The Financial Structures of Premier League Football Clubs
Open Access
Author:
Street, Julie E.
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
James Alan Miles, Thesis Supervisor James Alan Miles, Thesis Supervisor William Kracaw, Faculty Reader James Alan Miles, Thesis Honors Advisor
Keywords:
soccer English Premier League debt analysis financial structures
Abstract:
The English Premier League is widely recognized as one of the most prominent football (soccer) associations in the world. The League attracts topmost talent and generates massive revenues each season. Many of the Premiership clubs also carry large debt burdens as a defining feature of their financial structures.
This thesis examines the debt of the top four Premier League clubs – the Big Four. It considers the circumstances behind their debt burdens and evaluates the health of their financial positions. Three different analyses are included: a ratio analysis using standard financial ratios, an analysis of club rankings in various categories, and an examination of the ability to cover interest payments as this relates to on-the-field performance. Taken together, these analyses seek to determine if debt burdens are negatively impacting the financial health of the clubs. The methods and results of this research will be revealed and discussed in the following pages.
