Wednesday, June 3, 2009

Think the Yankees Payroll is high??

Here's some interesting financial disclosures on the state of the 20 teams in the english premier league, which include 4 of the largest clubs in the world. Here's the "wage bills" in order for the teams. One british pound = 1.62 us dollars right now (and within the past few months it was worth 2 dollars, so volatile the markets have been). I've done the conversions already.

Baseball payrolls per Cots team links.

New York Yankees 2009 payroll: $206M
New York Mets: $139M
Chicago Cubs: $137M

4 biggest english teams:
Chelsea: $241M
Man Utd: $196M
Arsenal: $164M
Liverpool: probably around $162M

Arsenal: L101.3
Aston Villa: L50.4
Blackburn: L39.7
Bolton: L39
Chelsea: L149
Everton: L44.5
Fulham: L39.3
Hull City: L6.9
Liverpool: undisclosed, but is probably at least L100 based on their "turnover" or revenue being in the L150 range.
Man City: L54.2
Man Utd: L121.1
MBoro: L34.8
Newcastle: L74.6
Portsmouth: L54.7
Stoke: L11.9
Sunderland: L37.1
Tottenham: L52.9
WBA: L21.8
West Ham: L44.2
Wigan: L38.4

The #5 team listed is Newcastle, which was relegated and stands to lose 40% of their TV revenue as a result. They are in deep deep trouble, since most of that L75M payroll does not have relegation clauses, meaning they'll need to be sold just to rid the team of the payroll. Notice "Hull City" had a 6.9L payroll, and stayed up, and beat teams with 100M payrolls this year. Amazing.


  1. Hey Boss -- how do these clubs compared as far as revenue with the MLB teams? Are they comparable? Obviously different currency but I'd be interested to see how they compare...

  2. Revenue estimates for the biggest 4 teams:
    Arsenal: 222L or $355M
    Chelsea: 213.6L or $342M
    Liverpool: 159L or $254M
    Man Utd: 256L or $409M

    The next closest team is Tottenham with revenues of L114 (182M). But Tottenham is a great example of how EPL teams work. Using numbers in pounds for simplicity, here's a breakdown of Tottenham's finances:
    revenues: 114
    payroll: 53
    debt service: 4
    profit declared: 3

    Uh; so where's the rest of the money? There's 50 million pounds unaccounted for there. The answer is; player purchases. Tottenham spent 57L on players last summer, received about 50L for players sold (mostly through selling Keane and Berbaov) and then went out and spent even more in the transfer market.

    Forbes went through and valuated all these teams in april. Link is here. The revenues are higher probably b/c the Dollar has strengthened since. But Its interesting to note that Man Utd is not the highest revenue team in the world.