Sevilla have become synonymous with the Europe League, having won it no fewer than five times in the last decade and seven times in total. Even when they have not performed well in Spain, they have invariably managed to find something extra in “their” competition.
There is no clear leadership at the top, which is never a
good thing for a football club. Del Nido reportedly has the largest
shareholding with 24%, with Castro’s group owning 21% and Rafael Carrion,
another former president, having 15%.
Matters have clearly not been helped by the bitter power
struggle off the pitch at Sevilla. Former president Jose Maria Del Nido
Benavente is pushing to reclaim control of the club from the current incumbent
Jose Castro, who is supported by Jose Maria Del Nido Benavente, who just
happens to be the son of Castro’s bitter rival.
The situation has been further complicated by the arrival of
777 Partners, an American private investment company, who purchased a minority
stake in 2018. To date, they have invested around $25m for “over 13%” of
Sevilla.
Player sales
Much of Sevilla’s success in the past was down to their
player trading model, where they would buy talented players cheaply, develop
them (while benefiting from their skill on the pitch), then sell them for a
good profit.
Sevilla’s profit from player sales fell €8m (19%) from €43m
to €35m, the club’s second lowest in the last nine years. The only season where
they made less money from player trading was 2020/21, when COVID had deflated
the transfer market. Despite the
decrease, Sevilla’s €35m profit is the second highest to date in La Liga in
2022/23, only surpassed by Real Madrid’s €71m.
Unless they do some deals in the January transfer window,
this season will be similarly under par, as the only player to leave for decent
money in the summer was goalkeeper Bono to Al-Hilal. The other departures were
either for little money or on free transfers. That said, this did at least
allow the club to lower its wage bill, which was also achieved by sending out a
few players on loan.
Losses
Sevilla’s pre-tax loss reduced from €21.9m to €17.3m in
2022/23, as revenue rose €28.2m (15%) from €186.1m to a club record of €214.3m,
though this was partly offset by a €21.0m (8%) increase in operating expenses
to €274.4m.
However, they still posted a large loss, which Sevilla said
was driven by two factors: the high cost of the squad and lower profit from
player sales, which fell €8m from €43m to €35m. The club added, “The problem is
that we have been very ambitious in creating the squad and this has meant an
extra cost.”
All three revenue streams were higher, led by broadcasting,
which rose €19.6m (14%) from €144.3m to €163.9m. However, there was also good
growth in match day, up €4.7m (30%) from €16.0m to €20.7m, and commercial, up
€3.8m (15%) from €25.9m to €29.7m.
Most Spanish clubs are yet to publish accounts for the
2022/23 season, but Sevilla’s €17m loss is likely to be one of the highest in
La Liga. Some of the losses in 2021/22 were bigger, but that season was still
impacted by some COVID restrictions.
Before the pandemic struck, Sevilla had consistently
generated profits, but they have now posted losses in each of the last three
years, amounting to €85m after tax. The
good news is that they have now reduced the deficit for two years in a row, but
director Jose Maria Cruz admitted that the overall picture was still negative,
“These are losses which hurt, bad results which reflect the club’s situation.” That said, the club said it would break-even
this season, based on projected revenue growth and a focused campaign to cut
costs.
Sevilla earned €72m TV money from Europe last season, which
was the second best for a Spanish club. This was a fair way below Real Madrid’s
€118m, but ahead of the other two Champions League representatives, Barcelona
€70m and Atletico Madrid €61m. The
importance of Champions League qualification is evident, as the two clubs in
the Europa League, Real Betis and Real Sociedad, averaged only €19m, while
Villarreal in the Europa Conference received even less with €12m.
Sevilla have earned nearly a quarter of a billion Euros
(€246m) from European competition in the last five years, which is not too
shabby, but still a lot less than the Spanish “big three”: Real Madrid €527m,
Barcelona €444m and Atletico Madrid €403m.
Stadium
Sevilla have prepared ambitious plans to redevelop the
43,000 capacity Ramón Sánchez Pizjuán Stadium, though the budget has increased
by 75% from €200m to €350m. The stadium's
modernisation work will begin in 2026, increasing capacity to 55,000 seats with
around 10% of the seats allocated to VIP areas for hospitality and corporates.
The club would also like to convert the sports city into a sports and business
campus “stand out”.
The opportunity was highlighted by 777 Partners, who said,
“The average price per seat is way behind similar clubs. I think there is some
low-hanging fruit there, as we think match day revenue could be doubled over
the medium term.”
Wages
Sevilla’s wage bill rose €17.4m (11%) from €157.6m to
€175.0m, another new record for the club. Sporting staff wages increased from
€137.6m to €152.3m, while non-sports personnel was up from €20.0m to €22.7m.
This means that wages have grown by nearly 70% (€71m) in just four years.
The club attributed last season’s steep growth in wages to
its “ambition”, though part of the increase arose from the need to strengthen
the squad in the winter market, as well as the cost of terminating the coaching
staff on two occasions.
Sevilla’s €175m wage bill was comfortably the fourth highest
in Spain, though still a lot smaller than the top three: Barcelona €571m, Real
Madrid €413m and Atletico Madrid €254m. This is even after excluding wages for
other sports, such as basketball, at Barca and Madrid.
As 777 Partners said following their investment into the
club, “Sevilla is a great club, with a lot of tradition and history, amazing
fans and an amazing city.” However, the trend is not their friend, as results
on the pitch have not been great – with the honourable exception of the Europa
League.
They abandoned their tried and trusted player trading model,
which resulted in higher wages, financial losses and more debt. The board has
plans to address these issues, but will not be easy to turn the ship around, so
the club’s motto of “Never give in” has never been more appropriate.
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