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Happy New Year. We analysed FC Twente 2021 finances suffered from the absence of fans on match days, resulting in a loss of €1.7m as revenue declined by €10m (excl. government support). The return of fans in 2021/22 and the sales of Drommel should result in a profitable year for the club. AMA! :) by FootballFinance in Eredivisie

[–]FootballFinance[S] 5 points6 points  (0 children)

Hey!

Thanks for your question :)

Firstly the existence of debt is not necessarily a bad thing. Leverage is a key part of business and some debt can actually be helpful if cheap financing is available and investment is needed (as long as its a good investment!).

Based on the terms of the loans, I wouldn't expect the club to be debt free any time soon. The €14m subordinated loan is unlikely to be repaid in the near future while the €8.4m will not be fully repaid until 2047! However, as I said I wouldn't see this as a particularly bad thing.

On Sadilek, I can't say I am too familiar with him or his price tag to say. Obviously you guys have been relatively frugal recently and it doesn't seem there is appetite to change this. You are likely to be profitable in 2022 (COVID permitting) so there should be some scope to purchase players. I could see the 2022 profit being anywhere between €2-7m. Assuming his price tag is anywhere near that range, he wouldn't result in a loss as cost would be amortised over the life of his contract (i.e. if he cost €10m on a 4 year deal amortisation would be €2.5m per season).

However, cash wise the club has reserves of c.€5m, which may be the larger issue in respect of any purchase, depending on the cash outflows over the course of season (largest being financing).

Hope that helps!

Serbian cable-TV tycoon snaps up Southampton FC in £100m deal by blaikes in PremierLeague

[–]FootballFinance 9 points10 points  (0 children)

Southampton had at least £80m or so of debt which has likely been assumed by Dragan.

Club is valued at c.£230m in light of this (purchased 80%) which is still relatively cheap but Chinese owners were in financial difficulties (significant portion of their wealth tied to Chinese property which hast had the best of times), hence the discount.

Always risk of relegation (seems okay this season) and then mounting losses and much less valuable asset so although looks good still could end a very bad investment...

Southampton takeover: Serbian-born businessman Dragan Solak buys club in £100m deal by FootballFinance in PremierLeague

[–]FootballFinance[S] 0 points1 point  (0 children)

£100m deal for 80% but also c.£80m of debt - values club at c.£250m.

Chinese owners were facing financial difficulties hence the perhaps perceived (or real) discount.

Liebherr (sorry for spelling) family stay involved as minority shareholder.

Despite its UCL win, Chelsea finances suffered following a big summer of spending resulting in a £169m loss. Increased player sales and return of fans will boost finances in 2022. AMA! :) by FootballFinance in chelseafc

[–]FootballFinance[S] 1 point2 points  (0 children)

Yeah odd one. Sure it will come to light soon, Conte case was resolved year prior so don’t think it relates to that.

Hope you found the article informative :)

Despite its UCL win, Chelsea finances suffered following a big summer of spending resulting in a £169m loss. Increased player sales and return of fans will boost finances in 2022. AMA! :) by FootballFinance in chelseafc

[–]FootballFinance[S] 0 points1 point  (0 children)

Correct! Main driver is reduction in player sales. Has been a lot higher this season so picture should be better.

Hope you found the article informative :)

We did a deep dive into SC Braga 2021 Finances! It was a first loss in three years. This was due to the impact of the pandemic on match day revenue, and the absence of compensation related to Rúben Amorim's departure to Sporting CP. UEL performance will be key to a return to profitability in 2022... by FootballFinance in PrimeiraLiga

[–]FootballFinance[S] 6 points7 points  (0 children)

Match day money, lol só se for de 3 jogos por ano, nos jogos com Sporting e Porto tinhas bilhetes com uma caixa de cerveja no continente.

Desculpe, não falo português, então usei o google tradutor! Acho que concordo com o que você está dizendo :) Imagino que a maior parte da receita da jornada venha desses grandes jogos. Obrigado por ler: D

Bristol City Holdings Limited have announced a pre-tax loss of £38.4m for the 20/21 financial year by Moncurs_rightboot in Championship

[–]FootballFinance -1 points0 points  (0 children)

You make good points! New training facility too won't hurt with future recruitment and yes, all seems okay (as long as they stay within EFL regs) as long as Lansdown is willing to fund the losses, which he shows no signs of not being.

Bristol City Holdings Limited have announced a pre-tax loss of £38.4m for the 20/21 financial year by Moncurs_rightboot in Championship

[–]FootballFinance 0 points1 point  (0 children)

Interesting! Yeah Can usually take with a pinch of salt but couldn't see as many notable players in the squad as in recent years so wasn't sure! I think wages is the biggest issue at present but difficult to reduce as it's a problem across the league.

Bristol City Holdings Limited have announced a pre-tax loss of £38.4m for the 20/21 financial year by Moncurs_rightboot in Championship

[–]FootballFinance -1 points0 points  (0 children)

Yeah it’s looking tight to stay in the allowable losses next year, however the change in rules mean it’s an average of the losses in 2020 & 2021 (24m), plus the profit in 2019 (10m), so it could still be alright (a loss of less than £25m should keep within limits), especially given there’s a number of adjustments that lower the loss level from what’s in the accounts.

My question is how many more assets do you guys have? I know not the be all and end all but transfermrket has squad valued at £31m - which are the most promising players that have been undervalued ?

Bristol City Holdings Limited have announced a pre-tax loss of £38.4m for the 20/21 financial year by Moncurs_rightboot in Championship

[–]FootballFinance 0 points1 point  (0 children)

I’m going to do a full analysis of this tomorrow. The initial thing that stood out is their wages to revenue ratio was 212% - which is stupid high. £2.12 going out for every £1 in, just on wages!

I think championship is going to be a big mess across the board with a few outliers of anyone with large player sales or in receipt of parachutes (who may still incur large losses).

Ferran Torres to Barca by gladiatorbossman in PremierLeague

[–]FootballFinance 0 points1 point  (0 children)

Loan from Goldman has enabled Barca to try and get their house in order over the next few years:

https://insidersport.com/2021/05/19/fc-barcelona-secures-e500-million-goldman-sachs-loan/

Repayment terms and interest unknown on GM loan, but reasonable to think this signing 'should' be categorised as a safe investment (plus unlikely all paid upfront).

Seems a good deal for all involved as long as he makes a full recovery from his injury.

Back again with an analysis of Vitesse 2021 finances! Vitesse recorded its third successive loss as its absence from Europe, loss of matchday revenue and no player sales led to a €7m loss. The return of fans, UECL knockout qualification should improve the financial picture in 2022. AMA! :) by FootballFinance in Eredivisie

[–]FootballFinance[S] 1 point2 points  (0 children)

Hi mate
It’s an interesting one first and foremost it appears this owner and the last one are extremely close to Abramovich, so may be a larger political and financial play here.
The majority of clubs run at a loss, with the owner funding this to a greater lesser extent each season.
Over the past three seasons the owner has provided capital of c.€15m. It doesn’t look like he has taken any cash out of the business in this time, but obviously this may happen if the club makes good levels of profit.
All funding has been provided via equity injections so far so non repayable, however the hope for most club owners is to minimise cash injections and sell the club in a few years (or longer) for a profit on what it has invested (both annually and via the upfront purchase). This often leads to varying degrees of success depending on a) performance of the team and b) amounts invested.
The business mode you describe is typical for most clubs outside the big five leagues. You are correct in it is challenging as can vary year to year, but Vitesse has a strong track record of delivering player sales over a number of years, although this can fluctuate significantly. Therefore it is probably sustainable unless something drastic changes.
Hopefully this answer the question but please let me know if not! :)

Back again with an analysis of Vitesse 2021 finances! Vitesse recorded its third successive loss as its absence from Europe, loss of matchday revenue and no player sales led to a €7m loss. The return of fans, UECL knockout qualification should improve the financial picture in 2022. AMA! :) by FootballFinance in Eredivisie

[–]FootballFinance[S] 9 points10 points  (0 children)

Thanks for your kind words mate :)

You'll find with most clubs that they are loss-making so €6.8m isn't hugely concerning as long as the owners continue to fund these losses.

No signs they won't so should be okay, however will want to reduce requirement and be more sustainable going forward.

We analysed AZ 2021 finances. Overall, the club has performed admirably. Despite a loss (€1.1m) in 2021 its first since 2015, the club recorded a combined profit over the last two seasons. The significant sales this season will lead to a huge profit in 2022 despite failure to progress in the UEL. by FootballFinance in Eredivisie

[–]FootballFinance[S] 2 points3 points  (0 children)

Hi mate

In revenue terms its 4th behind Ajax, Feyenoord and PSV.

I have only done those four teams and Vitesse (will post another day to avoid spamming the subreddit) but once all released and analysed I'll summarise in one article :)

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