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Tremendous financial results for brand Bayern

In contrast to the relatively poor form on the pitch last season, Bayern’s finances remain rock solid, as can be seen by looking at their 2023/24 accounts.  Bayern’s pre-tax profit increased from €54.5m to €62.7m, as recurring revenue rose €21m (3%) from €744m to €765m and profit from player sales slightly improved from €104m to €106m. Both of these established new club records.

This was partially offset by growth in operating expenses, which climbed €21m (3%) from €795m to €816m.

Profit after tax was also up, rising from €35.7m to €43.7m, which was the second best result in Bayern’s history. The club justifiably described this as “an extremely pleasing result”.

All three revenue streams were up, led by match day, which rose €10m (9%) from €121m to €131m, though there was also decent growth in broadcasting, which increased €9m (4%) from €204m to €213m. Commercial was only slightly higher, rising €2m (1%) from €419m to €421m, though this remains the most important revenue stream at 55%.

Bayern’s definition of revenue also includes income from player sales, which rose €76m from €110m to €186m. As a result, total revenue surged by a very impressive €97.3m (11%) from €854.2m to €951.5m, yet another club record.

Bayern’s €63m pre-tax profit was the best in the Bundesliga in 2023/24, though many other clubs also generated good profits, especially Borussia Dortmund €49m and Eintracht Frankfurt €31m.

Unlike many other leading leagues, German clubs very largely operate in a sustainable manner with no fewer than 14 of the 18 Bundesliga clubs posting a profit. Losses at three of the other four clubs were less than €10m with the outlier being Hertha BSC with a massive €99m deficit before their relegation in 2022/23.

Increasing reliance on player trading

Bayern are one of just three clubs in the Deloitte Money League to make more than €100m profit from player sales last season, only surpassed by Manchester City €162m and West Ham €112m, though they may be overtaken when PSG publish their 2023/24 accounts.  Bayern’s €169m pre-tax profit was comfortably the best performance among the elite, with only two other clubs being in the black, while the next highest, Manchester City, generated less than a tenth of Bayern with €16m.

Bayern have become increasingly reliant on player trading to reinforce their financial strength, e.g. they made €210m profit in the last two seasons, which was more than the previous seven years combined.

Bayern’s revenue was nearly 50% more than Dortmund, which is a massive difference between the first and second ranked clubs in a country. In percentage terms, this is more than the gap in the other leading countries – with the exception of France, where PSG are in a class of their own financially. Domestically, Bayern’s €421m commercial income is easily the highest in Germany, far ahead of Borussia Dortmund €250m and Eintracht Frankfurt €106m, for example. All other clubs were below €100m.

Bayern said that they have “one of the world’s best-known and most valuable football brands”, which is highlighted by the fact that they have the second highest commercial income globally, only surpassed by Real Madrid, but ahead of Barcelona €421m, Manchester City €407m and Paris Saint-Germain €391m.

Given the relatively low TV money domestically, the Champions League is a very important part of Bayern’s business model. In 2023/24 they earned €119m for reaching the semi-finals, which was €11m more than the previous season, when they only got as far as the quarter-finals.  Given the relatively low TV money domestically, the Champions League is a very important part of Bayern’s business model. In 2023/24 they earned €119m for reaching the semi-finals, which was €11m more than the previous season, when they only got as far as the quarter-finals.

Bayern’s financial dominance in Germany was evident in terms of net transfer spend, where their €222m was easily the highest in the league, more than twice as much as Wolfsburg €104m. Their closest traditional rival Dortmund actually had €7m net sales.

However, it’s a different story in Europe, where Bayern have been massively outspent by other leading clubs, e.g. in the five seasons up to 2023/24 four English clubs splashed out more than a billion Euros, namely Chelsea €1.6 bln, Arsenal €1.1 bln, Manchester City €1.1 bln and Manchester United €1.0 bln.

The club has not received any funding from its owners since a €110m capital injection in 2013/14. This is in stark contrast to many elite clubs, who have been far more reliant on their owners, e.g. in the five years up to 2023, Juventus and Milan received €692m and €585m respectively.

This is obviously another tremendous set of results from a financial perspective, as Bayern once again delivered large profits, setting new records for revenue and player sales in the process.  So far, this season has gone rather better on the pitch with Bayern a long way clear in the Bundesliga, while they are still fighting in the Champions League, so there is every chance that Harry Kane’s trophy drought will finally come to an end.

Off the pitch, there are a couple of areas that do need to be kept under review, as the growing wage bill has resulted in largish operating losses, though these have been compensated by higher player sales.  Nevertheless, it’s fair to say that Bayern’s financials remain the envy of the European elite.

 

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