In as much as football fans might want to think that the sole driving force behind their favorite football club is the love for the game, the situation on the ground, or the board room, would more often than not beg to differ. Football clubs are as much custodians of the sports heritage as they are corporations and the bottom line is just as if not more important than thrilling their fans by “playing beautiful football” and bagging as much silverware as they can. It could even be argued that the only thing modern football clubs fear more than an empty trophy, is being in the red. Most people approve of the saying; the bigger the risk, the bigger the reward. Others prefer the more age-old; you can’t make an omelet without breaking a few eggs. This may be true but it is a lot easier to swallow, pun intended, if the omelet turns out great and the rewards drastically outweigh the risks.
Sometimes however, a risk, no matter how well calculated can lead a football club astray, this has probably never been more true than in the modern era where the difference between feast and famine can be a few bad decisions, on or off the pitch. No one can testify to this reality better than Barcelona FC, who recently had to let homegrown global legend Lionel Messi leave on a free transfer. What other teams join them on the debt list?
WHICH FOOTBALL CLUBS ARE IN THE MOST DEBT? The football clubs that carry the most debt into the 2021-22 season are; Tottenham Hotspur (EPL), Barcelona (La Liga), Atletico Madrid (La Liga), Manchester United (EPL) and Inter Milan (Serie A). The effect this debt has on their club operations varies significantly, depending on the structure of the debt and the league they participate in. Not all debt is created equal.
If these aren’t the club names you were expecting, read on to find out more information about why these clubs carry so much debt and how it affects each of them differently.
The Big Reason
When the COVID-19 pandemic hit a little over a year and half ago, competitive sports like football were among its first casualties. This is because most team sports that draw huge audiences and generate revenue are close-contact sports that were in the early days of the pandemic seen to be at massive risk of transmitting the virus from player to player, and of course having 100,000 people crammed into a stadium was a no go.
As soon as this invisible enemy reared its ugly head, stadiums shutdown and most leagues around the world were suspended indefinitely. Most news outlets also shifted from their regular programming to a play-by-play of the pandemic as there were no sports to cover.
Fans also had more pressing needs to address with their mitigated income and would sooner redirect their resources to their loved ones and themselves than find ways to support their favorite football clubs by spending it.
With their biggest sources of revenue in broadcasting rights, match and stadium income, merchandise sales and prize money virtually non-existent, football clubs have struggled to balance their books and many have gone on record to admit that it might take them years to recover. Those that had a carefully calculated plan to skirt the line between debt and operational profitability found the virus pushed them of course, and like icarus, too close to the sun.
The List
Most individuals or entities who find themselves in debt can often trace their woes to a number of questionable decisions they have made over time and not a single lapse in judgement. The football clubs on this infamous list can therefore not blame their current predicaments solely on the effects of the COVID-19 since the pandemic only served to quicken what must have already been ticking timebombs.
Football Clubs in the most debt:
1. Tottenham
The Spurs top this list with a debt of £1.2 billion. Most of the English side’s financial obligations can be traced to the expenses they incurred while building their new stadium. Tottenham had hoped to reduce a significant portion of the debt with match and stadium income but that plan was undone after the league resumed with closed-door matches.
Their inconsistent performance over the past few seasons, which has seen them fail to win any major trophies, has also not helped their case. Recent audits have shown that the club currently owes creditors a little over £ 110 million and has a transfer and tax debt of around £140 million and £96 million respectively.
2. Barcelona
Spanish giants Barcelona come in a close second with a debt of £1 billion. Like Tottenham, the Catalans blame most of their financial troubles on revenue lost after competitions resumed with closed-door matches meant to nip the spread of the pandemic in the bud.
A large portion of the La Liga powerhouse’s stems from their huge transfer debt, which currently stands at just over £280 million. The Blaugrana are also believed to owe their staff arrears totaling around £180 million. Barca also owe the taxman and their creditors around £49 million and £97 million respectively.
3. Atletico Madrid
Atletico are third with a debt of £804 million. Like others in this list, the La Liga juggernauts are also recovering from the negative effects of the COVID-19 pandemic. That and the growing pains of a team attempting to stay afloat in a rapidly changing ultra-competitive league whose two top clubs, in bitter rivals Barcelona and Real Madrid, command a significantly larger following.
Consistent transfer activity over the past few years has seen Atletico accumulate a transfer debt of just shy of £280 million. Recent audits have shown that the club also has a gross debt of around £192 million and owes it creditors and staff around £45 million and £86 million respectively.
4. Manchester United
Multiple-time English Premier League (EPL) champions Manchester United are fourth with a debt total of around £771 million. The pandemic has been particularly unkind to the English giants whose revenue collection drastically dwindled despite boasting of one of the largest followings in not only the EPL but the world.
United’s transfer debt currently stands at £149 million despite going against the big-spending nature in recent seasons. The Red Devils are also believed to have a tax debt of £68 million and owe their creditors a little under £30 million.
Like other top clubs in Europe, United had hoped to stay afloat by joining additional competitions like the European Super League (ESL). The English giants were, alongside Barcelona, among the first clubs to declare their intention to participate in the ESL but all was for naught.
5. Inter Milan
Rounding off this top five list are Inter with a debt of around £757 million. The Nerazzurri currently have a transfer debt of around £182 million and are believed to owe their staff around £37 million.
Audits have also shown that Inter have a gross debt of a little over £360 million, owe their creditors just shy of £135 million and are in the taxman’s black book to the tune of around £43 million. The Serie A side are currently concentrating their efforts and scarce resources on clinching their domestic title, which they hope will be a ray of sunlight in an otherwise dark cloud and will spell the beginning of the end of their financial woes.
The Future
This list is sure to shift and change before the start of next season. We’ll look to update it again then. Until then, if one of these listed clubs is the centre of your football Universe make sure you order the new home kit and buy a novelty mug to help them out!