Top 5 leagues increase revenue, and increasing isolation from the rest of Europe

Disappointing for Russian clubs data from economic report of UEFA for 2018.

Thursday, January 16, UEFA published a new economic report containing a detailed audit of all 700 European clubs in the top divisions for the 2018 and other data of large studies conducted by the organization. He is at the disposal of RIA Novosti and RBC.

According to the document, the total revenue from all Russian clubs in the year of the world Cup amounted to 752 million euros. This figure is sixth in Europe (though the advantage on reaching the seventh Turkey is only 4 million), but the gap from the major five European leagues is still huge. All the clubs in the Premier League earned during the year 5.4 billion, followed by the Bundesliga (3.2 billion), example (3.1 billion), Serie a (2.3 billion) and League 1 (1,7).

Even if we consider that in these tournaments, with the exception of the Bundesliga (18 clubs), involves 20 teams (but only in RPL 16), the difference is obvious. Moreover, the gap only grows. Over the past 10 years, domestic clubs have to earn 74% more (plus 319 million euros, or 19.9 million per club), while their competitors from the top 5 European leagues increased revenue by 80%.

TOP 10 EUROPEAN CLUBS IN TERMS OF REVENUE IN 2018

Championship

The amount of revenue, billion euros

1. England

5,4

2. Germany

3,2

3. Spain

3,1

4. Italy

2,3

5. France

1,7

6. Russia

0,75

7. Turkey

0,75

8. Netherlands

0,5

9. Portugal

0,44

10. Belgium

0,4

Another important factor is the unequal division of income within leagues. The 20 richest Championships in the amount earned 21 billion, however, 47.6% of total revenue accounted for 30 of the leading clubs. Russian clubs among them, of course not. In addition, 75% of their revenue from five major Championships – a record since 2009, when they began to keep statistics.

The most important source of income for European clubs, the TV rights implementation. British TV brings 53% of total revenues, were 47%, while the Turks and the Spaniards – for 42%, and the French – 37%, whereas for domestic clubs TV contracts are nothing more than a bonus because make up only 4% of budget revenues. This is the worst among 20 leading European Championships. However, in the report for 2019 due to the new telecontract signed on more favorable terms, the numbers are expected to grow, said UEFA.

EUROPE’S LEADERS BY REVENUES FROM TV RIGHTS

Championship

Revenues billion euros

The proportion of total revenue, %

1. England

2,86

53

2. Spain

1,33

42

3. Germany

Of 1.09

34

4. Italy

Of 1.08

47

…Russia

29

4

Also a small income from ticket sales. In 2018, they increased by a solid 13%, but was only 52 million, or 7% of total revenue. For example, the La Liga club to fill at the expense of the tickets 18% of the budget, the Bundesliga and Ligue 1 – 16%, team APL – 13%, and the series A – 12%. However, the most dependent on this income the Scots (43%).

Such sad outcomes are achieved, despite the success of several local clubs to increase average attendance. So, “Zenith” since moving to the “Gazprom Arena” became on this indicator the second in Europe (after Tottenham), increasing the average number of spectators in the stands from 25 to 43 406 963.

In addition, more than 6 thousand have increased in attendance “Rostov” and “Ural”, who have moved to stadiums built for the 2018 world Cup. In Europe, apart from them, scored only five clubs who have achieved similar figures – PAOK, Olympiakos, Barcelona, Lazio and Fenerbahce. In this section of the report, UEFA is not mentioned Tottenham and Zenit. Obviously, because they were above.

And yet, the direct sale of football matches fans is for domestic clubs second-rate task as telarah and tickets in the amount of swell the coffers of the club only 11%. Whether in connection with this surprise for such a low entertainment matches in RPL?

Even the income from UEFA that only six participants of the European Cup, exceed these figures. In 2018, thanks to successful performances on the international stage they amounted to 97 million (61% more than the previous year), of which 43 million received CSKA reach the quarter-finals of the Europa League and included income from UEFA in the top 20 in Europe (18th place). Most of the League received the clubs from England (369 million), Spain (254 million) and Italy (247 million), and the top three clubs have made real Madrid (94 million), Roma (84 million) and Juventus (79 million).

Thanks to successful performance in the Europa League CSKA for the year remained in positive territory for the 28 million Accounting profit showed “Borussia” D and Hungarian “Puskas Academy.” This is the 17th result in Europe. More all earned Monaco (179 million), Tottenham Hotspur (127 million) and Liverpool (120 million).

And yet, most significant for our clubs are revenues from sponsors and commercial activities. They account for 58% of total revenue. These figures are very high and indicate a high dependence of clubs from the money-side, which leads to an unstable financial situation. According to this indicator (the higher, the worse) Russians tied for 53rd-54th place with Slovakia. For comparison, the worst performance at the Liechtenstein – 66%.

However, the revenues of the clubs in RPL from sponsorship and commercial activities is quite large. They amounted to $ 436 million, and is the fifth figure in Europe. More than just the British (1.4 billion), Germans (1.2 bn), Spanish (861 million) and Italians (566 million).

TOP 5 EUROPEAN CHAMPIONSHIPS ON INCOME FROM SPONSORS AND COMMERCIAL ACTIVITIES

Championship

Income, billion euros

1. England

1,4

2. Germany

1,2

3. Spain

0,86

4. Italy

0,57

5. Russia

0,44

But the cost of salaries, the Russians kept six. In 2018 RPL clubs gave players 527 million, or 32.9 million for the team, which is 2% even more than a year earlier (and in Europe, wage growth of 9.4%). That is, despite all the talk about the financial crisis, the domestic clubs continued to increase payroll burden. In the result, as many as 70% of the budget is spent on salaries to players that, according to UEFA often leads to losses. To avoid such problems, it is required to offset the costs of effective work in the transfer market. As we know, this ability is available only to a limited number of Russian clubs.

For comparison, a higher share of wages in France (76% of revenues), while the Italians and Spaniards spend on players by 64%, and generous English – 59%. The best indicator in the leading five clubs in the Bundesliga – 53%.

In the example the disastrous work in the transfer market, UEFA leads Rubin Kazan, the net loss in the sale of players in 2018 amounted to 53 million and 14 million of income from transfers had 67 million in expenses. Thus, 68% of the total revenue of the club went on a “gain” of the composition is the highest proportion among the 20 leading clubs cost transfers. We all remember how that ended.

Of course, among European clubs were those whose loss in the transfer market was higher. For example, “Manchester United”, he made 134 million from Manchester city – 107 million, and Bayern 79 million in earnings from European giants are much higher.

In General, we should not be surprised that the total net loss of clubs in the RPL in 2018 amounted to 56 million? And this despite the fact that seven of the 16 clubs showed a profit (although “transfer to accounting and financial activities and payment of taxes”, – the report says). Worse among the leading Championships, things are only in the Championships of Italy (loss of 195 million) and Turkey (minus 263 million). At the same time, the Bundesliga has earned 153 million, the La Liga 156 million, and submarines – as many as 382 million

The total net profit of all 700 clubs in the top divisions amounted to 150 million, the Positive balance recorded for the second consecutive year and second time in history (in 2017 net income amounted to 579 million). In General, in Europe they know how to earn and count money. As a consequence, net worth (assets excluding debt and other obligations) of all European clubs in the top divisions for 10 years has increased five-fold from 1.8 billion to 9 billion.

And yet, despite the losses, the value of the clubs of RPL for the year increased by 13% and amounted to 984 billion Is the seventh level in Europe is less than England (11,17 billion), Spain (5.35 billion), Italy (4,85 billion), Germany (3.78 billion), France (3,33 billion) and even Portugal (1.6 billion).

THE VALUE OF THE ASSETS OF THE LEADING EUROPEAN CHAMPIONSHIPS

Championship

The total assets, billion euros

1. England

11,17

2. Spain

5,35

3. Italy

4,85

4. Germany

3,78

5. France

3,33

6. Portugal

1,6

7. Russia

0,98

The leading five European Championships continues not only to grow revenues but also heat transfer market. Total spending on transfers in the top European divisions in 2018 exceeded 8 billion, which is 1.5 billion more than the previous year, and more than twice more than in 2014. With 85% of all expenses incurred clubs top 5 European leagues, which is 3% higher than four years earlier.

THE SUM OF ALL TRANSFERS TO EUROPEAN CLUBS IN THE TOP DIVISIONS

Year

Amount of transfers, billion Euro

2014

3,87

2015

4,38

2016

5,43

2017

6,53

2018

8,02

source: “Soviet sport”

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