"Greed" is the explanation for capitalism, so hardly adds understanding to the debate. But let's take a look at debt and the earnings to cover payments.
The net reported debts include overdrafts, bank loans, bonds, shareholder loans and finance leases, less cash. The gross debt of Madrid and Barcelona, at €150 million each, is a lot less than reported in the press. Arsenal is on €310 million and Man United €550 million.
Madrid has €48 million cash and Barcelona €89 million. Arsenal €117 million, though Man United has €370 million.
The UEFA Financial Fair Play (FFP) define debt as a club’s net player transfers balance and net borrowings and does not include trade or other payables.
Net balances owed on player transfers is €76 million at Madrid, but only €12 million at Arsenal.
Following the UEFA definition, Madrid, Barcelona and Arsenal report a balance of €120-130 million, Man United three times this at €442 million.
Then look at the club's assets. According to UEFA, assets do not cover liabilities in a third of clubs' cases. This is the balance sheet reason for the new league proposal (income statement, we will come to...).
Man United’s net assets (assets less liabilities, or owners' equity) are €973 million (€618 million is inter-company receivables from the parent undertaking), Arsenal €322 million, Madrid €251 million, Barcelona a negative €69 million.
As an alternative to private
equity or banks supporting the clubs, could there be a fan-based
ownership? Or, could JP Morgan wrap up the support into monetisation
units for sale through the world's stock markets?
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Keep it clean, keep it lean