UEFA has released a report named “The European Club Footballing Landscape” for the financial year 2015 which is essentially the UEFA Club Licensing Benchmarking Report. The report’s primary focus is on the financial as well as off-the-pitch developments in club football across Europe.
The report contains information about match attendances, wages, stadium projects, player recruitment, club ownership, revenues and so on. The clubs in the top ten of each category are mentioned along with relevant numbers.
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One category of prime importance is the net debt of various clubs across Europe. UEFA’s efforts to implement Financial Fair Play is based on the motive of preventing clubs from spending more than they earn so that they do not fall into debt and eventually into administration.
Therefore, this category makes for an interesting viewing for it sheds some light on the state of certain clubs. The list contains some expected entities while throwing light on a few unexpected ones.
So, here are the top 10 clubs in Europe by net debt.
#10 AS Roma, €208 million
The first of the Italian clubs on the list, AS Roma have a debt of €208 million as per the report. This amount is roughly equal to the revenue generated by the club which Forbes specifies is at €180 million.
However, the impending approval for the €1.3billion Stadio Della Roma, the new stadium, could lead to further increase in debt till the stadium is operational and revenue increases. Roma’s chief executive Umberto Gandini has confirmed the project to start in the upcoming months and is expected to finish before the 2020-21 season.
Unless there is an increase in revenue on the commercial front, Roma could see a further increase in debt in the coming years.
#9 Juventus, €209 million
Italy's dominant powerhouse this decade, Juventus also find themselves on the list and they edge Roma by one million with a debt of €209 million. However, unlike Roma, the Old Lady’s revenue stands at €324 million as per Forbes and having won five Scudettos in a row, the debt can be handled.
Further, their new stadium is already raking in good amount of income and the record-breaking transfer of Gonzalo Higuain for €90 million last summer, further emphasis on their financial stability.
The sale of Paul Pogba to Manchester United was expected to balance Higuain’s transfer fee and Juventus need to further up their finances, especially their commercial revenue if they want to compete with major European heavyweights.
#8 Galatasaray SK, €222 million
The most successful team in Turkish football has been on a downward spiral financially in recent seasons with the biggest blow coming in the form of a one-year ban from European competitions by UEFA for failing to comply with Financial Fair Play (FFP) rules.
Although the ban is for one year, this adds a bad image of the club in the international arena.
While they have managed to stay within the €65 million threshold for transfers in the previous transfer window to prevent an additional one-year ban, the Turkish powerhouse needs to get things in order off the pitch to improve results on the pitch in the long-term.
#7 PFC CSKA Moskva, €224 million
The 2005 UEFA Cup winner, CSKA Moskva are the defending Russian Premier League champion and yet the club finds itself seventh on the highest net debt list. The alarming thing, however, is the fact that the debt is 3.7 times the revenue earned by the Russian club. This is a worrying trend for the club as it points to poor management of its finances.
CSKA Moskva needs to get the financial arrears right, especially with the FFP rules deployed by the UEFA in full flow.
#6 AC Milan, €249 million
The 7-time European cup winners have seen a mighty fall in the last decade and have a debt of €249 million as per the UEFA report. However, the debt could be massively reduced if the proposed takeover of the Italian club by a Chinese consortium of Haixa Capital and Yonghong Li, chairman of management company Sino-Europe Sports Investment Management Changxing goes through.
Long-time owner and former Italian Prime Minister Silvio Berlusconi has agreed for the sale for €740 million, which includes €220 million of debt. The Chinese consortium has been given time till this March and once it happens, the finances will get back in order to further boost the improved performances on the pitch this season.
#5 Queens Park Rangers FC, €279 million
A prime example of spending way beyond their income, QPR frittered away money since their new owner Tony Fernandes took over in 2011 in order to stay in the Premier League.
The London club currently finds itself in the Championship for the second season running with no manager able to hold on to his post for long.
The club has already skirted with a huge FFP fine for irregularities in the 2013-14 season and since then, it has been working towards functioning in a sustainable manner. While, it will take a while to clear the debt, QPR is currently inching in the right direction.
#4 Valencia CF, €285 million
Valencia CF is the only club in the top 10 that has a negative year-on-year growth for debt at -2%. However, the debt still stands at €285 million and with Singaporean billionaire owner Peter Lim making the right moves since taking over in 2014, things are looking up for the Spanish club.
The huge debt that led to sale of players such as David Villa, David Silva, Juan Mata and Roberto Soldado in the past to balance the finances is slowly coming down and Lim’s promise of a new stadium, should it come to fruition, will finally help Los Che return as a European powerhouse both on and off the pitch.
#3 FC Internazionale Milano, €306 million
The 4th Italian club on the list, Inter Milan along with the remaining three are a sign of the decline of Italian football in recent years. The treble won during Jose Mourinho’s tenure in 2010 remains the final high and since then Inter turned into a selling club with the debt soaring.
On the other hand, Juventus began their vice-like grip on the Scudetto at the same time and that made things even more difficult for Inter.
However, the takeover by Chinese company, Suning Holding Group in June 2016 started to finally turn the tide for Inter and they paid more than they recouped in transfers for the first time in seven years.
Further, the year-on-year growth of debt is at just 1% signalling a positive change for the state of affairs at the club. Though these are only baby steps, Inter is definitely headed in the right direction to get back to the top.
#2 SL Benfica, €336 million
The Portuguese heavyweight played second-fiddle to FC Porto for a good part in this century and got plunged in massive debt due to mismanagement at the club. However, the arrival of Jorge Jesus triggered a rise back to the top and the arrival of Rui Vitoria led to a seamless merging of the academy with the first team, saving millions on one hand while making millions from the sales of players such as Andre Gomes and Renato Sanches.
The new TV deal provides €40 million per season for the next decade and with the increased stability both on and off the pitch, the huge debt is slowly but surely coming down for the Portuguese giant as they work to become a European force yet again.
#1 Manchester United FC, €536 million
On one hand Manchester United became the first English team to earn over half a billion pounds in a single year last September. On the other hand, their debt rose by 25% to €536 million for FY15 and is a comfortable €200 million above the second-placed Benfica. However, the record revenues mean United are well placed to handle the massive debt.
Further, the £750 million deal with kit manufacturer Adidas over 10 years is a testament to their brand value and financial might. Barring a failure to get into Champions League for an extended period of time, Manchester United are and will remain a force to reckon with.
Also, the massive TV deal in England in itself is a huge financial asset to a club like United and sets them apart from clubs in other European leagues.
