Post by Salem6 on Oct 23, 2008 14:57:21 GMT
Arsenal
Profit before tax £36.7m
Debts £416m
Interest payable £26m
Ownership Arsenal Holdings PLC
Major shareholders
Danny Fiszman, Swiss resident 24.1%
Lady Nina Bracewell-Smith 15.9%
Richard Carr 4.3%
Kroenke Sports Enterprises, UK 12.4%, owned by US resident Stan Kroenke
Red and White Holdings 24.0%, owned by Russian resident Alisher Usmanov and Farhad Moshiri
The state it's in Huge loans, but mostly at low rate, 5.3%, and seen as responsible because the loans financed building the Emirates Stadium (£260m borrowed), and property development (£133.5m to convert Highbury into flats). Club has agreed contracts to sell 598 of the 680 flats; 90 have completed, for £39m. Arsenal acknowledge "difficult conditions", but insist sales are progressing "very well" and deny purchasers are pulling out. Interest is covered by increased earnings at Emirates.
Verdict The property development may be affected but the downturn highlights how well the club did to get the stadium built while conditions were favourable.
Aston Villa
Loss before tax £2.8m
Debts £63.8m
Interest payable £2.7m
Ownership Reform Acquisitions LLC, an American company owned ultimately by US resident Randy Lerner
The state it's in Full houses enjoying muscular football thanks to Martin O'Neill's coaching and Randy Lerner's ownership mean happy days at Villa Park. Unlike the North American owners of Manchester United and Liverpool, Lerner has not loaded his own borrowings on to the club, and has put real cash in. While Lerner, a billionaire and now Villa's chairman, stands behind the club, Villa look sound.
Verdict Villa's debts are not huge, particularly given Lerner's support, and ticket prices among the lowest in the Premier League maintain crowds.
Blackburn Rovers
Loss before tax £3.4m
Debts £17m
Interest payable £1m
Ownership Trustees of the Jack Walker Settlement, a trust registered in Jersey (a tax haven)
The state it's in Shrewdly run club in a poor town, but up where they are only because of £97m spent by Jack Walker - and, since his death, by the trustees of his estate. They want to stop funding the club and last year instructed Rothschild, the bank, to find a buyer. None has come forward and recently the Walker trustees have resumed giving Rovers £3m a year to stay competitive.
Verdict Blackburn can argue they have been managing admirably in a recession for years, given economic difficulties in east Lancashire.
Bolton Wanderers
Loss before tax £2m
Debts £40m
Interest payable £3m
Ownership Edwin Davies 95%, resident in the Isle of Man (a tax haven)
The state it's in Struggling to keep up. Apart from a useful hotel business, the club relies on cash from the owner, Davies. Falling crowds at the Reebok in 2007 were described as "a real concern" then they fell again last season and corporate hospitality was down. The chairman, Phil Gartside, stated plainly that Bolton is "a trading club" - it has to sell players - and could buy only because of "the ongoing support of Edwin Davies and parties connected to him".
Verdict Came very close to relegation last season and are likely to face a battle, financially and on the field, to stay up again this time.
Chelsea
Loss before tax £76m
Debts £578m Owed to Roman Abramovich
Interest payable nil
Ownership Roman Abramovich, registered at Companies House as a Russian resident
The state it's in Chelsea owe it all to Roman Abramovich: two Premier League championships, a star-studded squad - and £578m. The oligarch decided to put money into his "trophy asset" in loans (interest free) not cash, and his contribution increased meatily in 2007 to take in a £76m loss. Turnover hugely up, and the chief executive, Peter Kenyon, has talked about Chelsea becoming self-sufficient by 2010, but the club is sure to be living off Abramovich beyond that.
Verdict Despite the eye-watering prices, Chelsea do not expect rows of empty seats and the club is safe as long as their oligarch's fortune stays safe too.
Everton
Loss before tax -£9m
Debts £59m
Interest payable £3m 2007 only
Ownership Everton Football Club Company Ltd
Major shareholders
Bill Kenwright, 25.0%
Jon Woods, 19.0%
Robert Early, Florida resident, 23.0%
The state it's in Overstretching, despite solid crowds at Goodison Park. Everton aspire to keep up with the big clubs, on a fraction of the income. Last month mortgaged their Premier League TV money to Barclays in return for a £30m overdraft facility. No rich backer. Chairman Kenwright admits he cannot keep borrowing. A planned move to a new stadium in Kirkby to be built by Tesco is deeply unpopular with many supporters, and backed by Kenwright only because the club has no money for a more appealing option
Verdict More affordable prices ave maintained the loyal crowd at Goodison, but the club will fall behind if a buyer is not found.
Fulham
Loss before tax £16m
Debts £183m
Interest payable £2m
Ownership Fulham Leisure Holdings Ltd, a Virgin Islands company owned by Mohamed Al Fayed
The state it's in Playing way above its station thanks to Al Fayed's money. Those who suspected he bought Fulham to make a quick profit have been confounded by £165m spent to pay for a team capable of playing in the Premier League. Al Fayed has put the money in from his BVI holding company as interest-free loans. Last year he wrote off £9.5m, so Fulham owed him £155.5m.
Verdict Al Fayed is said to be still full of enthusiasm, but his fortune is not without limit like that of Abramovich or Sheikh Mansour
Hull City
Loss before tax £2m
Debts £1m
Interest payable £52k
Ownership Isis Nominees ,a Jersey company whose issued share capital is owned by Hull directors Paul Duffen, Russell Bartlett and Martin Walker
The state it's in Like most Championship clubs challenging for promotion, Hull overspent, making a £2m loss in 2007. The club had very little debt. Shortly after winning promotion, in June, the club mortgaged all its forthcoming Premier League TV money to a bank, Investec. That, presumably, provided money upfront, so that Hull could sign players of Premier League quality, which so far looks a clever move.
Verdict Low debt, first season of Premier League TV money and sellouts at the KC Stadium give Hull tigerish prospects.
Liverpool
Loss before tax -£22m
Debts £350m
Interest payable £30m estimated
Ownership Kop Investment LLC
Ultimately owned (via the tax haven of Grand Cayman) by Kop Investment LLC, registered in Delaware, a low-tax US state. Tom Hicks and George Gillett are equal owners of Kop Investment LLC.
The state it's in Don't mention the owners. With a team of comeback kings riding high in the Premier League, the rain on Liverpool's parade comes from £185m which Hicks and Gillett borrowed to buy the club and will make the club service. The pair have since borrowed a further £165m to fund the club, but are nowhere near building the new stadium they promised when they took over. Face refinancing the whole £350m, in unfavourable circumstances, in January or July next year.
Verdict Anfield likely to remain full and oversubscribed because of Liverpool's huge appeal, but the debts cloud the horizon.
Manchester City
Loss before tax -£11m
Debts £154m Pre-takeover
Interest payable £6.3m To May 2007 only
Ownership Sheikh Mansour bin Zayed Al Nahyan
Now owned outright by a member of the Abu Dhabi royal family.
The state it's in Were seriously overstretched, now find themselves suddenly loaded. Took out a £25m mortgage against this season's TV money in July, City's debts were £154m and Thaksin Shinawatra was on the run. Then Sheikh Mansour arrived and City's spending power dwarfs that of Chelsea. Remains to be seen how Sheikh Mansour will fund City, whether outright or with loans.
Verdict City's crowd is not the wealthiest so the Abu Dhabi owners may have to reduce prices if they want full houses at Eastlands.
Manchester United
Loss before tax £58m
Debts £667m
Interest payable £82m
Ownership Red Football Limited and Red Football General Partner Inc, both registered in the low-tax US state of Nevada. Malcolm Glazer and his family own Red Football
The state it's in The world's richest club and the most punitively in debt. The Glazers are no benefactors. They loaded their borrowings from buying United on to the club, which has to pay the interest. Borrowings of £667m at June 2007 included £515m bank loans at between 2.125% and 5% above inter-bank lending rates. The remaining £152m is owed to hedge funds at 14.25%. The club argues it can service its debts from booming income, and still afford a glittering squad including the £30.75m signing Dimitar Berbatov.
Verdict United are confident the team's appeal and success will keep the money pouring in and the debts serviced; the club cannot afford to slip up.
Middlesbrough
Loss before tax £13m
Debts £84m
Interest payable £5m
Ownership Steve Gibson, 75%, via his company, Gibson O'Neill
The state it's in High borrowings and losses compared to other clubs of a similar size, Middlesbrough are supported financially by Steve Gibson. The club owes £84m to its bankers, £25m of which is guaranteed by the assets of Gibson's holding company, Gibson O'Neill. That company owns his main business, the container company, Bulkhaul, which actually makes a profit.
Verdict Always a struggle to maintain crowds at the Riverside and a team which can compete; Gibson's support will remain vital.
Newcastle United
Loss before tax £33m
Debts £79m - £59m paid off by Ashley
Interest payable £6m
Ownership Mike Ashley,via his company, St James' Holdings Limited.
The state it's in The tragic half of Mike Ashley's tragi-farce is that he can justly claim to be a financial benefactor. In September 2007 he paid off £59m loans taken out while Freddy Shepherd was the chairman and major shareholder. Ashley apparently paid real money, rather than make loans of his own. But financial responsibility counts for sadly little while Newcastle are scuffling at the bottom of the table and Dennis Wise is director of football.
Verdict Even if crowds fall further, they are unlikely to struggle financially because of Ashley's backing, until he manages to sell the club.
Portsmouth
Loss before tax £23m
Debts £32m
Interest payable £2.2m
OwnershipMiland Development (2004) Limited
Owned by a British Virgin Islands company. The Premier League is satisfied that Alexandre Gaydamak is the ultimate owner.
The state it's in Overspending. Fratton Park's capacity is still only 20,700, so Pompey have been spending beyond their means to provide Harry Redknapp with a team capable of winning FA Cups. Alexandre Gaydamak is apparently not funding the club's losses, and is now actively seeking a buyer.
Verdict Portsmouth have announced they are looking for a buyer and without additional money their status will be difficult to maintain.
Stoke City
Loss before tax -£3m
Debts £3m
Interest payable £27,000
Ownership bet365 Group
The online gambling company is owned by the chairman, Peter Coates, and his family
The state it's in Financially supported with cash by the Coates family. Having made his second fortune in online gambling (his first was in stadium catering), Peter Coates returned in May 2006 to buy the club back from the Icelandic consortium which previously bought him out. Coates has put real money in, writing off over £8m of debt.
Verdict Coates pledged sensible investment to have a go at Premier League survival; Stoke should be safe financially either way.
Sunderland
Loss before tax £15m
Debts £45m
Interest payable £3m
Ownership Drumaville Ltd
Incorporated in Jersey, a tax haven. The chairman, Niall Quinn, and shareholders understood to include nine other businessmen including most recent arrival Ellis Short, who is based in Dallas.
The state it's in Spending on players since Roy Keane arrived as the manager reported to be £70m, a high price for Premier League survival. Good crowds at the Stadium of Light because, in an economically depressed area, ticket prices are among the lowest in the Premier League. Short reported to have provided further money to enable Sunderland to compete.
Verdict Finances likely to become tighter as fans struggle in a recession and Sunderland will rely further on their owners.
Tottenham Hotspur
Profit before tax £28m
Debts £45m
Interest payable £2m
Ownership Enic International Ltd
Enic, 82% owners, registered in the Bahamas, a tax haven. The chairman, Daniel Levy, and family own 29.41% of Enic. Controlling owner is Joe Lewis, resident in the Bahamas.
The state it's in Financially booming, bottom of the league. Turnover in 2007 was up £29m, with London prices and corporate boxes swelling income to just below the big four. At next month's AGM THFC are expected to show further financial growth. In the summer they made mountainous profits from selling Jermain Defoe, Dimitar Berbatov and Robbie Keane. But fans are in uproar about, er, selling Jermain Defoe, Dimitar Berbatov and Robbie Keane, along with other on-field disasters.
Verdict Club with a rich London fanbase, it would be a surprise if THFC greatly suffer, unless the unthinkable - relegation - befalls them.
West Bromwich Albion
Profit before tax £5m
Debts £4m
Interest payable £222,000
Ownership Jeremy Peace
Over 50% owned by chairman Peace
The state it's in Sound management of a yo-yo existence. West Brom have very little debt. Club would argue its fans have been suffering a recession for several years already, given the downturn in engineering and manufacturing in the midlands. West Brom have cut ticket prices by a third in two seasons and play to full houses at the Hawthorns. Just need to secure a sponsor.
Verdict Look healthy, partly because as a club they know their limitations very well, and understand who their fans are and what they can afford.
West Ham United
Loss before tax £22m
Debts £36m
Interest payable £2m
Ownership Hansa ehf and Olafstell ehf
Icelandic companies through which the chairman, Bjorgolfur Gudmundsson, owns the club
The state it's in Most obvious hit of the banking crisis. Bjorgolfur Gudmundsson's Icelandic bank, Landsbanki, has gone bust. West Ham insist they are safe: that the club was not exposed to Landsbanki, that Gudmundsson and his son have other fortunes in sound investments, that the club is not over-borrowed. Last year's figures show Gudmundsson was a generous owner, paying £85m cash, not loans, to buy West Ham, injecting £26.6m cash into the club, and personally guaranteeing its borrowings.
Verdict Not the meltdown some have predicted, but fanbase is likely to feel the pinch and the club will need Gudmundsson's fortune to stay intact.
Wigan Athletic
Loss before tax £8m
Debts £54m
Interest payable £1m
Ownership Whelco Holdings Ltd, company through which the chairman, Dave Whelan, owns the club.
The state it's in Not even a Football League club until 1978, Wigan Athletic are the creation of the former JJB Sports owner Dave Whelan, who has funded the building of the JJB Stadium and the club's rise. Figures to May last year show Whelan's backing came in an interest-free loan of £30.6m, an increase of £11m on 2006. Whelan was reported recently saying he would consider selling to bring new investment in. Barclays increased its loans by £13m to £23m, following assurances of continued support by Whelan.
Verdict Whelan's support is everything and although he has talked of bringing in another investor, he shows no sign of reducing his contribution.
www.guardian.co.uk/football/2008/oct/22/premierleague