SBD Global/September 18, 2013/Finance

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  • FC Barcelona Projects That '13-14 Income Will Rise To $680M, Highest In Club History

    Barcelona is projecting a record '13-14 income of $680M.

    FC Barcelona said on Tuesday that the club's revenue is "projected to rise" to €509 ($680M) this season, according to Braden Phillips of REUTERS. The projection makes Barcelona "only the second [team] to cross the half-billion threshold after arch rivals Real Madrid." Barcelona spokesperson Toni Freixa said that the team's '13-14 income will be "boosted by extra cash from sponsorship deals, as well as the sale of Spain midfielder Thiago Alcantara to Bayern Munich." Freixa added that Barcelona is "targeting a post-tax profit" of €36M ($48M). Freixa: "This is not a message of triumph, since it is still difficult to manage the club and we have to continue the policy of austerity" (REUTERS, 9/17). In Barcelona, Marcos López reported Barcelona also announced the construction of "two pavilions in the sporting city" for €5.2M ($6.9M). Freixa said that "they are expected to be completed by Nov. '14." Freixa also denied that Real Madrid's recent contract extension with Cristiano Ronaldo would influence how Barcelona renews the contracts of Andres Iniesta and Lionel Messi. Freixa: "We do not make our decisions based on what other clubs do" (EL PERIODICO, 9/17).

    Print | Tags: Europe, Finance
  • F1 Owner CVC Capital Teams Up With Gulf-Based Groups On $2B Bid For IMG

    The biggest investor in F1 "is teaming up with one of the biggest shareholders in the McLaren sports car group to form" a $2B offer for sports rights agency IMG, according to Mark Kleinman of SKY NEWS. CVC Capital, which owns roughly one-third of F1's parent company, "has joined forces with Mumtalakat of Bahrain to bid for IMG." Initial bids for IMG "are due within days." Under CVC's plans, it "would form a consortium in which it would hold a 60% stake in IMG, while Mumtalakat and the Abu Dhabi Investment Authority (ADIA) -- both of which are sovereign-backed groups -- would own interests of about 20% each." The Middle East-based entities "are investors in the circuits which stage the two countries' respective Grands Prix, which have become annual fixtures on the F1 calendar." CVC's consortium "is expected to be in a powerful position in the auction of IMG." CVC "faces tough competition to secure control of IMG, which is arguably the most coveted sports rights asset to come up for sale for several years." Among others considering bids are Colony Capital, which had a £1.3B ($2.1B) "offer rejected earlier this year." Rival "talent managers such as Creative Artists Agency are also expected to bid, as may IMG partners including Reliance Industries in India" (SKY NEWS, 9/17).

    Print | Tags: IMG, UPS, Middle East, Creative Artists Agency, India
  • IRB President Brett Gosper Says 2015 Rugby World Cup To Bring Record Profit

    Int'l Rugby Board President Brett Gosper said that the 2015 Rugby World Cup in England will probably make about £150M ($239M), a 60% increase from the '11 competition in New Zealand, according to Dara Doyle of BLOOMBERG. The 2015 World Cup "may be the rugby’s most profitable ever," surpassing the £122.4M surplus from the '07 event in France. Gosper said that "the event would benefit from being held in the heart of European rugby, allowing easy access to supporters and advertisers from many countries." He said, "When you stage the World Cup in a major industrial country, the ability for sponsors to exploit a place like the U.K. versus New Zealand, you get a bit of step up." He added that "we could do much better" than his £150M estimate. This surplus for the IRB "comes from broadcasting and other revenue, while the tournament host’s income is from ticket sales." The '11 tournament, which culminated in a victory for the All Blacks, "attracted about 133,000 visitors from more than 100 countries to New Zealand and a cumulative global television audience of 3.9 billion." A report by the New Zealand government "found the event boosted the local economy" by NZ$1.7B ($1.4B) (BLOOMBERG, 9/17).

    Print | Tags: Finance, United Kingdom
  • Swimming New Zealand Makes Financial Progress During Year Of Transition

    Swimming New Zealand "will post a small profit over the past year," according to the NEW ZEALAND HERALD. The organization "was in turmoil," but has "undergone significant change" since an independent whole-of-sport review instigated by Sport New Zealand in mid-'12. They "now have a new chief executive (Christian Renford from Australia), new high performance director (Luis Villanueva from Spain) and new head coach (David Lyles from China)." Swimming New Zealand's financial results "have improved" from a deficit of NZ$120,000 in '11-12 to "a small surplus" of NZ$16,000 in '12-13, "despite heavy expenditure incurred in activating changes required by the review." Swimming New Zealand Chair Brent Layton said, "The board is pleased with its progress in the implementation of the 21 recommendations from the independent review'' (NZ HERALD, 9/17).

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  • Nadal, Serena Williams Taxed Heavily On $3.6M Earnings From U.S. Open

    Rafael Nadal and Serena Williams each took home a record $3.6M in prize money for winning U.S. Open titles, "but both champions lamented the fact that much of their prize was going to be taken in taxes." Nadal and Williams captured the $2.6M for winning the year's final grand slam title plus a $1M bonus "for having the most successful run" in pre-U.S. Open tournaments. Nadal said, "At the end, it's a lot of money anyway, but that's not the real prize money. You have to pay the tax, and in Spain today it is 56 [percent], I think." Williams, who surpassed a women's-record $9M for the season, has now earned $50M in her career. Williams faces "a hefty bite from 'Uncle Sam.'" Williams: "Someone told me today I passed 50 [million], but half of that goes to Uncle Sam. I love him. I'm always giving him half my money" (AFP, 9/11).

    Print | Tags: Finance, North America
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