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/March 7, 2013/FinancePrint All
ManU has "missed out on a bumper European payday," but its Champions League exit is not as costly as last season's failure to make it out of the group stage, according to the MANCHESTER EVENING NEWS. The club will bank £34M ($51M) from UEFA compared to £30.4M ($45.8M) last season, but if Alex Ferguson's side had gone all the way to the final it "could have expected" to top the £56M ($84.3M) mark. However, the financial implications "are not limited to media income from UEFA." A victory in the Champions League "can also trigger sponsorship bonuses and increase the commercial value of a team." In terms of the TV money and bonuses from UEFA, "the value of getting to the final is huge." Last year's winners Chelsea received £51.7M ($77.9M) from UEFA which "allowed the club to record a small profit for the first time in the Roman Abramovich era." ManU's "comparative failure last season saw the club's revenues fall for the first time since the Glazers' takeover" (MANCHESTER EVENING NEWS, 3/6).
The Gaelic Athletic Association said that "last year’s All-Ireland hurling replay between Galway and Kilkenny netted" €1.2M ($1.6M) in profit, according to Cormac Byrne of the IRISH INDEPENDENT. GAA President Páraic Duffy revealed as he outlined the association’s annual accounts for '12 that the gross revenue for the final was €4M ($5.2M) while gross revenue for the replay, which Brian Cody’s Kilkenny won in style, grossed €2.8M ($3.6M). With direct costs for hosting the replay coming to €1.4M ($1.8M) and grants to counties and other bodies coming to €220,000 ($286,000), the GAA was left with a cool €1.2M in profits. Gate receipts grew by 10pc or €2.5M ($3.3M) over last year, and exceeded the GAA’s budget expectations by a further €1M ($1.3M), largely thanks to the hurling replay. The GAA admitted that by reducing the replay ticket price from €80 ($104) to €50 ($65) it "consciously decided to forego" upwards of €1M, meaning it could have netted €2.2M ($2.9M) but decided instead to reward hard-pressed supporters (IRISH INDEPENDENT, 3/6).
Queens Park Rangers Holdings Ltd. published accounts revealed that the club lost £22.6M ($34M) during its first season back in the Premier League, according to Andy Hodgson of the London EVENING STANDARD. Although the figure was £3M ($4.5M) down from its final season in the Championship, "turnover soared" from £16M ($24.1M) to £64M ($96.4M). Debt has increased from £56M ($84.3M) to £89M ($134M). The deficit for the '11-12 season "was in part due" to spending £25M ($37.7M) on new players and the club "face another big loss this season having splashed out" more than £30M ($45.2M) on signings in the last two transfer windows (EVENING STANDARD, 3/6).
Sportswear company Puma announced that "it will close around 90 unprofitable outlets globally," according to WANT CHINA TIMES. After seeing its profit "decline by 85% in the third quarter" of '12, the company reported a loss of $56.8M in the final quarter. According to its financial statement, the group's consolidated revenue rose 8.7%, "below expectations," in '12. However, its net profit dropped from 49.6% in '11 to 48.3% in '12. Instead of raising its annual revenue expectation to above €4B ($5.2B), "now the group's top priority is to generate profit rapidly." Market analyst Zhang Qing said that Puma's troubles "partly stem from weak demand in Europe and partially from its misplaced business strategy in the Chinese market." He added that the company has "failed to unveil any trend-setting products" (WANT CHINA TIMES, 3/6).