The Political Economy of Football V2

The recent sale of Khvicha Kvaratskhelia to Paris Saint-Germain for €70m once again highlighted Napoli’s ability to make big money from transfers. In the case of the exciting Georgian winger, this was exacerbated by the fact that his value in the books was only €2m, so the profit from the deal weighed in at a hefty €68m. In fact, based on the reported fee, this was the fifth highest profit from a player sale ever made by an Italian club. This is nothing new for Napoli, who have no fewer than four of the top ten player trading profits, including the best of all with €86m from the sale of Gonzalo Higuain to Juventus in the 2016/17 season. Given Napoli’s financial disadvantages compared to the traditional “big” Italian clubs, their consistently high finishes in Serie A have been pretty impressive, but the wheels came off last season, when they fell to 10th place, which was their lowest league position since 2008/09. Napoli’s pre-tax profit in 2023/4 fell from €118m to €91m, though t...

Not only did Napoli win the scudetto last season, but they achieved this in a lot of style, playing some brilliant football under head coach Luciano Spalletti to seal the deal with six rounds to spare. This was only the third title in their history, over 30 years after the Maradona inspired triumph in 1990. Give Napoli’s financial disadvantages compared to the traditional “big” Italian clubs, this was a very impressive feat, especially as this came after they had sold (or released) some of the team’s bigger stars before the season started, replacing them with relative unknowns. This was very much in line with the modus operandi established by owner, Aurelio De Laurentiis, who had bought the club in 2004 after Napoli went bankrupt and were relegated to the third tier. They soon bounced back with two promotions in three seasons, with the Italian film producer insisting that the club follows a sustainable strategy. Napoli swung from a €66m pre-tax loss to an all-time Italian recor...

The authoritative Swiss Ramble examines Napoli's finances:  https://swissramble.substack.com/p/napoli-finances-202122 Napoli reduced their pre-tax loss from €78m to €66m, despite revenue falling €14m (8%) from €179m to €165m and profit from player sales dropping €44m from €48m to just €4m, as operating expenses decreased by a hefty €71m (23%).   Loss after tax also narrowed from €59m to €52m. Napoli’s €66m loss was one of the highest in the league, though it was less than half of Juventus €237m (restated after their accounting shenanigans), Roma €219m and Inter €137m. They were pretty much in line with Milan €60m. tThe big five Italian clubs have lost a staggering €2.1bln between them in the last three seasons (€613m in 2019/20, €813m in 2020/21 and €717m in 2021/22).    In fairness to Napoli, their €130m loss over this period was by some distance the least bad, comfortably “beaten” by Roma €609m, Juventus €554m, Inter €488m and Milan €358m. Napoli have now rep...

The authoritative Swiss Ramble reviews the 2019/20 accounts of Napoli. The club swung from €48m pre-tax profit to €20m loss, a €68m deterioration, as revenue fell €38m (17%) from €217m to €179m and expenses rose €43m (17%) to €295m, partly offset by €13m increase in profit on player sales to €96m. After tax, €29m profit to €19m loss. All revenue streams were lower with broadcasting being the largest reduction, down €22m (15%) to €121m, though there were also falls in commercial, down €5m (11%) to €42m, and match day, down €3m (17%) to €13m. The post-tax €19m loss is not great, but it is much lower than huge 2019/20 losses at other Italian clubs, impacted by COVID, e.g. Roma €204m, Milan €195m, Inter €102m and Juventus €90m. The pandemic has reduced Napoli revenue by an estimated €32m. Napoli have posted four losses in the last six years, though have accumulated an impressive €196m profits over the last decade, including two hefty profits in 2017 (€101m) and 2019 (€48m). Unless the COV...

The authoritative Swiss Rambles reviews the accounts of Juventus.  2019/20 accounts cover a COVID impacted season when they won the league (for the 9th year in a row), but were eliminated in the Champions League last 16 by Lyon. The loss before tax widened from €27m to €82m (€90m after tax), as revenue fell €88m (18%) from €494m to €407m, partly offset by €43m (13%) wages cut from €328m to €284m and profit on player sales rising €40m to €167m, though non cash flow expenses were up €48m. So after four years of profits, the club have now reported losses three years in a row, aggregating a €119m deficit over that period. However, the club is no stranger to losses, having racked up €151m between 2011 and 2013. They forecast that 2020/21 will end in another loss. The €234m is the worst operating loss in Italy. It is true that their accounts are the only ones impacted by COVID to date, but this had already been on a steady downward trend from €(1)m in 2015. The €142m loss in 2019 was th...

Napoli are back in profit with record revenues of €206m. Sales of players were a major contributor to improved financial performance, a trend that can be seen across leading European clubs: Napoli returns to profit

Barcelona have reached the top of the Money League for the first time ever and at the same time become the first club to break the €800m barrier, generating revenue of €840.8m. The top 20 highest earning football clubs for the 2018/19 season recorded combined revenues of €9.3bn (up 11 per cent), a new record. Manchester United (€711.5m) are in third but are at risk of losing their position as the Premier League’s highest revenue generating club for the first time in next year’s edition of the Money League. Tottenham Hotspur are eighth, the club’s highest ever position, and have overtaken Arsenal and Chelsea to become London’s highest revenue generating club for the first time since 1996/97. The composition of the top 20 overall remains relatively stable with only two new entrants to the Money League – Olympique Lyonnais ranked 17th (up from 28th) and Napoli ranked 20th (up from 21st). To them that hath shall be given.

The authoritative Swiss Ramble reports that Napoli's 2017/18 accounts posted a €3m loss before tax, compared to €101m profit prior year, as profit on player sales dropped €74m to €30m and revenue fell €18m (9%) from €204m to €185m, mainly due to worse performance in Champions League. After tax, went from €67m profit to €6m loss. The club's €3m pre-tax loss was by no means the worst in Serie A, as seven others reported higher deficits, including the four largest clubs: Inter €10m, Juventus €10m, Roma €18m and Milan’s horrific €121m. Most profitable: Fiorentina €55m, Torino €54m, Atalanta €40m and Lazio €40m. Napoli's €185m revenue is the fifth highest in Italy, but still less than half of Juventus’ €411m. As Sarri said, 'Juve’s turnover is too high, they make another league.' Also more than €100m below Inter €290m and behind Roma €257m and Milan €220m, but well ahead of Lazio €129m. Napoli benefited from €30m profit on player sales, mainly Zapata to Sampdoria €20m...