A survey carried out by KPMG indicates that the financial performance of the champions of Europe’s top eight leagues remains severely impacted by Covid-19, with the exception of Manchester City.
According to the 6th edition of “The European Champions Report”, almost all the big clubs recorded losses during the season ended last June, but the English team managed to register annual growth in operating income and still exceed the one recorded in the pre-season period. pandemic.
The survey also points out that teams that were able to count on late payments for broadcasting – both in relation to games postponed from the previous season, and those able to advance even further in tournaments – had an increase in total revenue.
Manchester City, for example, benefited from reaching the UEFA Champions League final for the first time in history. With this feat, the English raised almost 100 million euros more in total revenue than in 2020, ending the period with a rise of 17% and revenue exceeding 644 million euros – surpassing even rival Manchester United, which ended 2021. with a total of 557 million.
The publication also indicates that Atlético de Madrid recorded a net loss of almost 112 million euros, mainly due to the reduction of player sales operations. According to the survey, the worst performing clubs in operating income were Ajax, with a 23% retraction and a loss of 37 million euros, and Beşiktaş, with losses of 15 million euros and a drop of 21%.
On the other hand, Inter Milan grew 19% compared to 2020 and even so ended the period almost 20 million euros below the results of the last pre-covid season.
“Loss of box office revenue, increased operating costs and low profits from player trading activities have led clubs to this scenario where losses are more frequent. However, the trend is positive as the pandemic shows signs of improvement”, summarizes the leading partner for media and sports at KPMG in Brazil, Francisco Clemente.
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Impact on the box office was the main cause of losses
According to the 6th edition of “The European Champions Report”, box office receipts were practically eliminated, as this flow was the most affected by the restrictions caused by the pandemic. For comparison, in the last season before covid-19, the eight clubs surveyed made a total of 359 million euros from the public.
“While the reopening of stadiums and some major trade deals recently signed may provide some optimism for current and future seasons, the pandemic has exposed financial sustainability issues and the fragility of the football ecosystem as a whole. Such difficulties reinforce the importance of reviewing game calendars, cost control measures and changes in the governance of competitions at the global level, including in Brazil”, observes Clemente.
Source: Gazetaesportiva
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