Gold Coast Fined For Salary Cap Breach Marketing Symposium: Global Sports Events Kazakhstan Seeks Foreign Investment Bochum Abandons Plan To Save Money NZRU Cancels Match In Singapore Cargiant, QPR Battle To Build Homes McIlroy Takes Time To Focus On Lawsuit PSG's Biggest Revenue Stream Is 'Other' Stadium Roof Would Cost Up To $307M Adidas Mulling Reebok Sale
SBD Global/January 24, 2013/FinancePrint All
For the first time, the Bundesliga has broken the €2B ($2.7B) revenue mark during the '11-12 season. In comparison to the previous season, the league was able to increase its revenue by 7.2% or around €140M ($186.7M) to €2.08B ($2.77B). The Bundesliga generated a profit after taxes of €55M ($73.3M). Fourteen of the 18 Bundesliga teams generated a profit in '11-12. German Football League (DFL) CEO Christian Seifert said, "The Bundesliga confirmed its sustainable growth and healthy development. The league is well equipped for the coming challenges. The League Association, the DFL and the clubs will work intensively on continuing their successful way. The foundations for that are economic rationality as well as aimed investments in athletic performance and infrastructure." In addition, the 2nd Bundesliga also generated a record revenue of €384.5M ($512.7M) in '11-12. In comparison to the '10-11 season, the 2nd Bundesliga increased its revenue by 7.4%, however, the league posted an overall loss of €18.8M ($25.1M). Ten of the 18 2nd Bundesliga clubs generated a profit (Bundesliga).
Bundesliga Revenue Stream
Amount % Of Total Income Advertising
26.58% Media €546.2M
26.24% Matchday Earnings
21.18% Other Income
Revenue Of The Top Five Int'l Football Leagues (Without Transfers)
'10-11 Revenue '11-12 Revenue
€2.500B N/A Bundesliga €1.746B
€1.871B La Liga
€1.718B N/A Serie A
€1.553B N/A Ligue 1
Bundesliga Report 2013, in German and English.
EPL side Tottenham Hotspur posted a loss of £4.3M ($6.8M) last season mainly because it did not play in the Champions League, according to Ken Ferris of REUTERS. Revenue was £144M ($228M), a 12% "decline from the record level" of £163M posted in the previous period "primarily due to the absence of Champions League football." Merchandising revenue fell by 4% but operating costs also dropped 1%. Media revenues plus sponsorship and corporate hospitality income jumped 10%. Profit from operations dropped to £23M ($36.5M) from £38M for the year ended June 30 (REUTERS, 1/23). The BBC reported Spurs are on course to comply with UEFA's Financial Fair Play rules and said that they support "its further integration into the Premier League." The club said that it has "completed the first step towards building a new stadium adjacent to White Hart Lane, which will increase revenue due to a greater capacity." This season, the club has also "moved to a new training centre in Enfield," which it hopes will help by nurturing home-grown talent (BBC, 1/22).
Serious Fraud Investigation Office officials said that Reebok India is "causing delay in a probe into its complaint against its two top former employees for alleged financial irregularities and fraud," according to Dey & Mitra of the Indian BUSINESS STANDARD. A key SFIO official said, "We need the audited accounts from the company for 2011 to substantiate our claims in the investigation report. We are mostly through with our probe, but we are not able to wrap it up because the company has not yet submitted the accounts for the period when most of the irregularity took place" (BUSINESS STANDARD, 1/23).
National Rugby League Gold Coast Titans CEO David May has urged the Australian Rugby League Commission to sort out the "messy situation" that has left the code without a definitive salary cap figure just six weeks from the '13 premiership kick-off, according to Peter Badel of the COURIER-MAIL. The Rugby League Players' Association and ARLC chiefs had "appeared to find common ground" before Christmas when a number of high-powered talks over pay-related issues "allayed fears of possible strike action." But ahead of the Roosters-Souths season-opener on March 7, the code's key stakeholders have "yet to formally sign off on a collective bargaining agreement" and a proposed A$5.85M ($6.17M) payment ceiling for '13. It is expected the salary cap figure will be locked in next month, but many CEOs, including May, are "dismayed by the delay." May said, "If you look at the business side of the club, it is difficult to plan when this is the biggest cost of your business." Several top-liners are "holding off contract talks" until the determination of the salary cap. A leading agent said that the ongoing talks "had tested the patience of many." The agent said, "We're 25% into the pay year at the end of this month and there is still no decision on the salary cap. It's a farce" (COURIER-MAIL, 1/23).