Sky Takes Majority Stake In At The Races Manohar Persuaded To Stay At ICC Helm Portsmouth CEO Warns Fans ECB Asks Counties To Vote For Change Australian Rugby Faces Cash Crunch Executive Transactions Emma Lax Creates We Are Disrupt Everton's New Stadium Could Host CWG Top Premier League Clubs Plot Reform Ritchie Backs Condensed Six Nations
SBD Global/February 26, 2013/FinancePrint All
Bundesliga club Borussia Dortmund "has released its financial numbers for the first half of the '12-13 season and announced a new revenue record," according to BILD. The defending Bundesliga champion "has increased its revenue" by 22.4% to €124.1M ($165M) from July 1-Dec. 31 in comparison to €101.4M at the same time last year. Dortmund "also increased its profit before taxes" from €16.7M to €17.5M ($23.3M). The company profit, due to stadium depreciation, totals €14.2M ($19M) in comparison to €12.8M last season. Borussia Dortmund CEO Hans-Joachim Watzke said, "The numbers that we released today are a continues proof of the growing economic strength of the BVB. Our core principal will continue to be: sustainability before quickness" (BILD, 2/25).
EPL side Arsenal announced a pre-tax profit of £17.8M ($26.9M) for the six months to Nov. 30 last year, but the figures "revealed an ongoing reliance on player sales to balance the books," according to James Olley of the London EVENING STANDARD. The Gunners made £23.2M ($35M) in player trading after "selling stars including Robin van Persie and Alex Song while acquiring Lukas Podolski, Oliver Giroud and Santi Cazorla and tying six first-team players including Jack Wilshere and Theo Walcott to new deals." The figures showed turnover fell by £7.4M ($11.2M) to £106.1M ($160.3M) "due to there being four fewer home fixtures than the same period last year and the importance of turning a profit on transfers is underlined by the club’s operating profit falling" to just £5M ($7.6M) compared to the previous £15.2M figure. Arsenal already has "the fourth highest wage bill of clubs in the country and the full impact of new deals handed to Wilshere, Walcott, Aaron Ramsey, Carl Jenkinson, Kieran Gibbs and Alex Oxlade-Chamberlain will not be felt on the balance sheet until the next set of accounts later this year." Arsenal believes it has "reached something of a financial watershed." The club’s healthy cash balance, £123.3M ($186.3M) according to the accounts, "reflects the dividends yielded by the property development scheme at Highbury Square, where all but one flat is sold and that is expected to be retained for private use." Instead of relying on player sales to boost its financial position, Arsenal "will instead be able to use funds from the new Emirates sponsorship deal," worth £150M ($226.7M) over five years. The "payment structure is frontloaded," meaning the Gunners will receive £30M ($45.3M) this summer, which has been earmarked to spend on players (EVENING STANDARD, 2/25).
Australia's wealthiest race club "will report a record profit at the end of the financial year-- but a massive loss for its racing activities," according to Rod Nicholson of the HERALD SUN. Melbourne Racing Club, "which runs Caulfield, owns Sandown and is in partnership with Victoria's biggest country club, Mornington," lost A$5M ($5.14M) last year and is looking at a A$6M loss this year from racing. However, the purchase of eight profitable hotels with gaming facilities, "on top of its two massive enterprises at Caulfield and Sandown," will provide the record profit. The money problems "have been compounded by the lack of payment of sponsorship" by mining magnate Nathan Tinkler for his Patinack Farm's naming rights to Saturday's Group 1 Blue Diamond Stakes. He has yet to pay what club Chair Mike Symons describes as "significant and substantial money." Tinkler, now having finished the last year of a three-year deal, "was not bound to pay until after Saturday's event" (HERALD SUN, 2/26).