Bayern Munich 2018/19 accounts cover a mixed season. Domestically, they won the Bundesliga for the 7th season in a row, securing the league and cup double for the 12th time. However, they crashed out of the Champions League in the last 16. Some thoughts follow #FCBayern
#FCBayern profit before tax increased from €46m to €75m (profit after tax €52m). Revenue (per Bayern’s definition) rose €93m (14%) to €750m including €90m profit on player sales. The board described the figures as “outstanding”, as both revenue and profit set record highs. 
Excluding player sales, #FCBayern revenue rose €31m (5%) from €629m to €660m, mainly due to TV, up €34m (20%) to €211m, though commercial was also up €8m (2%) to €357m. On the other hand, match day down €11m (11%) to €92m. Profit on player sales €62m higher at €90m.
#FCBayern wage bill surged €34m (11%) from €303m to €336m, but player amortisation fell €21m (30%) to €48m. However, there were increases in other expenses, up €50m to €268m, and depreciation, up €3m to €21m.
Amazingly this is the 27th consecutive year that #FCBayern have been profitable. In fact, 2019 was the highest profit in the club’s history, both before and after tax. The club has accumulated nearly a quarter of a billion Euros profit in the last 4 years alone (€242m).
#FCBayern have become increasingly reliant on player sales with average annual profits rising from just €10m from 2010 to 2013 to €49m in the last 6 years. This season’s profit is much lower (only Sanches & Friedl to date), though the January transfer window is still to come.
#FCBayern EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation), which can be considered as cash operating profit, slumped from €108m to €56m, the lowest since €58m in 2014. However, if player sales are included, this rose from €136m to €146m.
#FCBayern revenue grew €186m (39%) in the last 4 years from €474m to €660m, mainly thanks to TV almost doubling (up €105m), though commercial also rose €78m (28%), but match day only up €3m. Including player sales, revenue rose €226m in this period from €524m to €750m.
Commercial remains the most important revenue stream at #FCBayern with 54%, but this has fallen from 60% in 2014, while broadcasting has grown from 22% to 32% in the same period. Match day has also declined from 18% to 14%.
The #FCBayern revenue advantage over Borussia Dortmund, their closest domestic challenger, narrowed from €312m (the highest ever) to €283m in 2018/19, but Bayern’s €660m revenue is still 75% more than Dortmund’s €377m.
As per the last Deloitte Money League (based on 2017/18 accounts), #FCBayern had the 4th highest revenue in the world for the third consecutive year, though they had been as high as 2nd in 2003/04. Two other German clubs in the top 30: Borussia Dortmund (12th) & Schalke (16th).
#FCBayern commercial income grew €8m (2%) to €357m, comprising sponsoring and marketing €197m, merchandising €92m, Allianz Arena €35m and other commercial activities €34m. This means this revenue stream has essentially been flat for the last four years.
Already in 2017/18 #FCBayern lost their place as the most commercially successful club in world football, overtaken by Real Madrid. Barcelona and PSG have almost certainly overtaken them in 2018/19. Closest German clubs are Borussia Dortmund €138m and Schalke €106m.
#FCBayern have an excellent kit deal with Adidas (€60m a year), a good shirt sponsorship agreement with Deutsche Telekom €35m, Qatar Airways sleeve sponsor €10m and Allianz stadium naming rights €6m. The total of €111m is more than twice Dortmund’s €50m.
However, these deals are a fair way below the leading Spanish and English clubs (plus PSG) with Real Madrid earning almost twice as much: Emirates €70m & Adidas €110m (from 2020). No wonder #FCBayern we’re so disappointed that the mooted €80m deal with BMW was not concluded.
#FCBayern broadcasting income rose €34m (20%) from €177m to €211m with increases in both domestic TV (€17m) and Champions League (€18m). In 2017/18 Bayern were only 10th in the Money League in broadcasting, due to the small German TV deal – relative to England and Spain.
The Bundesliga TV revenue is distributed using four criteria: the five-year league performance ranking (70%); the five-year ranking for both divisions (23%); the 20-year ranking for both divisions (5%); and the playing time of Germany U23s (2%).
#FCBayern Bundesliga TV revenue in 2017/18 was estimated to be €98m by German media, unsurprisingly the highest in Germany, ahead of Borussia Dortmund €88m, Schalke 04 €80m and Bayer Leverkusen €78m. Worth noting that RB Leipzig received just €30m, as only recently promoted.
German clubs including #FCBayern have benefited from the new 4-year TV deal from 2017/18, which was up 85% over previous period. However, other leagues will see large growth this season, so Premier League and La Liga will extend the difference, while Ligue 1 will narrow the gap.
Assuming that TV pool was unchanged, #FCBayern earned €79m for reaching Champions League last 16, €9m more than 2017/18 (despite reaching the semi-final that year), mainly due to 54% increase in prize money. Other German clubs: Dortmund €64m, Schalke €62m & Hoffenheim €26m.
#FCBayern also benefited from the introduction of the new UEFA coefficient payment (based on performances over 10 years), where they had the 3rd highest ranking of clubs competing that season, guaranteeing them €33m. Dortmund and Schalke received €22m and €20m respectively.
#FCBayern have earned significantly more revenue (€319m) from European competition than any other German club in the last 5 years. The closest challenger is Dortmund with €195m (i.e. €124m lower), followed by Schalke €118m, Leverkusen €109m and Mönchengladbach €64m.
#FCBayern match day revenue fell €11m (11%) to €92m in 2018/19, partly due to staging 2 fewer Champions League games. Despite Germany’s reputation for low ticket prices, their match day revenue of €104m in 2017/18 was actually the 5th largest in the world.
#FCBayern match day revenue is around 50% higher than Dortmund, even though their average attendance of 75,000 is around 6,000 lower than their rivals’ 81,000. The Bavarians are in turn much higher than Schalke 61,000 and Stuttgart 55,000.
#FCBayern wage bill shot up €34m (11%) to €336m, which means that wages have risen by €109m (48%) since 2015. Wages to turnover ratio has steadily risen from 44% to 51% in the last few years.
#FCBayern enjoy a major competitive advantage in Germany, as their wage bill of €336m is a hefty €131m (64%) higher than Borussia Dortmund’s €205m. The gap closed to “only” €87m in 2016/17, but has since widened to stand at the highest ever.
This is partly due to €74m of net player sales in 2018/19 with only €10m gross spend, though this rebounded to €144m in 2019/20, including the €80m #FCBayern record buy of Lucas Hernandez from Atletico Madrid plus €35m to take Benjamin Pavard from Stuttgart.
Traditionally, #FCBayern spend much more on players than their German rivals, but their €117m net spend over the last 4 seasons is behind RB Leipzig €146m, though considerably more than Dortmund, who actually had net sales of €111m.
#FCBayern bank debt (to finance the stadium) was paid off 16 years ahead of schedule in 2014, having been as high as €167m in 2009, while cash has risen from €40m to €221m in 2018. We will not know 2019 figure until full accounts released, but current assets are a bit lower.
Using the broadest definition of debt, #FCBayern total liabilities are only €234m, which is one of the lowest of the leading European clubs. Barcelona and Manchester United are around €1 bln higher at €1.2 bln followed by Tottenham €1.1 bln and Juventus €911m.
#FCBayern have been boosted by strategic partnerships with 3 major German companies (Adidas, Allianz & Audi), who all have an 8.33% stake in the club with the other 75% owned by the fans. Dividends to these shareholders have steadily risen, up from €12m to €15m in 2019.
#FCBayern CEO Karl-Heinz Rummenigge was “extremely pleased” with the club’s financial development, but was keen to emphasise that the board’s goal “is not the maximisation of profit, but the maximisation of sporting success.”
Deputy chairman Jan-Christian Dreesen added, “#FCBayern rests on very solid foundations, which allows us to make the necessary investment in the first-team squad, despite the increasingly difficult transfer market.” Supporters will hope that this is indeed the case.
