Premier League Finances - Club by Club Report

Worth a little read to the people that get aroused over financial reports:

https://www.theguardian.com/football/2017/jun/01/premier-league-finances-club-by-club

The whole Premier League from the 15-16 season is outlined there, but I've copied the part specifically about Saints below, not necessarily any new or shocking information here, but the overall report is interesting to add some context of where we are with regards to wage expenditure:

Southampton:

Accounts for the year to June 30 2016

Turnover £124m (10th highest in the league)

Wages £85m (Joint 8th highest, 69% of turnover)

Profit before tax £6m (down from £15m in 2015)

Ownership Owned by Katharina Liebherr, resident in Switzerland.

Matchday £19m

Premier League and broadcasting £90m

Commercial activities £12m

Other income £3m

Net debt Not stated, total bank, owner and other loans: £63m

Interest payable £6m

Highest-paid director Unnamed: £445,000 (Ralph Kreuger is the chairman)

State they’re in Reports of crises at Southampton have been frequent since the owner, Katharina Liebherr, inherited the club among the other major business interests of her late father, Markus, in 2010, but she has confounded them with stable stewardship. Another exodus of star players in the summer of 2015 – Nathaniel Clyne sold to Liverpool for £12.5m, Morgan Schneiderlin bought by Manchester United for £25m – was matched by shrewd signings showing a profit of £29m. Southampton reacted calmly to Ronald Koeman’s departure as they did when Mauricio Pochettino left in 2014, and finished eighth under Claude Puel this time. Liebherr still has £31m in loans to the club at 5% interest; another loan of £15m was repaid.

Worth a little read to the people that get aroused over financial reports:

 

https://www.theguardian.com/football/2017/jun/01/premier-league-finances-club-by-club

 

The whole Premier League from the 15-16 season is outlined there, but I've copied the part specifically about Saints below, not necessarily any new or shocking information here, but the overall report is interesting to add some context of where we are with regards to wage expenditure:

 

Southampton:

 

Accounts for the year to June 30 2016

Turnover £124m (10th highest in the league)

Wages £85m (Joint 8th highest, 69% of turnover)

Profit before tax £6m (down from £15m in 2015)

 

 

Ownership Owned by Katharina Liebherr, resident in Switzerland.

 

Matchday £19m

 

Premier League and broadcasting £90m

 

Commercial activities £12m

 

Other income £3m

 

Net debt Not stated, total bank, owner and other loans: £63m

 

Interest payable £6m

 

Highest-paid director Unnamed: £445,000 (Ralph Kreuger is the chairman)

 

State they’re in Reports of crises at Southampton have been frequent since the owner, Katharina Liebherr, inherited the club among the other major business interests of her late father, Markus, in 2010, but she has confounded them with stable stewardship. Another exodus of star players in the summer of 2015 – Nathaniel Clyne sold to Liverpool for £12.5m, Morgan Schneiderlin bought by Manchester United for £25m – was matched by shrewd signings showing a profit of £29m. Southampton reacted calmly to Ronald Koeman’s departure as they did when Mauricio Pochettino left in 2014, and finished eighth under Claude Puel this time. Liebherr still has £31m in loans to the club at 5% interest; another loan of £15m was repaid.

5% interest on loans to a club in continuous profit

seems not a bad return for an owner these days.

One thing that I noticed is how a clubs size, stature or league performance doesn't correlate with the highest paid director salary... Chelsea's highest paid director was only on circa £140kpa whilst Ralph comes in at £440kpa. Of course United pay £2mil to Woodward but then even Bournemouth pay £1mil!

The one thing that really stands our for me is that the majority of the teams in the lower half of the table have staggeringly high salary to earnings ratios. They are gambling so much on premier league survival that if they go down they are ****ed. Crazy.

The one thing that really stands our for me is that the majority of the teams in the lower half of the table have staggeringly high salary to earnings ratios. They are gambling so much on premier league survival that if they go down they are ****ed. Crazy.

Parachute payments means going down probably ensures they aren't totally f---ked

Our ratio of 69% is reasonably healthy, particularly when we try to avoid again players with no resale value.

6m interest on 63m loans. Ouch. I guess it's the most likely reason why we were 20th on net transfer spend this season, paying off the loans.

6m interest on 63m loans. Ouch. I guess it's the most likely reason why we were 20th on net transfer spend this season, paying off the loans.

Good job we refinanced Cortese's Vibrac loan on better terms!

Apparently we've made a bit over 122 million £ from the PL this last season so we can expect a significant boost in profits I'd guess. Might be able to pay off most of our loans and cut interest payments.

6m interest on 63m loans. Ouch. I guess it's the most likely reason why we were 20th on net transfer spend this season, paying off the loans.

Nice cheeky return for our Kat - better than leaving her money in her bank thats for sure.

We paid more interest than Bournemouth made from all match income Ridiculous.

We paid more interest than Bournemouth made from all match income Ridiculous.

But match income is such a minor line on the balance sheet nowadays, What does it matter that you have just a handful of matchgoers when the PL gives you 118 million, ie 6 million and change for every home game. You'd need to sell a lot of tickets

to make 6 million a match really.

Nice cheeky return for our Kat - better than leaving her money in her bank thats for sure.

Point of order…. You should perhaps have quoted these figures….

..... Liebherr still has £31m in loans to the club at 5% interest; another loan of £15m was repaid.

not these…

6m interest on 63m loans. Ouch. I guess it's the most likely reason why we were 20th on net transfer spend this season, paying off the loans.

So not such a ‘cheeky’ return as you (disingenuously) put it, but certainly better than the rates you and I could get.

What's more interesting is that it suggests that the remaining £4.5m in interest comes from the ~£30m non-owner loans, or 15%.

Makes Kat's 5% look a bargain

Good job we refinanced Cortese's Vibrac loan on better terms!

Any idea when this is likely to be paid off?

Commercial revenue still seems incredibly low.

So...Is that good?

One thing that I noticed is how a clubs size, stature or league performance doesn't correlate with the highest paid director salary... Chelsea's highest paid director was only on circa £140kpa whilst Ralph comes in at £440kpa. Of course United pay £2mil to Woodward but then even Bournemouth pay £1mil!

long way short of Nik Naks £1.2m wage...

Nice cheeky return for our Kat - better than leaving her money in her bank thats for sure.

Seems like a very cheap loan to the club compared the Vibrac deal. Is Kat taking a huge wage or dividend?

So...Is that good?

Depends on your point of view. **** load of money coming in, but most of it going straight back out in wages, which as you'd expect are rising. Everything is rosy until you get relegated. Sunderland £110m in debt...scary.

Chelsea's finances over the years are shocking. I'd be embarrassed to support them.

5% interest on loans to a club in continuous profit

seems not a bad return for an owner these days.

A very tax efficient (for her) way of taking money out of the club without affecting our cash flow or ability to take any kind of finance deemed sensible....there are many reasons for not using your own money with the guarantees offered by the PL payment.

Timely of the Premier League: https://www.premierleague.com/news/405400

and

BBC to publish this: http://www.bbc.co.uk/sport/football/40125394

2016/17 season: Southampton (15 tv appearances) Prize money £25,240,917 Total Premier League money paid £122,450,841

6m interest on 63m loans. Ouch. I guess it's the most likely reason why we were 20th on net transfer spend this season, paying off the loans.

The Guardian did not say that. 63m is the net debt where as 6m (actually 5.6m) is the interest payable. There is also 3m interest receivable so the net interest payable is about 2.7m. That does not sound nearly as bad. Also, these are the amounts owed and payable as of 30 June 2016. They are not the average balance owed during the fiscal year or the actual net interest paid during the fiscal year. (I do not currently know those numbers, but if I find them I will probably post them.) If the Guardian is right that Liebherr is earning 5% then the lower numbers make more sense and there probably is another higher interest loan out there.

Point of order…. You should perhaps have quoted these figures….

 

 

 

not these…

 

 

 

So not such a ‘cheeky’ return as you (disingenuously) put it, but certainly better than the rates you and I could get.

 

What's more interesting is that it suggests that the remaining £4.5m in interest comes from the ~£30m non-owner loans, or 15%.

 

Makes Kat's 5% look a bargain

Exactly.