PSV Eindhoven celebrated their 110th anniversary in some style in 2023/24, as they won their 25th league title, while they also reached the last 16 of the Champions League and won the Johan Cruyff Shield, though they were eliminated in the quarter-finals of the KNVB Cup by Feyenoord.
The club said that the 2023/24 season was “not only a
sporting success, but also a financial success”, as they managed to post a
€13.2m pre-tax profit (€9.7m after tax), though this was a little lower than
the previous year’s €17.5m.
This was driven by a huge new club record for revenue, which
shot up €51.5m (51%) from €100.6m to €152.1m, though this was partly offset by
profit from player sales halving from €61.1m to €31.3m.
PSV’s revenue growth was on the back of doing well in
Europe, which led to a steep increase in broadcasting income: this more than
doubled from €28.5m to €62.3m. However, there was also good growth in match
day, up €9.0m (37%) from €24.7m to €33.7m, and commercial, up €8.6m (18%) from
€47.5m to €56.1m.
PSV have (just about) overtaken Ajax in terms of revenue
with €152.1m against €152.0m in 2023/24. The last time that PSV enjoyed the
highest revenue in the Netherlands was in 2015/16, which coincidentally was the
last time that they reached the Champions League last 16
PSV have the third best profit reported to date for 2023/24
in the Eredivisie, with their €13.2m only surpassed by AZ €17.2m and Feyenoord
€13.3m. In stark contrast, Ajax posted a large €12.9m loss.
In truth, PSV have been run on a sustainable basis for a
while now, as they have delivered a profit in all but one of the last 14 years
– and that loss was driven by the COVID pandemic in 2020/21.
That said, they have done particularly well in the last two
seasons, making an impressive €31m in this period. In fact, these are the
club’s highest profits since the €37m reported in 2011/12, but that included an
exceptional €43m gain from the sale of the stadium and training complex to
Eindhoven council.
Despite this highly favourable trend, the club has sounded a
note of caution, advising that it is not sure whether this season will also be
profitable.
Player sales
Like many clubs, not least inthe Netherlands, PSV have
become increasingly reliant on profits from player sales, with the €136m in the
last three seasons being a major factor in their reported profits. In fact,
they have generated nearly a quarter of a billion Euros (€237m) in the last
seven years.
That said, this season’s profits will be smaller, unless
they move on some players in the January window. This summer’s sales only
included Jordan Teze to Monaco for €10m and Jason van Duiven to Lommel SK for
€3m. In addition, Hirving Lozano will move to new American franchise San Diego,
though the gain will be relatively small, as he was only bought back from
Napoli the previous season.
It looks like the club made a strategic decision to retain
its talent this season, hoping for another league title and a good performance
in the Champions League.
While PSV have made good money from this activity, their
€212m in the last six years was still less than half of Ajax’s €480m, though
the Amsterdam club’s focus on player trading has almost certainly hurt them,
given their poor results in the last couple of seasons.
The Premier League has been a lucrative market for PSV, so
four of their five highest transfers have been to English clubs, including Cody
Gakpo to Liverpool and Noni Madueke to Chelsea in 2022/23, their best ever
season for player sales.
Champions League
PSV earned €50.0m from the Champions League in 2023/24,
which was the first time they had qualified for the group stage since 2017/18.
In fact, they advanced to the last 16, where they were eliminated by the
eventual finalists, Borussia Dortmund.
The importance of Champions League qualification to the PSV
business model cannot be over-stated, as they earn so much more 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 country ranking, which gives PSV a much greater chance of regularly
playing in Europe’s leading tournament.
As implied by the club’s name, Philips Sport Vereniging
(Philips Sports Union), the electronics giant Philips has close ties with PSV.
Indeed, the club started out in 1913 as a works team for employees of the
conglomerate.
It has extended its sponsorship of the club to 2031,
covering stadium naming rights and participation in an innovative cooperation
with four other Dutch companies under the Brainport Eindhoven name, which
features on the front of the shirt. This also involves ASML, Jumbo
Supermarkets, High Tech Campus Eindhoven and VDL Group, working together to
help improve the lives of residents in the Brainport area.
PSV’s wage bill rose €17.4m (29%) from €59.8m to a new club
record of €77.2m, mainly due to higher bonuses following the club’s success on
the pitch. This means that wages have increased by €30m (64%) in just three
years, having stalled at €47m for two seasons, though that was clearly
influenced by the pandemic.
Qualification for the Champions League is important if PSV
want to replicate this success, so they will have to strike the right balance
when it comes to player trading between making money and retaining talent.
Comments
Post a Comment