Executive Transactions VW Reshuffles Management Team Eurosport Launches Wake-Up Service Australian Football League Eyeing GWS Madrid City Council To Bill Real Madrid NFL Signs Lagardère To Grow Fan Base Sydney Cup Draws Crowd Of 61,247 Names In The News Max Verstappen Brings Injection Of Youth Tew Addresses Bug, Stipper Incidents
SBD Global/September 17, 2013/FinancePrint All
With the start of the UEFA Champions League, top European clubs "are preparing for a competition that grants them succulent economic revenue," according to José Miguel De Pedro of LIBERTAD DIGITAL. The "top European football competition is not in crisis and will continue to distribute important prizes to its participants." Each of the 32 teams participating in the group phase will receive €8.6M ($11.5M). For every team, "each game won will bring an additional" €1M ($1.3M), while ties will pay €500,000 ($667,450). Each of the four teams that makes it to the semifinals will receive €4.9M ($6.5M) and the "winner of the competition" will receive €10.5M ($14M). In "this way, the team that wins the Champions League could bring home" up to €34.7M ($46.3M). In addition "to all of this, the winning team will also get to add what it receives in revenue from TV rights, which also will mean significant revenue" (LIBERTAD DIGITAL, 9/16).
Bundesliga club Hamburg SV "has for the third consecutive year finished a fiscal year with a distinctive loss," according to DIE WELT. The club "has reportedly finished the year with a loss" of about €9M ($12M). To "contain the feared double-digit million loss, the club reached an agreement with marketing partner SPORTFIVE to extend their contract until '20." In return, SPORTFIVE waived a €12.4M ($16.6M) loan. Hamburg "expects to break even during the '13-14 season." The new marketing contract, higher TV revenue and several transfers, such as Dennis Aogo's loan deal with Schalke, "will bring money into the club's coffers." The main reason for the club's renewed financial trouble "is its on-field performance." After closely avoiding relegation in the summer of '12, the management "imposed new cost-cutting measures." However, after a miserable start to the '12-13 season the measures "were quickly scrapped." It is the club's third consecutive loss after losing €4.9M in '10-11 and €6.6M in '11-12 (DIE WELT, 9/13).
FORTUNA: BILD's Jörg Zschoche reported 2nd Bundesliga club Fortuna Dusseldorf "has generated a record profit" of €3.7M ($4.9M) for the fiscal year ending on June 30. The club, which "was close to bankruptcy eight years ago, is by now debt free." Dusseldorf Financial Dir Paul Jäger said, "A great result which was made possible by record revenues." The club will present its numbers at its annual general meeting on Oct. 8 (BILD, 9/9).
Two people familiar with the matter said that private equity firm KKR & Co LP "has teamed up with New Mountain Capital LLC to bid for IMG, joining a handful of companies interested in buying the sports, fashion and marketing agency from Forstmann Little & Co," according to Roumeliotis, Kim & Damouni of REUTERS. KKR and New Mountain "would be competing against other buyout firms in a quest for IMG, as well as entertainment powerhouses Creative Artists Agency and William Morris Endeavor Entertainment, which have also been weighing offers for IMG." While KKR "may not have the industry expertise of CAA or William Morris, its partner New Mountain has deep ties to private equity firm Forstmann Little." CVC Capital Partners "is also involved in IMG's sale process." Buyout firm Bain Capital "also plans to bid." Initial offers "are due in the next few weeks" (REUTERS, 9/13).
The Spanish football federation (RFEF), "flush with cash after the national team's phenomenal run in recent years, intends to forego its state subsidy for the third year in a row in 2014," according to Iain Rogers of REUTERS. The world and European champions "have a host of corporate sponsors" including German apparel maker adidas, energy company Iberdrola, Movistar, the mobile phone unit of telecoms operator Telefonica, and carmaker Nissan. However, the RFEF's latest gesture, which needs approval from the board of directors, means that "it will have turned down" less than €5M ($6.68M) "it was entitled to" for '12, '13 and '14, according to the government sports council. Secretary of State for Sport Miguel Cardenal said, "It's yet another thoughtful gesture from (RFEF president) Angel Villar, whom I again thank personally for the sensitivity he has shown in these times when the rest of the federations need help" (REUTERS, 9/16).