Premier League clubs – How much each of the owners have financed their club 2010-2020
Some interesting figures published on Monday morning, regarding ‘financing’ provided to Premier League clubs by the owners.
This particular table comparing the various Premier League clubs, comes after Mike Ashley finally allowed the Newcastle United accounts for the 2019/20 season to be made public. Which allows a full comparison to be then made between all Premier League clubs over the past decade.
The table has been compiled by the excellent Swiss Ramble who specialises in the business of football.
He (Swiss Ramble) has looked at the net finance provided by the owners of Premier League clubs from 2010 to 2020.
The Swiss Ramble makes these comments on the table / stats above:
“Looking at owner financing since 2010 (defined as owner loans plus share capital), Newcastle United is the only club to have received a big fat zero.
“In stark contrast, owners have been far more generous than Ashley at Manchester City £1.1 bln, Chelsea £570m, Aston Villa £459m, Everton £348m and Leicester City £325m.
As the Swiss Rambles says in his notes on the table, owner financing is in effect owner loans plus share capital.
For Mike Ashley, as you can see, in the table above Newcastle United are the only one of the Premier League clubs that haven’t had any net finance put in by their owner(s) since 2010.
The cases of Man City and Chelsea are obvious but as well as the likes of Villa, Leicester and Everton that Swiss Ramble highlights, Brighton’s owner Tony Bloom has provided a massive £325m to finance what has happened at the club, basically rebuilding it and in particular building a new stadium, as well as strengthening the squad and rest of the infrastructure.
Leicester – their owners have provided £312m to enable that club to massively grow, including an investment of around £100m in the very impressive new training ground and other facilities.
When Mike Ashley bought Newcastle United back in 2007, he ‘loaned’ the club money that is still owed to him to this day. However, in reality, the money Ashley ‘loaned’ was actually simply part of the purchase price. As well as the cash paid to Hall and Shepherd and the other shareholders for their shares, Mike Ashley had to pay off the outstanding mortgage of £50m+ that was still owed from the St James Park redevelopment of 2000. Also, money to level up the club finances regarding cash still owed to other clubs for buying players in instalments, as well as sponsor money that had been taken up front.
Only the very very very naive still believe the fairytale that Mike Ashley was somehow duped into buying the club, supposedly not aware that the ground development mortgage and other debts didn’t need to be covered as well, on top of the money paid to shareholders.
So when you look at that table above and see an entire decade of Mike Ashley the only owner not having put any net finance into his own club / business, it paints a really depressing picture. This is how he could and should have funded the state of the art training ground that was promised way back in 2013, the same with funding a properly financed and supported Academy to produce the talent of the future, as well as the potential expansion of St James Park. Not to mention supporting strengthening of the squad and showing ambition on the pitch.
The only loans have been to cover cash shortfall on the two occasions Mike Ashley has relegated Newcastle United, though both times that money has then been repaid from the later cashflow of the club, leading it to severely hamper strengthening of the squad, including Ashley taking his loan money back out, rather than supporting Rafa Benitez properly after promotion.
The idea of course for most owners of Premier League clubs, is that they wouldn’t take loan money back out of their club as it would seriously prevent the club growing / succeeding. Instead, if they intend to sell the club at some point in the future, then they would look to recoup their loan money as part of the sale price. A bit like the case of Newcastle United, if that £50m+ mortgage on SJP redevelopment hadn’t been outstanding, he would have simply had to pay £50m more on the sale price to shareholders.
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