Football Club Accounts: Explained

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Күн бұрын

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Football clubs have historically been sources of entertainment and symbols of unity in local communities. Today, they are also businesses - and as businesses, they release accounts or financial statements once every year.
But financial statements can be hard to read, so we’ll show you how.
Written by Abhishek Raj. Illustrated by Henry Cooke.
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Tifo loves football. We create In-depth tactical, historical and geopolitical breakdowns of the beautiful game.
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#Finance #Accounts

Пікірлер: 264

@Misoroche Жыл бұрын

Could yall do a video about football medicals. Its origins and what normally consists of a player medical.

@rabidninjacupcake Жыл бұрын

Sky did a pretty good video of Jamie Carragher going through a medical that may interest you if you haven't seen it yet

@lilbaz8732 Жыл бұрын

@@rabidninjacupcake you have to have a medical to become a pundit on sky?

@stanleymakafui Жыл бұрын

It's something I've been thinking about lately

@ewan7283 Жыл бұрын

@@lilbaz8732 no, they did it to show what a medical looks like it was quite recent

@largezo7567 Жыл бұрын

Yeah, I'd love to know what the club doctors are looking for

@DailyWord3832 Жыл бұрын

Business class explanation, Tifo as always.

@iannar399 Жыл бұрын

Let's us promote peace wherever we may be.🕊️

@mitchellhengeveld8949 Жыл бұрын

That's why you need to play FM

@loading9110 Жыл бұрын

It's critical on FM and getting rid of those pesky contract bonuses like appearance fee bonus. Especially lower down.

@lewisblackwiththenicehair Жыл бұрын

People still play Career mode?

@darthvader4338 Жыл бұрын

Is that even a thing 🤣🤣🤣

@alfonsohr02 Жыл бұрын

@@loading9110 National team appearance bonus💀💀💀

@eva00r Жыл бұрын

Amazingly you can learn Accounting with TIFO football and master them in Football Manager.

@poeperdhe Жыл бұрын

FM should be played by every football (die hard) fan.. experiencing the stress of FM makes you understand football better 🤣😭

@nekomimi793 Жыл бұрын

I always have trouble when i gain back-to-back promotion because I cannot keep the wage up to the division standard. So all my star players go away to better clubs with better wages.

@opinionatortv6457 Жыл бұрын

@@poeperdhe I just don't have the money to pay for it

@franalytics5995 Жыл бұрын

@@opinionatortv6457 just get the torrented version

@toastedt140 Жыл бұрын

@@nekomimi793 when games are too realistic so they're slightly less fun

@kakuite Жыл бұрын

Tifo football, and Tifo IRL might help someone to get UEFA Pro Licesne one day. No joking. They're better than any teachers I've ever had. Absolute goldmine for footballing knowledge.

@veezeetwothree Жыл бұрын

FACTS

@CowFish7 Жыл бұрын

I came here to disconnect and forget about my studies for a bit and ended up watching a video about the exact thing I was studying.

@kindnessallison8669 Жыл бұрын

This got me laughing to bits

@lfc-europe Жыл бұрын

How to read them: With a heavy dose of skepticism

@isimelilatabua4199 Жыл бұрын

Lol

@samwize28 Жыл бұрын

What? Financial reports are heavily audited and scrutinised for accuracy. What is reported is pretty much 99% accurate to reality. The only scepticism necessary is for garbage such as FFP.

@becksdennis8339 Жыл бұрын

Came from an Accounting lecture to watch this video, and as an American being so huge into football (⚽️) it’s interesting to learn a little bit about the business world in European football and see the similarities and differences in this structure and ours over here in the U.S.

@NazriB Жыл бұрын

Lies again? American Education Football Soccer

@becksdennis8339 Жыл бұрын

@@NazriB ???? Lol don't really know what point you're trying to prove here

@rothbardfreedom Жыл бұрын

PSG's statement: Income: 99.9% blood oil money Costs: 99.9% salaries to mediocre midfielders who will be separated from the main group in 1 or 2 seasons.

@ismailkar3852 Жыл бұрын

Qatar is not an oil nation, it's a natural gas nation

@limpa756 Жыл бұрын

City are just as guilty when it comes to blood oil money lol. Funny enough Chelsea were the least corrupt prior to everyone dog piling Russia

@sergiowinter5383 Жыл бұрын

Truly the foreign legion of football

@Aleu931 Жыл бұрын

Without ignorance How is PSG income blood-oil money?

@finnm4981 Жыл бұрын

@@Aleu931 PSG is primarily funded by the Qatari government which has an abhorrent human rights record and continually allows the inhabitants of their country to suffer while putting billions into a football club. By February 2021 over 6,000 migrant workers had died in direct-relation to the construction of the World Cup stadiums... There's similar criticism against the ownership of Manchester City (UAE) and Newcastle United (Saudi Arabia).

@annagoldman1163 Жыл бұрын

‘’Courage taught me no matter how bad a crisis gets ... any sound investment will eventually pay off."

@casinosimsek2027 Жыл бұрын

Making it out at a young age is quite difficult. I started a side hustle at 17, saved up and made some good investments. l'm 28,live on my own and having a good life for myself. Big ups to you and everyone out there trying

@frankdouglas1562 Жыл бұрын

@@casinosimsek2027 Sounds like plan, how do you put money to work?

@casinosimsek2027 Жыл бұрын

@@frankdouglas1562 Yes it sure is. I put in money in investments and get profits. That 's how I make more money without working. This does not sound new to you right ?

@frankdouglas1562 Жыл бұрын

@@casinosimsek2027 Thanks for replying me, I've heard so many people talk about investment but none had said how to do it right.

@mav3420 Жыл бұрын

Am hoping on you can explain more on how you make extra income from investments

@neby9218 Жыл бұрын

Great to see! Now “Business Essentials with JJ Bull ‘the Mallard’ and Jonathon ‘Dog’ Mackenzie” is the video I need next!

@Aanike09 Жыл бұрын

All the jiggery pokery involved in the biggest names moving around

@liverpool12thman Жыл бұрын

This is something myself and a small minority of supporters within my fanbase have been trying to enlighten our fellow supporters on and I appreciate you doing this story. It can be frustrating to elaborate on topics like this because often the response is, "I don't want to be an accountant, I just want to be a fan." Sports has long transferred from just a game to an actual business that resembles a portfolio credit. The manipulation of books to remain within the laws of the sports business and sometimes the outright disregard of rules or laws is something we all have to hold important if we are to have a game at all to enjoy. Providing people with how the ins and outs of the business work are key parts of that very knowledge needed. Excellent reporting as always. As a fellow journalist this is exactly what they teach us in Journalism school and it sets a bar of well communicated information into a comprehendible format for all levels to appreciate.

@anirbandey8999 Жыл бұрын

Great video. New perspective to view a football club. Would love to see more analysis at a club level.

@ahmet51197 Жыл бұрын

I would love to see a comparison video between Bayern München , Barca and Manu

@sergegaash Жыл бұрын

@@MrJoeSomebody at least in Spain, Barças financial statements are public, and I think they are by law. Might be surprising given their situation now, but the overspending was known.

@candym0nz826 Жыл бұрын

This was awesome, some might find the finances of football borring, but I find it fascinating. Well done Tifo, absolute top class!

@philipwalker3300 Жыл бұрын

Very detailed information, presentation is spectacular gets you really involved in the sport keep up the great work.

@Jubdas Жыл бұрын

One thing - the profit and loss statement is not the most important. The cash flow is. Profit can be manipulated, cash cannot

@Dave-Shearer Жыл бұрын

What about if you buy players with Freddo's instead of cash?

@pianomerchant1830 Жыл бұрын

P&L is the most important in football because FFP is based on how much loss/profit you’ve made not the car you have

@samwize28 Жыл бұрын

''CASH is king'' is always the first lesson learnt in any finance class.

@jonooflaherty8446 Жыл бұрын

i agree, but for a football club I think a pnl is more relevant. seeing upfront the revenues - expenses give a good indicator for it's users (those being football fans)

@imconfused1237 Жыл бұрын

Exactly. Cash flow is what makes or breaks any business and football is no different. It is why you’re seeing more of this loan-to-buy structuring: it is all about deferring that expense. I see a lot of Tottenham fans a tizz because Levy has chosen to defer purchasing Kulusevski until next summer. But this is exactly why: it is better for their group cash flow.

@stephenbickerstaffe1062 Жыл бұрын

I work in finance in Luxembourg. Amazing that you guys cover stuff like balance sheets, haha. Keep it up.

@preciousadesina3525 Жыл бұрын

Im an accounting major in university and a huge man city fan so watching this was very refreshing and most of this was review but just explained in football terms which was pretty cool 🥶

@mauricerrr Ай бұрын

The debt to equity ratio especially in Football Clubs doesn't tell you as much. If you own your own stadium your debt will be a lot higher than when you rent your stadium, as mortgages are included on the balance sheet but rent payments aren't. But in reality, you're as much dependent on your stadium if you rent it versus when you own it. Clubs with rented stadiums often look more financially healthy but in reality are not

@Iron-Bridge Жыл бұрын

As an elite Football Manager myself, this was wonderfully educational. 👏

@neyo4669 Жыл бұрын

Since 2021 this is the only video you've made that interests me I also miss the hand that used to draw your finance videos

@charlesray9674 Жыл бұрын

3:57 My favorite club has made another appearance on a TIFO video!! 🥳😎👍

@muhammedgamal5871 10 ай бұрын

One of the best videos made here

@KakashiH318 Жыл бұрын

Need more videos like this that relate to my studies but in football terms

@tumiallies8569 Жыл бұрын

Loved this.

@joshwilliams0391 Жыл бұрын

I’m liking your thumbnail for this. It looks like a bit of Grand Theft Auto loading screen artwork. Nice.

@wunnas8135 Жыл бұрын

Beautiful

@espben360 Жыл бұрын

Accounting and finance 101 should be title 😂 great video

@onjadar Жыл бұрын

More like this pls. Thank you Tifo

@chipperjaunte Жыл бұрын

Keepin it consistent lovely

@FOOTBALLisKNOWLEDGE Жыл бұрын

As a united fan I know what's happening along as the glazers are in charge

@sethosore3509 Жыл бұрын

Can you please do a video on Brighton's Recruitment and how they are steadily on the rise

@lilbaz8732 Жыл бұрын

Thnx. But i'll just stick to reading swiss rambles breakdowns of each clubs finances. Do love a bar graph.

@RoyMatzem Жыл бұрын

Could we have a standing, showing those data on PL? Like a Health Business standing

@Triclips Жыл бұрын

Cool great vid

@footballmanager1486 Жыл бұрын

brilliant

@WithSeb Жыл бұрын

As an accounting student looking to get into football , I appreciate this overview

@SRParsonage Жыл бұрын

I would contend that the Balance Sheet, Then cash flow is more important. P&L is accounting profits that can be somewhat manipulated especially under GAAP or IFRS. Its when CEO's start talking about EBITDA you should be running for the hills. For example taking one look at CIneworlds balance sheet months ago concluded to me that they were done and would soon go bankrupt, Their troubles have come no surprise to me. Carnival Cruise is a horror story as well (understandably) United's current/quick ratio is the lowest in years and a macroeconomic recession like 08/09 would leave them very exposed. Rising interest rates means no refinancing is really possible.

@imconfused1237 Жыл бұрын

Additionally exposed, are Arsenal. They failed to pay down their Emirates debt (approx £200m balance) during the time of cheap money. They have since repackaged this into a £350m structural loan with short expiry. It seems idiotic to me, that Arsenal did not clear down the Emirates balance. Instead they built up a cash reserve but this has since been exhausted in failed efforts to spend their way back into the Champions League. Their finance costs are going to be horrendous.

@Electroburger Жыл бұрын

Could you make a video on Douglas Luiz and the impact that him scoring from corners could have in the Premier League; this season and beyond

@Jordan3Retros Жыл бұрын

If Tifo could deep dive into Man Utd's books to confirm whether ludacris transfer fees are held on the balance sheet as assets.. that would be great.

@JK_JK_JK_JK Жыл бұрын

Next: Man United Transfer Strategy Explained! 😏👍

@lfc-europe Жыл бұрын

That'll be a KZfaq Short I suspect

@parasadhikari7063 Жыл бұрын

Do they actually have a strategy??

@f.b.4795 Жыл бұрын

@@parasadhikari7063 Yes. Watch rumours and buy everyone who's reach 100k likes on Twitter.

@ProbablyCarl Жыл бұрын

Insert Futurama 'shut up and take my money' meme.

@parasadhikari7063 Жыл бұрын

@@f.b.4795 🤣🤣

@fernandocastro6658 Жыл бұрын

The Athletic is home to the world's best sports Journalists including David Ornstein, Rafa Honigstein, Jeffrey Epstein and of course Harry Potter and the philosopher's stein

@Blank-s Жыл бұрын

Nice, I was literally wondering this yesterday whether footballers were assets or liabilities.

@Hafris33 Жыл бұрын

This video is more knowledgeable than my Financial Management class during my college years. Lol! 🤣

@basharbadrieh2737 11 ай бұрын

Loved the video, Im making my seminar about the topic of the financial aspects in football and i'd really appreciate it if you would drop the references/articles you used to make this video :)

@alliffmuhamad Күн бұрын

Nice video!

@toby1106 Жыл бұрын

Idk if this would make an interesting video or not but has anyone noticed how most of the transfers nowadays are loans + option/mandatory buy clauses compared to like 5 years ago?

@KIKK2017 Жыл бұрын

Tifo, could you explain how Leipzig signs Sezko and Chelsea signs Gravidol for summer 2023 in summer 2022 window? The only similar situation I can remember is United signed Amad in summer 2020 but he joined later in winter. Is this kind of deal allowed in football transfer market? I'm a bit afraid this could be a norm in the future.

@samking5101 Жыл бұрын

Also Liverpool did it with Naby Keita and Chelsea did it with Pulisic. They signed them and the loaned them back to their old club straight away

@JK_JK_JK_JK Жыл бұрын

Chelsea FC: What's An Account?!?! 🤔

@A-Port-In-Any-Storm Жыл бұрын

man utd*

@Bork_In_Volcanic Жыл бұрын

Wrong. It's applicable for PSG.

@aussieboy77 Жыл бұрын

2:33 - I think amortization is in the cash flow statement, not the income statement.

@12thMandalorian Жыл бұрын

Best football accounts in England, you’ll never sing that

@stegx2853 Жыл бұрын

Interesting

@nicktyalus Жыл бұрын

Me following keenly yet understanding absolutely zero, good job Tifo

@shambhav9534 Жыл бұрын

6:05 Fulham and Norwich: That's me!!! MY REVENUE "GROWTH"

@aarrneshkapoor6159 Жыл бұрын

Can Tifo please make a video on Manchester United's financial health?

@sithmir Жыл бұрын

Can't wait to use this info I learned to find out how my favorite club Man United is being ru............. oh god.

@TheUnashe Жыл бұрын

For player sales in the Profit and Loss account, ain't they supposed to be treated like disposal of intangible assets since they are capital in nature?

@docdk7979 Жыл бұрын

Correct. Value of transfer fee less remaining balance on player registration (intangible asset) = profit/loss on sale.

@Geokinkladze Жыл бұрын

Capital is the owners stake in a business. Any asset (whether intangible or not) when disposed of will have had a value on the books before disposal. At disposal it's value is now "realised" (made real). The difference between the value on the books and any net disposal value goes to profit and loss.

@rijosam5278 Жыл бұрын

Joan Laporta restructured the debts in such a way that the interest rates are cheap AF. So on what basis did you say that Barca are paying high interest rates? Barca Merchandising and Licensing has not been sold either 🙄

@fimmyk Жыл бұрын

The Barcelona situation has been widely misunderstood i think and a lot of misinformation being spread.

@greatnesstv265 Жыл бұрын

Balance sheet is called Statement of Financial position

@JoshPhilp 19 күн бұрын

James, show us what cards ya got

@noahdamski6810 Жыл бұрын

how come a player contract is an asset, it is a cost that goes against the club's budget

@BALHAM69 Жыл бұрын

The price of football podcast is good for that to :)

@archipiratta Жыл бұрын

3:07 I'm surprised no club uses the simple lightningbolt as its club insignia. It's a clean look; I like it

@ShekharKumar-jh3uc Жыл бұрын

A logo needs to be unique so it's not confused

@ronanfitzpatrick1261 Жыл бұрын

It might have connotations - double lightening bolt would be associated with the SS in WWII for example. Think some far right groups might have variants - but it's not really something I've a lot of knowledge on. Just saying it might be part of the reason why not. Would look cool apart from that

@sergegaash Жыл бұрын

Rayo Vallecano from Madrid uses it as part of their badge. In fact, rayo means lightning bolt.

@aqeel-3771 2 ай бұрын

Most of the Assets are players and youths players😊

@espben360 Жыл бұрын

I am studying business administration, so it’s like the best of both worlds 😂

@clivedarwell5732 Жыл бұрын

There is no magic money tree - yes Pep!

@MartyD Жыл бұрын

wish I had these accounts

@ricardocarrillo621 Жыл бұрын

all this info is on your book

@maxandsouza4163 Жыл бұрын

Can you make a video about Manchester Uniteds' financials? Covering all the above mentioned parameters? Doesn't look pretty for us TBH!

@ronanfitzpatrick1261 Жыл бұрын

I think the owners have realized the need to inject money, like every other top club. Obviously they'll never use their own (leeches) but it might be why there's talk of selling a minority stake/stakes - alternatively might clear some of the principle debt they brought on the club if they cared enough to do so

@aliukehinde3906 Жыл бұрын

Go search athletic interest,they did one on united finances.

@ggleonel5173 Жыл бұрын

Barcelona: we don't do that here 😂

@slackjoelyokel88 Жыл бұрын

Mo looking like he's ready to roll a joint

@DemiochMD Жыл бұрын

Didnt think i'd get an accounting lesson today lmao

@shaqtaku Жыл бұрын

Can you please do a video on - Mose Jourinho - Mionel Lessi - Lank Frampard - Didier Drogba - Mason Mount - Paul Pogba Thank you and god bless

@morondes 10 ай бұрын

Is this all going to be in the exam?

@leoulmesfin9384 Жыл бұрын

ለምን ጉግል ትራንስሌት?

@yamnayaseed356 Жыл бұрын

Watch Bayern Munich smash all of these ratios 😆

@Otekos Жыл бұрын

Putting Salah as the thumbnail for views is tight!

@sergegaash Жыл бұрын

You should have done this video 4 years ago for FC Barcelona fans.

@swifteh1780 Жыл бұрын

I love how Man Utd fans are giving it the big'n online, but blind, or in denial, of the fact that the club is on the verge of financial collapse. There's no way that club can sustain that amount of spending.

@natsudama4604 11 ай бұрын

I think the only one here who is blind is you because all of them want the owners gone And plus, we are getting ucl football, with Qatar coming in i think we'll be settled

@muhammedanwar8018 10 ай бұрын

As a Chartered Accountant and a Man Utd fan myself...the honourable mention of 'leverage' involved in Man Utd made me laugh in pain because of the clowns who are managing my boyhood club... 💔

@jarretc110 Жыл бұрын

touting liverpool's financial acumen like they didn't win the transfer lottery numerous times...

@hoggybhoy1967 Жыл бұрын

See the way everyone of us have a credit rating and we all have a score... Is this possible with football teams?

@marioohiwerei5746 Жыл бұрын

Accounting 101

@mikestepz3945 Жыл бұрын

Early bird gets the worm

@imconfused1237 Жыл бұрын

‘Amortisation’ is an internal method of accounting. A 5yr contract does NOT mean the purchasing club pays 1/5th annually to the receiving club. This is nonsense. If the selling club wants to be paid up front, that IS expensed immediately. If they want two instalments, it’s expensed at agreed staged payment dates. Either way, money leaves. It is invoiced and paid. If the purchaser wants to amortise the gross investment over its expected life: 3, 5, 7yrs or whatever, that’s up to them - it’s wooden dollars.

@thequestion3953 Жыл бұрын

That’s what he said. He never said amortisation means the buying club pays in instalments over five years. He just said a five year contract will appear differently on the two different financial statements.

@docdk7979 Жыл бұрын

Timing of cash payments doesn’t equate to an expense. That’s fundamental. Players play over the length of the contact and so the purchase price is spread over that length. Cash flows are important for other reasons - like not going bust - but they dont drive timing of income/expenses

@catsIdontknow Жыл бұрын

You misunderstood that part of the video, but I do love it when someone is overly confident & completely wrong, so thanks for that

@ILikedGooglePlus Жыл бұрын

@@docdk7979 Honestly, it's so satisfying on a deep - almost visceral - level

@imconfused1237 Жыл бұрын

@@catsIdontknow Lots of weird, misplaced triumphant energy here. I don’t even know who you are (but don’t let that stop you 😊) So tell me, what bit have I “misunderstood”?

@sandycook7506 Жыл бұрын

Tifo are sound

@tcrwn4350 Жыл бұрын

Barcelona executives be watching this.

@almahdialsharef6066 Жыл бұрын

All i want to know is how on earth Liverpool wages are 325M pounds half of that money probably the players wages .. where's the other half goes too

@firestarter1888 Жыл бұрын

£6.25M per week wage bill inc bonuses £6.25M x 52 = £325M

@marcelanoryadi9110 Жыл бұрын

Chelsea miss Marina. She made profits selling fringe players

@Cityeditz69 Жыл бұрын

i thought they were gonna talk about football clubs twitter acounts 😅😅

@ksw6513 Жыл бұрын

A mad fan who knows a bit about football doesn't know all this business model side of football/soccer 😹⚽😂

@tremensdelirious Жыл бұрын

So why don’t Man City get any income from TV, sponsorship, doing well in the UCL etc yet we’re apparently bankrolled by the Sheikh. Could you do a video on that please

@natsudama4604 10 ай бұрын

"apparently" mate, you always were 💀

@tremensdelirious 10 ай бұрын

@@natsudama4604 so we get no money from TV or frkm winning stuff? We do it for free?

@Ryder.... Жыл бұрын

Its Still A Little Bit Confusing For Me 😅

@lilbaz8732 Жыл бұрын

Swiss ramble does a good breakdown of each clubs finances on twitter. Sets it out so it's easily understandable.

@RichMitch Жыл бұрын

*amortisation*

@ugoeze7360 Жыл бұрын

Why get an MBA and Sports Management degree when you got Tifo ? 🧐

@pavelr4752 Жыл бұрын

So this is the jiggery-pokery everybody is talking about?

@liam00 Жыл бұрын

Why are Chelsea signing so many defenders? Also, why are they allowing a player they sign for 90m to remain on loan at his current club. Surely you would pay much less for that?

@RoyMatzem Жыл бұрын

They have 10 defenders now, but they usually use 5 on the starting XI, so i dont think is too many, the weird thing is 4 of them being LB, maybe is a reflect of Chiwell injury being so impacting on the last season

@imconfused1237 Жыл бұрын

It’s Gvardiol’s agent. He wants either the player to move now or his client to sign a huge new contract with a release clause for next summer. RB don’t want to sell and are talking about a €150m release clause, if they’re to offer him a huge new contract. He ain’t going anywhere.

@imconfused1237 Жыл бұрын

And surprise, surprise: Gvardiol signs a new deal with RB. Not leaving exactly as I said. Don’t believe all of Romano’s BS 😉