LaLiga, ahead of the Bundesliga in revenue

The annual football financial report of Deloitte stresses that the League Spanish has recovered the second position among the European with more income in the 2018-19 season, with 3,375 million euros, ahead of the German Bundesliga (3,345 million) and still behind the English Premier League, with 5,845, the company explained in a press release, in which it estimated at 1,100 million euros the losses of the English clubs due to the interruption of the tournament by the covid-19.

After England, Spain and Germany are the Italian Serie A, with 2,495 million euros and which continues in fourth place; French Ligue 1, with 1,902; the Russian Premier League, with 752; the Turkish Super League, with 748; the Dutch Eredivisie, with 594; the Portuguese Primeira Liga, with 440; and the Belgian First Division, with 344 million, according to the report, which “analyzes the economic and commercial impact generated by the main soccer leagues in Europe”.

“The constant growth of La Liga and its success in the internationalization of the brand and the commercialization of broadcasts on digital platforms have allowed it to achieve a new record in revenue, amounting to nearly 3.4 billion euros in the 2018-19 season , before the crisis derived from COVID-19 “, he adds.

In addition, it states that LaLiga is the “second fastest growing” in revenue in the 2018-19 campaign, with an “added benefit of 300 million euros, 10 percent more than in 2017-18”, and that its located clubs in the European football elite “business revenue increased by 7 percent.”

Likewise, Deloitte assures that the Spanish clubs “achieved an added operating profit of 445 million euros for the 2018-19 season and, for the first time in the history of La Liga, no club reported operating losses.”

“This is a remarkable position for the best clubs in Spain, especially given the financial image of just a few years ago. While the centralized sale of broadcasting rights has undoubtedly been a key factor, credit should also be given to the regulatory environment of La Liga, which monitors club spending and imposes restrictions if appropriate, “said Concha Iglesias, partner in charge of the Sports industry at Deloitte, according to statements in the press release.

“Revenue increases are assured for the next cycle of national media rights, and La Liga has publicly stated its desire to reduce the proportion of core distributions among clubs that earn more and less. Twinned with a strict regulatory environment, it is it is likely that sustained profitability can be achieved throughout the competition in the long term, ”added Iglesias.

The report also stresses that “the European football market has reached the figure of 28.9 billion euros.” “This represents a 9 percent increase compared to the previous season. This growth is mainly due to the five main European leagues (England, Germany, Spain, Italy and France), which together have entered 16,968 million euros Deloitte says.

The document also foresees that “the interruption of the 2019-20 season will reduce the income of the Premier League clubs, approximately, 1,100 million euros”, of which “50 percent is permanently lost, mainly due to the loss of income from the days and discounts on transmission and commercial contracts by parties that are delayed and are played behind closed doors. “

“The rest will be postponed until the 2020-21 fiscal year, due to the delay of almost a quarter of the season beyond June 30,” according to the statement.

For Concha Iglesias, “the return of football safely is very relevant to limit the economic impact that the crisis derived from Covid-19 is having.” “The success of each league's return and the type of relationship they have with business partners and broadcast networks will have a significant and long-term impact on both the strength of clubs and leagues in general. It is a strong industry and we remain optimistic: there is a vision that a V-shaped recovery and a return to relative financial normality is possible for the 2021-22 season, ”he abounds.

It also highlights the “boom in women's football, with records of public attendance in local league games, such as the 60,739 people who witnessed the match between Atlético de Madrid and Barcelona in March 2019.”

“The forecasts for this segment are optimistic, especially in Spain, where the sponsorship of the competition title with Iberdrola has been extended by one million euros a year. In turn, in England the Football Association (FA) has closed an agreement £ 10m three-year deal to make Barclays the first sponsor of the Superliga.Internationally, UEFA announced two main sponsors: VISA, with a seven-year deal worth € 2.5m and Nike, which has already has been announced as the supplier of the official ball, “the statement said.