FC Barcelona Finances

Luftstalag14

Culé de Celestial Empire
Who said it grows on trees? I think you underestimate the revenue this club is generating.

How am I underestimating the revenues we are generating?

I know we are generating top 3 revenues in Europe but if our revenues don't keep up with the pace of our expenses it is useless. Our net profit has been shrinking for several years (only 11m last season). Our debt is worrisome, if the 500m does not factor in new debt incurred from the Espai project. Heck, Bartomeu recently wanted to raise the level of debt/credit tolerance level and was vetoed, that just goes to show we are short of money and want to borrow more.
 

defyqa

New member
Yeah, that's the reason why we wanted B team to compete in Segunda. TV money. Who cares about the youngsters...
 

Luftstalag14

Culé de Celestial Empire
Shout out to [MENTION=15570]Newcomer[/MENTION] who brought our attention to the KPMG’s “The European Champions Report 2019” Report.


Snippet on us:

Moving to the cost side, the Blaugrana exhibit the highest Staff costs of the eight clubs with EUR 561.6 (+42% year-on-year, +119% in the past seven seasons) and a staff cost/operating revenue ratio of 81% (+19% year-on-year) among the clubs included in our report. This figure not only represents a record for the football industry, but for sport in general, making FC Barcelona the biggest spender in Staff costs among any sports team. The main reasons for this are the contract renewal of, among others, Lionel Messi, new signings made over the transfer windows, and bonuses paid on such contracts.

Despite significant increases in Staff costs, the club managed to maintain a positive bottom-line result of EUR 12.9 million, mainly a consequence of the extraordinary profits on the disposal of players’ registrations totalling EUR 209 million. This value was derived principally from the much-debated transfer of Brazilian superstar Neymar for the record amount of EUR 222 million to Paris Saint-Germain FC. At the same time, the overall player trading result was partially curtailed by the new investments made to replace the Brazilian forward, with special reference to the acquisitions of Ousmane Dembélé and Philippe Coutinho, which almost doubled the amortisation of the squad.

Looks like we would have had a net loss last season if it wasn’t for the Neymar sale. A very alarming staff cost/operating revenue ratio which is at 81%, the highest of any sports team.
 

Devils

Senior Member
Interesting how that part indicates signing bonuses as part of the 81%.

IIRC, Messi had a huge signing bonus upon getting his new contract last year so you'd expect that 81% number to decrease for this year regardless.

But the club definitely has to take advantage of the opportunity to cool down the wage bill over the next few years as the highest earners are all 30+.
 

Leo_Messi

New member
Shout out to [MENTION=15570]Newcomer[/MENTION] who brought our attention to the KPMG’s “The European Champions Report 2019” Report.


Snippet on us:



Looks like we would have had a net loss last season if it wasn’t for the Neymar sale. A very alarming staff cost/operating revenue ratio which is at 81%, the highest of any sports team.

According to a report published by UEFA today, RM is the team that pays the highest wages of all football teams with us being second, paying some €30 million euros less. According to data from last season that is.

https://www.uefa.com/MultimediaFile...lublicensing/02/58/98/12/2589812_DOWNLOAD.pdf

58% of our revenues cover the wage bill while in RM's case it is 60%. No difference it seems. Actually we are doing better according to UEFA's report on this front. Could have something to do with RM paying their players bonuses for winning the CL. Not sure as I have not read the report.
 
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Luftstalag14

Culé de Celestial Empire
According to a report published by UEFA today, RM is the team that pays the highest wages of all football teams with us being second, paying some €30 million euros less. According to data from last season that is.

https://www.uefa.com/MultimediaFile...lublicensing/02/58/98/12/2589812_DOWNLOAD.pdf

58% of our revenues cover the wage bill while in RM's case it is 60%. No difference it seems. Actually we are doing better according to UEFA's report on this front. Could have something to do with RM paying their players bonuses for winning the CL. Not sure as I have not read the report.

Thanks a lot for this report, it will be a great read.

I wonder where the huge discrepancy comes from (81% vs. 58%)? Any ideas? I have not read the UEFA report.
 

Devils

Senior Member
According to a report published by UEFA today, RM is the team that pays the highest wages of all football teams with us being second, paying some €30 million euros less. According to data from last season that is.

https://www.uefa.com/MultimediaFile...lublicensing/02/58/98/12/2589812_DOWNLOAD.pdf

58% of our revenues cover the wage bill while in RM's case it is 60%. No difference it seems. Actually we are doing better according to UEFA's report on this front. Could have something to do with RM paying their players bonuses for winning the CL. Not sure as I have not read the report.

This seems to align with what I mentioned above.

This UEFA report is of 2017 while I think the KPMG report is of 2018.

The KPMG report says that Barcelona wages last year (2018) exceeded 500m whereas in this 2017 UEFA report it was 378m. It's a MASSIVE increase...but the KPMG salary reporting takes into account the bonuses paid and Messi recieved a huge signing bonus last year, reports indicate that it could be in the range of 100m

https://www.businessinsider.com/barcelona-is-giving-lionel-messi-a-100-million-signing-bonus-2017-10

So the overall wages/operating budget at 81% would probably only likely be for 2018 because of Messi's renewal.

I fully expect that Barca have overtaken Real Madrid in 2019 though, seeing as we've renewed Messi and they've sold Ronaldo. But on the positive side, that 81% reported by KPMG will surely drop this year.

I also wonder if Coutinho and Dembele received signing bonuses...
 
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Luftstalag14

Culé de Celestial Empire
Deloitte Money League Report 2019 just came out, we ranked 2nd in terms of revenue at €690.4m last year, behind Real Madrid which was at €750.9m. The gap between our two clubs has widened from about 25m in 2017 to 60m in 2018. Full report can be downloaded here.

Blurb on us:

FC Barcelona climb one place to second
after strong revenue growth of €42.1m
(6%) in 2017/18. Commercial revenue
increased by €27.7m following the start
of a new four-year shirt front sponsorship
deal with Japanese e-commerce company
Rakuten and improved exploitation of
pre-season friendlies, with Barca playing
notable games in the USA against both Real
Madrid and Manchester United. Winning
La Liga resulted in improved broadcast
revenue and, despite a drop in average
league attendance, matchday revenue
also increased following growth in revenue
from the sale of tickets released by the
club’s members and the Spanish Super Cup
fixture played against Real Madrid.

Further commercial growth is also
expected next year, as the 2018/19 season
marks the start of two major commercial
agreements; the restructured technical
kit deal with Nike, which has enabled
increased in-house merchandise activities,
and the start of a new deal with Beko
for rights to shirt sleeve and training kit
sponsorship. However, progress beyond
the Quarter-finals in this year’s Champions
League, a sticking point in recent years,
is likely to be an important factor in
determining how close FC Barcelona can
get to the top spot in next year’s Money
League.
 
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