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).

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion. Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs. An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site. He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned. He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long. What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do

The Political Economy of Football V2

Search This Blog