The commercial numbers of the Premier League as season 2021/22 gets underway

Avatar

The 2021/22 English Premier League season began this past weekend, with capacity crowds returning to stadia for the first time since the beginning of the pandemic.

Following on from a previous season which included the majority of games being played behind closed doors, it was a welcome commercial boost for clubs across the league.

According to Richard Masters, the CEO of the Premier League, clubs have posted major losses over the past 18 months, but financially those difficulties have been managed well overall.

“Across the Premier League economy in the last 18 months, we’ve lost about UK£1.5 billion plus in revenue and that creates some significant challenges for clubs to manage and they have done that,” he said in an interview with Sky Sports.

“So, it hasn’t been easy but what I can say is with fans back, with some of the broadcast agreements we have put in place, we have got a more secure footing.

“Not just for the Premier League but for the whole of the professional game who as you know we filter a lot of our revenue down to, into the pyramid and into grassroots. So, it’s good news to everybody.”

Some of those financial woes were self-inflicted however, after the embarrassing European Super League proposal led to England’s ‘big six’ clubs (Manchester United, Liverpool, Manchester City, Chelsea, Tottenham Hotspur and Arsenal) incurring fines of US $30.4 million each for their role in the breakaway competition.

It is likely to be the end of such attempts after a new owners’ charter was introduced in May, preventing clubs from signing up to similar breakaway projects.

“I think the charter changes we agreed to in June are an end to this”, Masters told Sky Sports.

“I think it’s not an end to perhaps some of the issues that created it. It was a bad idea, poorly executed and it’s been consigned to the past I believe.

“We are in discussions with those clubs involved and we will put in place rule changes to make sure that these things won’t happen again. We had a lot of support from the government and in particular, from fans, everybody showed what they thought of the concept.”

What the Super League idea highlighted was the disparity between the leagues ‘big six’ and the other 14 clubs in the league.

A Sportico report outlined that the six big English clubs had a valuation of US$3.67 billion each on average last season, with the other 14 clubs in the league valued at US$3.7 billion combined.

According to multiple Sponsorpulse engagement reports, Liverpool was the most engaging club in the Premier League between late 2019 to mid 2021, with 45% of people in the UK engaging with the team at least once in the past 18 months. Manchester United were ranked 2nd with 42% engagement, ahead of Manchester City with 40% and Arsenal, Tottenham and Chelsea all on 39%.

Outside of the UK, the big six clubs continue to engage with a range of overseas markets, some more emphatically than others.

Liverpool’s top 3 overseas markets – by percentage of engagement are: Colombia (54%), South Africa (53%) and Indonesia (52%)

Manchester United’s top 3 overseas markets – by percentage of engagement are: Colombia (59%), Argentina (57%) and South Africa (57%)

Manchester City’s top 3 overseas markets – by percentage of engagement are: Colombia (58%), Argentina (57%) and Mexico (55%)

Arsenal’s top 3 overseas markets – by percentage of engagement are: Colombia (54%), South Africa (53%) and Indonesia (52%)

Tottenham’s top 3 overseas markets – by percentage of engagement are: Indonesia (50%), South Africa (47%) and China (46%)

Chelsea’s top 3 overseas markets – by percentage of engagement are: Colombia (56%), South Africa (54%) and Indonesia (53%)

The power of these six clubs continues to lift engagement in big markets such as China, India and Indonesia and make the Premier League what it is today.

These three markets all have more than a 50% engagement rate with the Premier League competition overall, which dwarfs Australia’s engagement rate which currently sits at 31%.

Previous ArticleNext Article

Episode 4: “You could have sold it out twice”: Peter Filopoulos on why unification is the way forward

Avatar

PETER FILOPOULOS sees Saturday’s Australia Cup final between Melbourne Victory and South Melbourne Hellas as a ‘unification event’ that must be harnessed as a window to the future – rather than a means of stirring up old division – if Australian football is to progress.

“This game sold out organically, and having run marketing, corporate affairs and communications at Football Australia previously, I don’t think they would have needed to spend one single dollar on marketing,” Filopoulos told Soccerscene Unfiltered.

“You could have probably sold it out twice! This tells me it’s the sort of product the fans want; it’s authentic and taps into the new and the old, and demonstrates culture as a real asset. You couldn’t have scripted it better.

“If I was in a decision-making position at the A-League, I’d be looking very closely at why fans have responded in such an emphatic way.”

Filopoulos has seen it all across his near-35 year career in sports administration, which by his calculation has been split evenly inside the Australian football tent and outside it – but when outside, always with at least one eye glancing back.

Fifteen years across AFL clubs Hawthorn & North Melbourne as that code moved from a financially traumatic 1990s into a wealthier new millennium; five years at Football Australia: ‘easily the most transformative period for Australian football in its history’; stints with Etihad Stadium and even a period ‘completely out of my comfort zone’ at Swimming Australia.

There’s been crisis management, stepping in as Perth Glory CEO after the 2015 salary cap scandal; he’s seen the A-League’s boom times under the Lowys & Fox Sports’ 2018 broadcast deal; he’s enjoyed the euphoria of the 2023 Women’s World Cup in Australia and New Zealand.

But all stems back to the National Soccer League and South Melbourne Hellas, and his bold decision to take on the Club’s inaugural general manager position in December 1993, aged just 25.

“I wasn’t ready… but what it taught me is when an opportunity is presented to you, just say ‘yes’ and work out how to do it later. I’ve used this throughout my career, and that was one of those instances where I threw myself in the deep end.

“I had my career mapped out, and was working quite happily in accounting. But I was a passionate fan and having grown up at the old Middle Park, it was a natural ‘yes’ – and I was young enough to take a risk.”

With today’s A-League financially ailing and great clubs of yesteryear enjoying what Filopoulos terms a ‘renaissance’ – and agitating as vociferously for a return to the top flight as at any point since the demise of the NSL – he feels it is again time for bold leadership, and a little risk.

“You can have all the ambition in the world, and in being part of a club, you’re a custodian. But as I’ve always seen it, you need a sustainable commercial model: sound ownership, sound facilities, revenue, etc…

‘But you also need to understand how to tap into that asset of culture. What we’re seeing with the Australia Cup final is a result of culture, right? You need to create it amongst your fans, and know who your fans are, and tell them what you’re striving for. Bring them along on the journey!”

Catch the full chat with Peter Filoupolos on Soccerscene Unfiltered: from ‘eyeballing’ Frank Arok and backing Ange Postecoglou, overcoming resource challenges at Football Victoria, to the rise of the Matildas, and plenty more…

Manchester City must pay the ultimate price for financial cheating

Avatar
Image Credits: Shutterstock

Manchester City’s financial scandal has reached boiling point. On the 29th of September, an independent commission found City guilty of all charges relating to serious breaches of the league’s financial rules across nine seasons, from 2009/10 to 2017/18. The commission also upheld three of four charges concerning the club’s failure to cooperate with the Premier League investigation.

The Premier League says City used sham commercial arrangements and disguised owner funding to inflate revenue and reduce costs by more than $1.7 billion (£900 million). Abu Dhabi United Group funded $1.58 billion (£830.69 million) that appeared in City’s accounts as sponsorship money from Abu Dhabi companies. The commission concluded that City’s accounts concealed the true financial position from auditors and regulators.

The 115 charges cover inaccurate financial information, player and manager payments, financial rules and the investigation itself. City has lodged its appeal against the guilty verdict, but for such a serious sporting scandal, attention has already turned to the potential punishments. In a Premier League era where foreign investment is king and revenues have skyrocketed, we should be asking questions. How did Manchester City get away with this for so long, and how can the punishment act as a deterrent to keep the reputation of football’s biggest league intact?

The hack that exposed the story

The most uncomfortable part of this saga is how the authorities discovered it and how most likely City never would have been exposed. In 2018, German publication Der Spiegel published leaked internal City emails and documents obtained through Football Leaks. Rui Pinto, the Portuguese hacker behind Football Leaks, supplied material that alleged City had disguised owner investment as sponsorship revenue and manipulated arrangements to satisfy financial regulations.

The Premier League investigation began in December 2018. City were formally charged in February 2023, after a four-year investigation, and the hearing finally began in September 2024. That timeline is nothing short of extraordinary; eight years between the leaks being exposed and charges being brought to Manchester City does significant sporting damage.

Man City won eight major titles during the alleged period, including three Premier League titles. Recalling titles in any sport leaves a sour taste in any sports fan’s mouth. The fans of opposing sides given titles feel robbed of the special moment, and Manchester City fans could feel rightfully deceived. But it goes beyond even this as we look at who Manchester City signed during those seasons. Players such as Ilkay Gundogan and Kevin De Bruyne played vital roles in City’s later titles beyond the 2017/2018 season. Would they have joined if this had been uncovered earlier? It’s impossible to say, but it shows how City’s early investment from 2009/10 still contributed to their titles in the 2020’s.

The Premier League’s credibility

That delay is not just embarrassing for City; it damages the Premier League. The league is the most competitive and commercially powerful domestic competition in football. Its rules are supposed to create a framework in which clubs compete on sporting merit while remaining financially sustainable. If a club can allegedly distort its accounts by hundreds of millions of dollars and the process takes years to reach a verdict, despite City’s potential obstruction, every other club has a reason to question whether the system works.

The irony is obvious: if Football Leaks hadn’t shared what they found on Manchester City through its hack, the scheme never would have been uncovered. If financial rules were designed to stop clubs gaining an unfair competitive advantage, then the Premier League may need to change how it investigates how its clubs’ finances are being managed. If anything should be gained from this, it may be that financial regulation needs to be improved as the Premier League and its clubs spend billions.

As for Manchester City, punishment cannot simply be a fine that becomes another operating cost.

Relegation is the only serious answer

If the verdict survives the appeal, Manchester City should be removed from the Premier League and those three aforementioned league titles removed. A fine would be inadequate and, depending on what points deduction City got, would punish the club in one season while leaving the historical record largely intact. Nottingham Forest received a four point deduction for a charge of Profitability and Sustainability rules in 2023-2024. City’s 114 charges will see much greater punishment then that.

Even if City are relegated they would almost be guranteed to be promoted the next season so even that feels like a slap on the wrist. Despite their investment during the nine seasons being questioned their five titles subsequent to that period will be expected to remain in their hands. My solution is to relegate City to the Championship without the potential of promotion for three seasons, one for each title won during that time.

City fans will call that harsh but their is strong reason to come down hard and that’s because this is bigger than Manchester City. Foreign ownership has brought huge investment into English football, but investment cannot mean exemption from the rules. Owners, executives and clubs must know that the Premier League’s financial regulations carry consequences that cannot be negotiated away.

The league has a choice. It can impose a manageable punishment and move on, or it can demonstrate that competitive integrity matters more than the commercial power of its biggest clubs. If City’s appeal fails, the answer should be clear: relegation, a reckoning over the titles and a message to every owner that the Premier League’s rules are not optional.

Most Popular Topics

Editor Picks

Send this to a friend