Football fans all over the world are blinded by the success a club achieves often overlooking the debt it owes. With the influx of Oil money in the game and the inflated prices of the players, a lot of clubs are spending money they don’t have, to stay ahead of the game and remain competitive.
Infact, the most successful clubs in the world are the ones most debt ridden. Every year a lot of emphasis is given to the valuable clubs in the world. In the list below, we take a look at 5 clubs who are finding it difficult to keep their heads above water.
Manchester United is often found on the top list of successful clubs. It is no surprise to see Manchester United claim this spot considering their debt which comprises 18% of the club’s total value.
According to Forbes, its debt stands at $569 million dollars since it is valued at 3.1 billion dollars. The Glazer family took over the club with loans which were secured against the club’s assets.
Ever since the takeover, United hasn’t been able to properly structure their finances with signs of a declining debt not on the horizon.
Arsenal is surprising no.2 on this dreaded list. Although they’ve not spent extravagantly on their transfers, Arsenal debt stands at a whopping 29% of the total value which is $1.3 billion dollars.
That’s easily the highest percentage of debt of a football club. One of the primary reasons behind this debt Is because of the Emirates Stadium, a stadium where Arsenal moved in at the start of the 06/07 season. The stadium is currently reaping benefits as it generates massive revenues.
It is pretty sad to see the likes of Valencia in the list even when they continually sell most of their top players. In order to curb expenses, Valencia has sold world class talents namely David Silva, Juan Mata, Roberto Soldado, David Villa etc. The unfair allocation of broadcasting money in La Liga has not helped their case and they’ve not been able to move into their new stadium because of financial crisis. Their debt stands at $374 million dollars.
Bolton Wanderers find themselves prone to bankruptcy because of their reliance on a single benefactor. They’ve found themselves in this state because of over spending on player wages and relegation.
Bolton was unfortunate to be relegated to the second tier a year before Premier League struck a television deal worth 4.92 billion dollars over 3 seasons. Bolton Wanderers could sadly be another Portsmouth in the making. Their debt stands at $265 million dollars.
Real Madrid makes the list because it is the most valuable club in the world. So, even a small percentage of debt owed by the club would be an astronomical figure.
The $165 million dollar debt it owes comprises 5% of the club value. Questions are often raised if the debt owed is accurate since Madrid has a habit of breaking the bank to repeatedly sign some of the world’s most expensive players. Infact, they hold the record for 4 out of the top 10 record signings since 2011.