, 46 tweets, 27 min read
#FCBarcelona 2018/19 accounts cover a season when they won La Liga (for the fourth time in five years), were runners-up in the Copa del Rey and reached the Champions League semi-finals. Some thoughts in the following thread.
#FCBarcelona profit before tax fell €17m to €4m (profit after tax €5m, due to €1m tax credit). Revenue rose €76m (8%) from €914m to a record high of €990m, even though gain on player sales was down €108m. Offset by significant growth in expenses, which were up €69m.
As a technical note, the #FCBarcelona definition of €990m revenue is higher than the standard Deloitte Money League figure of €852m, as it includes €101m gain on player sales, €29m impairment reversal, €7m utilisation of provisions and €1m work performed and capitalised.
Excluding player sales, #FCBarcelona revenue rose €162m (23%) from €690m to €852m. Largest growth in broadcasting €111m (59%) to €298m, followed by marketing & advertising €28m (8%) to €363m. Revenue boosted by taking Barca stores & licensing in-house.
#FCBarcelona wages rose €13m (2%) to €542m, split football €501m and other sports €41m, while player amortisation & impairment rose €22m, though depreciation and provisions down €11m. Other expenses up €46m (24%), mainly due to self-management of Barca stores & licensing.
Most La Liga clubs are profitable with #FCBarcelona 2018/19 €5m profit after tax mid-table. Real Madrid led the way with €38m, while Valencia had largest loss of €36m. Worth noting Barca’s figures include €40m losses from other sports (incl basketball €22m, handball €8m).
#FCBarcelona benefited from €101m profit on player sales, including Paulinho to Guangzhou, Mina & Digne to Everton & Alcacer to Dortmund. Although the highest in Spain, just ahead of Real Madrid’s €99m, only half prior season’s €208m (with Neymar’s “exceptional” sale to PSG).
#FCBarcelona have reported profits 8 years in a row, aggregating around a quarter of a billion pre-tax in this period, though these have now fallen 3 years in a row. Large €83m loss in 2010 due to €89m of provisions and audit adjustments. Budgeted profit for 2019/20 is €14m.
Even though #FCBarcelona have made money, they have become increasingly reliant on player sales with huge average annual profits of €154m in last 2 years. 2019/20 budget assumes a further €109m. CEO Oscar Grau noted, “The sale of players is another income source for the club.”
#FCBarcelona EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), considered cash operating profit, up slightly to a record €179m (excluding player sales €72m). President Bartomeu noted, “We have an enormous EBITDA” with 19/20 budgeted at another high of €199m.
#FCBarcelona ongoing revenue has grown significantly, up €368m in last 5 years to €852m (€990m including €101m player sales). Using that definition, the club estimates that it will break the €1 billion revenue barrier a year earlier than expected with €1,047m in 2019/20.
Following the massive revenue growth, #FCBarcelona €852m has easily overtaken Real Madrid €757m (excluding player sales) in 2018/19, turning a €61m deficit into a €95m surplus. This is a swing of over €150m in just one season, as Madrid’s revenue was essentially flat.
The two traditional Spanish giants are miles ahead of the closest challengers in revenue terms, Atletico Madrid €304m and Sevilla €165m. Looked at another way, the combined €1.6 bln revenue of Barcelona and Real Madrid is €100m more than all the other La Liga clubs combined.
In the last edition of the Deloitte Money League, based on 2017/18 accounts, #FCBarcelona had the second highest revenue in the world, only surpassed by Real Madrid, with a revenue mix of: commercial 47%, broadcasting 32% and Match day 21%.
However, #FCBarcelona will bounce back to be top dog in terms of revenue when the 2018/19 Money League is published with €852m, as their closest challengers have not seen anything like the Catalans’ revenue growth last season, e.g. #MUFC £627m is estimated at €708m.
#FCBarcelona had third highest commercial income in 2017/18 Money League with €323m, only behind Real Madrid €356m and Bayern Munich €349m, but this was much higher in 2018/19, thanks to the success of bringing all activities in-house (Barca Licensing & Merchandising €63m).
It’s an “arms race” in shirt sponsorships and kit deals, but #FCBarcelona’s are among the highest with Rakuten and Nike paying €55m and €105m a year respectively. €19m Beko sleeve/training deal from 2019/20. Only behind Real Madrid: Emirates €70m & Adidas €110m (from 2020).
#FCBarcelona had the 7th highest broadcasting revenue in 2017/18 with a total of €223m, €28m below Liverpool and Real Madrid €251m. The difference was almost entirely due to Champions League money, as that pair reached the final, while Barca went out in the quarter-finals.
After years of individual deals in Spain, La Liga have introduced a collective deal, based on 50% equal share, 25% performance over last 5 years and 25% popularity (1/3 for average match day income, 2/3 for number of TV viewers). Gross income reduced by liabilities (7%).
Even after the changes, #FCBarcelona and Real Madrid still receive by far the highest TV income from La Liga’s TV deal with around €140m apiece, followed by Atletico Madrid €100m, then a big gap to Sevilla & Athletic Bilbao €70m. Lowest payments went to Girona & Leganes €40m.
#FCBarcelona will benefit from La Liga international TV rights rising by 30% in 2019/20, giving a total of €2.0 bln. Although still a long way behind the Premier League €3.4 bln, it is comfortably ahead of others: Bundesliga €1.4 bln, Serie A €1.3 bln and Ligue 1 €1.2 bln.
Based on my estimate, #FCBarcelona earned €110m for reaching the Champions League semi-final, which was almost twice as much as the prior season’s €57m (eliminated in the quarter-finals). Other Spanish clubs: Real Madrid €81m, Atletico Madrid €80m and Valencia €45m.
Total Champions League revenue was up 54% in 2018/19 (higher TV rights). Also a new UEFA coefficient payment (based on performances over 10 years), where #FCBarcelona had 2nd highest ranking, giving them €34m. This change in distribution rewards the good record of Spanish clubs.
#FCBarcelona have earned an impressive €345m from European competition in the last 5 years, only surpassed in Spain by Real Madrid €383m. Atletico Madrid’s European success has brought them €302m, then a big gap to Sevilla €151m, Valencia €83m, and Villarreal €70m.
#FCBarcelona match day revenue of €145m, including membership fees, was the highest in the world in 2017/18, ahead of Real Madrid €143m, #MUFC €120m and #AFC €112m. Growth in 2018/19 was attributed to higher ticket sales, increased hospitality and Champions League progress.
#FCBarcelona average attendance increased 12% from 68,591 to 76,747 in 2018/19 (75,328 per Soccerway). This was easily the highest in Spain, well ahead of Real Madrid 60,598 and Atletico Madrid 56,056.
#FCBarcelona plan a redevelopment of the Camp Nou stadium, increasing capacity from 99,000 to 105,000 and adding a roof. Cost has increased from €600m to €685m with completion pushed back to 2024. Club hope to partly fund this work with a substantial naming rights deal.
#FCBarcelona football wage bill was up €15m (3%) to €501m, the first football club to break through the half a billion Euros wages barrier. Football wages have grown by nearly 50% (€162m) in just two years. Total wages rose €13m (2%) to €542m – €576m including image rights
#FCBarcelona wages of €501m are now €139m more than Real Madrid, the highest ever gap, after their rivals’ wages fell from €395m to €362m in 2018/19. The difference with Atletico Madrid is a massive €289m, though Atleti might increase when 2018/19 accounts are published.
To highlight the size of the #FCBarcelona €501m wage bill, it is actually more than the bottom 14 clubs in La Liga put together. Or, looked at another way, it is more than Atletico Madrid, Sevilla, Valencia and Athletic Bilbao combined.
Not only is #FCBarcelona’s €501m wage bill the highest in Spain, but it is also by some distance the highest in Europe. As a comparison, the closest challenger is #MUFC €375m (€125m lower), while their Champions League nemesis #LFC was “only” €298m (€200m lower).
Despite the very high wages, #FCBarcelona managed to lower (improve) the wages to turnover ratio from 70% to 59%. This was one of the better performances in Spain (10 clubs over 70%), but worse than Real Madrid 48%.
That said, #FCBarcelona 59% wages to turnover ratio is still fifth highest (worst) of the leading European clubs, only behind Juventus 71%, Atletico Madrid 70%, Roma 64% and PSG 61%. Interestingly, it’s almost exactly the same as #LFC 58%.
The other #FCBarcelona staff cost, player amortisation (annual charge to write-down transfer fees), has significantly risen by £27m (23%) to €146m. This has more than doubled from €67m in the last 2 seasons, reflecting sizeable investment in the squad.
#FCBarcelona total amortisation of €160m (incl €14m depreciation) is the highest in Spain, well above Real Madrid €122m and Atletico Madrid €58m. Reflects 2018/19 arrival of Malcolm, Lenglet, Arthur & Vidal. Will further rise after expensive purchases of Griezmann & De Jong.
#FCBarcelona net transfer spend has more than doubled in the last 4 seasons, averaging €82m, compared to €39m over the preceding 6 seasons. The increase in gross spend is even more dramatic (€81m to €221m), but sales also significantly increased (€41m to €139m).
As a consequence, #FCBarcelona €327m net spend over the past 4 seasons is by far the highest in La Liga, around three times as much as the next highest, Real Madrid €111m, and four times the third highest, Atletico Madrid €80m.
It’s a similar story in gross spend with #FCBarcelona €883m around €300m more than their closest rivals, Atletico Madrid €585m and Real Madrid €541m. Barca’s expenditure is more than the bottom 14 La Liga clubs combined.
#FCBarcelona gross financial debt shot up by a striking €204m from €68m to €272m, including €199m in 5-year bonds (interest 2-2.5%) issued in August 2018 and May 2019 plus €72m bank loans. Cash increased from €40m to €158m, so net debt only grew from €28m to €114m.
#FCBarcelona also owe €261m in transfer fees, the highest in Europe, ahead of Juventus €221m and #MUFC 212m. Mainly to Liverpool (Coutinho) €95m, Ajax (De Jong) €49m, Neto (Valencia) €31m, Bordeaux (Malcolm) €30m & Gremio (Arthur) €28m. In turn, owed €178m by other clubs.
Using the broadest possible definition of debt, #FCBarcelona total liabilities have rocketed up by €338m from €888m to €1.2 bln in 2019, mainly due to big increases in bonds (€199m) and transfer fees (€118m). Also owe personnel €234m and public administrations €114m.
In fact, #FCBarcelona €1.2 bln total liabilities are now the highest in world football, just ahead of #MUFC, though debt coverage is much better. Bartomeu said, “The level of debt is normal and complies with the ratios set by the statutes”, but it is huge and has grown a lot.
#FCBarcelona generated €115m from operating activities in 2018/19, then spent €131m (net) on players, €72m capital expenditure and £13m interest, but benefited from €14m tax credit. Financing of €253m (bonds €197m, bank loans €55m) meant cash balance increased €118m.
In last 10 years #FCBarcelona had €1.35 bln available cash (operations £1.1 bln, loans €253m), spending around €800m (net) on players. Have also invested €263m into Espai Barca and stadium, €105m on tax and €40m on interest payments, while increasing cash balance by €148m.
Growing debt means that #FCBarcelona net interest payable rose from €12m to €14m, though this was still a fair bit lower than the likes of Inter €35m, #MUFC, Atletico Madrid and Roma (all €25m) and #THFC €21m. However, 2019/20 budget forecasts a further increase to €25m.
#FCBarcelona president Bartomeu said, “I want to give a message of calm. We have healthy finances and we are a robust club.” It is true that Barca remain profitable and have the highest revenue in football, but the wage bill is huge and they need to watch the growing debt levels.
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