Newcastle United Top Of The Profit League
Newcastle United were one of eight Premier League clubs to make a profit last year (2010-11 season) with United posting the highest profit of £33m once player trading was taken into consideration, in other words, the sale of Andy Carroll. Those eight clubs made a collective profit of £97.4m but that is where any financial good news ends for the English Premier League.
Overall the 20 Premier League clubs collectively made a loss of £361m and this was after spending all of their record £2.3bn income.
Manchester City single-handedly lost £197m, which is the greatest financial loss in the history of football.
Chelsea finished second in the mad and bad league with £68m losses, while the American owners at Liverpool will be relieved to at last see the club near the top of a league table, or maybe not, as they lost £49m in the first 8 months of ownership (Liverpool actually made an operating loss of £90m. They then though recorded a profit of £43m for the sale of players, including £50m from Chelsea for Fernando Torres (the money spent on buying players, such as Carroll, is apparently accounted for more gradually), without that player trading the Scousers/Americans would have made an even more horrific loss than that £49m figure). Unsubstantiated rumours suggest that Liverpool’s owners may therefore appeal as technically they feel they should have got the runners-up medal!
The total Premier League wage bill was a record £1.5billion which amounted to 69% of the total income of clubs, not good reading when 50% or less is the sensible aim.
The figure of £1.5billion is interesting as by sheer coincidence that was the record amount earned from overseas broadcasters, more evidence if it was ever needed that any extra more coming into football simply goes out the other end and into players’ pockets.
Richard Scudamore, chief executive of the premier league, has rejected introducing a break-even rule similar to Financial Fair Play (FFP). Surprise surprise.
Maybe the sheer madness of English football is summed up by the fact that Dave Whelan (Wigan’s owner) wrote off £48m in loans to the club last August, this despite the TV windfall that come their way every season they cling desperately onto the Premier League.
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