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

[dynamoSpurs]

Wow, we're ahead of Inter and Lyon. Cool?

 

[camaj]

I didn't notice originally but how come Chelsea are doing so well financially? Surely they're not taking Abramovich's loans into account in the "revenue" column? If they aren't then it undermines the idea they're only rich because of the russian money

 

[RichieS]

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.

Except Joe Lewis isn't our owner, ENIC are. Although he is a main shareholder in ENIC (him and Levy own an equal share?) it is an investment company and which he has very little, if anything, to do with the day to day running of. As far as I'm aware, he's pretty much retired and spends his time sunning himself in the Bahamas.

 

[Kyras]

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

Cheers, and I have to admit, sometimes I feel the same, but recently the signings of Modric and Bent for a combined ~£33m shows we have money to invest, we juts don't want to be taken for mugs.

Also, this is better long term, in five years time, we'll be in a better financial position than Chelsea, Arsenal and Liverpool, even if we take a new stadium, because we're better prepared to handle debts.

Another thing is, we haven't taken on debts assuming Champion's League, as you can see, a couple of clubs have taken on massive debts, and, like Leeds, assume that CL revenue will pay it. Arsenal almost failed to qualify for the CL a couple of years ago (obviously), and it would have had huge repercussions for them.

Patience is a virtue.

 

[DC_Boy]

hi Kyras - well there's a lot of optimism around these financial figures - let's hope it's maintained throughout next season - to me we're still a long way away from the big 4 - we need to buy in a lot of quality still to challenge them

time will tell etc

 

[Partizan]

Valencia are in deep shit

 

[houstonspur]

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!

If you use that same formula to determine that we're 62 million dollars in debt, then Valencia must be $403 million in debt. mg:

 

[Wiener]

I am not entirely sure how "Current Value" is calculated.

"1Value of team based on current stadium deals (unless new stadium is pending) without deduction for debt (other than stadium debt)."

What does that mean? What are stadium deals? Any ideas anyone?

While it looks like THFC is a well run business, with the 5th highest operating income and the 10th highest revenue (despite never having played in the CL), the stadium issue is crucial.

Our stadium expansion plans are likely to be expensive. I would think in the range of £250mln to £500mln depending on what we are aiming for. The challenge is to get the right mix of debt/equity financing, to regularly achieve CL football and to keep our stadium full. Added to that it looks like we are heading into a period where raising any kind of financing (both debt and equity) will be more difficult.

I believe Levy is one few PL Chairman capable of achieving this delicate balancing act. The next few years will be crucial. On paper it looks reasonably good, but we shouldn't be congratulating ourselves yet as there is much to do.

I am optimistic, but being a spurs fan I can't help but be slightly nervous. I'd say it's 3:0 to us at half-time. Let's hope we are not playing a Man City team with 10 men.

COYS

 

[PantherX]

One interesting stat hasn't been posted, the 1-YR Value change. Our's is 70%.

Only Liverpool and AS Roma had a higher increase.

 

[Locotoro]

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!

I think you'll find they are $403million in debt.

159% of £254m

 

[Locotoro]

If you use that same formula to determine that we're 62 million dollars in debt, then Valencia must be $403 million in debt. mg:

We're not in debt per in that sense.

The figures simply show how much debt we are carrying. We may have the funds to pay off the debt but it may be more tax efficient/better for us not to at the moment.

Although carrying something like $403m of debt is a different ball game altogether :roll:

 

[jujuman]

We have a great oppertunity next year to seriously damage Liverpool. If we can pip them to CL qualification their income will fall below ours and without an Abramovich style sugardaddy they wiil "do a Leeds". I remember hearing something recently that they will be forced to sell Torres and Babel if they cant make payments on the loans they bought them with.
Great history or not in the current economic climate they look a terrible investment. With them out of the picture we should cement our place in the top four and kick on from there. Villa Everton and The Toon (as our capture of Modric proves) just arent in our league. We can of course forget the rest.

I only wish it was Ar5ena1 in Liverpool's position.

 

[sloth]

Looking again at the full list. There are only five clubs in Europe with a larger net income than us, in other words on income generated we are the sixth largest in Europe. Utd, Real Mad, Arsenal, Barca, Bayern are the only clubs with larger income generated. All others make less and that includes, for example, all the Italian clubs. As a % of estimated value our income is by a street the highest:

Spurs 15.5%
Barca 11.7%
Roma 11.1%
Real Mad 8.7%
Bayern 7.9%
Shalke 7.6%
Juve 6.8%
Milan 6.8%
Arse 6.4%
Man U 6.2%
Liv 5.7%
Lyon 3.7%
Chel -0.01%