Football club finances: the gap widens

Portsmouth enter administration and face relegation, whilst Manchester United's income grows as they progress in the Champions League and the Premiership. The gaps grow on and off the pitch. Where does all the money come from? In the recent Delloitte's annual Football Money League, Manchester United rank behind Real Madrid and Barcelona in the table of biggest money earners. For clubs like these, only 25-30% of the income comes from matchday ticket sales. 40% or so is from broadcasting rights, and the rest from commercial sales (hospitality, replica shirts, etc).

Football club finances are a real anomaly - players appear as assets - unknown in virtually any other company's balance sheet, the financial year-end reflects the football season and is related to contract dates with TV companies, and as clubs enter and exit the listed markets, more or less financial information becomes publicly available. In our financial courses we look at a range of different business types and help participants to understand the key drivers and influences in a business's finances. Have a look here at a sample programme.