Russian Football

A comprehensive study of the economics of Russian football Dear friends, Dear colleagues,

The 2017-2018 season of the Rosgosstrakh Russian On the eve of the 2018 World Cup in , we are pleased Football Championship, our 16th since the establishment to present this study of the Russian Football Premier League of the league, is a special one. As we approach the start for the 2017-2018 season. of the 2018 FIFA World Cup in Russia this summer, new are being built, more supporters are coming In this study, we explore such areas as infrastructure, to matches, teams are playing quality and entertaining commercial deals, attendance and fan engagement, as well football, and clubs are expanding their commercial dealings. as benchmark Russian clubs against those in the leading New technology is being widely adopted, while television European leagues. broadcasts adhere to international best practices. In the current season’s first half, we have seen a surge Our top priority in the short term is to build on the in attendance, undoubtedly thanks to the construction momentum provided by the 2018 World Cup, including of new world-class stadiums and a growing interest in football the new facilities, modern infrastructure and steadily in the light of the World Cup coming to Russia in 2018. growing popularity of Russian football. This study will be of interest to football industry insiders This comprehensive study of Russian football, conducted as well as to regular fans. jointly with PwC Russia, our long-standing partner, provides a deep understanding of the economics of the RFPL and its clubs, and will help to guide the league toward achieving Oleg Malyshev its strategic objectives. Partner, Sports Leader, PwC Russia

Sergey Pryadkin President, Russian Football Premier League Vice President, Member, UEFA Professional Football Strategy Council Member, Board of Directors of the European Professional Football Leagues (EPFL) Deputy Chairman, UEFA Players’ Status, Transfer and Agents and Match Agents Committee Contents

2017-2018 season: breakthroughs and challenges 4

Club infrastructure 8

Commercial and marketing operations 18

Financial performance 28

Match attendance 34

Talent pools 38

Youth football 40

International benchmarking 42 2017-2018 season: breakthroughs and challenges

The Russian Football Match TV is the main broadcaster for Premier League is currently RFPL matches in Russia, while a total th of twenty companies have purchased in its 16 season. broadcasting rights. Fans watch Russian A central part of the RFPL’s football in over 54 countries and regions, including , Central strategy over the next and South America, , China few years is to maximise and the UAE. commercial revenue. This As in the previous season, the league’s study of the economics of title sponsor is Rosgosstrakh. Other Russian football contributes important sponsors include Nike important insights toward and Liga Stavok, a sports book. achieving this goal. The RFPL is at the forefront in adopting new technology. A new fan identification system (FIS) is about to be launched. (VAR) systems are being installed at Many of the arenas built for the World stadiums and will soon be tested. Clubs Cup will debut this season. The Saint are exploring new channels to promote Petersburg , which hosts Zenit their brands and eSports programmes matches, is already breaking match-day are rapdily developing. attendance records. After the winter break, new arenas in Ekaterinburg and Rostov-on-Don will open their doors for supporters. In , Dynamo Stadium is currently undergoing a massive overhaul and will open soon.

4 PwC RFPL clubs for the 2017-2018 season

Club Founding year City Position in the previous season Seasons in the RFPL

1st (champion, qualified 1922 Moscow 16 for the Champions League)

Pantone871 C Pantone 186 C на красном

2nd (qualified CSKA 1911 Moscow 16 for the Champions League)

Pantone871 C Pantone 186 C на белом 3rd (qualified Zenit 1925 16 for the Europa League)

4th (qualified 2008 Krasnodar 7 for the Europa League)

Akhmat 1958 5th 11

Rostov 1930 Rostov-on-Don 6th 15

Ufa 2010 Ufa 7th 4

8th (winner of the , Lokomotiv 1922 Moscow 16 qualified for the Europa League)

Rubin 1958 9th 15

Amkar 1994 Perm 10th 14

Ural 1930 Ekaterinburg 11th 5

Anji 1991 Makhachkala 12th 9

14th place Arsenal 1946 Tula 3 (relegation play-off winner)

1st in the Russian Football Dynamo 1923 Moscow 15 National League

2nd in the Russian Football Tosno 2013 Tosno 1 National League

4th in the Russian Football SKA-Khabarovsk 1946 Khabarovsk National League (promotion 1 play-off winner)

Russian Football Premier League. A comprehensive study of the economics of Russian football 5 Количество матчей РФПЛ в федеральном эфире

Количество матчей РФПЛ в федеральном эфире Запуск «Матч ТВ»

98 106 Запуск «Матч ТВ»

98 106 30 33 31 32 53 30 33 31 32 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/201853 (1 круг)

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 (1 круг)

TV audience for RFPLРейтинг матчейmatches РФПЛ, аудитория М18+

Рейтинг матчей РФПЛ, аудитория М18+

5,0 4,1 4,0

5,0 2,0 2,0 4,1 4,0 0,5 0,6 0,0 2,0 2,0 Сезон-2016/2017 1-й круг сезона-2017/2018 0,5 0,6 0,0 Максимальный Минимальный Средний Сезон-2016/2017 1-й круг сезона-2017/2018

Максимальный Минимальный Средний

The TV audience for the Number of RFPL matches on national channels RFPL has remained stable for the last two seasons, with an average 2.0 rating Launch of Match TV in the M18+ segment. 98 106 Launch of Match TV 57 98 106 30 33 31 53 57 2012/201330 2013/201433 2014/201531 2015/2016 2016/2017 2017/2018 (1st half) 53

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 (1st half)

RFPL match ratings, M18+ audience 5.0 4.1 4.0

5.0 2.0 2.0 4.1 4.0 0.5 0.6 0.0 2016/20172.0 2017/2018 (1st2.0 half) 0.5 0.6 0.0 Maximum Minimum Average 2016/2017 2017/2018 (1st half)

Maximum Minimum Average

Source: RFPL, PwC analysis

6 PwC RFPL cyber football tournaments

The RFPL is attracting new Venue: Ufa audiences by organising Dates: 24-26 February 2017 cyber football tournaments Winner: Andrei “Timon” Guryev (CSKA)

Venue: Kazan Dates: 24-26 February 2017 31 March – 1 April 2017 Winner: Andrei “Timon” Guryev (CSKA) On-line

RFPL audience on social media for cyber football tournaments, thousands

3,662 130 110

2,422 Periscope 79 1,878 139 258 Twitch 688 YouTube Odnoklassniki 1,544 1,258 VKontakte

RFPL Cyber Football RFPL Cyber Football Cup Championship

Source: RFPL, PwC analysis

The league’s first cyber football The RFPL was the first among Russia’s tournament, the Russian Virtual Football sports leagues and federations to organise Championship, took place in the spring major cyber football competitions, of 2012 in partnership with Electronic including the RFPL Cyber Football Cup Arts. In the summer of 2012, the Metallurg and RFPL Cyber Football Championship. Stadium in hosted Russia’s first The tournaments were broadcasted cyber football Super Cup, where Sergey in Russia and abroad (Asia, Africa “Kefir” Nikiforov was the winner. and North America) and all matches In 2016, eSports were officially recognised were made available on web portals by the Russian Ministry of Sport. and social media.

Russian Football Premier League. A comprehensive study of the economics of Russian football 7 Club infrastructure

8 PwC Classification of RFPL stadiums

RFPL stadiums Most clubs rent theirRFPL stadiums by tier,RFPL RFPL stadiums stadiums by by tier,tier, RFPLRFPL stadiums stadiums by pitchpitchRFPL type, type, stadiums by pitch type, 2017-2018 season 2017-20182017-2018 season season 2017-20182017-2018 season season 2017-2018 season stadiums and training 11 facilities

3 2 19% 19% Rented Owned by the club Free use 38% 38% or club owner

62% 62%

81% 81%

RFPL clubFirst trainingtier facilities First tier Natural grass Natural grass

Second tier Second tier Artificial turf Artificial turf 9 Source: RFPL, PwC analysis RFPL stadiums 4 2 RFPL stadiums 1 11 RFPLRented stadiums Owned Other* Free use Source: RFPL, PwC analysisSource: RFPL, PwC analysis 3 2 11 Rented Owned by the club Free use RFPL club academy facilities or club owner 3 2 RFPL club academy facilities

Rented8 Owned by the club Free use or club owner 4 RFPL club training facilities 3 1

Rented9 Other* Owned Free use RFPL club training facilities RFPL club training facilities 4 2 * Combination9 of ownership rights and commercial lease, cooperation agreements, etc. 1 Source: RFPL clubs, PwC analysis Rented Owned Other* Free use 4 2 1

Rented Owned Other* Free use RFPL club academy facilities * Combination of ownership rights and commercial lease, cooperation agreements, etc. Source: RFPL clubs, PwC analysis 8 RFPL club academy facilities In order to participate in Russian4 Most RFPL stadiums have natural grass Football Union competitions, teams pitches. Three3 clubs in the Urals and must have8 their stadiums and training the Far East, however, use artificial1 facilities undergo a certification turf due to their geographical location Rented Other*4 Owned Free use process. To host an RFPL match, and harsh3 climate. a stadium should be in the first Most RFPL clubs use their stadiums,1 or second tier, although the RFU may * Combination of ownership rights and commercial lease, trainingcooperation bases agreements, and academy etc. facilities grant Rentedexceptions for third-tierOther* facilities. Owned Free use Source: RFPL clubs, PwC analysis under lease agreements. Less than half (38%) of the clubs One of the exceptions is SKA-Khabarovsk, participating in the 2017-2018 whose entire infrastructure was granted season* Combination play of in ownership top-tier rights stadiums and commercial lease, cooperation agreements, etc. by the local authorities free of charge. (i.e.Source: meet RFPL the clubs, requirements PwC analysis to hold Another interesting example is FC Rubin, international events). The remaining which owns its training and academy stadiums are in the second tier. facilities but rents its stadium.

Russian Football Premier League. A comprehensive study of the economics of Russian football 9 Map of RFPL stadiums

Zenit Tosno Spartak Dynamo Saint Petersburg Stadium Petrovsky Otkritie Arena 56,196 20,758 45,000 18,636 2017 1925 (renovated in 1994) 2014 2008

Pantone871 C Pantone 186 C

Saint Petersburg

Tosno Capacity Est. Moscow Tula

Kazan Perm Rostov-on-Don Ufa Ekaterinburg Krasnodar

Grozny

Makhachkala

Krasnodar Anji Akhmat Rostov Krasnodar Anji Arena Akhmat Arena Olimp-2 33,979 26,400 30,000 15,365 2016 2003 (renovated in 2013) 2011 1930 (renovated in 2008)

10 PwC CSKA Lokomotiv Arsenal Rubin VEB Arena RZD Arena Arsenal Kazan Arena 30,000 27,320 20,000 45,000 2016 2002 1959 (renovated in 2014) 2013

Khabarovsk

Ufa Ural SKA-Khabarovsk Amkar Neftyanik SKB-Bank Arena Lenin Stadium Zvezda 15,132 10,000 15,200 17,000 1968 (renovated in 2015) 1936 (renovated in 2015) 1956 (renovated in 2017) 1969 (renovated in 2009)

Russian Football Premier League. A comprehensive study of the economics of Russian football 11 New RFPL stadiums

VEB Arena

City Moscow Club PFC CSKA Est. 2016 Capacity 30,000 seats Project designer Mosproject 4

Krasnodar Stadium

City FC Krasnodar Club FC Krasnodar Est. 2016 Capacity 33,979 seats Project designers SPEECH, gmp Architekten von Gerkan, Marg und Partner

Two RFPL stadiums debuted During the season, two other RFPL stadiums Two clubs used reserve arenas: were renovated: in the 2016-2017 season • The Saint Petersburg Stadium hosted • Trud Stadium in Tomsk (running track two home matches for Zenit before dismantled, lighting amplified, a new the FIFA Confederations Cup and video scoreboard installed, new pitch is the club’s home stadium for installed); the 2017-2018 season; • Gazovik Stadium in Orenburg (capacity • The Central Stadium in Kazan, which increased, canopy installed over seating was previously the main stadium for areas, visitor sector fences dismantled, Rubin, hosted several Rubin home access control systems installed). matches as a reserve arena.

12 PwC Saint Petersburg Stadium

City Saint Petersburg Club FC Zenit Est. 2017 Capacity 56,196 seats Project designer Kisho Kurokawa architects & associates

Zenit is using the Saint To prepare for the 2017-2018 season, Two other new entrants had to play the home stadium of SKA-Khabarovsk, at stadiums in neighbouring cities: Petersburg Stadium as its an RFPL debutante, was renovated. Dynamo, waiting for the overhaul home ground for the first Lenin Stadium, originally built in 1956, of its own facility (renovation started time in the 2017-2018 season was equipped with access control in 2009), is renting Khimki Arena for systems, the lighting was changed, home matches, while Tosno is holding concourses were renovated, and a new its home games at the Petrovsky Stadium pitch, players benches and gates were in Saint Petersburg, because the stadium installed. in Tosno does not meet RFPL standards. Lokomotiv’s home stadium was also In the first half of the 2017-2018 season, upgraded and renamed as the RZD only one club used its reserve arena. Arena. Four new scoreboards and Due to pitch renovations at the Akhmat new seats were installed, resulting Arena, the Akhmat-Rubin match was in a reduction of capacity from 28,800 transferred to Sultan Bilimkhanov to 27,320. Stadium, which is the main arena for Akhmat’s youth team.

Russian Football Premier League. A comprehensive study of the economics of Russian football 13 Map of RFPL and 2018 FIFA World Cup stadiums

New stadiums will enhance the fan experience at RFPL matches By 2018, 60% of RFPL stadiums will be new

Stadiums in RFPL cities New stadiums in RFPL cities (constructed after 2010) Stadiums for the 2018 FIFA World Cup

Kaliningrad Saint Petersburg

Moscow

Tula

Saransk Kazan Perm Ekaterinburg

Samara Rostov-on-Don Ufa Krasnodar

Grozny

Makhachkala

Source: RFPL, PwC analysis

14 PwC To welcome the 2018 FIFA World Cup, The share of new stadiums built after modern arenas are being built in Russia. 2010 will increase from 40% to 60%, New stadiums have already opened provided that the composition of teams or will soon open in most major RFPL participating in the RFPL does not change cities (Ekaterinburg, Kazan, Moscow, significantly after the 2017-2018 season. Rostov-on-Don and St Petersburg), These new stadiums and upgrades will as well as in Kaliningrad, Nizhny help clubs to engage supporters more Novgorod, Samara, Saransk, Sochi effectively as well as attract new fans. and Volgograd. In 2016, new stadiums opened in Moscow (VEB Arena) and Krasnodar, while another new stadium, the VTB Arena in Moscow, will open in 2018.

Khabarovsk

Russian Football Premier League. A comprehensive study of the economics of Russian football 15 Stadium security

Number of security officers at RFPL matches, average per game

Number of security officers at RFPL matches, average per game

1,336 1,368 1,260 1,244 991 975 874 750 1,169 1,189 1,132 1,013 771 749 614 438

312 199 231 220 226 260 147 128

2009 2010 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2012 2013 2014 2015 2016 2017

Police officers Stewards

Average ratio of spectators to security personnel, by category Average ratio of spectators to security personnel, by category

94 85

65 56 52 -58% 45 39 36 17 25 13 15 14 1110 11 +152%

2009 2010 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2012 2013 2014 2015 2016 2017

Average number of spectators per police officer Average number of spectators per steward

Source: RFPL, PwC analysis Source: RFPL, PwC analysis

Advanced access control systems at the Stewards are playing an increasingly new stadiums will reduce the number prominent role and gradually replacing of personnel needed to provide a secure police officers. and safe environment.

16 PwC New technology has Penalties paid by clubs for fan misbehaviour, average per game, RUB ’000 helped clubs to reduce Сумма штрафов, уплаченная клубами за нарушения болельщиков, в среднем за матч, тыс. руб. the number of law enforcement personnel at stadiums, which also -16% makes it more appealing for supporters who 141.0 83.1 attend matches 73.6 75.7 69.0

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Source: RFPL, PwC analysis

Russian Football Premier League. A comprehensive study of the economics of Russian football 17 Commercial and marketing operations

18 PwC Clubs want to enhance Stadiums must be equipped with special To facilitate stadium access, nearly zones for disabled supporters to be 40% of the clubs organise special the supporter experience certified for league games. For the 2016- public transport routes on match day. at matches by offering greater 2017 RFPL season, clubs were required However, only two clubs have partnered convenience and service to have staff responsible for helping with taxi services to provide discounts disabled supporters. This was a major and privileges for supporters. contribution toward enhancing the In-stadium food delivery services are still match day experience for the disabled. emerging in Russia and are available Most stadiums are also equipped with at only three RFPL stadiums. Two more children’s and family sectors. As a rule, clubs plan to introduce these services tickets for these sectors are sold at soon. a discount and include special children’s As for catering, most RFPL clubs prefer programmes. to use third-party providers. Only one Over half of the clubs provide club has an in-house food and beverage entertainment for supporters before service, while another combines in-house matches or during breaks. Sponsors and outsourced catering. of RFPL clubs are highly active, nearly 70% of them have arranged their own entertainment areas at stadiums.

PercentagePercentage of clubs of clubs offering offering extra extra services services on match on match day day

Seats for disabled supporters 100% Merchandise points of sale 94% Children’s/family sector 75% Sponsor entertainment zones 69% Entertainment before the match/during the break 56% Special public transport services 38% In-stadium food delivery 19% Taxi discounts and privileges 13%

Source: RFPL clubs, PwC analysis Source: RFPL clubs, PwC analysis

Russian Football Premier League. A comprehensive study of the economics of Russian football 19 Season tickets and ticket plans

Gate revenue structure for RFPL clubs from all tournaments during Gatethe 2016-2017 revenue structure season, for %, RFPLRUB ‘000* clubs from all tournaments during the 2016-2017 season, %, RUB ‘000*

0.4% 6,929 Gate revenue structure for RFPL clubs from all tournaments during the 2016-2017 season, %, RUB ‘000* RFPL match tickets Season tickets 10.3% 0.4% Gate revenue structure201,990 for RFPL clubs from all tournaments duringChampions the 2016-2017 League season,tickets %, RUB ‘000* 6,929 Europa League tickets RFPL match tickets Russian Cup tickets Total club revenue: Season 0.4%tickets 10.3% 14.5% 6,929 RFPL match tickets 201,990 283,561 Champions League tickets RUB 1.96 billion Europa League tickets Season tickets 10.3% 46.6% 201,990Russian Cup tickets 912,097 Champions League tickets 14.5% Europa League tickets 283,561 Russian Cup tickets 46.6%14.5% 912,097283,561

28.2% 46.6% 551,331 912,097

28.2% 551,331

* Less the revenue of clubs that were relegated from the RFPL after the 2016-2017 season and of FC Anji Average 28.2%ratio of single-game ticket to season551,331 ticket revenue in RFPL clubs

Average ratio of single-game ticket to season ticket revenue in RFPL clubs Tickets Season tickets Average ratio of single-game ticket Season tickets are gaining Average ratio of single-game ticket to season ticket revenue in RFPL clubs Average single-game ticket price to season ticket revenue in RFPL clubs RFPL: RUB 500 popularity with supportersTickets 25% Season tickets thanks to lower prices Russian Cup: RUB 170 (compared with single-match Tickets RFPL: RUB 500 Champions League: RUB 2,280 tickets)25% and the special Season tickets 75% Russian Cup: RUB 170 Europa League: RUB 1,600 privileges provided RFPL: RUB 500 25% Champions League: RUB 2,280 Season tickets*: RUB 5,700 Russian Cup: RUB 170 75% Europa League: RUB 1,600 Champions* May include League: Russian Cup and EuropaRUB League 2,280 matches 75% Season tickets*: RUB 5,700 Europa League: RUB 1,600 Source: RFPL clubs, PwC analysis

* May include Russian Cup and Europa League matches Season tickets*: RUB 5,700

Source: RFPL clubs, PwC analysis * May include Russian Cup and Europa League matches

Source:Source: RFPL RFPL clubs, clubs, PwC PwC analysis analysis

20 PwC

Ticket plan features, % of all RFPL clubs

Online ticket sales Online ticket sales 88% Online ticket sales Free ticket distribution* 88% 81% 88% Free ticket distribution* Multi-matchFree ticketticket packages distribution* 81% 69% 81% Multi-match ticket packages DiscountsMulti-match for students ticket and pensioners packages 63% 69% 69% Offline ticket sales viaDiscounts third parties for students and pensioners Discounts for students and pensioners50% 63% Off-venue points of sale 63% Offline ticket sales via third parties Offline ticket sales via third parties44% 50% 50% Off-venue points of sale Off-venue points of sale 44% 44%

* as part of promotions, social support and attendance campaigns

In-house Via third parties Online ticketBoth sale channels channels Share of online sales by product

In-house 29% In-house Via third parties Via third parties 50% Both channels 39% Both channels 30%

21% 29% Tickets 29% Season tickets

50% 39% 50% 39% 30% 30%

21% 21%

Первая Source: RFPL clubs, PwC analysis Высшая

The main source of RFPL gate revenue Almost all RFPL clubs sell tickets According to the clubs, team in the 2016-2017 season was from RFPL online (the average share is around performance is the key driver for season matches. On average, season tickets 40% of total sales). ticket purchases, after price. accounted for one-fourth of gate revenue Half of the clubs use their own To drive attendance, most clubs (81%) for a club. Первая resources to sell tickets online, while use promotionsПервая to offer free tickets, Given the benefits and privileges offered others engage third parties as exclusive while 63% provideВысшая discounts to various Высшая by the clubs, season tickets are gaining or additional sales channels. social groups. in popularity among supporters. At most Only five clubs sell season tickets Multi-ticket packages (for several clubs, season ticket packages include online (the average share of online games) also sell quite well. Russian Cup home games. Krasnodar season ticket sales for such clubs is also includes Europa League qualifiers 30%). and group stage matches, while Zenit offers home matches in all tournaments.

Russian Football Premier League. A comprehensive study of the economics of Russian football 21 CRM systems

CRM systems CRM systems More clubs are adopting CRM systems CRM solutions to help boost customer loyalty and Adoption scheduled for next season Adoption scheduled for next season provide personalised service 25% In place 25% In place None 44% None 44%

31% 31%

CRM CRMsystems systems at RFPL at RFPL clubs, clubs, by solution by solution developer developer CRM systems at RFPL clubs, by solution developer

Off-the-shelf solutions In-houseOff-the-shelf solutions solutions In-house solutions 40% 40% 60% 60%

Source: RFPL clubs, PwC analysis

Source: RFPL clubs, PwC analysis Source: RFPL clubs, PwC analysis Only one-third of RFPL clubs use CRM According to the clubs, few sponsors systems, although nearly half the clubs are currently interested in running plan on adopting CRM systems during marketing campaigns via CRM systems. the season. Around 40% of the clubs that are planning to use or already use CRM systems prefer to develop in-house solutions.

22 PwC Loyalty programmes

Supporter loyalty programmes Loyalty programmes by type

Most RFPL clubs use loyalty Supporter loyalty programmes programmes, including special offers from sponsors In place Discounts 12,5% Under development 8% Combined None Bonus points LOYALTY CARD Supporter loyalty programmes 12,5% Loyalty programmes by type 50%

42% In place75% Discounts 12,5% Under development 8% Combined None Bonus points 12,5% Supporter loyalty programmes Loyalty programmes by type 50%

Loyalty programmes by type 42% 75% In place Discounts 12,5% Under development 8% Combined None Bonus points 12,5% Loyalty programme features, % of all RFPL clubs 50%

42% 75%

Additional offers from club partners Loyalty programme features, % of all RFPL clubs 92% LOYALTY CARD Additional fan privileges Loyalty programme features, % of all RFPL clubs 92%

Fan segmentation Additional offers from club partners 50% 92% Loyalty programme features, % of all RFPL clubs Additional fan privileges 92%

Fan segmentation Source: RFPL clubs, PwC analysis Additional offers from club partners 50% 92%

Source: RFPL clubs, PwC analysis Additional fan privileges 92% Most clubs (75%) have loyalty Most other clubs combine the two Source: RFPL clubs, PwC analysis systems (only 8% of the clubs use only Fan segmentation programmes that provide supporters with additional privileges and special bonus-point loyalty programmes). 50% offers from club partners. Half the clubs offer loyalty programmes Half the clubs use loyalty programmes that sort supporters into two or three with discounts, as these are easier categories to help them segment customers to operate. and provide personalised offers.

Source: RFPL clubs, PwC analysis

Russian Football Premier League. A comprehensive study of the economics of Russian football 23 Club merchandise

Most clubs have official All RFPL clubs sell branded Half the clubs have licensed partners merchandise, including 81% that sell that produce club branded merchandise. stores, and more than items exclusively via their official shops. One-fourth of the clubs also sell their half the clubs have official On average, clubs have two to three merchandise at multibrand online stores. online stores points of sale, including a flagship store. Scarves, shirts and caps are among the Over half the clubs (63%) also have most sought-after merchandise according an official online store and merchandise to the clubs’ commercial departments. sales partners.

Club merchandise Club merchandise sales breakdown, % of all RFPL clubs 100%

Official store 81%

Merchandise partner sales 63%

Official online store 63%

Licensed partners 50%

Merchandise sales in multibrand online stores 25%

Source: RFPL clubs, PwC analysis Source: RFPL clubs, PwC analysis

24 PwC Совокупная онлайн-аудитория футбольных клубов РФПЛ, млн человек

11,86

2,21 Подписчиков в клубных Уникальных посетителей социальных сетях клубных сайтов в месяц

Сайты клубов РФПЛ по мультиязычности

9 6 1 1 язык 2 языка Более 2 языков

Использование медиа ресурсов

100% 86% 64%

Использование сайта Соглашения со СМИ Соглашения и социальных медиа об инфопартнерстве с социальными медиа Digital media в спонсорской интеграции об инфопартнерстве

All RFPL clubs have official accounts on VKontakte, Total online audience among RFPL clubs, Twitter, Instagram and millions YouTube 11.86 2.21 Social media followers Unique website visitors per month

RFPL club websites by number of language versions

9 6 1 One language Two languages More than two languages

Use of media resources

100% 86% 64% Sponsor integration Partnership Partnership on websites agreements agreements and social media with mass media with social media companies

The total audience for RFPL clubs on a growing number of clubs have signed on Foursquare, a social media service social media is around 12 million people. partnership agreements with social with geolocation functionality, Krylia networks (64%). Sovetov has a micro blog on Weibo Less than half the clubs focus on foreign primarily focused on the Chinese supporters and only six clubs have an Recently, clubs have launched their audience, while Lokomotiv is on English-languageИспользование website, digital-инструментов while Zenit’s клубамиown channels РФПЛ on Telegram and phased Pinterest, a photo hosting site with website is provided in 12 languages. out their use of Periscope. social network functionality. All RFPL clubs use online platforms Clubs are also experimenting with for sponsorship programmes, while other digital tools: Zenit runs a page

Use of digital media, % of all RFPL clubs

100% 100% 100% 100% 94% 69% 50% 44% 31% 25%

Source:Источник: RFPL клубы clubs, РФПЛ, PwC analysis анализ PwC

Russian Football Premier League. A comprehensive study of the economics of Russian football 25 Advertising

Twelve RFPL clubs draw UseUse ofof intra-clubintra-club supporter supporter communication communication tools, tools, % % of of all all RFPL RFPL clubs clubs upon dedicated advertising budgets to promote Use of intra-club supporter communication tools, % of all RFPL clubs their matches. Outdoor Use of intra-club supporter communication tools, % of all RFPL clubs 69% advertising and barter 56% 44% agreements with mass 69% media remain the core Email notifications SMS notifications56% Call centres 44% 69% advertising channels. 56% Ad tool use, % of all RFPL clubs 44% Email notifications SMS notifications Call centres

Ad toolEmail use, notifications % of all RFPL clubsSMS notifications Call centres Ad tool use, % of all RFPL clubs

Ad tool94% use, % of all RFPL88% clubs 56% 50% 50%

Outdoor94% Online88% Contextual TV Print media advertising media advertising56% advertising50% 50% 94% 88% 56% 50% 50% Outdoor Online Contextual TV Print media Advertisingadvertising budgets at RFPLmedia clubs toadvertising promote matchesadvertising Outdoor Online Contextual TV Print media advertising media advertising advertising Advertising budgets at RFPL clubs to promote matches In place Advertising budgets at RFPL clubs to promoteMass matches emails have become less effective, Advertising budgets at RFPLNone clubs to promote matches although 70% of the clubs still use them. In place Over half of the clubs (56%) send In Noneplace 25% out SMS notifications, while less than None half (44%) engage their fans over the phone, due to the high cost 25% of operating call centres. In most 25% cases, telephone support is provided 75% by supporter liaison officers. Almost all clubs (94%) use outdoor advertising as their main tool 75% to promote matches and other events, 75% followed by online mass media (88%) and other advertising channels (less than 50%). One-forth of the clubs do not have Source: RFPL clubs, PwC analysis a dedicated advertising budget. For these clubs, interaction with In an age when social media is the media is based on partnerships. increasingly important, traditional supporter communication channels have begun to fade out of use.

26 PwC Kit sponsorship

Heat map of sponsor logo placement on RFPL club kits* Kit sponsorship is one of the most important avenues for attracting sponsors

RFPL clubs have a total of 75 sponsor and partner logos on their kits. The most popular areas for company logos are on the chest (for title sponsors) and sleeve areas, where a total of 13 sponsors currently promote their brands with different RFPL clubs. According to RFPL regulations, clubs are required to place the logo of the tournament and title sponsor on the right sleeve, leaving only the left sleeve commercially available. For the 2017-2018 season, Spartak’s kit has the most logos (11 partners, with one placed twice). Second place is shared by CSKA, Rubin and Ural, with five sponsors each. One RFPL club has no kit sponsor, while three clubs have only a single partner logo.

Kit areas by number of sponsor logos 13 12 11 10 9 7

* The chart represents the total number of sponsor logos on specific kit areas across all RFPL clubs.

Data collected at the end of first half of the 2017-2018 season.

Source: RFPL clubs, PwC analysis

Russian Football Premier League. A comprehensive study of the economics of Russian football 27 Financial performance

28 PwC Financial performance

Доходы клубов РФПЛ в 2012-2016 гг., млрд руб. Доходы клубов РФПЛ в 2012-2016 гг., млрд руб. In 2016, RFPL clubs RevenueДоходы клубовfor RFPL РФПЛ clubs в in 2012-2016 2012-2016, гг., RUB млрд billion руб. collectively demonstrated positive financial results for 63.3 56.1 53.7 59.1 38.7 the first time in five years 56.1 59.1 63.3 56.1 53.7 59.1 38.7 2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

Расходы клубов РФПЛ в 2012-2016 гг., млрд руб. Expenditures by RFPL clubs in 2012-2016, RUB billion Расходы клубов РФПЛ в 2012-2016 гг., млрд руб.

68.5 59.8 61.7 60.1 42.3 68.5 61.7 68.5 59.8 61.7 60.1 42.3 60.1 2012 2013 2014 2015 2016

2012 2013 2014 2015 2016 Финансовые результаты клубов РФПЛ в 2012-2016 гг., млрд руб. Финансовые результаты клубов РФПЛ в 2012-2016 гг., млрд руб. Financial performance among RFPL clubs in 2012-2016, RUB billion

3.2

3.2 -3.6 -3.7

-3.6 -3.7 -8.0 -9.4 -8.0 -8.0 -9.4

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

Источник: клубы РФПЛ, СПАРК, анализ PwC Source: RFPL clubs, SPARK, PwC analysis Источник: клубы РФПЛ, СПАРК, анализ PwC

Revenue and expenditures at RFPL clubs Over this period, both revenue and were analysed for each financial year. expenditures trended toward growth. Total expenditures include all operating The main drivers included gate revenue, and non-operating expenses, including as well as sponsorships and other debt servicing and other financial costs commercial revenue. as well as some non-monetary expenses, Volatility in total revenue and including the amortisation of player expenditures among RFPL clubs were registration (transfer fees). influenced by the changing composition of the league from year to year.

Russian Football Premier League. A comprehensive study of the economics of Russian football 29 RFPL club revenues

TotalСтруктура revenue общих structure доходов for RFPL клубов clubs, РФПЛ, % of % the от totalобщей sum суммы

100% 3.2% 2.6% 3.5% 4.1% 3.5% 3.1% 4.4% 4.4% 4v5% 4.7% 3.7% 5.5% 4.7% 8.6% 6.7%

25.7% 13.8% 21.3% 14.7% 33.9%

44.0% 34.9% 45.4% 43.2%

38.4%

30.0% 27.3% 23.0% 22.6% 14.5%

2012 2013 2014 2015 2016

Broadcasting rights (domestic competitions) Gate receipts and match-day revenue UEFA revenue

Equity contributions Sponsorship and other commercial revenue Other revenue

Source: RFPL clubs, SPARK, PwC analysis

Gate and advertising One of the main drivers of change practices, as well as due to volatility in club revenue structure has been in the foreign exchange rates used revenues are growing, the increase in gate receipts and to recognise revenue in the statements. match-day revenue from new stadiums. while the share of revenue RFPL clubs continue to diversify from equity contributions At the same time, UEFA revenue has their sources of revenue. Over the is falling increased thanks to the success past five years, the share from equity of Russian clubs in European cups contributions has declined, while and the overall increase in the amount revenue from sponsorship and other of funds that UEFA distributes to clubs. commercial deals has increased. Data on UEFA revenues are presented The upswing in the numbers for 2013 according to the financial statements was due to a change in financial of RFPL clubs and may differ from practices at FC Anji. UEFA data due to Russian accounting

30 PwC Структура общих доходов клубов РФПЛ, млрд рублей

Revenue structure for RFPL clubs, RUB billion

63.3

59.1 2.2 3.0 56.1 2.4 1.4 53.7 2.7 4.2 1.7 2.1 1.9 2.4 5.1 2.5 8.7

14.4 8.7

11.4 38.7 1.3 1.7 2.1

27.8

13.1 26.8 19.6 23.2

14.9

17.3 16.8 12.4 13.4

5.6

2012 2013 2014 2015 2016

Broadcasting rights (domestic competitions) Gate receipts and match-day revenue UEFA revenue

Equity contributions Sponsorship and other commercial revenue Other revenue

Source: RFPL clubs, SPARK, PwC analysis

Медиа-права (внутренний чемпионат) Целевые поступления Доходы от билетов и матчевых мероприятий Спонсорские и прочие коммерческие доходы Поступления от УЕФА Прочие доходы

Russian Football Premier League. A comprehensive study of the economics of Russian football 31 UEFA prize money

Совокупные призовые клубов РФПЛ от участия в соревнованиях УЕФА, млн евро Over the last five years, Total UEFA prize money for RFPL clubs, EUR million FC Zenit and PFC CSKA have earned more prize money than other 63.3 59.8 RFPL clubs from UEFA 6.2 0.2 competitions 54.5 0.5 7.0 0.2 6.5 49.5 4.5 45.5 0.2 13.4 14.1

16.4 24.2 26.2 0.2

17.9

20.6

15.2

18.2 19.2 3.2 3.2 20.8 4.3 5.1 0.2 0.3 0.6 0.6 6.4 6.8 5.4 4.7 0.2

2012 2013 2014 2015 2016

Spartak Lokomotiv Krasnodar Zenit

CSKA Rostov Kuban Anji Dynamo Rubin

Source: UEFA, PwC analysis

Источник: УЕФА, анализ PwC To calculate the prize money won from of UEFA prize money among Russian UEFA, it was assumed that RFPL clubs clubs (around EUR 101 million). CSKA recognise revenue from the market pool is the second-highest earner, with for the group stages in the first half EUR 74 million over the last five years. of the season (before the New Year), The total revenue from UEFA prize and for the knockout stages in the second money among other clubs in the same half of the season (after the New Year). period amounted to EUR 98 million. Thanks to regular participation in the Champions League, over the last five years Zenit has been the top earner

32 PwC UEFA financial fair play

RFPL clubs tend to comply Aggregated balance sheet of revenue and expenditures of clubs with UEFA’s financial fair in the top 10 European leagues in 2016, EUR million play rules

59 176 Russia

26 -186 -33 23 156

Italy

Portugal -50

-203

-204 Source: UEFA, PwC analysis

Financial fair play (FFP) rules were Having paid UEFA penalties under introduced by UEFA in 2009 to help the current rules, several clubs’ financial clubs achieve balance between their activities continue to be monitored, revenue and expenditures by reducing including Krasnodar, Lokomotiv, Rubin budget deficits and ensuring long-term and Zenit. financial sustainability. In the 2016-2017 season, no Russian In 2014 and 2015, several Russian clubs were fined for violating FFP rules. clubs exceeded the break-even deficit thresholds established by UEFA and had to sign out-of-court settlements aimed at improving their financial indicators to comply with FFP rules.

Russian Football Premier League. A comprehensive study of the economics of Russian football 33 Match attendance

34 PwC Match attendance for RFPL clubs

In recent seasons, the RFPL СуммарнаяAverage attendanceпосещаемость per матчейRFPL match, РФПЛ thousandsпо турам в сезоне 2016/2017, тыс. человек has had stable attendance rates averaging 12,000 fansСуммарная посещаемость матчей РФПЛ по турам в сезоне 2016/2017, тыс. человек per match +28% 12.0 +28%

12.9 12.3 12.1 12.9 13.0 13.0 11.5 10.2 11.0 11.4 12.0

12.9 12.3 12.1 12.9 13.0 13.0 2008 2009 2010 2011/ 2012/ 11.52013/ 10.22014/ 11.02015/ 11.42016/ 2017/ 2012 2013 2014 2015 2016 2017 2018*

2008 2009 2010 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/ Суммарная посещаемость2012 матчей2013 РФПЛ,2014 млн 2015человек2016 2017 2018*

Суммарная посещаемость матчей РФПЛ, млн человек Total RFPL attendance, millions 3.2

3.2

3.1 3.1 3.1 3.0 2.9 2.8 2.7 2.7 2.4 2.1

3.1 3.1 3.1 3.0 2.9 2.8 2.7 2.7 2.4 2.1 2008 2009 2010 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/ 2012 2013 2014 2015 2016 2017 2018*

2008 2009 2010 2011/ 2012/ 2013/ 2014/ 2015/ 2016/ 2017/ * По итогам 1-го круга сезона РФПЛ2012 (15 из2013 30 туров)2014 2015 2016 2017 2018* Источник: РФПЛ, анализ PwC

* По итогам 1-го круга сезона РФПЛ (15 из 30 туров) Источник:* Based РФПЛ,on the firstанализ 20 rounds PwC of the RFPL season Source: RFPL, PwC analysis

Based on our analysis of RFPL • In the first 20 rounds of the attendance over the last 10 seasons, 2017-2018 season, average we observed the following trends: attendance has been at an all-time high with 13,000 fans per match. • The RFPL has had stable attendance rates, averaging 12,000 supporters • If this trend continues, attendance per match. for the entire season will also likely reach record highs.

Russian Football Premier League. A comprehensive study of the economics of Russian football 35 Stadium capacity utilisation in the 2016-2017 season

TotalСуммарная RFPL attendance посещаемость by round матчей in the РФПЛ 2016-2017 по турам season, в сезоне thousands 2016/2017, тыс. человек

Суммарная посещаемость матчей РФПЛ по турам в сезоне 2016/2017, тыс. человек Thousands 150 Thousands 126 115 117 110 109 150 103 105 98 126 96 99 97 99 92 99 100 87 89 87 87 85 83 91 89 115 76 75 76 78117 110 75109 67 103 105 73 98 96 99 97 99 92 99 100 87 89 87 87 85 83 56 91 89 50 76 75 76 78 75 67 73 56 50 0 1 432 5 67 8 910 11 1312 14 15 16 1817 19 20 21 22 2423 25 26 27 28 29 30 0 Rounds 1 432 5 67 8 910 11 1312 14 15 16 1817 19 20 21 22 2423 25 26 27 28 29 30 Rounds Заполняемость арен клубов РФПЛ в сезоне 2016/2017, % Stadium capacity utilisation in the 2016-2017 RFPL season, % of maximum capacity Заполняемость арен клубов РФПЛ в сезоне 2016/2017, % Thousand seats 50 Thousand seats 50

25

25 72% 50% 48% 50% 76% 72% 36% 54% 65% 26% 21% 26% 42% 45% 53% 77% 0 40% 50% 50% 76% 48% 36% 54% 26% 26% 42% 65% 45% 21% Anji Ufa 40% 53% 77% 0 Zenit Tom Ural Rubin CSKA Terek Amkar Spartak Arsenal Rostov Krasnodar Lokomotiv Orenburg Anji Ufa Zenit Tom Ural Rubin Krylia Sovetov CSKA Terek Amkar Spartak Arsenal Rostov Krasnodar Lokomotiv Orenburg Источник: РФПЛ, анализ PwCKrylia Sovetov

Источник: РФПЛ, анализ PwC Source: RFPL, PwC analysis

Orenburg (77%) and Zenit (76%) led Team performance impacted in terms of arena capacity utilisation attendance at Krylia Sovetov. for the 2016-2017 season. In Orenburg, Capacity utilisation at home matches the numbers are explained by the stadium’s by the end of the season was only limited capacity (7,500 seats) and 21% (maximum capacity of 30,000), by the club’s debut season in the RFPL. as the club was on the path toward relegation from the RFPL. Spartak took third place, as its utilisation rate has grown from season to season (from 55% to 72% over the last three seasons).

36 PwC Stadium capacity utilisation in the 2017-2018 season

Суммарная посещаемость матчей РФПЛ по турам в сезоне 2017/2018, тыс. человек Total RFPL match attendance by round in the 2017-2018 season, thousands

Thousands 150 Суммарная посещаемость матчей РФПЛ по турам в сезоне 2017/2018, тыс. человек

100

Thousands 127 142 119 119 107 122 119 118 111 15050 99 99 96 102 100 84 87 75 87 81 80

1000 21 3 4 65 7 8 109 11 12 13 14 15 1716 18 19 20 127 142 119 119 107 Rounds 122 119 118 111 50 99 99 96 102 100 84 87 75 87 81 80 Thousand seats 0 75 21 3 4 65 7 8 109 11 12 13 14 15 1716 18 19 20 Stadium capacity utilisation in the 2017-2018 season, % of maximum capacity Rounds 50 Thousand seats 75 25 80% 67% 70% 50 50% 55% 39% 20% 18% 31% 59% 37% 31% 59% 53% 41% 46% 0

Anji Ufa Zenit Ural 25 Rubin CSKA Tosno Amkar 80% Spartak Akhmat Arsenal Dynamo Rostov Krasnodar Lokomotiv 67% 70% 50% 55% 39% 20% 18% 31% 59% 37% 31% 59%SKA-Khabarovsk53% 41% 46% 0

Anji Ufa Zenit Ural Rubin CSKA Tosno Amkar Spartak Akhmat Arsenal Dynamo Rostov Источник: РФПЛ, анализ PwCKrasnodar Lokomotiv

SKA-Khabarovsk * Based on the first 20 rounds of the RFPL season Source: RFPL, PwC analysis

Источник: РФПЛ, анализ PwC This season, Otrkritie Arena ceded the New clubs in the RFPL have had mixed title of the largest stadium in the RFPL results. In its first season in the league, to Saint Petersburg Stadium, Zenit’s SKA-Khabarovsk has achieved 53% home arena. Zenit managed to improve capacity utilisation, while Dynamo capacity utilisation to a sturdy 80%. and Tosno, in light of current issues with their own stadiums, have reached Krasnodar and CSKA, clubs that are 37% and 31%, respectively. playing their second season at new venues, have also improved their capacity utilisation.

Russian Football Premier League. A comprehensive study of the economics of Russian football 37 Talent pools

38 PwC As the clubs commission Average headcount of various departments* across RFPL clubs new arenas, they are facing Средняяin the численность2017-2018 season различных департаментов* в клубах РФПЛ, чел., сезон 2017/2018 a shortage of qualified facility managers Sporting department

5 7 5 17

Communications department

77 40

Commercial department

12 51

Х Upper headcount threshold

* Role description: * Описание функций: Sporting departments: scouting, sports analytics. Спортивный департамент – селекция, спортивная аналитика. Communications departments: press service, PR and content production. – пресс-служба, PR, производство контента. CommercialДепартамент departments: коммуникаций sales, marketing and sponsorship deals. Коммерческий департамент – отделы продаж, маркетинга, коммерческие службы клубов. Source: RFPL, PwC analysis Источник: данные РФПЛ, анализ PwC

“To manage a new stadium, you Football clubs bring together specialists The clubs noted a shortage of event need marketing specialists, event from a variety of fields. The average managers on the job market. Demand managers and fan relationship headcount at RFPL clubs in the current for this role has increased due to managers, as well as narrow subject- season is 242 employees, including appearance of new multifunctional matter experts like groundskeepers.” players, coaches and administrative arenas. Club representatives also noted personnel. the need for experienced youth football coaches. As part of this study, we asked the clubs to provide detailed data on their scouting, communications and commercial departments. We invited our respondents to tell us whether they observed any “ talent gaps in these three areas. “There is a lack of training programmes to prepare youth academy staff, including coaches, “psychologists and managers.”

Russian Football Premier League. A comprehensive study of the economics of Russian football 39 Youth football

40 PwC Our survey respondents Assurance among RFPL clubs Key features at club schools and in the security of their investments believe the best stimulus Характеристикаacademies, % спортивных of all RFPL clubsшкол/академийУверенность при клубах клубов РФПЛ РФПЛ в защищенности инвестиций в подготовку футболистов in preparing athletes to expand investment in training programmes Partnerships with other Not confident for young athletes would sport schools Confident be tax benefits and 50% incentives General education programmes 44% 44% 56%

Sport courses for preschoolers

31%

Branches in other cities or regions

19% Источник: клубы РФПЛ, анализ PwC

Source: RFPL, PwC analysis

Источник: клубы РФПЛ, анализ PwC All RFPL clubs have academies, while current solidarity mechanisms need half the clubs also have partner to be rethought and upgraded. A major agreements with sport schools. So far, issue, according to the clubs, is that only three clubs have opened academy these payments do not fully account branches in other cities or regions. for the investments made in training and supporting players. Our survey Less than half the clubs (44%) provide respondents believe that tax benefits secondary education programmes, and incentives would be the most an important component in player efficient tool to expand investment education. in talent development. Only one-third of the clubs have programmes and special courses for preschoolers. More than half the RFPL clubs are not sure their investments in player training will pay off. This has had a direct impact on the size of club investments. Club representatives have highlighted that

Russian Football Premier League. A comprehensive study of the economics of Russian football 41 International benchmarking

42 PwC Revenue structure of higher-division clubs in the top 10 European leagues in 2016, %

1.1% 5.3% 5.3% 5.4% 5.3% 6.7% 8.6% 6.8% 10.7% 23.7% 22.0% 30.1% 25.0% 21.2% 33.0% 23.8% 31.2% 41.0% 38.9% 48.0% 9.9% 24.0% 16.0% 18.4% 13.9% 9.8% 11.7% 15.5% 11.4% 6.4% 60.6% 18.1% 12.8% 9.5% 18.3% 21.4% 9.2% 10.7% 20.6% 7.7% 46.5% 50.5% 12.3% 39.0% 11.2% 38.7% 37.1% 33.8% 33.3% 27.9% 4.9% 14.8% 18.7% 8.4% 4.1% England Germany Spain France Turkey Belgium Russia Average value (excl. Russia)

Other revenue, including equity contributions Sponsorship and other commercial revenue Gate receipts and match-day revenue

UEFA prize money Broadcasting rights (domestic competitions)

Source: UEFA, PwC analysis

The main sources of revenue The revenue structure of RFPL clubs is The share of sponsorship and other significantly different from that of teams commercial deals among RFPL clubs for higher-division clubs in other leading European leagues. amounts to 60.6% of the league’s total in the top 10 European The average share of revenue from revenue. This is the highest percentage leagues are broadcasting broadcasting rights in the other leagues among the top 10 European leagues is 38.7%, while only 4.1% in the RFPL. and exceeds the average percentage rights and sponsorship. across the leagues by almost two times. Due to the relatively moderate cost of RFPL broadcasting rights, Russian Because Russian clubs typically recognise clubs have to compensate by engaging equity contributions as other income, more sponsors and raising more equity the share of revenue from equity contributions. contributions in the revenue structure among RFPL clubs is four times higher than the average percentage across comparable leagues.

Russian Football Premier League. A comprehensive study of the economics of Russian football 43 Total revenue and expenditures of clubs in the top 10 European football leagues

Total revenue of higher-division clubs in the top 10 European leagues in 2016, EUR million

4,888 54

1,470

781 2,693 143 2,526 312 170

2,004 1,104 632 172

425 1,485 464 78 198 488 2,271 323 196 577

207 734 701 169 50 159 154 1,013 242 481 26 366 937 86 359 751 231 39 425 70 87 85 502 39 86 99 51 34 286 54 77 44 71 122 67 59 29

England Germany Spain Italy France Turkey Netherlands Portugal Belgium Russia

Other revenue, including equity contributions Sponsorship and other commercial revenue Gate receipts and match-day revenue

UEFA prize money Broadcasting rights (domestic competitions)

Source: UEFA, PwC analysis

Источник: УЕФА, анализ PwC

44 PwC Ratio of payroll expenses to revenue among clubs in the top 10 European leagues in 2016, EUR million Соотношение расходов на зарплаты к выручке в клубах ТОП-10 европейских чемпионатов в 2015 г., %, млн евро

5,000 Соотношение расходов на зарплаты к выручке в клубах ТОП-10 европейских чемпионатов в 2015 г., %, млн евро 63% (3,077) 5,000 63% 50% 57% (3,077) (1,356) 68% (1,430) 69% (1,365) 50% (1,021) 71% 60% 72% 57% 71% 63% (1,356) 68% (523) (288) (502) (1,430) 69% (259) (227) (1,365) 71% 72% 0 (1,021) 60% 71% (523) 63% (502) England Germany Spain Italy France Turkey Netherlands(288) (259)Portugal (227)Belgium Russia 0 England Germany Spain Italy France Turkey Netherlands Portugal Belgium Russia Прочие расходы в клубах ТОП-10 европейских чемпионатов в 2015 г., млн евро

Other expenditures among clubs in the top 10 European leagues in 2016, EUR million Прочие1,365 расходы в клубах ТОП-10 европейских чемпионатов в 2015 г., млн евро 109 1,187 1,365 149 109 1,187 866 722 149 152 1,256 131 572 1,038 866 57 152 722 319 714 591 255 239 1,256 131 572515 91 37 205 187 1,038 57 61 37 25 228 218 162 319 178 168 714 591 255 239 515 91 37 205 187 England Germany Spain Italy France Turkey Netherlands Portugal61 Belgium37 Russia 25 228 218 178 168 162

England Germany Spain Italy France Turkey Netherlands Portugal Belgium Russia Non-operating expenses Operating expenses

Non-operating expenses Operating expenses

Источник: УЕФА, анализ PwC Source: UEFA, PwC analysis

Источник: УЕФА, анализ PwC

The RFPL shares sixth place with the that agreements in foreign currency are Turkish Super Lig in terms of total club sensitive to exchange rate volatility. expenditures (minus transfer fees). Football club operating expenses include Together with Portugal, the ratio match day costs, infrastructure costs, of payroll expenses to revenue in these commercial costs and sponsor relationship leagues is the highest (71-72%). costs. Non-operating expenses include tax payments and financial performance. The ratio indicates an imbalance in club budgets. In Russia, another factor is

Russian Football Premier League. A comprehensive study of the economics of Russian football 45 4646 PwCPwC Contacts

Sports Consulting Practice at PwC Russia

Oleg Malyshev Partner [email protected]

Aleksander Kardash Senior Manager [email protected]

Anastasia Shalimova Assistant Manager [email protected]

Russian Football Premier League (RFPL)

Tel.: (499) 643 2213 Email: [email protected]

Russian Football Premier League. A comprehensive study of the economics of Russian football 47 www.pwc.ru

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