Swiss Ramble Profile picture
Nov 11, 2022 12 tweets 7 min read Read on X
I’ve had a few questions on the revenue impact of Barcelona’s exit elimination from this season’s Champions League after the group stage. As is often the case, the answer depends on how you look at it #FCBarcelona
As per my model, #FCBarcelona have earned €70.2m from this season’s Champions League, comprising participation fee €15.6m, prize money €7.0m, UEFA coefficient €34.1m and TV pool €15.9m less €2.5m COVID rebate to broadcasters. Image
As we can see, #FCBarcelona have benefited from their previous good record in Europe with their UEFA coefficient €34.1m payment accounting for nearly half their total €70.2m distribution. This is currently the third highest in Europe, only behind #RealMadrid and #FCBayern. Image
In addition, #FCBarcelona will receive some money after dropping down to the Europa League, though only an additional €1.4m as it stands: knockout round prize money €0.5m plus estimated TV pool €0.9m. Image
The club advised that #FCBarcelona had budgeted to reach the quarter-finals of the Champions League. Assuming that they would have won 3 games in the group to secure qualification, that would have given them €94.1m TV money. Image
Therefore, as it stands, #FCBarcelona have lost €22.5m TV money from their Champions League exit: current revenue €71.6m (Champions League €70.2m plus Europe League €1.4m) less budgeted €94.1m. Image
However, #FCBarcelona might progress further in the Europa League. Taking the most optimistic assumption where they win the competition would mean €17.4m income, i.e. prize money €14.9m plus TV pool €3.1m less €0.5m COVID rebate. Image
If #FCBarcelona do manage to get past #MUFC in the knockout round, then win the Europa League, their revenue loss would only be €6.5m: projected revenue €87.6m (Champions League €70.2m plus Europe League €17.4m) less budgeted €94.1m. Image
At the other end of the spectrum, if #FCBarcelona had won the Champions League, as they have done on 5 occasions, they would have earned a hefty €127.9m. Prize money would have increased to €61.8m, while TV pool would be up to €20.9m (assuming Real Madrid went out in last 16). Image
Comparing #FCBarcelona actual European revenue of €71.6m with potential €127.9m for winning the Champions League gives a much larger shortfall of €56.3m. Difference is almost entirely lost prize money: last 16 €9.6m, quarter-final €10.6m semi-final €12.5m & winners €20m. Image
In addition, #FCBarcelona will lose money from lower gate receipts, while sponsorship agreements are likely to include success payments dependent on Champions League progress. On the other hand, #FCBarcelona costs will be reduced, including lower bonus payments.
Joan Laporta said, “The net impact of Champions League will be lower than expected. It will not be 30 or 35 million.” The #FCBarcelona President is probably correct, but, as we have seen, there is no single answer to how much revenue the club has lost. Image

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More from @SwissRamble

Nov 11
Review of Rangers' financial results for the 2023/24 season, when when they finished as runners-up in the SPFL Premiership for the third year in a row, were defeated in the Scottish Cup Final, but did win the League Cup. Also reached the Europa League last 16 #RangersFC Image
After two years of small losses, when they very nearly broke-even, Rangers lost £17m before tax, mainly because profit from player sales dropped from £24m to £6m #RangersFC Image
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Rangers' revenue rose £4.5m (5%) from £83.8m to a club record £88.3m, which means that this has grown by an impressive £35.1m (66%) in the last five years from £53.2m #RangersFC Image
Read 6 tweets
Sep 16
Review of Manchester United's financial results for the 2023/24 season. As always, #MUFC are the first Premier League club to publish their accounts.

The period included official confirmation of the deal whereby Sir Jim Ratcliffe acquired a 27.7% stake in United. Image
On the plus side, revenue rose £14m (2%) from £648m to a new club record of £662m, while profit from player sales increased from £20m to £37m, United's best result for 15 years #MUFC
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However, the pre-tax loss quadrupled, widening by £98m from £33m to £131m, the second worst in United’s history. Club has posted a loss 5 years in a row, compared to healthy profits in five of the six years up to 2018/19 #MUFC Image
Read 6 tweets
Sep 2
A deep dive into this summer's transfer window, focusing on the Premier League, but also looking at the other major leagues. Image
Chelsea had the highest gross transfer spend in the Premier League for the third year in a row, i.e. ever since the Clearlake Capital crew arrived, with a hefty £265m.

Lowest gross spends were at Manchester City £25m and Liverpool £43m.
#CFC #MCFC #LFC Image
However, Chelsea once again had the highest player sales of £186m, followed by Aston Villa £172m and Manchester City £168m.
#CFC #AVFC #MCFC Image
Read 8 tweets
Aug 5
As Sunderland prepare for the new season, I took a look at the club's focus on sustainability. How close are they to achieving this and what are the implications for the performance on the pitch? #SAFC Image
The last available accounts from the 2022/23 season are now a full year out of date, but they still offer some indications of how well the strategy is working #SAFC
The bad news is that Sunderland have reported losses 17 years in a row, adding up to a hefty £272m. However, more positively, the club has drastically reduced the size of its losses, averaging less than £7m in the last four years, compared to £20m in the preceding decade #SAFC Image
Read 7 tweets
Jul 1
A review of Ipswich Town's finances, as they return to the Premier League after 22 long years away. Focus is on the latest available accounts from 2022/23, but also has comparisons with Championship clubs and some estimates for the top flight #ITFC Image
Losses have been growing under the new owners, as they invested in the squad and infrastructure in an attempt to return Ipswich to former glories - which has clearly worked #ITFC Image
Even though they were in League One, 2022/23 was the first time that the club broke through the £20m revenue barrier since the last time that they were in the Premier League back in 2001/02 #ITFC Image
Read 7 tweets
Mar 28
An explanation of how the new format for UEFA competitions will work from next season, including an explanation of the revenue distribution. Image
The number of clubs in the Champions League will increase from 32 to 36 with the group stage of 8 groups of 4 teams being replaced by a single league of 36 teams, then a new knockout round, before reverting to the traditional last 16.
Total revenue distribution will increase by 21% from €2.7 bln to €3.5 bln. Lion's share will go to the Champions League €2.5 bln, followed by Europa League €565m and Europa Conference €285m. Image
Read 7 tweets

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