#FCBarcelona 2017/18 accounts cover a season when they won La Liga (for the third time in four years) and the Copa del Rey, but were eliminated by AS Roma in the Champions League quarter-finals. Some thoughts in the following thread.
#FCBarcelona profit before tax fell €11m from €31m to €20m (profit after tax down from €18m to €13m). Revenue (club definition) rose 29% (€206m) from €708m to a record high of €914m, though this included €209m gain on player sales (up €183m). Offset by major cost growth 
Excluding player sales, #FCBarcelona revenue rose €42m (6%) from €648m to €690m. Highest growth was in marketing & advertising €19m (16%) to €335m, then competitions €11m (12%) to €104m, broadcasting €9m (5%) to €187m and season tickets & membership €9m (18%) to €60m.
However, #FCBarcelona paid the price of success with wages up €151m (40%) to €529m, split football €486m & other sports €43m, while player amortisation & impairment rose €52m (55%) and other expenses climbed €24m (15%). Net interest payable was €12m higher.
Most clubs in La Liga are profitable with #FCBarcelona 2017/18 €13m profit after tax 6th highest (last reported numbers), though Real Madrid were top of the pile with €31m. Worth noting Barca’s figures include €46m losses from other sports (basketball €29m, handball €8m).
#FCBarcelona benefited from a massive €208m profit on player sales, very largely due to Neymar’s move to PSG, which the club described as “exceptional”. For some perspective, this was almost 4 times as much as Real Madrid’s €54m. Also included sales of Deulofeu and Mascherano.
#FCBarcelona have reported profits for 7 years in a row, totaling around a quarter of a billion pre-tax in this period, averaging €32m a season. Hefty €83m loss in 2010 was due to club booking €89m of provisions and audit adjustments. The budgeted profit for 2018/19 is €15m.
Even though #FCBarcelona have been profitable, it is evident that they have become increasingly reliant on player sales with average annual profits up to €68m in last 5 years. Obviously no repeat of Neymar sale in 2018/19 budget, but this still includes €85m from this activity.
#FCBarcelona EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), considered cash operating profit, up from €124m to record high of €177m, though excluding player sales it fell from €103m to minus €(31)m. 2018/19 budget is €191m (€106m excluding transfers).
#FCBarcelona recurring revenue continues to rise, over €200m in last 4 years alone to €690m. 18/19 budget assumes further €150m (22%) growth to €840m. Including player sales, estimate is 5% growth from €914m to €960m. Money League mix: commercial 46%, TV 33%, match day 21%.
Despite the growth, #FCBarcelona revenue has been consistently lower than Real Madrid (excluding player sales). In fact, €60m deficit in 2018 is the highest since €65m in 2014. However, there is in turn an enormous gap of €417m to Atletico Madrid, the next closest challenger.
Looked at another way, the combined €1.44 bln revenue of Real Madrid €750m plus #FCBarcelona €690m is about the same as the other La Liga clubs combined €1.450 bln.
After 2 years in second place in the Deloitte Money League, #FCBarcelona slipped back to third in 2016/17 behind Manchester United and Real Madrid, though extended their gap to Bayern Munich from €28m in 2015/16 to €60m.
However, #FCBarcelona could bounce back to second place in terms of revenue worldwide when the 2017/18 Money League is published, as their €690m is higher than Manchester United’s estimated €673m (£590m converted at 1.14), though this will depend on the exchange rate used.
#FCBarcelona had fourth highest commercial income in 16/17 Money League with €296m, only behind Bayern €343m, #MUFC €325m and Real Madrid €301m. Revenue increase in 17/18 mainly due to new Rakuten shirt sponsor, €55m a year compared to Qatar Airways €30m, and summer tours.
#FCBarcelona have 10-year Nike kit deal starting in 18/19 worth a reported €105m a year, giving €160m in total. Only behind Real Madrid: Emirates €70m & Adidas €110m (from 2020). 18/19 also boosted by €50m merchandising from BLM company plus €19m Beko sleeve/training deal.
#FCBarcelona had the eighth highest broadcasting revenue in 2016/17 with a total of €215m, €22m below Real Madrid €237m. The difference was almost entirely due to Champions League money: Real Madrid €81m for winning the trophy; Barcelona €60m for reaching quarter-finals.
After move to collective Spanish TV deal in 16/17 (50% equal share, 25% performance and 25% popularity), #FCBarcelona and Real Madrid still get the most, but other clubs’ share grew more. New 3-year deal from 19/20 will further increase revenue: domestic 15%, international 30%.
In 2017/18 #FCBarcelona earned €57m for reaching the Champions League quarter-finals, €3m less than the previous season. Other Spanish clubs: Real Madrid €89m (winning CL again), Sevilla €48m and Atleti €48m (CL and winning the Europa League).
Main reason for the decrease in #FCBarcelona Champions League revenue was the TV pool, as half is distributed based on the finishing position in the previous season’s La Liga (second in 2016/17 compared to first in 2015/16). Note: Spanish TV deal (and pool) is relatively small.
#FCBarcelona have earned an impressive €277m from European competition in the last 5 years, the sixth highest of all clubs. However, it is €83m less than Real Madrid and only €5m more than Atletico Madrid (after Atleti’s fine achievements in recent times).
Champions League revenue will rise by 54% in 2018/19. There is also a new UEFA coefficient payment (based on performances over 10 years), which will benefit #FCBarcelona at the expense of clubs from countries with large TV pools (England and Italy), guaranteeing them €34m.
#FCBarcelona match day revenue of €137m, including membership fees, was the highest in the world in 2016/17, ahead of Real Madrid €136m, Manchester United €125m and Arsenal €116m. Growth in 2017/18 attributed to higher ticket sales for Super Cup.
#FCBarcelona average attendance fell 12% from 77,697 to 68,591 in 2017/18, though this was still the highest in Spain, ahead of Real Madrid 65,653. Atletico Madrid rose to 55,475 following their move from the Vicente Calderon to the Wanda Metropolitano.
#FCBarcelona plan a €600m redevelopment of the Camp Nou stadium with estimated completion in 2021/22 season, increasing capacity from 99,000 to 105,000 and adding a fully covered roof. Club hope to part fund with a €300m naming rights deal (over 20 years).
#FCBarcelona football wage bill rose 43% (€147m) from €340m to €487m in 2017/18. Main drivers: wages €89m and bonuses €44m. Wages to turnover ratio increased from 52% to 70%, bang on the ECA maximum level of 70%, Football wages have more than doubled in the last four years.
#FCBarcelona wage bill of €487m is an amazing €92m higher than Real Madrid €395m. The “big two” pay more than twice as much as Atleti €178m, followed by Sevilla €100m and Valencia €79m. Barca’s €529m total wage bill includes €43m for other sports (up €4m).
In fact, the gap between #FCBarcelona €487m wage bill and others has never been higher. Indeed, Real Madrid’s wages were actually €38m higher the previous season. The difference with Atletico Madrid is now a massive €300m, though Atleti might increase in 2017/18.
Not only is #FCBarcelona’s €487m wage bill the highest in Spain, but it is also by some distance the highest in Europe. As a comparison, the top English wages are: #MUFC €337m (€150m lower), #MCFC €300m (€187m lower).
As a result of the steep increase in wages, #FCBarcelona wages to turnover ratio climbed to 70%, which is the third highest (worst) in La Liga, only “beaten” by Girona 96% and Valencia 77%. It’s considerably higher than the 42-43% Barca achieved in 2012-13 and Real Madrid’s 53%.
The other #FCBarcelona staff cost, player amortisation (annual charge to write-down transfer fees), has also significantly risen by £52m (77%) to €119m in 2017/18, basically doubling over last 2 seasons. Budgeted to further increase to €141m in 2018/19.
#FCBarcelona total amortisation of €132m (including €14m depreciation) is the highest in Spain, above Real Madrid €102m & Atletico Madrid €61m, which reflects substantial 17/18 player investment (Coutinho, Dembélé, Paulinho, Semedo & Mina), largely funded by Neymar’s sale.
2017/18 was clearly exceptional for #FCBarcelona player trading with significant purchases (€344m) and sales (€233m), while 2018/19 looks much more in line with previous years (purchases €126m, sales €82m). Nevertheless, average net spend up 80% over last 3 seasons to €82m.
As a consequence, #FCBarcelona €247m net spend is by far the highest in La Liga over the last 3 seasons, more than twice as much as Atletico Madrid £114m. In stark contrast, Real Madrid had net sales of €67m in the same period.
It’s a similar story with gross spend with #FCBarcelona €595m pretty much double Atletico Madrid’s €305m, followed by Real Madrid €232m, Valencia €215m and Villarreal €185m.
#FCBarcelona gross financial debt increased by €14m to €68m, largely a loan to repurchase the Can Rigalt land. Combined with €53m cash reduction to €40m, club moved from €39m net funds to €28m net debt. Also owe €142m in transfer fees, mainly to Liverpool for Coutinho.
Using the broadest possible definition of debt, #FCBarcelona total liabilities shot up by €243m from €645m to €888m in 2018. As well as bank loans and transfer fees, big increases in amounts owed to personnel €51m and public administrations €42m, as well as accruals €53m.
#FCBarcelona have generated €1.1 bln from operating activities in last 10 years, though this fell from €210m in 2017 to €28m. In 2017/18 cash decreased by €52m after spending €38m on players (net), €53m capital expenditure and €27m tax. Took on additional €37m bank loan.
Since 2009 #FCBarcelona have used 60% of their available cash on (net) player purchases, but have also invested €281m into Espai Barca and stadium improvements. In addition, they spent €120m on tax and €37m on interest payments, while increasing cash balance by €36m.
For many years #FCBarcelona have operated a sustainable business model, but 17/18 was an “exceptional” season with the huge Neymar windfall invested in new players and higher wages. Budgeted 18/19 revenue growth should return them to normality, though need to watch debt levels.
