 or 7 in a row like PSG or Bayern. They don't care if City win but they do need it to be competitive or else people stop watching.
 
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