European football clubs have increased profits by €1.5B ($1.6B) over the past two seasons, "after sustaining years of heavy losses, as so-called financial fair play rules kicked in," according to Murad Ahmed of the FINANCIAL TIMES. UEFA released its annual "benchmark" report on Thursday on the financial health of the sport. The study revealed revenues at Europe’s clubs have "risen consistently over the past two decades," while the Premier League’s "financial dominance over its continental peers has continued to grow." Interest in the game, particularly in the top five leagues in England, Spain, Germany, Italy and France, has "spurred ever-larger contracts with broadcasters and sponsors, and higher gate receipts in stadiums." But "heavy spending," such as on player transfers and staff costs, had led to "consistent losses at European clubs." The data shows that Europe’s clubs have "begun to swing into significant profits" since financial fair play rules, which "place curbs on how much teams can spend as a proportion of income," began to be implemented in '11. In that year, aggregate operating losses for clubs were €382M, compared with a profit of €727M in '15, the latest year for which figures have been made available. UEFA President Aleksander Ceferin said that the FFP rules "not only steadied the ship of European finance, but also provided the framework for unprecedented growth, investment and profitability." The average annual revenues of clubs in England’s top division is €4.4B ($4.7B) -- €2B ($2.1B) "more than Germany’s Bundesliga, which is the next closest league." Only two clubs -- Spain’s Barcelona and Real Madrid -- "earn more in broadcast revenues than the top eight English teams, as La Liga distributes money from television rights deals less evenly than the Premier League" (FT, 1/12). REUTERS' Brian Homewood wrote the report said that the top 15 clubs in Europe had "enjoyed growth" of €1.5B in sponsorship and commercial revenue since '09, compared with growth of €453M ($481M) for the other 700 top-flight clubs. Real Madrid had the "highest revenue among individual clubs," pulling in €578M ($614M), followed by Barcelona, ManU, Paris St. Germain, Bayern Munich, Man City, Arsenal, Chelsea, Liverpool and Juventus. The top 10 clubs, which all earned over €300M ($319M), were followed by Borussia Dortmund, Tottenham Hotspur, Schalke 04 and AC Milan which earned between €200M ($212M) and €300M. A further 31 clubs had revenues over €100M ($106M). UEFA Club Licensing & Financial Fair Play Head Andrea Traverso said, "With many concerned about competitive balance within and between leagues, UEFA, together with its stakeholders, will need to continuously review and adapt its regulations to this fast-changing environment" (REUTERS, 1/12).
NET DEBT: In London, Evan Bartlett reported ManU has €200M "more net debt than any other football club in Europe." The European Club Football Landscape report showed the amount of money the club owes has "now grown" to €536M ($569M). While debt levels across the continent "have decreased each year for the past five years," ManU's has grown by 25% "in the past year alone." The amount of debt accrued by the club since the Glazer family bought it in '05 "has been a source of great anger among the club's fans." While the value of ManU's debt is "roughly equal to its annual revenue" and only 80% of assets, of more concern are clubs like League Championship side Queens Park Rangers (480% of assets and 250% of revenue) and Turkish side Fenerbahce (610% of assets) (INDEPENDENT, 1/12).
