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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.

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