LaLiga on course for €4bn in income after 16-per-cent rise in 2016-17
The top clubs in Spanish soccer achieved record total revenues of €3.66 billion ($4.5 billion) last season, with broadcasting income accounting for 40 per cent of the total.
The figures were outlined in the ‘Economic and Financial Report of Professional Football’ issued by LaLiga on Thursday, with the league insisting it is gaining ground on England’s Premier League, the market leader in the sport.
The study, which covered the teams in the top two Spanish divisions, showed that revenues increased by €495 million, or 16 per cent, in the 2016-17 campaign.
Broadcasting rights sales rose by more than €300 million, or 30 per cent, to €1.45 billion.
The other major sources of income were matchday revenues (€746 million), commercial (€622 million), player transfers (€475 million), other income (€245 million) and advertising (€117 million).
Broadcasting has experienced the highest growth in recent years, with revenues rising from €729 million in 2011-12 to €1.125 billion in 2015-16, as LaLiga returned to collective rights selling, to nearly €1.5 billion in the last campaign.
LaLiga president Javier Tebas has set a target of €2.3 billion per annum from media rights sales in a forthcoming tender for the next three-year cycle starting in 2019-20, comprising €1.3 billion from the domestic market and €1 billion internationally.
The report showed that in the 2016-17 season the combined earnings before interest, taxation, depreciation and amortisation of Spain’s professional clubs came to €778 million, and pre-tax profits to €234 million, or €176 million if top teams Real Madrid (pictured) and Barcelona are excluded.
In addition, by the end of 2017, the clubs had succeeded in reducing debts to the Tax Agency to €96 million, compared to €650 million in January 2013, reflecting a concerted campaign by the league to encourage greater financial responsibility.
LaLiga also pointed out that the clubs had combined free cash flow of €262 million last season after investing a record €1.15 billion, including €406 million in facilities and €740 million in players.
The Spanish league is thought to be targeting more than €4 billion in revenue for the current campaign.
Deloitte, the professional services firm, reported today that the 20 Premier League clubs generated a combined €4.5 billion in the 2016-17 season, although different accounting rules applied.
Javier Gomez, LaLiga’s corporate managing director, said: “In terms of income from partners we hope that television, presentation and increased visibility will augment that segment, and with matchday there is work to do with the clubs to try to help them improve that aspect.”
He added: “Five years ago, the Premier’s revenues were double, now they are not double. They are above, but there will be a €1.5-billion difference. We are approaching them, and the most important thing is the dynamics. We are LaLiga, which creates the most value.”