The Fans Football Blog3

Spanish news agency EFE claims that Barcelona will most probably return to the United States for a new summer tour next year.

Some of the sponshorship deals Barcelona has been negotiating during the past tour were related to the sponsoring of new summer tours in the United States, and everything would indicate that Barcelona will already return to the US next summer.

Read more:
Looking back at a successful tour
Barcelona will return to Asia

Madrid financial newspaper Expansión claims that Barcelona will sign later this month a sponsorship agreement with British online betting company Betfair.

Sources close to Barcelona told the paper that Betfair will obtain the rights to use Barcelona's image in their advertising campaigns for the next two to three years.

Barcelona would receive a fee of 1,5 to 2 million euro a year for the deal. Until last year, Barcelona had a similar agreement with Austrian online gaming company Bwin.

Read more:
Sponsorship deal with Arab telecom company
Barça negotiating Microsoft sponsorship deal

Barcelona economic vice-president Joan Boix talked about the economic side of the tour in the United States in an interview with the club's official media:

"We're opening a very important market, we've signed new contracts with our local sponsors for the next three years. We have an engagement to return because Barça is striking a cord in the United States.

The benefits for the club of this tour are between 5 and 6 million euro, which is more than we had planned. It has been excellent, the tour was perfect. It was all very-well organized and it was good for the team too. Of course, this is only the immediate impact.

There's also a the medium- and the long-term, the fact that the Barça brand is getting known better and better in such an important country as the United States. One of the satisfactions of this tour has been the ticket sales, to see how many football fans in this country have been filling the stadiums and have supported FC Barcelona. And since part of the revenues of the tour depended on the tickets sold, that was very positive."

Read more:
Barcelona closing sponsorship deals in the US
Barça negotiating Microsoft sponsorship deal

Asked if there's still money left to spend this summer, Barcelona economic vice-president Joan Boix has said in an interview with Catalan sports paper Sport that new transfers are possible:

"The club's finances are doing excellent. If Guardiola, or the technical department, asks for more transfers then we'll deal with that. The ultimate proof that Barça has a solid economic base is that we didn't have to make any new debts when signing players this summer."

Read more:
60 to 80 million transfer budget confirmed
Barcelona closing sponsorship deals in the US
FCB Finance Report

Catalan radio station Catalunya Ràdio reports that F.C. Barcelona is negotiating a sponsorship agreement with U.S. based corporation Microsoft. If agreed upon, the deal would be worth 2 million euros.

Barcelona president Joan Laporta, along with Barcelona board members, players, and coaches will later today visit the Microsoft headquarters in Redmond, Washington. Redmond is a city in the vicinity of Seattle, where Barcelona will play the second game of its American tour on Thursday against the Seattle Sounders.

Read more:
Barcelona closing sponsorship deals in the US
Henry leaving door open for future MLS move

Barcelona marketing vice-president Jaume Ferrer has said in an interview with the club's official media that sporting success has a big influence on the interest companies show in Barça.

Therefore, FC Barcelona is able to take advantage of the current situation to create links with some of the biggest companies located in the United States: "On this tour we have held several meetings with some very important company directors. Some of them are looking to settle forms of sponsoring FC Barcelona this very year."

The United States have become a major target area for FC Barcelona, to the extent that the club even has a marketing team based in New York: "We know that a large part of the club's growth in recent years has been because of the international market, so we are working hard to position the brand in the global market."

read more here

Read more:
Laporta supports salary cap
Sponsorship deal with Arab telecom company
FCB Finance Report

Talking to journalists in the United Stated, Barcelona president Joan Laporta has said on Friday that the Major League Soccer salary cap can serve as a model for other teams and leagues to control costs:

"There are interesting things that we have to study in Europe, such as a salary cap. Maybe we have to establish some parameters for revenues and players' salaries but maybe not as strict as in MLS."

Read more:
FCB Finance Report

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.

http://www.fcbarcelona.com/web/english/club/club_avui/informacio_corporativa/situacio_economica/situacio_economica.html

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

Catalan sports paper Sport claims that Real Madrid president Florentino Pérez will propose the other Liga clubs that every match day one game would be played at 3 pm in the afternoon Spanish time.

This would be a way to open up the Asian market for the Spanish league by reaching fans in Asia in prime-time. Barcelona would be in favour of the proposal.

Read more:
60 to 80 million transfer budget confirmed
Premier League Clubs Deep in Debt
Nike pays Barcelona treble bonus of 10 million

Asked about the summer transfer window, Barcelona marketing vice-president Jaume Ferrer has confirmed in an interview with Catalan radio station RAC 1 that the club could spend between 60 and 80 million euro° without getting into economic problems and commented on some rumoured names:

"If Ribéry is the main target of the technical staff, than we will fight to sign him. I don't know much about it, but if that's what the coaches ask, we'll listen to them.

Villa is a great player too. As far as I know, we don't really know who's in charge at Valencia at the moment. I would refer to Txiki Begiristain, who is dealing with the negotiations, and I have total belief in the events turning out in a good way for the club. In the next few days, or at least in the coming two weeks, the club plans to close some transfer deals."

Read more:
Barcelona could spend between 60 and 80 million
Barcelona can spend 30-35 million this summer

Asked about the club's transfer budget, Barcelona economic vice-president Joan Boix has said in an interview with Catalan radio station Ona FM that the club could spend more than intially announced:

"The reasonable thing to do, looking at our revenues, is spend the 30 or 35 million euro we've mentioned before. But we could reach a higher figure.

Each year we have benefits, plus the depreciations, the money we could use in the future, in the end we can spend between 60 and 80 million. A part of that could be used to pay off the debt or to invest in real estate, but if the technical department thinks this is needed, we can spend everything on transfers. Exceeding that figure is not recommendable. There are teams that invest more than they gain but we're not going to do that because of our prudent policy and the fact that we keep our feet on the ground."

Read more:
Barcelona has 30 to 35 million to spend

Catalan sports paper El Mundo Deportivo claims that Barcelona will at the most have 80 million euro° to spend during the current summer transfer window.

As club officials announced earlier this summer, Barcelona has an initial transfer budget of 30 to 35 million euro (read more here).

Transfer fees the club will receive will be added to this. Barcelona hopes to get around 30 million euro for Eto'o, while players like Hleb, Gudjohnsen and Cáceres could also be sold. Finally, the benefits of this season, estimated around 10 million euro, could also be used for transfers, although that's not certain.

Read more:
Barcelona has 30 to 35 million to spend
No transfers before end of the month

Barcelona site Pelikano claims that Barcelona won't be able to sign any new players before the end of this month because of the financial situation of the club.

When a new financial year starts next month, the club will have new resources, although those will still be limited due to the overspending on the transfers over the past two years and an increase of the expenses.

Read more:
Barcelona has 30 to 35 million to spend
Premier League Clubs Deep in Debt
Nike pays Barcelona treble bonus of 10 million

Asked about the club's transfer budget, Barcelona economic vice-president Joan Boix has said in an interview with Catalan radio station Ona FM that Barcelona is not planning to go beyond what had been scheduled:

"Txiki and Pep know about the situation, we'll keep our feet on the ground. Madrid will have problems a few years from here because they made more debt.

We had profits of 10-12-15 million over the last years and we'll use that money. If we count everything together we would have around 50 million, of which 10 to 15 million will be used for investments within the club and the rest will be used to pay our debts or to sign players. So we could spend 30-35 million euro° plus what we receive by selling players.

It would be very easy for us to spend more, but we don't want the next board to have financial problems, that's why we are looking at the long term. We need to be careful. It's a surprise that Madrid has paid those sums for these two players. Even more so in times of crisis. That's not good for anyone. In the market, there's a before and an after those transfers. We will stay calm and do what we had planned. We don't want to surpass our limits.

You always have the most transfers in the last month of August. We have a solid team at this moment. Without big investments, we could have a super-team. We have time and we don't need to hurry. I don't know if we will sign players on loan, you should ask the coaches, but I don't think it will happen."

Read more:
Barcelona can spend 30-35 million this summer

author: David Conn
source: The Guardian
date: 2 June 2009
editing: fcbtransfers.blogspot.com





England's 20 Premier League clubs owe a total of £3.1bn in bank overdrafts, loans and other borrowings, according to the latest published financial information. The accounts for the clubs, mostly documenting the year to May, June or July 2008, show that the FA chairman, Lord Triesman, significantly underestimated football's indebtedness when he cautioned last October that debts in the sport as a whole, including the Football League and the FA itself, were at £3bn.

Manchester United and Chelsea were by far the most indebted, owing £699m and £701m respectively, Arsenal were third, with £416m debts and Liverpool, the other top four club, were understood to owe around £280m; their accounts, due to be filed at Companies House last week, are overdue*.

The debts of those top four clubs, incurred in very different ways, demonstrate the extremes to which Premier League clubs' finances have been taken. United, Premier and European Champions League winners in that 2007-08 season, nevertheless made a loss of £44.8m because of the swingeing interest the club pays on its debts. United owed £699m to financial institutions because the Florida-based Glazer family, who bought the club in 2005 largely with borrowed money, then loaded their own debts on to the club. In just three years to 2008, £263m has become payable by United in interest alone**.

Liverpool's debt is similar, owed by the club's holding company, and including the £185m borrowed by the north American businessmen, Tom Hicks and George Gillett, when they acquired the club in 2007.

At Chelsea, by contrast, no money is owed to banks; the entire £701m was an interest-free loan made by the club's owner, Roman Abramovich, since he bought Chelsea in 2003. The Russian oligarch has poured money in to pay for players whose wages the club would otherwise not be able to afford, in his hunger to claim football trophies. Since the accounts were published, Chelsea, partly as a response to Triesman's warning about high debt levels, announced that Abramovich had reduced his loan to £339.8m, converting the rest to shares in the club.

Arsenal is the only Premier League club that incurred significant debt to carry out long-term investment. The club borrowed £260m originally to build the new Emirates Stadium, and a further £133m to convert the old Highbury ground into flats.

The 20 clubs' accounts*** show that despite booming incomes, which include the first season of a record £2.7bn TV deal which runs from 2007-10, Premier League clubs increasingly rely on subsidies from billionaires who now mostly own the clubs. Manchester United's takeover may have resulted in huge sums going out of the club in interest payments, but 15 of the 20 clubs in last season's top flight are now subsidised by owners. The smaller Premier League clubs are struggling to compete financially, and as they are desperate to avoid relegation out of football's golden circle, they have been urgently seeking backers of their own. In the last week, two more clubs, Sunderland and Portsmouth have announced takeovers.

The Premier League defends the financial picture presented, arguing that the levels of debt are generally manageable, given rising turnovers and the improved TV deal. Wages, for players and administrative staff, rose to £1.095bn, but at an average 55% of turnover that is generally reckoned to be sustainable.

The top clubs' directors have also seen their salaries rise way above those for directors of non-football companies with similar turnover. Ten directors in football were paid over £1m in 2007-08. Keith Edelman Arsenal's former managing director, was paid the most: £2,726,000 in total, including a £1,056,000 payoff when he left the club on 1 May 2008.

Gordon Taylor, chief executive of the Professional Footballers' Association, maintained his status as Britain's highest paid trade union official, with a salary package of £972,087.

* Some reports have been published since this article appeared about Liverpool’s finances. Read more here.
** Read more about Mancehster United's debt here.
*** More details with figures included of the returns filed by all 20 clubs here.

read the full and original article here


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Rome final will boost European economy
Financial impact of Champions League qualification
A profit of 16 million euro halfway the season
Proposal to limit spending on transfers and salaries

Barcelona president Joan Laporta has said at a colloquium yesterday that sports supplier Nike will pay Barcelona 40 million euro this year.

Nike pays Barcelona a fixed annual fee of 30 million euro. Because of the bonuses for trophies won during a season, an extra fee of close to 10 million euro will be paid this year.

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Sponsorship deal with Arab telecom company
Transfer Deals Explained
Guardiola has 30 million to spend

Catalan sports paper Sport claims, based upon a Barcelona source, that Barcelona sports director Txiki Begiristain and Barcelona manager Josep Guardiola will be able to spend a little more than 30 million euro° this summer.

That amount will be increased with the transfer fees the club will receive from the sale of players of the current squad. After having seriously invested last summer, Barcelona plans to be a more modest player on the transfer market this year.

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Transfer Deals Explained
Laporta worried about treble bonuses
Financial impact of Champions League qualification