Premier League club accounts: how in debt are they?

Football_Follower · 2012-05-24T05:37:30.324353-07:00

How does Fulham have 190m pounds of debt but pay only 0.6m in interest? That seems wrong....

Football_Follower · 2012-05-24T12:26:47.284302+00:00

turnover = revenue

johnnr2 · 8 days

Good, you are repenting as you are supposed to

weeeirdfishes · 1 month

London - everybody loves London and London is Arsenal's home. Especially Americans. Chelsea are relative upstarts.

Hard for someone in Asia/America to dream about some random industrial city in the UK.. London is very easy to relate to/dream about

Throwaway_hooker · 1 month

I logged in just to upvote you.

radicalnovelty · 1 month

Can you explain who is to blame here for this? Is it Bush or Obama?

Crystalyze14 · 3 months

Because he is a foreigner and most people are scared of change. Sad reality.

Crystalyze14 · 3 months

So basically because the Soviet Union's disintegration was a clusterfuck, we shouldn't like Usmanov. OK great, makes perfect sense.

pulsewave · 3 months

Does this apply for every child or only your first child?

texacer · 3 months

Because we will have to pay for his welfare when he inevitably needs it, that's why.

ddiamonds · 3 months

haha nice! glad you are sampling the culture!

did you whimper / did he expect you to whimper like they do in all the asian porn?

ddiamonds · 3 months

have you done the sexy time with a Japanese man yet? Thoughts?

thesevmancometh · 3 months

so, are you a gypsy? :D

besoksaja · 3 months

He doesn't want to come back to Arsenal...

v-redd · 3 months

I'm willing to bet it was a fair bit of debt (>40% for sure).. this is quite common in finance (its called "levering up a company" or an leveraged Buy out).. very standard

When things are good this is immensely profitable, but if performance suffers and for any reason we can't pay down the debt, the interest keeps piling up and bad things happen. This is why it would be fantastic if Usmanov would buy us (with cash, not debt) and give Wenger some $ to spend.

v-redd · 3 months

Yes no change in owners equity.. but think about it like this..

Assume they (current owners of Arsenal) bought Arsenal for $100; $80 of which was debt and $20 was equity (i.e. cash). Now assume they use Arsenal's profits to pay down some debt (i.e. they use Net Income to pay down debt) and consequently debt goes from say 80 to 60. Now let's say the owners decide to sell Arsenal for the same price they bought it --> they get $100 back. They use $60 to pay down debt and voila they have $40 in cash for something that they only spent $20; they've doubled their money.

So yes, they are enriching themselves by paying down debt. I think you are thinking of "equity" in the literal accounting sense.

v-redd · 3 months

Oh, let's not spend money someone wants to give us. That is just straight up stupid. If some mad Russian wants to shower money on our players/team/club why on earth would you not take it? Wenger has not been able to win a title with the budget he has had and the excuse has always been the lack of money. Give him the money, let him try and if he still fails, maybe it is time for him to leave.

I 100% think Wenger has done a phenomenal job, but the reason he has not spent money is because he has not had money to spend. Not because he is some sort of miser. To refuse the Russian's money is just lunacy. Give Wenger the money, let him spend it and let us try to be competitive.

v-redd · 3 months

If they use the money to pay down debt rather than spend it to buy new players, they are essentially enriching themselves (because the more debt they pay down, the more the value of their equity increases)

I don't think over leveraging (i.e. taking on too much debt, or not paying it down) is a smart thing, but by essentially using the profits to pay down debt is enriching themselves (the equity owners in the club).

MrSubtleSpam · 3 months

look on gumtree.co.uk it is the craigslist equivalent in the UK... if you are willing to pay, you will get a ticket.. but its not gonna be cheap

theJAW · 3 months

the same reason it is okay to eat chicken/pork/beef but not okay to eat babies

partyfoul · 3 months

You are assuming RVP stays.. which is a big assumption. Would not be surprised at all if RVP left (and wouldn't blame him at all) if he left in the summer.

Lifelong Gunner

MrSubtleSpam

TROPHY CASE

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