Barcelona Football Club has set €1.047 billion ($1.152 billion) turnover target for the 2019-20 season. This means the LaLiga giants will breach the € 1 billion mark a year earlier than the previous projections. This figure represents a new record in the world of sport, and means the surpassing of internal forecasts, since the Strategic Plan approved by the Board of Directors expected profits to reach the figure of €1 billion in 2021.
The club on Thursday has also presented a record turnover of €990 billion ($ 1.089 billion). The final accounts will be presented to the delegate members of the club for approval in the Ordinary General Assembly on October 6.
The budget for the 2019-20 was presented by the club CEO Òscar Grau, while the vice president and treasurer of the Board of Directors, Enric Tombas, detailed the balance of the financial year for the 2018-19 season, the club has reported on its official website.
The budget for this season provides for expenditure of €1.007 billion ($1.108 billion), and a profit after tax of €11 million ($12.1 million). This would mean nine consecutive years with a positive result and accumulated profits of €213 million ($234.3 million) since the 2011-12 season. The budget also forecasts €199 million ($218.9 million) EBITDA, a new record in the history of the club, confirms its solidity and sustainability.
Once again the figure for revenue has increased, this year by 6%. Of note is an unprecedented commercial effort in sponsorship, which would represent an increase in turnover in the last 10 years (2010-2020) of €172 million ($189.2 million) .
There is also a satisfactory evolution in the operating profit of the Barça brand, through Barça Stores and commercial licenses, with an expansion that provides revenue of €86 million ($94.6 million).
Forecasts indicate an increase of 9% in income for player transfers and loans, which consolidates this resource as a recurring source of income at both the club and in the football industry itself.
In expenditure, a reduction of 3% in sporting salaries, estimated at 18 million, and a 7% depreciation decrease – €11 million ($12.1 million) – is expected.
Management expenses increase by €34 million ($37.4 million), mainly due to the cost increase associated with Barça TV’s self-management and the increase in costs related to the growth in sales from Barça Stores and the exploitation of commercial licenses .
In investments, €73 million ($80.3 million) is planned for work on Espai Barça.
The €990 million ($1.089 billion) is a highest revenue record in the history of the club, with an increase of €76 million ($83.6 million) an 8% growth during the fiscal. Expenditure closed at €973 million ($1.070 billion) and profit after tax at €5 million ($5.5 million), with an EBITDA of €179 million ($196.9 million).
In revenue, all numbers increased except for those for player transfers. Revenue linked to the stadium increased by €12 million ($13.2 million) (+6%), mainly due to the increase in ticket sales, and the improvement in income from hospitality.
Media also had a very considerable increase of €75 million ($82.5 million), which represents an rise of 34%, due to the improvement in broadcast revenue -the highest amount received from UEFA- thanks to the club reaching the Champions League semifinals.
In the commercial area an increase of 24% was recorded, for a total of €62 million ($68.2 million), as a result of the contributions by new sponsors and improvements in renewal agreements. A highlight is the success of the first year of self-management of Barça Stores and the exploitation of commercial licenses, with a turnover of €63 million ($69.3 million), through Barça Licensing & Merchandising (BLM).
In terms of transfers, the 46% reduction, estimated at €97 million ($106.7 million), is explained by the extraordinary income from the payment of player Neymar Jr.’s buyout clause. This difference has been offset by recurring business activities (stadium, media and commercial).
As a final conclusion, over the last five years revenues have grown in an extraordinary way, of up to 63% (accumulated) from €608 to €990 million ($668.8 to $1.089 billion).
In terms of expenditure, sporting wages have been contained, recording only a 1% variation. The cost incurred by amortizations has increased by 23%, €27 million ($29.7 million), due to the effect of transfers and the renewal of the squad.
The other increase in costs was in management, with an increase of €43 million ($47.3 million), due to expenditure derived from the self-management of Barça Stores and licensing.
In the 2018/19 season the sporting costs, sum of salaries and amortizations for all the professional sports teams at the club stood at 68% compared to the €990 million ($1.089 billion) total income, with a reduction of 2% with respect to the previous season (70%). Taking into account the cost derived by football, the income percentage falls to 61%.
There is an increase of €202 million ($222.2 million) in net equity from the 2011/12 financial year.
Regarding the Club’s debt, as of June 30th, 2019, it stood at €217.2 million ($238.92 million). For the purposes of compliance with article 67 of the Statutes, the EBITDA ratio -discounting the investments in Espai Barça- is 0.76 below the maximum limit, which is set at 2.