The authoritative Swiss Ramble reviews the finances of
Bayern Munich. Despite the significant
impact of COVID, the club “achieved sound financial results”, once again
posting a pre-tax profit, though down from €17m to €5m (€2m after tax). Revenue
(club definition) fell €54m (8%) from €698m to €644m, largely offset by €42m
cut in expenses.
Bayern were one of only three clubs in the Bundesliga to
post a profit in 2020/21, due to “sensible management and not spending more
than we earn”, though their €5m was just below RB Leipzig’s €8m. Some clubs
lost a huge amount of money, especially Hertha €78m. In fact, the Bavarians have now been profitable
for an amazing 29 years in a row, generating €241m pre-tax profit in the 4
years before COVID.
For the second year in a row Bayern retained 3rd place in
the Deloitte Money League in 2021, with their €611m revenue only surpassed by Manchester
City €645m and Real Madrid €641m.
At €5m Bayern were one of a small number of European clubs
that were profitable in 2020/21, along with Man City €6m and Real Madrid €2m.
In stark contrast, other clubs had some staggering losses, including Juventus
€208m, PSG €225m, Inter €239m and especially Barcelona €555m.
The income from
player sales almost halved, falling from €64m to €33m, mainly Thiago’s move to Liverpool.
This was partly due to the transfer market being depressed by COVID, though
some clubs still made good money from player trading, e.g. Real Madrid €106m
and Man City €77m.
Like many clubs Bayern have become increasingly reliant on
player trading. Although income fell to €33m in 2021, they earned an impressive
€154m in the previous 2 years. Few big money sales in 2021/22 (Alaba left on a
free), but this season was better.
The revenue gap
between Bayern and Borussia Dortmund has narrowed in recent years, but was
still as much as €274m in 2021. Put another way, Bayern’s €611m revenue was
nearly 80% higher than Dortmund’s €338m, which is a huge difference between
first and second ranked clubs in a country.
Commercial income fell €15m (4%) from €360m to €345m, though
the small decrease was a pretty good performance during the pandemic. In fact,
this was the highest commercial revenue in Europe, ahead of PSG €337m, Real
Madrid €322m.
Broadcasting
revenue rose €51m (25%) to €255m, a club record for this revenue stream, mainly
from UEFA TV money, up €54m to €136m, due to income deferred for games played
after 2019/20 accounting close. Still far below Man City €336m, due to low
Bundesliga TV money.
The wage bill
rose €33m (10%) from €340m to €373m, which means that wages have risen by €108m
(41%) since 2017. One reason for the increase in 2021 was the players taking a
voluntary salary cut in the previous season. These were by far the highest wages in
Germany.
Baern enjoy a major competitive advantage in Germany, as
their €373m wage bill is a hefty €158m (73%) more than Borussia Dortmund €216m,
the highest ever gap. This difference is much higher than a similar comparison
in England, Spain and Italy, only smaller than PSG’s lead in France.
wages to turnover ratio increased (worsened) from 54% to 61%, obviously impacted by COVID revenue losses, though this was still one of the best figures in Europe, only behind Tottenham Hostpur 57% and Real Madrid 58%, but miles better than the likes of PSG 88%.
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