According to UEFA, the total income of the first league of all its 53 affiliated countries adds up to nearly 12.8 Billion € for the season ending in 2010.
Five countries (Spain, England, Italy, France and Germany) take over two thirds of this amount in more or less equal terms, but that income is not so equally distributed within each national league.
For instance, the Spanish Liga made in that seaon about 1.6 Billion €, out of which Real Madrid and FC Barcelona took over 50% of the revenues, while the other 18 teams in the competition shared the rest.
FC Barcelona scalated to the second position of the UEFA's 734 clubs with a growth over the year of 12% boosted by their wins in the Liga, the Champions League and the Clubs World Cup. Despite this fact, the club reported losses of 9 Million Euro at the end of the season, with increased debt over the previous year. The sport success of their players on the pitch may not be properly backed by their financial contollers sitting in Barcelona, thus jeopardizing their chances of a long-term sustainable leadership in the football industry.
Showing posts with label Lionel Messi. Show all posts
Showing posts with label Lionel Messi. Show all posts
Wednesday, March 7, 2012
Football Finances
Despite the financial crunch in the old continent football is one of the fastest growing industries in Europe. Success is frequently measured in sport terms and, in the best of the cases, in income terms.
According to UEFA more than one third of all first-division ranked clubs across the continent are however in serious financial distress, reporting negative equity in their balance sheet and with a high probability of not being able to pay back their debt in due time. FC Barcelona and Real Madrid, unarguably the clubs yielding highest sport performance in the competition are to a certain extent subject to this disease, thus putting the sustainability of the current business models into doubt.
UEFA started their Financial Fair Game programm a few years ago with the purpose of putting these practices under control, and underperforming clubs will be banned from the competition in a couple of seasons unless they provide evidence of their commitment to improve. Clubs with severe structural flaws will simply cease to exist.
According to UEFA more than one third of all first-division ranked clubs across the continent are however in serious financial distress, reporting negative equity in their balance sheet and with a high probability of not being able to pay back their debt in due time. FC Barcelona and Real Madrid, unarguably the clubs yielding highest sport performance in the competition are to a certain extent subject to this disease, thus putting the sustainability of the current business models into doubt.
UEFA started their Financial Fair Game programm a few years ago with the purpose of putting these practices under control, and underperforming clubs will be banned from the competition in a couple of seasons unless they provide evidence of their commitment to improve. Clubs with severe structural flaws will simply cease to exist.
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