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BDO football survey: The beautiful money game

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14th Aug 2015
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The 2015 edition of the BDO annual survey of football finance directors provides further proof that the beautiful game should be renamed the beautiful money game.

The full time analysis of the survey was as predictable as the teams at the top of the premier league, and the same conclusion the Deloittes’s annual review of football finance arrived at: Premier League clubs are set to score big through increased TV rights deals.

It's hardly surprising then that 77% of directors from the Premier League believed that their club’s finances were very healthy, which is considerably more positive than the 45% from all of the leagues.

Last weekend many fans returned to the terraces to watch the football season kick off. But with rising ticket prices, many fans watched from the comfort of their living rooms. And this is where the football clubs, unsurprisingly, cash in. While West Brom is currently sitting at the bottom of the table, don’t feel too sorry for them as even the club finishing bottom will earn just shy of £100m in TV revenues in 2016/17.

This is all made possible thanks to the astronomical £5.1bn new TV rights deal from Sky and BT sports. This is an increase of £2.1bn. Add on to that total the expected £1bn increase in international rights, and TV rights will add an average of £30m-£35m in revenue per premiership clubs. But these premier league finance directors can still be a benevolent lot. In light of the substantial increase in TV rights fees 62% believed that seasons ticket prices should be lowered. 

With all this money being kicked around, there is a temptation for the clubs to take risks to reap the rewards of football glory. It’s no wonder UEFA implemented the financial fair play (FFP) to ensure that that over the long term clubs only spend what they earn. Therefore, their aim is to break even and not make a loss. These rulings ensure that the clubs don’t live beyond their means.

The BDO survey found there was 98% compliance from premier league clubs, but 65% from all leagues were still dependent on their principal shareholder. However, shareholder support is still necessary for clubs trying to progress through the leagues to the holy grail of the 71% increased premier league TV revenues agreed for 2016-19. 

This illustrates the gulf between the finances and profitability of the clubs in the premier league compared to those in the lower leagues. Only 12% from the Football league championship expected to make profit before player trading and amortisation in the next accounting period, but compare that to the 92% from the premier league and the desire for the football league clubs to achieve promotion becomes even more desperate. 

It is no wonder that clubs fork out on excessive transfer deals on celebrated international players to avoid relegation.

Speaking of fantasy money, you can pretend that you are a football director, throwing around obscene amounts of money, by participating in our fantasy football competition. If you want to play along and take on your fellow accountants, visit the Fantasy Premier League site, pick your team and join AccountantWEB’s fantasy football league by entering the following code:

National 1198485-288810

The season may be one week old, but you can still join in the fun.  

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By cheekychappy
14th Aug 2015 22:29

You missed the $1b NBC deal.

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