17 Feb 2021 23:11:53
Ed002, when you have some time I'd really like to get your help in understanding the financial models of the top teams to better understand why some are suffering more from the lack of gate receipts than others.

I know that we have suffered - the gate receipts add, I think, around £100m per annum to our revenue. But I am also reading how Barcelona are in a precarious position as well.

Its an epic post, but I'd like to understand the different models of, say, us, United, City, Chelsea, Arsenal, Spurs, Barca, Real Madrid, Bayern, PSG etc .

Thanks

Z.

{Ed002's Note - I really don't have the time to go in to detail for individual clubs but the differences are that whilst all clubs need to be self-sufficient and meet FFP some clubs are usually fiscally responsible are struggling because of loss of income from having no fans at the ground (as you say matchday income brings Liverpool about £100M a season now) - and that is a huge blow. Clubs in France have also lost that matchday income but additionally they have lost their broadcast income.

The early conclusion of the 19/20 season cost Ligue 1 and Ligue 2 clubs significant income (about €925M) and the collapse of the broadcast deal as cost more than €1B in income to the clubs. Empty stadiums have pretty much killed the income streams for the clubs and the FFF do not have the funds to compensate the clubs and are supporting Ligue 1 in trying to obtain a significant loan from the Government - that is in hand at the moment. Whilst PSG, Monaco, Marseille and St Etienne are suffering they are in a better place than others (although one of those clubs has an FFP issue), and some are in a far worse financial position with the chance that some Ligue 1 and Ligue 2 clubs could go out of business before the summer. Selling players is one option to bring money in, and efforts are already being made by clubs to agree sales for the summer. Clubs like Strasbourg have problems and they were relying on the sale of a player to help see them through - and a injury has reduced the fee they will get in the summer having agreed the sale.

Although the requirements for FFP reporting have eased because of the pandemic, there are clubs like Barcelona, Besiktas, Milan have issues they need to address - and in England the likes of Everton, Derby, Aston Villa, Sheffield Wednesday have problems as well - others will be joining them. Clubs need to tighten their grip or you will have another Bury - clubs like Hartlepool are already on the edge and one Premier League side is now struggling with major financial issues.

Real Madrid and Barcelona have significant transfer plans and have already made very signifcant cost savings - which significantly reduces their problems.

Some clubs, such as Liverpool, live on the edge financially where they account for future income to stay above water. This was obviously an issue last season putting them in a position of not being able to buy in the summer and the major transfers happened by accumulating future debt.

1.) 18 Feb 2021
18 Feb 2021 11:54:17
Brilliant insight Ed's. Thanks for sharing your knowledge.

2.) 18 Feb 2021
18 Feb 2021 12:32:04
Thank you very much for that Ed002, I really appreciate it. Especially eye-opening to hear of the issues in France and explains why so many of the Ligue 1 clubs are looking to sales (or fire sales even) to keep afloat.

{Ed002's Note - The loss of the Mediapro deal will tip clubs over the edge.}

3.) 18 Feb 2021
18 Feb 2021 13:43:24
Was that after the intervention of the French government Ed002?
Can’t the French clubs claim any emergency assistance or loans as per Spurs from Bank of England?

{Ed002's Note - They are looking to a loan to the Government to the leagues not the clubs. It would then be managed and distributed by the FFF and the leagues.}

4.) 18 Feb 2021
18 Feb 2021 14:58:24
Thanks for the insight Ed. Any chance you can expand on the Premier League club struggling with major financial issues? My first thought is Spurs as they’ve spent so much on their stadium but I could be wrong?

{Ed002's Note - Yes, you are wrong. There is no point opening this up on the Liverpool page.}

5.) 18 Feb 2021
18 Feb 2021 19:43:35
Let’s hope it’s Man U.

6.) 19 Feb 2021
19 Feb 2021 09:11:59
Sounds awful I know but it’s dog eat dog I’m this world - there may be some decent transfer opportunities to be had from exploiting the financial problems in the french league.