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Soccerex Football Finance 100 report shows World’s strongest clubs financially – Newcastle United very different to Deloitte placing

2 years ago
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The SoccerEx Football Finance 100 for 2019 has been published.

The report sets out to show the strongest clubs around the globe in terms of monetary power, using five categories to deliver a final calculation.

SoccerEx worked with independent academics to compile the list, which analyzed the assets of each club, their economic power for future investments and their net debts.

For the 2019 rankings, SoccerEx took into account:

Playing assets

Fixed assets (stadium, training centres etc…

Cash in the bank

Owner’s potential investment

The club’s net debt

Using these five factors, the Soccerex Football Finance 100 was then produced, with each club awarded a Football Finance Index (FFI) score based on the results.

The Deloitte report that was recently released is usually referred to as the ‘Football rich list’ but all it is based on is what revenue a club actually gets in any particular season.

The 2019 Deloitte report showed that only 18 clubs had generated more money in the 2017/18 season than Newcastle United.

This 2019 Soccerex Football Finance 100 report also takes into account those other factors outlined above, much of which is to do with each club’s owner’s ambition that has been shown, including investment in the squad, investment in the stadium and training ground, as well as the owner’s likely investment in the future (based largely on what they have and haven’t invested previously!).

Mike Ashley no doubt scoring lowly on all of those!

The Soccerex Football Finance 100 has been reported by Goal but here we have included only from where Newcastle United come into it, placed at number 58:

(58) Newcastle United (UK) – 0.41

(57) Chicago Fire (USA) – 0.43

(56) Portland Timbers (USA) – 0.43

(55) Schalke (Germany) – 0.43

(54) Houston Dynamo (USA) – 0.43

(53) Rennes (France) – 0.44

(52) Chivas (Mexico) – 0.45

(51) Orlando City (USA) – 0.45

(50) Atlanta United (USA) – 0.47

(49) Sevilla (Spain) – 0.49

(48) Monterrey (Mexico) – 0.49

(47) San Jose Earthquakes (USA) – 0.50

(46) Sporting Kansas City (USA) – 0.53

(45) West Ham United (UK) – 0.53

(44) Crystal Palace (UK) – 0.57

(43) Bournemouth (UK) – 0.58

(42) Spartak Moscow (Russia) – 0.59

(41) Lazio (Italy) – 0.59

(40) Toronto (Canada) – 0.60

(39) Milan (Italy) – 0.61

(38) New York City FC (USA) – 0.62

(37) Stoke City (UK) – 0.62

(36) Ajax (Netherlands) – 0.64

(35) Marseille (France) – 0.65

(34) Southampton (UK) – 0.65

(33) Athletic Bilbao (Spain) – 0.66

(32) New York Red Bulls (USA) – 0.72

(31) Colorado Rapids (USA) – 0.73

(30) New England Revolution (USA) – 0.75

(29) Zenit Saint Petersburg (Russia) – 0.77

(28) Wolverhampton Wanderers (UK) – 0.78

(27) Everton (UK) – 0.81

(26) Fulham (UK) – 0.85

(25) Shakhtar Donetsk (Ukraine) – 0.86

(24) Inter (Italy) – 0.95

(23) Napoli (Italy) – 0.95

(22) Monaco (France) – 0.96

(21) Seattle Sounders (USA) – 0.97

(20) Valencia (Spain) – 1.02

(19) Leicester City (England) – 1.10

(18) LA Galaxy (USA) – 1.19

(17) Lyon (France) – 1.21

(16) RB Leipzig (Germany) – 1.31

(15) Borussia Dortmund (Germany) – 1.42

(14) Bayer Leverkusen (Germany) – 1.54

(13) Atletico Madrid (Spain) – 1.56

(12) Guangzhou Evergrande (China) – 1.72

(11) Liverpool (UK) – 1.83

(10) Chelsea (UK) – 1.89

(9) Juventus (Italy) – 1.96

(8) Manchester United (UK) – 1.99

(7) Barcelona (Spain) – 2.05

(6)  Real Madrid (Spain) – 2.38

(5) Arsenal (UK) – 2.43

(4) Tottenham Hotspur (UK) – 2.66

(3) Bayern Munich (Germany) – 2.67

(2) Paris Saint-Germain (France) – 3.84

(1) Manchester City (England) – 4.21

As you can see, Newcastle in 58th place, with 15 other English clubs ahead of them.

The breakdown for Newcastle United is as follows:

Playing assets: £152m

Tangible assets: £54m

Cash in the bank: £0

Owner Potential Investment: £87m

Net Debt: £176m

No. 1 – Manchester City (England)

FFI Score: 4.21

Playing Assets: £927m

Tangible Assets: £413m

Cash in the Bank: £18m

Owner Potential Investment: £567m

Net Debt: £70m

No. 19 – Leicester City (UK)

FFI Score: 1.10

Playing Assets: £280m

Tangible Assets: £53m

Cash in the Bank: £52m

Owner Potential Investment: £126m

Net Debt: £15m

Overview from Soccerex:

‘Premier League Champions, Manchester City top Soccerex’s global ranking for a second successive year, as the club with the greatest financial strength in world football. In the report, City achieved a Football Finance Index (FFI) score of 4.21, which factors in five variables – playing assets, tangible assets, cash in the bank, potential owner investment and net debt.

Qatari-owned PSG are second (3.84) largely due to the vast potential for investment of their sovereign ownership.  German powerhouses Bayern Munich place third in the ranking (2.67) benefitting from a good score across all the verticals measured and a strong business model underpinned by the investment of leading German organizations adidas, Allianz and Audi.

While the top clubs show the impact of billionaire ownership on financial strength, the report also highlights that prudent financial management, as seen at Tottenham Hotspur and Arsenal, has its benefits. The North London sides rank 4th (2.66) and 5th (2.43) respectively, ahead of bigger global brands such as Real Madrid (2.38), Barcelona (2.05) and Manchester United (1.99). Both Arsenal and Tottenham have high-value tangible assets, benefiting from their capital locations. Spurs strength is also driven by a high squad value with player a number of players such as Harry Kane and Dele Alli whose values have appreciated significantly in the past 12 months. However the value of their new stadium – yet to open – must be set in context of the high levels of debt linked to project.

UK clubs continue to dominate the top 30 accounting for 1/3 of the clubs. Liverpool are 11th, Leicester City 19th, Fulham 26th, Everton 27th and Wolverhampton 28th with all benefitting from significant foreign investment.’

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