FC Barcelona surpasses $1bn mark in revenues



SportsBiz

FC Barcelona have become the first sports club to reach $1bn in revenues after presenting its annual accounts for the 2017/18 season today.

The Vice President and Treasurer of the Board of Directors, Enric Tombas, detailed the economic report on the fiscal year 2017/18 season, which ended on June 30 with revenue of $1.05bn (€914m), and makes FC Barcelona the first sports club in the world to surpass the 1 billion dollar mark in revenues.

The club’s CEO, Oscar Grau, also presented the budget for the 2018/19 season, which foresees revenue of $1.105bn (€960m), a figure which strengthens Barça’s position as the highest earning sports club in the world and are in line with the club’s Strategic Plan to reach revenue of €1bn by 2021, the final year of the current Board’s mandate.

The budget of $1.105bn (€960m) exceeds the $1.05bn (€914m) in revenue at the end of 2017/18 and published on July 16, following approval by the Board of Directors. This is the first time that revenue has surpassed $1bn, a huge step up from 2016/17.

FC Barcelona’s after-tax profit stands at $12.67m (€11m), and since 2010, the accumulated profits amount to $229m (€199m), closing the eighth consecutive year with a profit.

The budget reports a record EBITDA of $220m (€191m), a historical record which confirms the economic strength of the club and its long-term sustainability. Investments budgeted for the 2018/19 season, include $83m (€72m) for the Espai Barça project.


Another aspect to highlight from the budget is the reduction in the club’s wage bill for its players, which is down 4 points compared to the previous season and represents 66% of total revenue.

In addition, without the cost of the wages paid to athletes in other professional sports, the figure would be around 61%, below the threshold recommended by UEFA.

The extraordinary income from payment of Neymar Jr’s buyout clause has been compensated in next year’s budget through improved commercial and sponsorship revenue, media rights, exploitation of the stadium and transfers of players.

 An increase in the merchandising business is expected following the consolidation of Barça Licensing & Merchandising (BLM), the company that the club created to regain management of Barça stores and licensed products.

An increase in media revenues is attributed to the new cycle for the distribution of UEFA payments for Champions League participation.



A statement released by the club read: “The Board’s assessment of the evolution of the club’s finances is very positive, not only because of the increase in revenue, which is based on the targets set out in its Strategic Plan to reach $1.15bn (€1bn) by 2021, but also because it is in keeping with the basic principles that underpin the way this board manages the club.



“The EBITDA ratio has remained within the limits of financial balance set out by the club statutes.

 “With regard to the closure of accounts corresponding to the 2017/18 season, the club has achieved its highest revenue ever, S1.05bn (€914m), which is $20m (€17m) higher than the budgeted figure of $1.03bn (€897m). This is the fifth consecutive year in which the club has broken its own record income and the first time that FC Barcelona has surpassed $1bn in revenue.”
Credit: fcbusiness.co.uk
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