After Liverpool manager Jurgen Klopp’s recent comments regarding transfer spending and Premier League club funding, the attention has once again shifted towards how top-flight clubs manage their finances. While speaking to the media about the club’s lack of transfer activity in a BBC interview, Klopp claimed that Liverpool can’t be run like other clubs who are owned by ‘countries’ and ‘oligarchs’. Now popular Twitter account Swiss Ramble, which is famous for its insights on the business of football has broken down Premier League finances by explaining how each club functions when it comes to finances. The account also claimed that London clubs Tottenham and Chelsea have received the maximum amount of funding over the past five years (2014-2019).
In the last 5 years, the 20 Premier League clubs have benefited from £1.9 bln net financing with most of the money coming from their owners £1,569m (81%) and another £366m (19%) sourced from banks. However, there is a big difference between business models at individual clubs. pic.twitter.com/lcBHAH5s6I— Swiss Ramble (@SwissRamble) September 14, 2020
The thread begins with discussing how Premier League clubs manage their finances. While the majority of the funds are secured through gate receipts, TV deals, prize money et al, clubs also get additional financing from Premier League owners or banks. The thread by Swiss Ramble covered the Premier League finances of 20 clubs in the league over the past five years. The data collected by Swiss Ramble showed that Premier League owners have pumped in £1,569 million into their clubs when it came to net financing, with a further £366m sourced as loans from banks.
In terms of total financing, two clubs have received by far the most in the last 5 years, namely #THFC £521m and #CFC £433m, followed by #EFC £256m, #AVFC £224m and #FFC £186m. In stark contrast, #MUFC and #AFC had significant net cash outflows with £169m and £101m respectively. pic.twitter.com/CUNYpZa3mG— Swiss Ramble (@SwissRamble) September 14, 2020
As far Premier League club funding is concerned, it was Chelsea and Tottenham which received the maximum funding. Tottenham received £521 million while Chelsea received £433 million during the five-year period. Other clubs that received funding upwards of £200 million include Everton and Aston Villa. While Chelsea and Tottenham were the top gainers, clubs like Manchester United and Arsenal actually showed cash outflows of £169 million and £101 million during the same period.
Seven clubs have benefited from more than £100m funding from their owners in the last 5 years. #CFC lead the way with £440m, followed by #EFC £299m, #AVFC £193m, #FFC £186m, #BHAFC £160m, #MCFC £142m and #WWFC £131m. On the other hand, #MUFC have paid £89m to their owners. pic.twitter.com/yUXsqiXbmQ— Swiss Ramble (@SwissRamble) September 14, 2020
Almost all of the external financing has come at just one club, namely #THFC £561m, who have taken out huge loans to fund the construction of their new stadium. There were large net outflows, either debt repayments or interest payments, at #AFC £101m, #MUFC £80m and #EFC £43m. pic.twitter.com/svtj5sVfGz— Swiss Ramble (@SwissRamble) September 14, 2020
The thread by Swiss Ramble also made an interesting comparison regarding the relationship between Premier League finances and Premier League owners. Notably, more than seven Premier League clubs have received upwards of £100 million from their owners over the past five years. The list was topped by Chelsea, who received £440 million. On the other end of the spectrum, clubs like Manchester United ended up paying £89 million to their owners. Tottenham however, relied largely on external financing when it came to funding requirements. Spurs took out huge loans to fund the construction of their new stadium, with the amount totalling a massive £561 million.
In addition, some owners have provided cash to their clubs in the form of additional share capital, mainly #AVFC £193m and #MCFC £142m, followed by #LUFC £21m, #SUFC £17m and #CPFC £11m. On the other hand, #THFC spent £40m to buy back preference shares between 2015 and 2017. pic.twitter.com/U8yrAfuGhg— Swiss Ramble (@SwissRamble) September 14, 2020
Apart from the above disclosures, the Swiss Ramble Twitter thread also mentioned several other interesting patterns. When it came to getting loans from Premier League owners, Chelsea, Everton and Fulham topped the list. Additionally, in the past five years, only Manchester United and West Brom have made dividend payments to its owners. The thread also took a look at the finances of each club individually, intending to make users more aware of how Premier League finances function.