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FCB Finance Report
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Editor at Friday, 17 July 2009
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FC Barcelona’s Finances
I would like to start off my first contribution to the blog, by thanking our dearest PeP for all his hard work and contributions to this blog we all read almost on a daily basis. I can only hope to bring his professionalism and dedication to my first contribution to the blog.
This report is centralized around two key figures, they both have very key roles in the finances of the team. The first of which is the jackass himself, Joan Laporta. He is the Presidente of this current regime. I know he catches a lot of flack for his antics during the summer; however it is only because he is a nerd in the books and numbers. You have to realize that the Treble was not the result of a fluke season, but instead meticulous planning that began at the very onset of this regime. For any business to be successful it takes effective management to properly dictate the course of the business. It turns out our president behind closed doors has been building an effective business model based on sustained growth and paying down debt. What this effectively means is that throughout Laporta’s tenure, he has been focused on increasing revenue for the team while paying down debt so that the team can self-finance its own ventures.
The Second figure Joan Boix. He is the financial Vice President of FCB. These are a few quotes he had to say in regards to the finance of FCB when giving the financial presentation to board members and socios for the 2007/2008 fiscal year. This information has been taken directly from fcbarcelona.com.
Solid economic ground
According to Boix, “FC Barcelona’s economic situation is very solid. Revenue has increased for the fifth year in a row and we have made a profit again”. The financial vice-president has described the financial year’s final accounts as “excellent”. Revenue grew for the fifth year in a row and currently sits at 308.8 million euro, while expenses account for 297.6 million euro. In other words, the financial year 2007/08 closed 16.1 million euro in the black with a profit of 10.1 million euro.
Boix pointed out two areas in which revenue had grown most significantly: the media (increase of 9.5 million euro) and the stadium (increase of 7.3 million euro). He also said revenue from club members had increased by one million euro, with 6,365 new members. “Ours is a sustained growth”, he said.
Control over expenses
With regard to expenses, which came to 292.6 million euro, Joan Boix said that “once again expenses were controlled and followed parameters as set out in last year’s budget”. The most significant increases came in two areas: amortization of players, with an increase of 5 million euro, and players’ salaries, which increased by 14.3 million euro. The club sets aside 52% of income for players’ salaries. “We are still below recommended parameters within the footballing industry”, pointed out Boix.
End to bank debt and more club funds
In relation to the accounts, the financial vice-president wanted to point out two things: the reduction of debts, both bank and in general, and an increase in the club’s own funds. On the first point, Boix revealed that during last season FC Barcelona paid back 26 million euro, reducing the debt from 39.8 million to 13.6 million and that “the bank debt will be wiped clear on 30 October”.
The other aspect which has affected the books is an increase in the club’s own funds. “We now have 12.7 million euro of our own funds. In the five years of this administration’s management, we have generated a total of 88 million euro, going from 75.3 million euro in the red to 12.7 million euro in the black”. And he added: “They are figures which endorse the effort of all those involved during the last five years”.
http://www.fcbarcelona.com/web/english/noticies/club/temporada08-09/08/n080824102955.html
This is a summary of the financial Statement:
SETTLEMENT OF ACCOUNTS 2007/08 SEASON
Trading income: 308.8 million euros
Operating costs: 292.6 million euros
Ebitda (Earnings before tax and depreciations): +68.8 million euros
Operating profit or loss: +16.1 million euros
Income / financial expenses: -8.0 million euros
Operational profit or loss: +8.2 million euros
Extraordinary income / expenses: +0.4 million euros
Before tax profit or loss: +8.6 million euros
Tax payments: +1.5 million euros
Net profit or loss: +10.1 million euros
BUDGET 2008/09 SEASON
Trading income: 380 million euros
Operating costs: 355 million euros
Operating profit or loss: +25 million euros
Financial and extraordinary profit or loss: -10 million euros
Before tax net profit or loss: +15 million euros
All these figures were passed at the Ordinary General Assembly held on September 24, 2008.
Effectively what the report is indicating is that Barcelona is currently a self-sufficient team free of debt. Turns out Laporta has been doing an amazing job.
2004 FCB Revenues= 169 million Euros
2005 FCB Revenues= 208 million Euros
2006 FCB Revenues= 259 million Euros
2007 FCB Revenues= 290 million Euros
2008 FCB Revenues= 309 million Euros
2009 FCB Projected Revenues= 380 million Euros
In conclusion, certainly there is two ways of doing business, the way Real Madrid does business and the way Barcelona does business. Barcelona has worked so hard throughout the years to get in the position they are currently in, and I can now greater appreciate the journey to the treble. Remember the Treble was not the result of a fluke season, but instead years and years in the making.
Keep in mind these reports are based on last year's earnings. Deloitte, one of the leading accounting firms in the world, publishes a report called the Deloitte Football Money League. In the 2009 report these are the top 5 teams:
Numbers are (In)Millions-Euros
1.) Real Madrid Revenues = 365.8
2.) Manchester United Revenues= 324.8
3.) Barcelona Revenues= 308.8
4.) Bayern Munich Revenues= 295.3
5.) Chelsea Revenues= 268.9
http://www.deloitte.com/dtt/article/0,1002,cid=246693,00.html
-Je me'appelle Samuel
Read more:
Premier League Clubs Deep in Debt
A profit of 16 million euro halfway the season
Barcelona third richest club in the world