Take a look at this... (Forbes rich list: football clubs)

[sloth]

Rank Team Country Current Value / Debt/Value(%) / Revenue ($mil) Operating Income

1 Manchester United England: $1,800m // 60 // $394m // $111m

3 Arsenal England $1,200m // 43 // $329m // $77m

4 Liverpool England $1,050m // 65 // $269m // $60m

8 Chelsea England $764 // 0 // $382m // $-5m

12 Tottenham Hotspur England $414 // 15 // $207m // $64m

16 Newcastle United England $300 // 43 // $175m // $12m

20 Celtic Scotland $227 // 11 // $151m // $48m

21 Everton England $197 // 30 // $103m // $-1m

22 West Ham United England $195 // 23 // $115m // $-22m

23 Manchester City England $191 // 63 // $114m // $27m

24 Aston Villa England $190 // 12 // $106m // $-40m

Full list @ http://www.forbes.com/lists/2008/34/biz_soccer08_Soccer-Team-Valuations_Rank.html

 

[sheringmann]

A very comforting read.....tnx for sharing

 

[Funk]

Very healthy Operating Income and debt well managed.

 

[yawa]

If the debt is worked out as a % of the value. So 15% of $414million is about $62million? that right?

If so id hate to be Valencia! $252million in debt!

 

[DC_Boy]

yep I saw this list earlier - anyone know how the debt/value is worked out - stadium value adds to value I believe - so is stadium debt - how do they value a stadium?
also why are we so high in the operating income list - is that linked to our low debt ratio? - ie interest charges come off before operating income is arrived at -

 

[nickspurs]

Indeed thanks for sharing.

Hopefully the debt ratio will placate those folk who worry that we can't take on a good chunk of debt to build the stadium.

 

[DC_Boy]

so chelsea's lack of debt gives them quite an advantage over the other 3 of the big four? yet their operating income is less than any of those 3?

 

[yawa]

so chelsea's lack of debt gives them quite an advantage over the other 3 of the big four? yet their operating income is less than any of those 3?

Guessing the cost of their squad has a large part to play in their value.

 

[Kyras]

so chelsea's lack of debt gives them quite an advantage over the other 3 of the big four? yet their operating income is less than any of those 3?

Yeah, when Abramovich took over he had no intention of running it like a proper business, and they recorded something alogn the lines of £100m loss over the first two years, but that's because his money was being spent through the club, on players and wages, and they werent recuperating what he had spent. Most football clubs tend to operate at a loss nowadays though, and we seem to be one of the only ones who intend on trying to operate as a business, even though our owner's worth £2.8bn.

 

[nickspurs]

so chelsea's lack of debt gives them quite an advantage over the other 3 of the big four? yet their operating income is less than any of those 3?

Yes, hypothetically a new buyer could lever them up and magnify their operating income. They're also highly valued with their regular participation in the CL. Effectively a higher PE ratio based on the the virtuous circle of CL 'membership' (membership = money = attracting best players = future qualification).

 

[yanno]

Yeah, when Abramovich took over he had no intention of running it like a proper business, and they recorded something alogn the lines of £100m loss over the first two years, but that's because his money was being spent through the club, on players and wages, and they werent recuperating what he had spent. Most football clubs tend to operate at a loss nowadays though, and we seem to be one of the only ones who intend on trying to operate as a business, even though our owner's worth £2.8bn.

Dare I say running Chelski like a laundromat? No, that would be very naughty of me..... :wink:

Debt as a % of value is key. Ours is still relatively low, although building a new stadium would likely impact on that. But one look at the basket cases that are Manure and Liverpool, and I really really don't want Spurs to end up being owned by greedy Yanks who just want to make a financial killing out of selling soc-cehhrrr to under-exploited markets....

 

[There's always next year]

Our position looks far healthier than Liverpool, who appear to be in turmoil. No wonder DIC pulled out of any potentila deal. Not only would they be saddled with huge debt's they would alos need massive capital to fund stadium redevelopment. We are a far greater business proposition than the scousers. Our main failing is currently no champions league, and this may be why Levy is so ambitous to build a squad that can get CL status in the nexy 1-2 years.

 

[si_yidarmy]

i think aston villa will suffer soon, they tried to bring in too much when they dont have resources to. With Barry going its down hill from there. Ashley young will move on the bigger club soon too.

West ham....well they should be a champsionship side anyway

 

[tRiKS]

so we're the highest club not to have any CL and higher ven than 3 teams that get it regularly as well.
The English clubs are the worse for Debt v's turnover. munich and AC milan are in terrfic health, though as are Barca.

when you do the maths Liverpool despite being perenial CL participants are only 15.5m more valuable. For a club that dominated football for over a decade, that's quite poor and Hick's recent comments about how poorly they were marketed compared to utd etc rings very true.

 

[DC_Boy]

Guessing the cost of their squad has a large part to play in their value.

good point

 

[DC_Boy]

Yeah, when Abramovich took over he had no intention of running it like a proper business, and they recorded something alogn the lines of £100m loss over the first two years, but that's because his money was being spent through the club, on players and wages, and they werent recuperating what he had spent. Most football clubs tend to operate at a loss nowadays though, and we seem to be one of the only ones who intend on trying to operate as a business, even though our owner's worth £2.8bn.

good points Kyras and all the others for their useful and erudite input

incidentally while I applaud our business model - I just can't see us breaking the big 4 with it

 

[Stono]

Except for West Ham we have the smallest stadium of those teams. Levy definitely knows what he's doing when it comes to finances.

 

[nickspurs]

good points Kyras and all the others for their useful and erudite input

incidentally while I applaud our business model - I just can't see us breaking the big 4 with it

Oh ye of little faith. Just wait until Liverpool implode (and maybe Chelski if Grant wins neither)

 

[DC_Boy]

Oh ye of little faith. Just wait until Liverpool implode (and maybe Chelski if Grant wins neither)

Nick - of course I so hope you're right - but don't you get the feeling that someone will rescue Pool - and as for CFC with no debt they're just sooooooo rich now -

who knows what the future will bring -

 

[nickspurs]

Maybe Roman is getting bored and will pull the plug soon. Hasn't even turned up for the last two enormous games... It's not like he hasn't got a private jet to pop over. All the signs of an outgrown toy?