SBD Global/October 9, 2013/Finance

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  • Bayern Munich To Unveil New Record Revenue Of More Than $542M For '12-13 Fiscal Year

    Bayern Munich Exec Chair Karl-Heinz Rummenigge revealed “a revenue increase of more 20% for the current fiscal year,” according to Ben Priechenfried of DIE WELT. Rummenigge: “We can report revenue of more than €400 million" ($542.8M). During the previous ’12-13 season, the club generated revenue of €332.2M. Rummenigge said that "the club’s profit also has increased." The profit last year, when the club did not win a single title, was €11.1M. The statements indicate that Bayern Munich "will end a fiscal year without a loss for the 21st consecutive year" (DIE WELT, 10/7). SPORT1 reported “if you add the revenue of the Allianz Arena, which is owned by the club,” Bayern’s revenue was €373.4M in ’11-12. The club’s record profit of €18.9M was set during the ’06-07 season. Bayern Munich “will announce its official financial results at its annual general meeting on Nov. 13" (SPORT1, 10/4).

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  • Real Madrid Delegate Disputes Club's Financial Claims, Says Real $734M In Total Debt

    Real Madrid's financial figures from last year have created controversy.

    Carlos Mendoza, a Real Madrid delegate banned from speaking at the recent members' assembly, said that the club’s accounts are "not as assured" as Real Madrid President Florentino Perez claims, according to FOOTBALL ESPANA. Mendoza was "reportedly barred from publicly commenting at the recent assembly of the club’s delegate members," but shared "his view on the club’s accounts." Madrid has published figures for the last year listing "record revenue and profit levels and reporting that debt" was down by 27.4% to €90.6M ($123M), but "apparently this is inaccurate information." Mendoza, who is president of the "Asociación por los Valores del Madridismo" ("Association For Madrid's Values") members group, said, "The main thing" is that the club’s debt is €541M ($734M). Mendoza: "Which is the sum of non current liabilities, which is what is owed long term, and current liabilities, which are due short term. Florentino only recognizes the net debt, which is what is due exclusively to the banks," at about €90M ($122M). Mendoza added, "Madrid has more debts than with the banks -- they have them to players, to clubs, to sporting organizations, with governments, suppliers. All this adds up to €541M, which is more than double the debt Florentino inherited from Lorenzo Sanz. And on top of this debt, he wants to face the reconstruction of the Santiago Bernabeu," which he has valued at €400M ($542.6M) in cost. Mendoza said, "How much of the debt is manageable? Revenues are high. We are the highest grossing club in the world, but we are also the number one in spending. And look, the revenues have increased annually at 12% in the last decade, but in the last year have risen by only one percent. And spending has soared. I guess that [the reduced revenues] are due to the economic situation [in Spain]. If there is that uncertainty, engaging in this Bernabeu project for €400 million does not seem wise" (FOOTBALL ESPANA, 10/8). The EFE reported considering that in the last year, according to Mendoza, "revenue only increased 1%, while the average increase in the preceding years was 12%, the situation is concerning" (EFE, 10/8).

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  • Led By Galatasaray's $57M Due In Next Year, Turkish Clubs Struggling Financially

    Turkish champion Galatasaray's $57M debt due in the next 12 months, "racked up by hiring coach Roberto Mancini and players including former Chelsea star Didier Drogba, is drawing whistles from investors," according to Ersoy & Bilgic of BLOOMBERG. Galatasaray has "seen its shares slump" 31% this year amid "deteriorating finances." Its $4.5M in cash at the end of September would not "cover one season of salary for Mancini," the former coach of Man City hired last week on a $17M, three-year contract plus bonuses. Drogba has a $13.6M contract. While Galatasaray has the "most debt to repay in the next 12 months, its short-term debt-to-cash multiple of 13 isn’t the worst among the nation’s cash-strapped clubs." Trabzonspor has "40 times more short-term debt than cash, while Istanbul teams Besiktas and Fenerbahce have multiples of 24 times and 8.3 times." The Turkish stock exchange "cited Besiktas, Trabzonspor and Galatasaray on Sept. 26 for having negative working capital." Galatasaray’s "short-term debt is almost eight times that" of ManU, "which has triple the annual revenue." Galatasaray had $162.4M in revenue for the fiscal year ended May 31, and a net loss of 99.9M liras ($50.3M), according to its latest financial statement. Revenues included 73M liras ($36.7M) from jersey and other sales, 68M liras ($34.2M) from broadcast payments, 57.7M liras ($29M) from UEFA Champions League awards, 36.6M liras ($18.4M) from sponsorships and 23.6M liras ($11.9M) from ticket sales. The total figure compares with about 224.8M liras in '12. UEFA's '13-14 "Licensed to Thrill" report indicates domestic TV broadcast rights account for 42% percent of club revenues in Turkey (BLOOMBERG, 10/7).

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