Bris Vegas Posted February 17, 2011 Share Posted February 17, 2011 Just a general question.. Just read that S'Land are 25.5m in the red.. That's to go along with Bolton, Wigan, Newcastle, Everton and many more.. I honestly don't understand.. Without CL football, which is generally ocupied by Chelsea, Utd, Arsenal, Citeh, Spurs or Liverpool (and this is hardly likely to change) what's in it for the rest? Don't the banks ever want their money back? For a club like Bolton to be spending the likes of 10m on a player (Elamander) and paying wages like 50k a week it's ludicrous just to stay up, but they're not actually making any money, merely surviving or increasing the debts. Unless I'm generally missing something here, whilst the owners can take 'cuts' or 'management fees' to keep themselves healthy, to me it just looks like the clubs are getting deeper and deeper... But until what? Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/ Share on other sites More sharing options...
Derbiean Posted February 17, 2011 Share Posted February 17, 2011 Given the amount of money they get depending on where they finish in the league and the TV money i think its likely that there is an agreement with the banks in question, an overdraft if you will, so as long as a club survives in the premier they are guaranteed tens of millions which gives them considerable flexibility so long as the debt is not Pompey or Leeds level. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136897 Share on other sites More sharing options...
swansea ram Posted February 17, 2011 Share Posted February 17, 2011 But what's going to happen if the landlady from (Portsmouth i think) wins her case against sky, and pubs & clubs are able to buy their sports packages from Albanian tv. Live games will be shown at 3pm on a saturday afternoon, will sky be willing to pump hundred's of millions in to the PL, when pubs will be able to show sky at a quarter of what it costs at the moment. I think there is to be a anouncment before the start of next season. If sky lose, then you can see them wanting to re-negotiate their contract down. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136898 Share on other sites More sharing options...
Bris Vegas Posted February 17, 2011 Author Share Posted February 17, 2011 Given the amount of money they get depending on where they finish in the league and the TV money i think its likely that there is an agreement with the banks in question, an overdraft if you will, so as long as a club survives in the premier they are guaranteed tens of millions which gives them considerable flexibility so long as the debt is not Pompey or Leeds level. But surely there will be a point when the banks say, OK no more we want to see a return on the loans.. I'm sure it was mentioned that Bolton had a debt of like 60mill.. All it takes is one bad season and the banks are going to start sweating about not seeing their money again.. Also one other point, how is also well documented that Everton have no money to spend on a new striker.. They've been in the PL since it started I think, never have they looked relegation fodder, they haven't built a new stadium, they've had numerous European finishes and cup runs aswell as selling Rooney (30mill) and Lescott (24mill).. I don't get how they have no money, unless they're paying off all their debts by gradually stripping the club (ie. DCFC). Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136899 Share on other sites More sharing options...
Derbiean Posted February 17, 2011 Share Posted February 17, 2011 But surely there will be a point when the banks say, OK no more we want to see a return on the loans.. I'm sure it was mentioned that Bolton had a debt of like 60mill.. All it takes is one bad season and the banks are going to start sweating about not seeing their money again.. Also one other point, how is also well documented that Everton have no money to spend on a new striker.. They've been in the PL since it started I think, never have they looked relegation fodder, they haven't built a new stadium, they've had numerous European finishes and cup runs aswell as selling Rooney (30mill) and Lescott (24mill).. I don't get how they have no money, unless they're paying off all their debts by gradually stripping the club (ie. DCFC). You would think so however thinking about the more debt there is then the more interest there will be on the repayments, i can only speculate the banks take it for granted that the clubs will not get into serious trouble and as long as the clubs are making the repayments then it is all good for them and even if the clubs get in so deep they couldn't afford the repayments they can then insist on the sale of players to claw back as much as they can. Everton is a strange one tho as you say, i do believe the chairman Kenwright is running a very tight ship so its likely the clubs debts will be lower than most clubs. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136900 Share on other sites More sharing options...
Derbiean Posted February 17, 2011 Share Posted February 17, 2011 But what's going to happen if the landlady from (Portsmouth i think) wins her case against sky, and pubs & clubs are able to buy their sports packages from Albanian tv. Live games will be shown at 3pm on a saturday afternoon, will sky be willing to pump hundred's of millions in to the PL, when pubs will be able to show sky at a quarter of what it costs at the moment. I think there is to be a anouncment before the start of next season. If sky lose, then you can see them wanting to re-negotiate their contract down. If it happens then it'll make the digital tv deal look like a slight hiccup. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136901 Share on other sites More sharing options...
Fullspizz Posted February 17, 2011 Share Posted February 17, 2011 It's a farce IMO. If we were in the PL, we could get close on 30k every week. That's 8k on average a week more than Bolton. So we would get almost 20% more in gate receipts alone. Do you think we could afford to go and splash a 10m fee and 50k a week on 1 player on OUR gates (if in PL). As for the Pompey situation, I'm convinced that they were saved to ensure the PL could not be held accountable for ANY reason. The Golden Goose cannot be blames for anything that happens to clubs. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136902 Share on other sites More sharing options...
Fullspizz Posted February 17, 2011 Share Posted February 17, 2011 If it happens then it'll make the digital tv deal look like a slight hiccup. I hope she wins, the cat would be truely amongst the pigeons then:p Although, knowing Murdock he would bump up the prices abroad as well. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136903 Share on other sites More sharing options...
Perky1106 Posted February 18, 2011 Share Posted February 18, 2011 Given the amount of money they get depending on where they finish in the league and the TV money i think its likely that there is an agreement with the banks in question, an overdraft if you will, so as long as a club survives in the premier they are guaranteed tens of millions which gives them considerable flexibility so long as the debt is not Pompey or Leeds level. High street banks will happily give students a £1000 limit overdraft due to the fact that at least £1100 appears in their accounts once every four months. So it could be similar logic. Though student overdrafts are interest free. Maybe there are massive interest fees/overdraft fees/transaction fees that are giving the banks what they're in it for. That's my only possible explanation. Otherwise the likes of Bolton must have sugardaddies covering the losses. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136904 Share on other sites More sharing options...
uttoxram75 Posted February 18, 2011 Share Posted February 18, 2011 I think you're right about the banks Joe. Debt on their balance sheet is classed as a positive, earning interest etc, share prices keep on going up. It only goes tits up if the club can't meet the interest payments. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136905 Share on other sites More sharing options...
THFC6061 Posted February 18, 2011 Share Posted February 18, 2011 Spurs are one of the very few clubs who regularly post an annual profit from their football business. This is largely through the income generated by TV rights, which account for around half the gross revenues. Actaul ticket sales account for about a quarter of the annual income. This season, Tottenham Hotspur's participation in the UEFA Champions League is estimated to bring in around £40 million in extra revenues - perhaps a bit more if we manage to progress to the latter stages of the competition. Here are the latest Premier League Financial Tables... http://www.myfootballfacts.com/Premier_League_Financial_Winners_and_Losers.html Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136906 Share on other sites More sharing options...
Bris Vegas Posted February 18, 2011 Author Share Posted February 18, 2011 Spurs are one of the very few clubs who regularly post an annual profit from their football business. This is largely through the income generated by TV rights, which account for around half the gross revenues. Actaul ticket sales account for about a quarter of the annual income. This season, Tottenham Hotspur's participation in the UEFA Champions League is estimated to bring in around £40 million in extra revenues - perhaps a bit more if we manage to progress to the latter stages of the competition. Here are the latest Premier League Financial Tables... http://www.myfootballfacts.com/Premier_League_Financial_Winners_and_Losers.html But you guys were ina similar position to Everton a few years ago under Martin Jol.. You'd made big sales in the likes of Carrick and Berbatov, but so did Everton with Rooney and Lescott.. Surely you wasn't making a profit before the CL season.. I know you bought in players and gradually developed them ie. Jenas, Dawson, Hudds, Lennon, Bale, Defoe.. But Hudds aside these did cost money.. Not to mention Corluka, Modric, Pav, Crouch, Gomez. (I'm trying to think of signings pre-CL).. I also dread to think of the impact your wage bill will have should you not qualify for CL football again. Point I'm making is how is it you guys spent that money and pushed on (rightly so and I'm glad) but Everton and Villa who were in a similar position didn't.. You guys probably will need a new stadium soon (like Arsenal) for the extra revenue I can imagine? Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136907 Share on other sites More sharing options...
THFC6061 Posted February 19, 2011 Share Posted February 19, 2011 Surely you wasn't making a profit before the CL season. Yes we were. Spurs' wage bill during the past several season has been below or around the Premier League average. Our net spend on player's transfers has been fairly reasonable, thanks in part to the money generated from players sold-on. And off the pitch, Tottenham have secured some of the biggest sponsorship deals in recent history. Link to comment https://dcfcfans.uk/topic/5643-how-do-pl-football-clubs-turn-a-profit/#findComment-136908 Share on other sites More sharing options...
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