Most Valuable Soccer Teams(Forbes)
1 Manchester United England 1,870
2 Real Madrid Spain 1,353
3 Arsenal England 1,200
4 Bayern Munich Germany 1,110
5 Liverpool England 1,010
6 AC Milan Italy 990
7 Barcelona Spain 960
8 Chelsea England 800
9 Juventus Italy 600
10 Schalke 04 Germany 510
11 Tottenham Hotspur England 445
12 Olympique Lyonnais France 423
13 AS Roma Italy 381
14 Internazionale Milan Italy 370
15 Hamburg SV Germany 330
16 Borussia Dortmund Germany 325
17 Manchester City England 310
18 Werder Bremen Germany 292
19 Newcastle United England 285
20 VfB Stuttgart Germany 264
21 Aston Villa England 240
21 Olympique Marseille France 240
23 Celtic Scotland 218
24 Everton England 207
25 Glasgow Rangers Scotland 194
Lord Triesman’s £3bn debt warning to English football(Telegraph)
In a landmark speech to The Football Leaders Conference at Stamford Bridge, Triesman warned:
City estimates showed that clubs were now in debt to the tune of a staggering £3 billion – a major risk given the financial crisis sweeping the world’s banks;
A lack of transparency means it is impossible for the game’s authorities to properly scrutinise new owners and their financing of takeovers;
The League’s fit and proper persons test, set up to ensure directors with criminal convictions were barred from running clubs, was “ineffective”.
Deloitte football finance review: Club-by-club Premier League analysis(Telegraph)
1. Manchester United
The Glazers bought United for £777 million in May 2005, and at the end of the 2006/07 season they were £453 million in debt from bank borrowings - over half of the entire Premier League's total borrowings from banks - and £152 million in debt from other loans.
Although they have regained their Premier League crown, they have done so while spending less than Chelsea on wages.
They did record an eight per cent increase in wage payments between 05/06 and 06/07 but that increase was matched or exceeded by 14 of the other Premier League clubs during the same period.
And while their wages increased, their revenue has grown with it. In fact, their absolute growth in revenue over wage surplus was second only to Arsenal.
United are ranked above the benchmark "comfort level" for effective cost management, which is calculated by comparing wages to turnover ratio - the key performance indicator of a club's welfare. They are second only to Tottenham in this regard.
They have the second highest net assets in the League, after Arsenal, with £80 million assets, and they earn the most of all English clubs with £32 million generated through television deals.
They are predicted as having the highest operating profit over the next five years with an operating profit of £239.5 million. United are also second in the list of stadium utilisation for the 2007/08 season with an average turnout of 99.4 per cent of the 75,691 capacity.
While the club had a pre-tax loss of £62,575 in 2007, United earn more from two matches at Old Trafford than Wigan Athletic reap from an entire season of home games.
Chelsea have recorded the highest wage bill in the Premier League, hiking their player salaries by 17 per cent between 2005/06 and 2006/07.
The club also have the biggest debt. At the end of the 2006/07 season Chelsea had a net borrowing of £620 million, with a personal loan of £90 million from Roman Abramovich in that season alone, which brought his total investment in the club to £575 million and offset the club's losses after tax of £76 million.
Chelsea were ranked ninth in their stadium utilisation (bums on seats) this season, although it had improved from the previous season. Chelsea did bring in the second highest television payments - £30m for the 2006/07 season.
Arsenal recorded an eight per cent increase in their wage outgoings between 2005/06 and 2006/07, although in that season they had the highest surplus of cash after wages had been deducted from the club's revenue.
Arsenal also had the best stadium utilisation this season with 99.5 per cent of their 60,054 capacity used. It is just as well: Arsenal were the major stadium investors in 2006/07 with £34.2 million, while their pricing strategy this season did not increase on the previous one.
But the club have the third highest debt. At the end of 2006/07 their net borrowings stood at £268 million, with the second highest loans balances in the country. They are required to pay £19 million in net interest costs, but that is dealt with comfortably by revenues (match-day revenue doubled to £91 million in 2006/07 alone) generated by the move to the Emirates Stadium.
Also, by refinancing a £260 million loan, the club has reduced its annual debt service cost from £32 million to £20 million per annum. Moreover, the club is predicted to have an operating profit of £103.9 million over the next five years - the second highest in the country. Arsenal also lead Manchester United as the club with the most assets, put at £113 million at the end of the 2006/07 season.
Finally, according to 2006/07 figures, they bring in the third largest amount of money through television rights - £29 million.
As of summer 2007, Liverpool had a debt of £43 million in bank borrowings, and £13 million in other loans, although over the next five years they have a predicted operating profit of £98.4 million, the fourth highest in the country.
Tom Hicks and George Gillett Jr bought Liverpool in March 2007 for £218.9 million but burdened the club with debt topping £105 million when their loan was refinanced in January. And the club's 13 per cent increase in wages from 2005/06 to 2006/07 has not been converted into greater success on the pitch in the Premier League.
However, the club were listed as having £20 million net assets before the beginning of last season, and had the third highest stadium utilisation – 98.8 per cent of their 44,721 capacity. Furthermore, they brought in £28 million through television money in 2006/07.