Currency Converter

Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).


SBD Global/October 9, 2013/Finance

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).
Return to top

Related Topics:

Europe, Finance

Video Powered By - Castfire CMS Powered By - Sitecore

Report a Bug