ATKMB's 2020/21 financial report covers a season when they reached the ISL finals and finished second in the league table. Further, it was the first year of the existence of ATK Mohun Bagan Private Limited. Their financials are explained below! #IndianFootball #ISL #ATKMB
Kolkata Games and Sports(KGSPL) created a joint venture with Mohun Bagan AC in June 2020 to form ATK Mohun Bagan Pvt Ltd. KGSPL is a subsidiary of RPSG Group. 80% of the shares are held by KGSPL and APA Services under the umbrella of RPSG while 20% is held by Mohun Bagan AC.
After the pandemic influenced ISL, ATKMB's pre-tax losses amounted to 4.5crs. They however generated revenue close to 54 crores while operating expenses exceeded 55 crores. ATKMB also made a 2.5 crore loss on intangible assets like player sales etc. Losses after tax was 5cr. 
The main driver of ATKMB's revenue was through advertisements and sponsorships. Courtesy to finishing runners-up, ATKMB also received 4 crores in prize money apart from money from ISL's central pool (16.12cr).Revenue has been much lower due to no gate receipt money.
SBOTOP, a betting company, signed a sponsorship deal with ATKMB amounting to 3.2 crores. SRMB, TV9Bangla, Nivia, and Birla Cement were other sponsors with which ATKMB managed to strike a deal. These deals amount for both sponsorship as well as advertisement and promotion money.
ATKMB's investment in squad meant that wages went as high as 47.25 crs. This includes salaries of players, staff, and executives alongside payment for other services(law firms etc). Player amortization was at flat 0.36 Lacs while commissions and brokerage fees stood at 1.18 crs.
The losses recorded in player sales is normal because ATKMB sell players either for free or on very nominal fees. ATKMB paid 80 Lakhs for Manvir and sold Dheeraj to Goa for 70/80 Lakhs in the same year. Players released for free also account for the losses concurred.
A major boost to club finances will be broadcast revenue which ISL can and should start sharing among clubs. After the return of crowd to stadiums, ATKMB can also a register a small profit from gate receipts.
Apart from these, tying down player on long-term contracts can also help club finances as amortization and wages will be much easier on the books.
Wages at Bagan sucks 87% out of the revenue generated. The club ended last season with a short-term debt of 14.12 crs and future receivables(guaranteed income in short-term) of 11.8crs
ISL clubs, including bigger ones like ATKMB are and will be non-profitable for the foreseeable future. Their existence will depend on how much losses they can manage to suffer. #ISL #IndianFootball #ATKMB
End of thread!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
