The price of football : understanding football club finance / Kieran Maguire ; foreword by Kevin Day.

Format:

Book

Author/Creator:

Maguire, Kieran, author.

Contributor:

Day, Kevin, writer of supplementary textual content.

Language:

English

Subjects (All):

Soccer--Economic aspects.

Soccer.

Soccer teams.

Physical Description:

1 online resource (242 pages)

Edition:

Second edition.

Place of Publication:

Newcastle upon Tyne : Agenda Publishing, [2021]

Summary:

This revised and updated second edition of the bestselling guide to understanding football club finance includes analysis of the most recent club accounts, as well as the impact of Covid-19 on the game's finances, the latest legal rulings on club affairs, and expanded coverage of "creative accounting".

Contents:

Intro

Half Title

Title Page

Copyright Page

Contents

Acknowledgements

Foreword

1 Introduction

Part I Football club financial reports

2 The balance sheet

What is an asset?

Types of asset

Non-current vs current assets

Tangible assets vs intangible assets

Liabilities and equity

What is a liability?

Types of liability

Non-current vs current liabilities

Financing vs operating liabilities

What is equity?

Recording transactions in the club balance sheet

3 The profit or loss account

Income

Costs/expenses

Finance/interest

Pre- and post-tax profit

4 The cash flow statement

Cash from operations

Cash flows from investing activities

Cash from financing activities

How to create a cash flow statement

Part II The price of football

5 Players (and agents)

How does a club value a player?

Supply and demand

Available financial resources

Contract length

Release clause

How to show football player transactions in the accounts

Transfer fees

Amortisation

Contract extensions

Impairments

Player sales

Case study 1: Ousmane Dembele

Case study 2: Andy Carroll

How to calculate the sales price of players sold?

Case study 1: Juventus

Conditional/add-on fees

Paying by instalments

Signing-on fees

Football player wages

Agents

6 Ticket prices

1966 and all that

Rising living standards

Football is an addiction

The rise of the football tourist

All seater stadia

Player costs

7 Broadcasting and sponsorship income

Why do broadcasters like football so much?

Why does the football industry like live broadcasting so much?

How is the money shared?

What of the future for broadcast rights?

8 Financial fair play

UEFA rules

Premier League rules

Short-term cost controls.

Profitability and sustainability rules

English Football League (EFL) rules

Championship

Leagues One and Two

Part III Football club financial analysis

9 How to analyse club accounts 1: trend analysis

Case study: Manchester United Plc year ended 30 June 2019

Historic comparisons

Matchday income

Broadcast income

Commercial income

Competitor comparisons

Costs

Wages

Player transfer amortisation

Gains on player disposals

Profits: operating, EBIT and EBITDA

Analysing the balance sheet

Net debt

Receivables and payables

Football net debt

10 How to analyse club accounts 2: ratio analysis

Performance ratios

Cost control ratios

Matchday income to wages

Income per fan

Interest cover

Effective tax rate

Balance sheet ratios based on player trading

Player signings to income

Player reinvestment rate

Squad ageing

Transfers owing percentage

Financial gearing (leverage)

Conclusion

11 Valuing a football club

Balance sheet value

Stock market values

Comparative sales values

Comparative profit or loss account multiples

Discounted cash flow model

Step 1: Calculate the free cash flow (FCF)

Step 2: Calculate the weighted average cost of capital (WACC)

Step 3: Calculate the terminal value (TV)

Step 4: Calculate the total value

The Markham Multivariate Model

(Revenue + net assets)

(Net profit + revenue)/revenue

Stadium capacity percentage

Wage ratio percentage

The MMM calculation

Summary of values

12 Ownership models: love, profit, vanity and insanity

The local fan made good

The butterflies

The trophy asset

The flipper

Fan owned/member clubs

13 Red Flags - things that make you go "hmmm": creative accounting and football finance

Better late than never

Controlling the narrative

Abbreviated accounts.

Complicated club structures

The devil is in the detail: footnote disclosures

Case study: Derby County

14 Football finance in a post-Covid-19 world and Project Big Picture

Twenty-five per cent distribution of collective broadcast revenues to EFL clubs

Reduction in the size of the Premier League and abolition of the Carabao Cup

Parachute payments

Voting rights

Glossary of accountancy terms

Further reading

Index.

Notes:

Description based on print version record.

Includes bibliographical references and index.

Other Format:

Print version: Maguire, Kieran The Price of Football SECOND EDITION

ISBN:

9781788213288

OCLC:

1239148443