On paper, today’s game between Club Brugge and Manchester City at the Etihad is a mismatch, as the English champions are much stronger financially, but, as someone once said, “it’s a funny old game”. As an example, City’s squad cost is more than ten times as much as Club Brugge, while the wage bill is £340m higher.
Of course, they are very much the underdogs in this
evening’s game against Manchester City, but even if they don’t manage to
qualify, the income they receive from this season’s competition will still make
a substantial difference to their bottom line.
One of the most
successful clubs in Belgium
Club Brugge are one of the most successful clubs in Belgium,
having won no fewer than 19 league titles, including six in the last nine
years. Much of this has been built on money earned from regularly competing in
Europe, which has given them a financial advantage over the rest of the Belgian
Pro League.
A recent highlight came two years ago when they reached the
Champions League last 16, before being eliminated by Benfica. Those with a
longer memory might remember Brugge going all the way to the 1978 European Cup
final, where they only lost 1-0 to Liverpool at Wembley after Kenny Dalglish
scored the winner for the Reds.
Last season Club Brugge won the league, after only finishing
fourth the year before, and reached the semi-finals of both the Belgian Cup and
the Europa Conference League.
Unlike the majority of football clubs, Club Brugge generally
manage to post profits, making a healthy €82m in the last seven years,
including €34.9m in 2019/20, €17.1m in 2022/23 and €14.3m in 2018/19.
Based on their consolidated accounts, Club Brugge posted a
€6.9m pre-tax profit, though this was down from the previous season’s €17.1m. Revenue dropped by around a third (€31.0m)
from the club record €99.6m to €68.6m, but this was largely offset by profit
from player sales increasing by €20.2m (39%) from €51.1m to €73.1m. In
addition, operating expenses were slightly cut by €2.8m (2%) to €154.8m.
The main reason for the steep reduction in revenue was only
playing in the Europa Conference, as opposed to the far more lucrative
Champions League, which led to broadcasting income more than halving, falling
€31.1m from €55.0m to €23.9m.
Club Brugge’s €6.9m profit before tax was the second highest
in the Belgian Pro League last season, only behind Union Saint-Gilloise’s
impressive €19.0m. In contrast, some clubs reported hefty losses with three of
them above €20m, namely RWD Molenbeek €25.2m, Standard Liège €23.4m and
Westerlo €22.8m.
Importance of player
sales
The club’s reliance on player trading is shown by the fact
that this contributed 44% of “total revenue” last season. The share was lower
in the previous year, when the club had Champions League revenue, but it was
still pretty high at 29%.
Club Brugge’s profit last season owed a great deal to player
trading, as they generated a substantial €71.3m profit from player sales, up
€20.2m from the previous season’s €51.1m. This was mainly from the sales of
Igor Thiago to Brentford, Abakar Sylla to Strasbourg and Noa Lang to PSV
Eindhoven.
Unsurprisingly, this was the highest profit from player
sales in the Pro League, though a few other clubs also did pretty well, as this
is a key element to the business model in Belgium, especially Gent €57m, Genk
€46m, Anderlecht €38m, Antwerp €35m and Union SG €28m.
However, Club Brugge’s profitability is very dependent on
selling players, which has made them €237m since 2017/18, including €122m in
the last two seasons alone. The €51m profit in 2022/23 was largely driven by
the sales of Charles De Ketelaere to Milan, Lois Openda to Lens and Stanley
Nsoki to Hoffenheim.
Without the benefit of the money from UEFA competitions,
there would have been very little revenue growth in the last six years. Club Brugge’s €68.6m revenue was the highest
in Belgium last season, just ahead of Anderlecht €67.9m and Antwerp €64.9m.
There was then a big gap to Gent €35.6m and Genk €35.4m.
Club Brugge’s broadcasting income basically moves in line
with their performance in European competitions, as their domestic earnings are
relatively small. Therefore, playing in the Europa Conference last season,
instead of the Champions League in 2022/23, led to a significant reduction from
€55.0m to €23.9m.
To place this into perspective, Club Brugge’s €24m
broadcasting revenue in 2023/24 is miles below many of the clubs they face in
this season’s Champions League, e.g. this evening’s opponents, Manchester City,
earn around 14 times as much as the Belgians with an incredible €343m.
Club Brugge’s consistent sporting results in Europe have
given them a major advantage against their Belgian rivals. In the last five
years, they earned around €150m, which is at least three times as much as any
other club. Their closest challengers are Gent €42m, Genk €39m, Antwerp €35m
and Union SG €22m.
The new Champions League format is likely to be even more
beneficial for Club Brugge. As it stands, i.e. before the Manchester City tie,
the authoritative Swiss Ramble’s model suggest that they have earned a cool
€52m, as they are currently in a qualification spot for the knockout rounds,
having won three games and drawn another two.
Club Brugge had the highest average attendance in Belgium in
2023/24 with 20,840, a fair way above Standard Liège 18,710, Genk 17,490 and
Anderlecht 16,796.
Since 1975 Club Brugge have shared the Jan Breydel stadium
with city rivals, Cercle Brugge, but they have been working on plans for a new
stadium for many years. There have been a number of proposed locations, though
all of these have encountered various problems.
Belgian clubs book quite a lot of money in other operating
income, partly because they are allowed to benefit from an exemption on
withholding tax on player salaries.
Club Brugge’s €85.0m wages are by some distance the highest
in Belgium, much more than Antwerp €63.0m, Anderlecht €49.2m and Genk €47.4m. However, this is very much the old story of
being a big fish in a small pond, as Club Brugge’s €85m wage bill is quite
small by the standards of the European elite. For example, this is less than a
fifth of Manchester City’s €478m.
According to Transfermarkt, Club Brugge had by far
the highest gross transfer spend in Belgium over the last four seasons
(including 2024/25 to date) with €162m, nearly €100m more than Antwerp €73m,
Genk €69m and Gent €66m. On the other
hand, they had the second highest net sales of €67m, only less than Genk €108m.
Club Brugge’s gross financial debt slightly increased last
season from €34.6m to €36.3m, but it has remained around this level for the
last five years. It includes a €15m loan from the Club Brugge Foundation VZW,
€12.3m external loans from Belfius and €9.0m leases. This is the highest financial debt in
Belgium, ahead of Mechelen €25.4m, Gent €19.8m, Westerlo €18.7m and Antwerp
€18.5m.
Ownership
For many years Club Brugge operated as a non-profit
organisation before it was converted into a public limited company by current
president Bart Verhaeghe, who then became the majority shareholder.
A prospectus was issued in 2021 for the sale of the club,
but this was called off, due to weak demand. The club blamed adverse market
conditions, but others thought that the lack of interest might have been driven
by the IPO proceeds going to the existing shareholders, as opposed to raising
funds for the club or financing a new stadium.
A few months later came the sale of the minority stake to
Orkila Capital.
Club Brugge have clearly done very well in the last few
years, both on and off the pitch. In contrast to the vast majority of football
clubs, they have consistently generated profits, though it should be
acknowledged that these are very dependent on player trading, while the
importance of European qualification is also clear.
This has helped them become the dominant force in Belgian
football, though they will always be a long way behind the European elite, so
are likely to lose their top talent each season to clubs paying higher wages.
The new Champions League format is therefore beneficial to
clubs like Club Brugge, as it distributes even more money, while the league
phase gives them a better opportunity of progressing to the next round than the
old group stage
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