Premier League may be the most expensive football league in the world, but the cumulative net debt of Premier League clubs surpassed £3 billion for the first time in a decade. The COVID-19 pandemic has made the situation even worse. In this article, we will look at the ranking of the Premier League clubs with the most debts.
20. Aston Villa [£0m]
The impact of the COVID pandemic had a major effect on the financial results. Although turnover for the year was £112.6m, substantially up from £54.3m in the previous year, the unexpected cost of the pandemic contributed to a total loss of £99.2m compared to £68.9m in 2018-19. However, thanks to the unwavering support of their Owners, the operating loss and all capital investment has been funded by shareholder equity. Aston Villa remains debt-free.
19. Crystal Palace [£0m]
The South London club Crystal Palace announced a pre-tax loss of £58 million for 2019-20. Owner Steve Parish said, “While we did take out an external loan of £30m late in the 2019/20 financial period and defer some payments, to assist with the club’s cashflow, we still had a zero net debt position at the period end with healthy cash reserves (£58.4m) to support the club in 2020/21 and what we knew would be a turbulent, challenging season.
18. Everton [£2.3m]
Everton suffered a staggering loss of £139.9m in the 2019-20 financial year – £67.3m as a result of Covid-19’s impact on football – and have proposed a new share issue to the majority shareholder, Farhad Moshiri, worth £250m to cover the club’s continued losses. The net debt position was reduced to £2.3m (down from £9.2m in 2018/19) because of the continued support from majority shareholder, Farhad Moshiri, who contributed an additional £50m within the reporting period.
17. West Brom [£4.7m]
When Guochuan Lai bought an 88 percent majority stake from former owner Jeremy Peace for £200m in 2016, he inherited a £3.7m loan the holding company owned the football club. It has since been accruing interest and is now a debt of £4.7million.
16. Sheffield United [£13m]
Amid a season when Sheffield United’s on-field fortunes could hardly have been more dispiriting, the club have finally received some good news of it. For the first time since 2008, the financial accounts at Bramall Lane show a working profit. It is not some minuscule sum, either, with the surplus for their first season back in the Premier League for a dozen years standing at £17.5 million. The club does not appear to have any significant external debt, other than £16 million owed within the next 12 months to “other taxation and social security”.
15. Manchester City [£26.9m]
In stark contrast to its crosstown rivals United, City is nearly debt-free. That’s despite a massive wage bill of £351million in the last season. The ‘£26.9m debt’ is basically some parts of the transfer fees that were agreed to be paid in installment. This is down to the club’s owner, Sheikh Mansour bin Zayed Al Nahyan of Qatar, who has spent over a billion on City since buying it in 2008. The money wasn’t for nothing: the team has won four Premier Leagues since the Qataris took over.