'Something special' for PSV?

PSV did very well off the pitch in 2022/23, as they managed to increase their pre-tax profit from €1.4m to €17.5m, with revenue rising €7.4m (8%) from €93.2m to a new club record of €100.6m, which was the first time they broke through the €100m barrier.

However, expenses also grew €7.9m (6%) from €134.8m to €142.7m, so the club still made an operating loss of €42.1m. This was more than offset by €61.1m profit from player sales, up from €44.2m, which produced the overall positive result.

PSV’s revenue growth was almost entirely driven by match day, which rose €7.0m (40%) from €17.7m to €24.7m, though there were also small increases in the other two revenue streams. Broadcasting was up €0.3m (1%) from €28.2m to €28.5m, while commercial was €0.1m higher at €47.5m.

Unlike many other leagues, the majority of clubs in the Eredivisie generally make money, but PSV’s €17.5m pre-tax profit was the second best result, only behind Ajax’s very high €55m. The other member of the Dutch “big three”, Feyenoord, were also in the black with €8.6m.

PSV have been run on a sustainable basis for a while now, as they have delivered a profit in all but one year in the last decade – and that (large) loss was driven by the COVID pandemic in 2020/21.

Last season’s €17.5m profit was the club’s highest since the €37m reported in 2011/12, but that result was a bit misleading, as it included an exceptional €43m gain from the sale of the stadium and training complex to Eindhoven council.

Importance of Europe

PSV earned €16.8m from Europe in 2022/23, even though they were eliminated in the Champions League play-off by Rangers. That still gave them €5.2m, but the majority of their income was earned after dropping down to the Europa League, where they received €11.6m for making it to the knockout round, where they were defeated by eventual winners Sevilla.

PSV have earned €84m TV money from European competitions in the last five years, which is not too shabby, but it is still €200m less than Ajax €284m, albeit more than twice as much as Feyenoord €41m.

The importance of Champions League qualification to the PSV business model cannot be over-stated, as they earn so much more in a season when they achieve this objective.

The good news is that the expanded Champions League from 2024/25 means an additional place in the group stage for Dutch clubs, based on UEFA’s current country ranking, which will give PSV a much greater chance of playing in Europe’s leading tournament if that status is maintained.

PSV have already earned around €49m from the Champions League (with one group game remaining), which is made up of participation fee €15.6m, prize money €17.5m, UEFA coefficient €14.8m and TV pool €0.9m. Along with higher gate receipts and uplifts from sponsorship clauses, this means that PSV will smash their revenue record in 2023.

PSV’s wage bill rose €4.6m (8%) from €55.2m to a new club record of €59.8m, mainly due to higher bonuses and payments to players brought in on loan to replace those sold. This means that wages have increased by €12.6m (27%) in just two years, having stalled at €47m in the preceding two seasons, though that was clearly influenced by the pandemic. Even after the increase, PSV’s €60m wages were still around 40% lower than Ajax’s €99m, so they have done well to outperform their more illustrious rivals. Feyenoord were around the same level with €58m.

These are good times for PSV Eindhoven. After being hit hard by the COVID pandemic, they have recovered well, both on and off the pitch. It’s still early days, but this season is really shaping up to be something special. So often in the past few years, PSV have been the bridesmaid, but maybe this time it’s their turn to be the bride.

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