A report released by financial analysts Vysyble states that Premier League clubs could be on a crash course with bankruptcy in the near future. The report shows losses of every club, average losses and the most financially stable clubs in the Premier League.
A new report, aptly named “We’re So Rich It’s Unbelievable! – The Illusion of Wealth Within Football. 2nd Edition,” examines the spending habits and profits, or lack thereof, of the clubs in the Premier League.
As stated on Vysyble’s website, the report includes the following:
"A detailed explanation of the methodology used to calculate economic profit and the FPI; A review of the revenue performance of the Premier League division and individual clubs therein; How the Premier League division has performed in terms of generating economic profits since 2008-09; An illustration of the key economic trends within the division; An introduction to the FPI and the overall efficiency of the division year-on-year in achieving economic profits/losses; A detailed comparison between FPI performance and Premier League standings at club level for the 2015-16 season; FPI performance profiles for Premier League title-winning clubs – what does it cost to win?; Relegation – the link with poor FPI performance; and the two-tier league – an explanation of the differing financial dynamics at work as illustrated by FPI data and trends."
To summarize, the report from Vysyble covers every aspect of the profits and losses that clubs in the Premier League have been a part of. There are also a few interesting points to be taken from the report as well. The clubs that many would think would be making money are not, and others that would be thought to breaking even are making profits.
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For instance, Chelsea and Manchester City have accounted for more than half of the Premier League’s losses in the eight-year period shown in the study. Clubs like Norwich, Burnley and Leicester, however, find themselves toward the top of the ‘profitability index’ for their approaches.