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Bayern Munich are one of Europe's most profitable clubs

The authoritative Swiss Ramble takes a look at Bayern Munich's latest accounts. They are one of the most profitable clubs in Europe. Indeed, they have the highest profit before tax (€46m) of any of the leading clubs that have published 17/18 accounts to date. Amazingly, this is the 26th consecutive year that Bayern have been profitable.

Profit before tax fell from €66m to €46m (profit after tax €29m). Revenue (per Bayern’s definition) rose €17m (3%) to a record high of €657m including €28m profit on player sales, mainly Douglas Costa to Juventus. The board described the figures as 'outstanding'.

Bayern Munich have become increasingly reliant on player sales with average annual profits rising from just €11m between 2009 and 2013 to €41m in the last five years. Excluding player sales, revenue has grown by a third (€155m) in the last three years from €474m to €629m, mainly from broadcasting €71m (67%) and commercial €71m (25%) with match day up €14m (16%). Revenue has doubled since the €321m reported in 2011.

Bayern's revenue advantage over Borussia Dortmund, their closest domestic challenger, increased to €312m in 2017/18, the highest ever gap. In fact, Bayern’s €629m revenue is almost twice as much as Dortmund’s €317m.

They have the fourth highest revenue in the world (per Deloitte Money League 2017, based on 2016/17 results), though they were as high as 2nd in 2003/04. There are three other German clubs in the top 30: Borussia Dortmund, Schalke 04 and Borussia Mönchengladbach.

The club had the highest commercial income of any football club globally in 2016/17 with €343m, ahead of Manchester United €325m, Real Madrid €301m and Barcelona €296m. Closest German clubs are Borussia Dortmund €148m and Schalke 04 €95m. They have an excellent kit deal with Adidas (€60m a year) and good shirt sponsorship agreement with Deutsche Telekom (€35m), though Real Madrid earn almost twice as much.

Bayern have earned significantly more revenue (€284m) from European competition than any other German club in the last five years. Champions League revenue rises by 54% in 2018/19. There is also a new UEFA coefficient payment (based on performance over 10 years), where Bayern has the 3rd highest ranking, guaranteeing them €33m.

Their wage bill shot up €38m (14%) from €265m to €303m in 2017/18, which means that wages have risen by a third since 2015, exactly in line with the revenue growth rate. Wages to turnover ratio held in a healthy narrow band between 44% and 49% in last eight years. Bayern have one of the lowest ratios among the leading clubs, only beaten by Tottenham 41% and Arsenal 47%, but significantly better than Barcelona 70% and (domestically) Dortmund 59%.

Using the broadest definition of debt, Bayern's total liabilities are only €280m, which is one of the lowest of the leading European clubs. Manchester United are almost €1 bln higher at €1234m, followed by Juventus & Tottenham (€700m), then Real Madrid & Arsenal (€600m).

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