[Archived] Philipl's Financial Review

[philipl]

Shillito, it is interesting to watch Man U reacting to having another club stalk their star player as a transfer target.

If Real Madrid are really playing dirty, they will have found a way of talking to one or more of the four groups holding Man U's financing debt. No doubt those groups are feeling nervous about Man U being technically in default on their Hedge Fund terms having missed last year's profit target (if they haven't managed to renegotiate them) and would be interested in the opportunity to reduce that £764m overall debt figure by some 8% on the sale of Ronaldo.

I hope Ronaldo doesn't go- what's the point of being in the world's richest league if we don't get to see the world's best player- but clearly Man U see the Real Madrid approach as a serious threat and are panicking about it.

The Deloitte Report on world football 06/7 is out.

- The EPL was paying more in wages than Seri A and La Liga combined in the last season before the new media deal came in.

- The headline writers don't pick up on the fact that the EPL numbers 06/7 were distarted by clubs spending the media bonus ahead of it being received thus depressing EPL profitability that season.

- However, it is broadly right that the EPL still hasn't worked out how collectively it can keep its wages costs in check whilst competing between themselves.

[thenodrog]

The Deloitte Report on world football 06/7 is out.

- The EPL was paying more in wages than Seri A and La Liga combined in the last season before the new media deal came in.

- The headline writers don't pick up on the fact that the EPL numbers 06/7 were distarted by clubs spending the media bonus ahead of it being received thus depressing EPL profitability that season.

- However, it is broadly right that the EPL still hasn't worked out how collectively it can keep its wages costs in check whilst competing between themselves.

I doubt they ever will whilst relegation from the Prem leads to financial oblivion.

[philipl]

This is the league table of wages by club for 2006/7

What it shows is that on wages, most of the EPL were not stepping out of line except for the top 4 and Newcastle who are off in a world of their own.

West Ham were going that way under the eggman but have now pulled back.

Pompey's huge wages rise takes them from the bottom of the following pack to the top end.

Thaksin City probably making a break for the top group now.

Spuds clearly have their wage structure under control.

Interesting that Arsenal are 3rd just behind Man U but are struggling to hang onto their best players. That points to unbelievable disparities in wages between Juve/AC/Inter and the rest in Italy and between Real/Barca and the rest in Spain.

[iamarover]

This is the league table of wages by club for 2006/7

What it shows is that on wages, most of the EPL were not stepping out of line except for the top 4 and Newcastle who are off in a world of their own.

West Ham were going that way under the eggman but have now pulled back.

Pompey's huge wages rise takes them from the bottom of the following pack to the top end.

Thaksin City probably making a break for the top group now.

Spuds clearly have their wage structure under control.

Interesting that Arsenal are 3rd just behind Man U but are struggling to hang onto their best players. That points to unbelievable disparities in wages between Juve/AC/Inter and the rest in Italy and between Real/Barca and the rest in Spain.

The Deloitte Report in the Guardian today has more interesting reading for financial footy stattos.

http://image.guardian.co.uk/sys-files/Foot...29/deloitte.pdf

Including an analysis of wage/income ratios for both Premiership and Championship winning teams. Rovers at 85% is high, but given the unique ownership situation not disastrous and the new income should allow them to manage this down over the next 3 years. The Championship figure though reveals PNE on a whopping 97% and The Dingles completely unsustainable, spending 102% of income on wages. Which explains why they reported a £4m loss - £1m more than Rovers - last year. With Flood's shopping centre business under the credit crunch cosh, it looks like hard times ahead for our small town in Yorkshire friends.

[Eddie]

Once again Philip has chosen very selective statistics in order to be able to praise our own club and be critical of certain rivals and the top 4. The most important statistic when it comes to wages is looking at wages as a percentage of revenue, which is an area, as iamarover facts show, in which we really struggle. The total percentage increase is misleading because it can be influenced by so many factors (promotion, sale of a major player, new owner, the new television money, participation in Europe). It is possible that one club could increase its wages by 150% and still be fine, when another might increase by only 5% and put itself financial trouble.

[S15]

Though Philip probably sees me as being over critical of his statements with regards to Man Utd, and the top etc but in an interview with some 'Financial Expert' this morning on SSN, he was asked who the best run club in the Premier League is, and he responded, that taking into account income, outgoing and success, Man Utd are no doubt the best run club.

I appreciate the Glaziers have debts, but I have no doubt the Glaziers' eventual plan is to sell Man Utd for a huge profit on what they paid, with the intention of wiping that debt clean whilst making a few bob themselves.

From everything that has happened so far, I'm sure they are well on their way to doing so. Likewise the guys at Liverpool, who have obviously had a skakey start. All these guys are the worlds very top businessmen, with decades of experience it exactly what they are doing now.

That is the main reason I find it hard to take any of Philips' comments on these matters too seriously.

[OscarRaven]

I have to agree to a certain extent that some of the doom and gloom predictions are a bit over the top.

But.... I also think football is a very risky enterprise and it only takes one unanticipated event for the carefully constructed house of cards to come crashing down at clubs like L'pool and M'Utd.

That said if Man Utd were to implode they would probably take the rest of the premier league with them.

[Paul]

Premier League turnover 2006 - 07 £1.53 billion. Wage bill for that season £1.4 billion. Crazy.

Independent on De Loitte's report

[Alan75]

With all that money, its frieghtening to think that only 8 Premier clubs had operating profits: 3 of which are now back in the Championship.