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[Football] "It’s quite hard now not to make money in the Premier League.”



Bozza

You can change this
Helpful Moderator
Jul 4, 2003
55,575
Back in Sussex
An interesting piece in the FT about how the financial fortunes of Premier League clubs has turned around with revenues increasing rapidly (primarily the bumper TV deals) and costs being controlled better than ever before. A few snippets, but it's worth reading the whole piece:

“A corner has been turned,” says Dan Jones, head of sport at Deloitte. “After two decades of being very successful at generating revenue, football clubs are now finally able to retain some of that revenue. It’s quite hard now not to make money in the Premier League.”


The financial gains from entering the Premier League provide a stark indication of its pull. During 2013/14, Crystal Palace’s first season back in the Premier League, players’ wages at the south London club more than doubled. But revenue, mostly television rights, prize money and sponsorship, was up more than 500 per cent. In the past, wages and transfer fees have risen faster than revenue, leaving smaller clubs with little option but to borrow to compete.

Some of those that did, such as Leeds United and Portsmouth, spent heavily in an effort to join Europe’s elite, gambles that resulted in crippling debt and financial collapse. Leeds entered administration in 2007 and Portsmouth followed two years later. Both have languished in England’s lower leagues since.

A new TV deal, agreed earlier in February and set to come into effect next season, will provide a further boost to top-flight clubs. Under the new terms, the prize money for finishing last, at more than £100m, will eclipse that currently earned by being crowned champions.


He estimates that a typical Premier League club, aside from the top four, is now worth £120m-£150m, compared with the £62m that Aston Villa’s owner Randy Lerner paid for the club in 2006, or the £100m valuation put on West Ham when it was bought in 2010.
 


nicko31

Well-known member
Jan 7, 2010
17,523
Gods country fortnightly
Clubs will still blow it, more money just drives up transfer fees and wages. Armchair fans will fan for it too.....
 


El Presidente

The ONLY Gay in Brighton
Helpful Moderator
Jul 5, 2003
39,689
Pattknull med Haksprut
Everton somehow managed to lose money though, AND they are expecting the council to pay £200 million for a new stadium for them!
 


nicko31

Well-known member
Jan 7, 2010
17,523
Gods country fortnightly
Everton somehow managed to lose money though, AND they are expecting the council to pay £200 million for a new stadium for them!

Councils are so hopeless in cutting a deal they will probably agree to it
 






Herr Tubthumper

Well-known member
NSC Patreon
Jul 11, 2003
59,199
The Fatherland
He estimates that a typical Premier League club, aside from the top four, is now worth £120m-£150m, compared with the £62m that Aston Villa’s owner Randy Lerner paid for the club in 2006, or the £100m valuation put on West Ham when it was bought in 2010.

Interesting stuff. Bloom's purchase will look very shrewd if we get promoted....especially if he's got a hotel bringing in extra dollar. He might even be able to get his money back if he so chose.
 


Bevendean Hillbilly

New member
Sep 4, 2006
12,805
Nestling in green nowhere
I am sure TB has worked this out for himself. It would be a very peculiar individual who would stake a large personal fortune on a losing investment. I know he's a Brighton fan but he's, primarily, a very wealthy businessman who has backed a long term investment. Expect him to go balls out to get us up this season. Half the job is done now.

He's got a lot of sunk funds in this deal and Brighton are certainly premier league ready infra-structurally.
 


Jan 30, 2008
31,981
i think the whole PREMIER LEAGUE SET UP IS OBSCENE, it can't carry on like that for ever, totally beyond your average person if you ask me, only time will tell
regards
DR
 






Bevendean Hillbilly

New member
Sep 4, 2006
12,805
Nestling in green nowhere
i think the whole PREMIER LEAGUE SET UP IS OBSCENE, it can't carry on like that for ever, totally beyond your average person if you ask me, only time will tell
regards
DR

It's not often I agree with you but on this occasion, this.

It's a fact of life that a club like Brighton has to play in that league to be financially viable though.
 


Hampster Gull

New member
Dec 22, 2010
13,462
I am sure TB has worked this out for himself. It would be a very peculiar individual who would stake a large personal fortune on a losing investment. I know he's a Brighton fan but he's, primarily, a very wealthy businessman who has backed a long term investment. Expect him to go balls out to get us up this season. Half the job is done now..

This
 


Tarpon

Well-known member
Sep 12, 2013
3,785
BN1
I am sure TB has worked this out for himself. It would be a very peculiar individual who would stake a large personal fortune on a losing investment. I know he's a Brighton fan but he's, primarily, a very wealthy businessman who has backed a long term investment. Expect him to go balls out to get us up this season. Half the job is done now. He's got a lot of sunk funds in this deal and Brighton are certainly premier league ready infra-structurally.

Don't listen Tony.
It's well intended but it falls short.
This the time to go balls deep.
You know you want to.
 



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