Atletico Madrid’s 2018/19 accounts cover a season when they finished 2nd in La Liga behind Barcelona (for the second year in a row), but went out in the last 16 in both the Champions League and the Copa del Rey. Some thoughts in the following thread #Atleti
#Atleti profit before tax almost tripled from €12m to €34m (profit after tax up from €4m to €14m), as revenue rose €71m (23%) to a record €384m and profit on player sales shot up €70m to €86m. No repeat of exceptionals: Vicente Calderon sale €41m, Wanda investment €47m. 
The main driver of the €71m #Atleti revenue increase was broadcasting, up €47m (30%) to €205m, mainly due to new Champions League TV deal. Commercial also rose €20m (21%) to €112m, while match day was up €4m (7%) to €66m.
#Atleti wages surged €30m (14%) to €242m, while player amortisation rose €30m (59%) to €82m and depreciation increased €4m (55%) to €10m. On the other hand, other expenses fell €27m (25%) to €83m, mainly from movements in provisions. Net interest payable up €3m to €28m.
As a technical aside, #Atleti reported €358m revenue. I added €32m other commercial activities to this figure, but excluded €6m provision of other services (shown as Operating Income) to give the €384m total. I also reclassified €86m Champions League from match day to TV.
Most clubs in La Liga are profitable, but #Atleti €14m profit after tax is towards the top of the table. In 2018/19 they find themselves between Real Madrid €38m and Barcelona €5m in terms of profitability. Highest loss reported in 2017/18 was Valencia €36m.
#Atleti profit on player sales rose from €16m to €86m (revenue €90m less expenses €4m), though still below Barcelona €101m & Real Madrid €99m. It’s not clear which players were included, as Hernandez, Rodri & Gelson Martins were all sold 1-3 July (accounts closed 30 June).
#Atleti profits have been improving with their last loss reported eight years ago in 2011. Since then, they have reported aggregate profits of €73m, including their highest ever surplus of €34m in 2019 (€14m after tax).
#Atleti have made €320m profit from player sales in the last 9 years, including €86m in 2019. If these sales were excluded, last season’s loss would have been €53m. The 2020 budget includes €139m profit from this activity, mainly Antoine Griezmann’s huge sale to Barcelona.
#Atleti EBITDA (Earnings Before Interest, Depreciation and Amortisation), which strips out player sales and non-cash items to give underlying profitability, rose from €32m to a club record of €65m (excluding exceptional items).
#Atleti revenue has grown by just over €100m (36%) in the last 2 years from €281m in 2017 to €384m in 2019 with all revenue streams contributing: broadcasting €45m (up 28%), commercial €36m (48%) and match day €21m (47%).
The revenue shortfall to Barcelona €852m grew to €469m, though the gap to Real Madrid narrowed, but was still €374m. On the other hand, #Atleti are significantly outpacing Sevilla and Valencia, generating between €140m and €190m more than these rivals.
In 2017/18 #Atleti retained 13th place in the Deloitte Money League for the third year in a row. Worth noting that the revenue definition used gave €304m compared to the club’s €313m. This year’s €384m is very close to Borussia Dortmund and Inter with both reporting €377m.
#Atleti also had the 13th highest broadcasting income in the Money League with €158m, split between €110m domestic and €48m Europe. That’s not too bad, but to place it into context it was lower than Everton €160m, due to the blockbuster Premier League TV deal.
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 is reduced by liabilities (7%).
Even after the changes, Barcelona €155m and Real Madrid €145m still receive by far the highest TV income from La Liga’s TV deal, but #Atleti share grew to €111m (€119m less €8m liabilities), then a big gap to Sevilla €75m & Valencia €73m. Lowest payment to Huesca €41m.
#Atleti 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 the others: Bundesliga €1.4 bln, Serie A €1.3 bln and Ligue 1 €1.2 bln.
#Atleti earned €86m for reaching the last 16 in the Champions League, significantly more than €48m the previous season (CL €32m plus Europa League €16m). Other Spanish clubs: Barcelona €118m, (the highest in Europe) Real Madrid €85m and Valencia €48m.
#Atleti benefited from the new 2018/19 Champions League deal (total distributions up 54%), exacerbated by the new UEFA coefficient payment and a high TV pool (boosted by finishing second in the 2017/18 La Liga).
As a result of #Atleti’s success in Europe in recent years, they had the 4th best UEFA coefficient ranking, giving them €32m right off the bat. They are only behind Real Madrid €35m, Barcelona €34m and Bayern Munich €33m.
One of #Atleti’s strategic objectives is to compete in the Champions League, which has contributed to them earning €308m in Europe in the last 5 years, though still a fair way below Real Madrid €387m and Barcelona €353m.
#Atleti match day revenue rose €4m (7%) to €66m, including €4.5m from their victory against Real Madrid in the UEFA Super Cup in Estonia. Has increased by €21m (nearly 50%) since the move to the Wanda Metropolitano stadium, though still bottom half of the Money League.
#Atleti commercial income rose €20m (21%) to €112m. However, as Gil said, they “still have a long way to go” with the club only 15th highest in Money League, generating about a quarter of Real Madrid €356m and Barcelona €323m, even before Barca’s significant 18/19 growth.
#Atleti Plus500 shirt sponsorship (reportedly worth $10m a year) and Hyundai sleeve sponsor deals run to 2021, while their kit deal has been with Nike since 2001. Club has €50m naming rights for 5 years from Wanda. Recently announced Ria Money Transfer for back-of-shirt.
#Atleti wage bill rose €30m (14%) to €242m, though wages to turnover ratio fell from 68% to 63%. This means that wages have almost quadrupled from €64m in 2013, though revenue is also up from €120m to €384m in the same period.
Once again, this leaves #Atleti as the “Inbetweeners” of La Liga, as their €242m wage bill is a long way below Barcelona €501m and Real Madrid €362m, but more than twice as much as the closest challengers: Sevilla €118m, Valencia €87m and Athletic Bilbao €81m.
The gap between #Atleti and Barcelona’s wage bills narrowed in 2019, but is still a hefty €259m. The difference with Real Madrid has reduced in the last 2 years from €200m to “only” €120m. Worth noting this is based on pure football wages, as I have excluded other sports.
Despite the growth, #Atleti’s €242m wage bill is still a fair way behind Europe’s elite clubs. As just one comparison, they are nearly €100m below Juventus €328m, who eliminated them from last year’s Champions League.
Although #Atleti lowered (improved) wages to turnover ratio from 68% to 63%, this is higher than their two main Spanish rivals. In fairness, it is only 4% more than Barcelona’s 59%, though a lot more than Real Madrid’s 48%.
#Atleti’s other staff cost, player amortisation, has been steadily rising over the last few seasons from €17m in 2014 to €82m, reflecting their growing investment in the playing squad, including a €30m (59%) increase in 2019 alone. Budgeted to again rise to €115m in 2019/20.
However, to place this into context, #Atleti total amortisation of €92m (including €10m depreciation) is still a long way below the Big Two (Barcelona €160m and Real Madrid €122m), while Valencia, the next highest in Spain, have an annual charge of €44m.
#Atleti average gross transfer spend significantly grew from £40m 2010-14 to €145m 2014-20, including record buy Joao Felix from Benfica this summer for an incredible €126m. However, average player sales have more than doubled from €50m to €126m, so net spend was only €19m.
That said, #Atleti’s €80m net spend over last 4 seasons is only behind Barcelona €327m and Real Madrid €111m. Restricted by €70m net sales in 2019/20, as there were €313m sales, including Griezmann €120m, Lucas Hernandez, Rodri and Gelson Martins.
It was much the same for gross spend, as #Atleti €585m was only surpassed by Barcelona €883m, but ahead of Real Madrid €541m, Sevilla €398m and Valencia €293m. This summer alone, they spent €244m on new players, including Felix, Llorente, Hermoso, Trippier, Felipe and Lodi.
#Atleti have suffered from huge debts for many years and in 2019 total liabilities increased from €808m to £884m. The good news is that debt to tax authorities has been cut from €206m in 2012 to €47m, but transfer fees owed are up from €85m to €157m (net €99m).
#Atleti debt to financial institutions increased from €195m to €224m, mainly from loans by Mexican magnate Carlos Slim to finance new stadium development, while other financial liabilities, including a refinancing with Rights & Media Funding, were flat at €158m.
On a net basis, #Atleti have one of the highest debts in Liga, rising from €751m to €789m in 2019. This is only below Barcelona €809m, but a lot more than Valencia €405m, Real Madrid €292m, Valencia €339m and Espanyol €125m.
Due to their high debt, #Atleti pay a lot of interest. Their net interest payable in 2019 was €28m, twice as much as Barcelona €14m and Valencia €12m, which means €204m in last 9 years. In Europe, interest payable is only surpassed by Inter €29m and Roma €28m.
#Atleti generated €10m cash from operations in 2019, but spent €45m on capex, €22m (net) on players, €20m on interest payments and €2m tax. This was funded by €49m new loans plus a €32m asset disposal.
In the last 8 years #Atleti have been largely funded by €475m of loans and €50m capital. This has been spent on infrastructure €237m, (net) player purchases €176m & interest payments €102m, while covering €48m operating losses. In the same period, cash balance is up €12m.
#Atleti have competed well with Real Madrid and Barcelona, despite considerable financial disadvantages, though they have struggled a little this year, as they have had to “reinvent themselves” after the departure of key players – though this is required by their business model.
