VYSYBLE LAUNCHES THE FOOTBALL PROFITABILITY INDEX (FPI)
London 10th July 2017.
vysyble announces the launch of a new and unique index which reflects the relationship between Economic Profit (where all the costs of doing business including tax, interest and capital charges are considered) and Revenue achieved by football clubs that have participated in the English Premier League since the 2008-9 season.
Investors, analysts and commentators can not only view the economic performance between clubs on a like-for-like basis but can now determine for the first time the comparative efficiency levels between them in achieving Economic Profits.
‘Since launching in 2016, vysyble has led the debate regarding financial performance from a value-based perspective. Using our own EP/R Value methodology, the Football Profitability Index delivers a new level of financial performance measurement within the game,’ said John Purcell.
Notable findings from the Index include:
- The Index currently stands at 91.13 meaning that the Premier League clubs are generating economic losses of £8.87 for every £100 of revenue (ie 91.13 – 100)
- The Index has not reached breakeven during the period of analysis meaning that the Premier League division has not generated an economic profit in 8 years
- The index is only slightly higher than its standing in 2008-9 of 90.18 despite an 85% increase in annual revenues to Premier League clubs to £3.6bn in 2015-16
- Norwich City were the most financially efficient club in the 2015-16 season but were still relegated
- Leicester City won the title in 2015-16 and achieved economic profit whilst doing so, a feat only achieved twice more in the last eight years by the same club – Manchester United
- Since 2012-13, the club with the lowest FPI score has been relegated
- The highest index score is 144.57 achieved by Burnley in its relegation season of 2014-15
- Blackpool hold the record for the longest successive run of economically profitable accounts – 5 years starting with their single Premier League season in 2010-11.
- The FPI data clearly shows that the Top 7 clubs are expressing different financial behaviour than the remaining 13 clubs in incurring bigger economic losses which in turn are increasing at a much faster rate than the rest of the division
vysyble was launched in August 2016 and has gained international recognition in the calculation and examination of companies and market sectors in generating Economic Profit and shareholder value. vysyble provides sector-level reports and individual company assessments on a paid-for basis.