Football Financial Crisis Infographic

FOOTBALL FINANCIAL CRISIS AND THE FISTFUL OF DOLLARS A downright dirty tale of greed or the re-invention of the modern game? FOOTBALL REPEAT OFFENDERS THE MONEY MEN 32 Following the recent events with Glasgow Rangers, Port Vale and Portsmouth Football Club all having had to call in the administrators, it seems that this is becoming a more and more frequent occurrence with clubs spending more money than they have. Because of this we have decided to take a look at this increasingly worrying aspect of football and if it might become the downfall of the beautiful 20 game. Clubs entering into Administration more than once between 2002-2012 In the last decade alone there have been 44 cases of clubs entering some form of financial crisis, not including Glasgow Rangers as they are in the Scottish Premier League. Data taken from Clubs that were in the Top 4 Divisions at that time. 12 Bradford City Crystal Palace Halfax Town Leeds United Darlington Luton Town Port Vale Rotherham United Swindon Portsmouth 1960's 1970's 1980's 1990's 00's 10's THE LEAGUE OF DEBT O A worrying statistic in football is the increasing amount of money that clubs are being allowed to spend compared to the revenue they generate, and therefore the levels of debt they are racking up. The following table shows Premiership clubs, the amounts they turnover, the percentage of that which is wages, the debts they have accrued, and the amount of interest they are having to pay on those debts. WAGES AS PROPORTION OF TURNOVER INTEREST PAYABLE TURNOVER NET DEBT EM EM (%) EM CHELSEA 2 213 734 82 0.8 TOTTENHAM HOTSPUR 119 65 56 MANCHESTER UNITED 1" 286 590 46 107 EVERTON 79 45 69 FULHAM 77 190 63 MANCHESTER CITY 34 125 41 106 4 NEWCASTLE UNITED 52 150 90 WEST HAM UNITED 20 72 34 75 4 ARSENAL 382 136 29 19 BLACKBURN ROVERS 58 21 81 0.7 LIVERPOOL 185 123 65 18 BLACKPOOL 19th 21 144 0.06 ASTON VILLA 91 110 88 BIRMINGHAM CITY 18h 56 16 68 1. BOLTON WANDERERS 62 93 74 WEST BROMWICH ALBION 28 10 82 0.09 WIGAN ATHLETIC 43 73 91 0.9 STOKE CITY 59 76 0.06 SUNDERLAND 65 66 83 WOLVERHAMPTON WANDERERS 61 49 0.02 *TOP 3 CLUBS *RELEGATED *Figures based on 2011 Premier League Season GATE & MATCHDAY INCOME EM GOOD: 27% 51% COMMERCIAL Ем 22% CLUB'S MAIN SOURCES oF REVENUE TV AND BROADCASTING EM THE WAGE OVER PAD OVER BLOWN EXPLOSION OVER HERE We all know footballers make a lot of money, but just how much more than regular Joe's do they really make on a week by week basis? The chart below depicts the increasing wage trends across the professional divisions against the UK average wage. 25K ARE WE BEING TAKEN FORA RIDE? 20K PREMIER LEAGUE CHAMPIONSHIP £4,059 Average Weekly Salary for a Championship Player in the 2009/2010 Season £22,353 Average Weekly Salary for a Premier League Player in the 2009/2010 Season O LEAGUEI LEAGUE 2 15K £1,410 £747 Average Weekly Salary for a League One Player in the 2009/2010 Season Average Weekly Salary for League Two Player in the 2009/2010 Season UK AVERAGE £452 Average Weekly Salary for UK Employee IOK Inception of the Premier League 5K TBAD O THE BEST PAID THE AND THE DOWNRIGHT UĞLY! FOOTBALLERS DAVID BECKHAM LA Galaxy - USA CHRISTIANO RONALDO Real Madrid - Spain LIONEL MESSI Barcelona E40M E5.85M E34.15M E38M EIS.6M E22.4M E32M E13.65M EI8.35M TOTAL OTHER TOTAL INCOME WACES TOTAL WAGES OTHER WAGES OTHER INCOME Greed, or just taking what they are given? Here we have pulled together information on the Top 10 Highest Paid Footballers in the World. As you can see not all their income is derived from wages; in fact, what they earn in sponsorship can sometimes significantly increase their overall earnings and can even outweigh their basic wage. Total Income Wages Other RICARDO KAKA Real Madrid Spain E25M ElI.7M E13.3M RONALDINHO Flamengo Brazil E24M E6.5M E17.5M RedBull THIERRY HENRY New York Red Bulls USA E2IM E4.94M EI6.06M WAYNE ROONEY Manchester United England £20M E12.35M £7.65M ZLATAN IBRAHIMOVIC AC Milan Italy EI7M EIL.7M E5.3M FRANK LAMPARD Chelsea England EI7M £9.75M £7.25M SAMUEL ETO Internazionale Italy EISM EI0.4M E4.6M THE TOP MONEY CLUBS IN EUROPE THE TOP MONEY CLUBS 450 479.5 450.7 IN EUROPE.. 400 HEY 350 BIG SPENDER! 367 300 321.4 251.1 250 REVENUE GENERATED IN € MILLIONS 249.8 211.4 200 203.3 202.4 181 169.6 153.9 150.4 143.5 138.5 132.8 128.8 116.8 114.9 100 50 Arsenal HSV B OL Manchester Bayern Munich Tottenham Manchester Olympigue de Marselle AS Borussia Olympique Lyonais Hamburg SV Internazionale Liverpool Madrid Barcelona Untied Hotspur City Roma Dortmund Data Sources: REPEAT OFFENDERS THE WAGE EXPLOSION http://footballmanagement.wordpress.com/no-of-clubs/ http://footballmanagement.wordpress.com/2011/10/30/wages-and-the-distortion-of-the-pyramid/ FOOTBALL & THE MONEY MEN THE BEST PAID FOOTBALLERS http://footballmanagement.wordpress.com/no-of-clubs/ http://www.businessinsider.com/highest-paid-soccer-players-in-the-world-2012-1#10-samuel-etoo--15000000-1 THE LEAGUE OF DEBT THE TOP MONEY CLUBS IN EUROPE www.guardian.co.uk/news/datablog/2011/may/19/football-club-accounts-debt http://www.deloitte.com/view/en_GB/uk/industries/sportsbusinessgroup/ sports/football/deloitte-football-money-league/infographic/index.htm OTHER INCOME STREAMS FOR CLUBS www.guardian.co.uk/news/datablog/2011/may/19/football-club-accounts-debt trophystore.co.uk OL-6007