Barcelona wages break through half billion barrier

The authoritative Swiss Ramble blogger assesses the 2018/19 accounts of Barcelona. Profit before tax fell €17m to €4m (profit after tax €5m, due to €1m tax credit). Revenue rose €76m (8%) from €914m to a record high of €990m, even though gain on player sales was down €108m. Offset by significant growth in expenses, which were up €69m.

The largest growth was in broadcasting €111m (59%) to €298m, followed by marketing and advertising €28m (8%) to €363m. Match day revenue of €145m, including membership fees, was the highest in the world in 2017/18, ahead of Real Madrid €143m.

Most La Liga clubs are profitable. Barcelona have reported profits eight years in a row, aggregating around a quarter of a billion pre-tax in this period, though these have now fallen three years in a row. However, they do make losses on other sports such as handball and basketball.

Even though Barcelona have made money, they have become increasingly reliant on player sales with huge average annual profits of €154m in last two years.

The two traditional Spanish giants are miles ahead of the closest challengers in revenue terms, Atletico Madrid €304m and Sevilla €165m. Looked at another way, the combined €1.6 bn revenue of Barcelona and Real Madrid is €100m more than all the other La Liga clubs combined.

After years of individual deals in Spain, La Liga have introduced a collective deal, based on 50% equal share, 25% performance over last 5 years and 25% popularity (1/3 for average match day income, 2/3 for number of TV viewers). Gross income reduced by liabilities (7%). Even after the changes, Barcelona and Real Madrid still receive by far the highest TV income from La Liga’s TV deal with around €140m apiece, followed by Atletico Madrid €100m, then a big gap to Sevilla & Athletic Bilbao €70m. Lowest payments went to Girona and Leganes €40m.

Barcelona will benefit from La Liga international TV rights rising by 30% in 2019/20, giving a total of €2.0 bn. Although still a long way behind the Premier League €3.4 bln, it is comfortably ahead of others: Bundesliga €1.4 bn, Serie A €1.3 bn and Ligue 1 €1.2 bn.

Barcelona have earned an impressive €345m from European competition in the last 5 years, only surpassed in Spain by Real Madrid €383m. Atletico Madrid’s European success has brought them €302m, then a big gap to Sevilla €151m, Valencia €83m, and Villarreal €70m.

The club plan a redevelopment of the Camp Nou stadium, increasing capacity from 99,000 to 105,000 and adding a roof. Cost has increased from €600m to €685m with completion pushed back to 2024. They hope to partly fund this work with a substantial naming rights deal.

The football wage bill was up €15m (3%) to €501m, the first football club to break through the half a billion Euros wages barrier. The closest challenger is Manchester United at €375m. Football wages have grown by nearly 50% (€162m) in just two years.

Wolves get raw deal from FFP

I used to see a lifelong Wolves fan for lunch once a month. He was approaching ninety, but still went to games. Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules. Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000. The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts. Money brought in from football has gone up too. Match day income is

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved: https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen. There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere: https://thecharltondossier.com/charlie-methven-on-the-record/

The Political Economy of Football V2

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