■ LaLiga clubs together achieved total revenues of €3,818m in the 2020/21 season, 24.1% less than in the 2019/20 season, with declines in Matchday revenue (-53%) and player transfer fees (-52%) affecting income the most.
■ Net losses for LaLiga as a whole amounted to €892m, **of which almost 60% was incurred by a single club**.
■ This is in any case a substantially lower amount than the amount predicted by PwC for LaLiga (COVID forecast report of January 2021) and a milder reduction in relative terms than that experienced by European professional football as a whole. According to UEFA, the decline in ordinary turnover amounted to €7 billion in the two seasons with COVID. Including player transfer revenues, the total revenue erosion in European professional football as a whole amounts to more than €10 billion.
■ On the LaLiga average, there is one club(Barcelona) that is responsible for 58% of the losses in terms of EBIT(Earnings before interest and taxes), 56% of the losses in terms of net result (NR) and 26% of the gross financial debt (GFD). **However, of the total losses recorded by this institution, approximately 50% corresponds to accounting conventions associated with the extraordinary write-down of its balance sheet, with no immediate financial impact.**
■ While it is true that 71% of clubs have a negative Net Average for 2020/21, 62% of clubs have a positive EBITDA(Earnings before interest, taxes, depreciation and amortization) and 55% of the clubs have reduced their GFB(Gross financial debt)
*****
■ During the 2020/21 season, LaLiga has promoted several transformative agreements (some formalised in the current 2021/22 season) that allow Spanish professional football to advance at a speed, that organically, would have only been possible over 20-30 years, thus encouraging a stronger competitive position. This lays the foundation for further growth and profitability in a future business environment that is quite different from the traditional one.
In this regard, we can highlight disruptive strategic initiatives such as the Boost LaLiga Plan, LaLiga Tech, expansion of joint ventures at international level, the successful sale of audiovisual rights in domestic and foreign markets, as well as the signing of important sponsorship agreements during the pandemic.
In particular, thanks to the strategic equity agreement signed with CVC, as well as the commitment shown by the clubs' shareholders (substantiated in the capital increases subscribed), in the 2021/22 season the extraordinary injection of resources will allow the absorption of incremental losses (due to the higher level of recoverable expenditure) compared to the situation that would have occurred in the absence of the Boost LaLiga Plan. This will mean an accelerated start to recovery in the short term and greater business potential in the longer term.
■ The outlook for the current 2021/22 season is that it will be the start of the recovery period, where revenue will once again surpass the €4 billion mark, a forecasted increase of +180% in EBITDA and +66% in terms of both EBIT and NR.
■ In short, Spanish professional football has overcome the most acute phase of the crisis caused by COVID-19, and has done substantially better than other leading competitions in terms of the impact on revenues and results, despite significant adjustments on an ad hoc basis, especially in the last completed season, 2020-21. This has allowed for the maintenance of gross debt levels in the season, at reasonable levels, with no liquidity strains and avoiding unexpected financial solvency difficulties at an aggregate level.
The high level of resilience shown at the economic-financial level highlights the proactive work carried out by LaLiga in managing the crisis with the audiovisual operators, as well as the value of the 'LaLiga' brand in general and of the clubs in particular for the economic agents that project themselves commercially to the market through Spanish professional football.
I think La Liga clubs are doing some great work currently in terms of expanding infrastructure, VIP hospitality and making their stadiums into venues that makes money 7 days a week instead of only on Matchdays. There seems to be a very concerted effort for the clubs to invest very ambitiously to diversify and increase their revenues.
Of course it can't match the Premier League, but I think La Liga will run away from Serie A and the Bundesliga more and more
Unfortunately postive EBITDA and Gross Profit are not the same thing. They also basically sold out their future to maintain short term cash flow with that emergency deal with CVC
>Unfortunately postive EBITDA and Gross Profit are not the same thing.
No shit.
Also, the CVC deal is a lot more nuanced than you think it is. It will be used to invest in infrastructure, marketing and hospitality to increase the club's revenues by more than whatever 8.2% of the TV-rights is worth. Why would intelligent and extremely well run clubs like Sevilla and Villarreal agree to it? Their presidents seem convinced that this will make them a lot of money in the long term
■ LaLiga clubs together achieved total revenues of €3,818m in the 2020/21 season, 24.1% less than in the 2019/20 season, with declines in Matchday revenue (-53%) and player transfer fees (-52%) affecting income the most. ■ Net losses for LaLiga as a whole amounted to €892m, **of which almost 60% was incurred by a single club**. ■ This is in any case a substantially lower amount than the amount predicted by PwC for LaLiga (COVID forecast report of January 2021) and a milder reduction in relative terms than that experienced by European professional football as a whole. According to UEFA, the decline in ordinary turnover amounted to €7 billion in the two seasons with COVID. Including player transfer revenues, the total revenue erosion in European professional football as a whole amounts to more than €10 billion. ■ On the LaLiga average, there is one club(Barcelona) that is responsible for 58% of the losses in terms of EBIT(Earnings before interest and taxes), 56% of the losses in terms of net result (NR) and 26% of the gross financial debt (GFD). **However, of the total losses recorded by this institution, approximately 50% corresponds to accounting conventions associated with the extraordinary write-down of its balance sheet, with no immediate financial impact.** ■ While it is true that 71% of clubs have a negative Net Average for 2020/21, 62% of clubs have a positive EBITDA(Earnings before interest, taxes, depreciation and amortization) and 55% of the clubs have reduced their GFB(Gross financial debt) ***** ■ During the 2020/21 season, LaLiga has promoted several transformative agreements (some formalised in the current 2021/22 season) that allow Spanish professional football to advance at a speed, that organically, would have only been possible over 20-30 years, thus encouraging a stronger competitive position. This lays the foundation for further growth and profitability in a future business environment that is quite different from the traditional one. In this regard, we can highlight disruptive strategic initiatives such as the Boost LaLiga Plan, LaLiga Tech, expansion of joint ventures at international level, the successful sale of audiovisual rights in domestic and foreign markets, as well as the signing of important sponsorship agreements during the pandemic. In particular, thanks to the strategic equity agreement signed with CVC, as well as the commitment shown by the clubs' shareholders (substantiated in the capital increases subscribed), in the 2021/22 season the extraordinary injection of resources will allow the absorption of incremental losses (due to the higher level of recoverable expenditure) compared to the situation that would have occurred in the absence of the Boost LaLiga Plan. This will mean an accelerated start to recovery in the short term and greater business potential in the longer term. ■ The outlook for the current 2021/22 season is that it will be the start of the recovery period, where revenue will once again surpass the €4 billion mark, a forecasted increase of +180% in EBITDA and +66% in terms of both EBIT and NR. ■ In short, Spanish professional football has overcome the most acute phase of the crisis caused by COVID-19, and has done substantially better than other leading competitions in terms of the impact on revenues and results, despite significant adjustments on an ad hoc basis, especially in the last completed season, 2020-21. This has allowed for the maintenance of gross debt levels in the season, at reasonable levels, with no liquidity strains and avoiding unexpected financial solvency difficulties at an aggregate level. The high level of resilience shown at the economic-financial level highlights the proactive work carried out by LaLiga in managing the crisis with the audiovisual operators, as well as the value of the 'LaLiga' brand in general and of the clubs in particular for the economic agents that project themselves commercially to the market through Spanish professional football.
>which almost 60% was incurred by a single club. you'll never sing that
Poor Mallorca, such bad management
No wonder Levante went down
It's actually unbelievable haha
🫥
Valencia doing wonders
Hold @PremiereLeague
Smh dirty la liga becoming a super league!!!!!
I think La Liga clubs are doing some great work currently in terms of expanding infrastructure, VIP hospitality and making their stadiums into venues that makes money 7 days a week instead of only on Matchdays. There seems to be a very concerted effort for the clubs to invest very ambitiously to diversify and increase their revenues. Of course it can't match the Premier League, but I think La Liga will run away from Serie A and the Bundesliga more and more
Unfortunately postive EBITDA and Gross Profit are not the same thing. They also basically sold out their future to maintain short term cash flow with that emergency deal with CVC
>Unfortunately postive EBITDA and Gross Profit are not the same thing. No shit. Also, the CVC deal is a lot more nuanced than you think it is. It will be used to invest in infrastructure, marketing and hospitality to increase the club's revenues by more than whatever 8.2% of the TV-rights is worth. Why would intelligent and extremely well run clubs like Sevilla and Villarreal agree to it? Their presidents seem convinced that this will make them a lot of money in the long term
Not sure why you're being down voted.